2011 · 2020. 9. 9. · Benjamín S.a., with 99.99% of the social rights, and Inversiones el aromo limitada, with 0.01%. on June 9th, 2011, there was an initial placement of shares

australis seafoods 1

auStralIS SeaFooDS

201 1annual report

2 australis seafoods

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ContenIDo 2


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our company We are a young company, l isted on the stock exchange and led by an expert team that has made us, in 2011, one of the fastest-growing salmon company in the world and also one of the most profitable in the national industry. We understand that this dynamic must go hand-in-hand with a sustainabil ity policy to make ours a business that is sustainable over time.

Luz 1 Fattening Center,

Aysén Region.


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Dear Shareholders,

2011 was a memorable year for australis

Seafoods, because we successfully com-

pleted the opening of our company, and,

although we are just in our fourth year of

existence, we became part of the Santiago

Stock exchange, which has historical sal-

mon companies. the market was supporti-

ve of our management decisions and future

plans. With demand exceeding supply by 22

times, we placed 12.77% of the company

shares with about 3000 new investors, rai-

sing approximately $71 million uSD. the goal

of this capital injection was to finance part

of our five-year business plan, which is am-

bitious, organic and sustainable.

the year was also memorable because we

intensified our policy of taking strategic

positions that support future development.

In this vein, we bought three fish farms:

las Vertientes in the la araucanía region,

Ignao in the los ríos region and Ketrún

rayén in the Bío Bío region. this brought

us to nine fish farms, the amount deemed

necessary for our growth and development

plan to 2015.

also, in order to ensure quick, strategic po-

sitioning in the north american market, we

1. letter from the president

bought 50% of true Salmon pacific Hol-

ding, one of the largest fish and seafood

marketers in the united States and Canada.

With sales of over $150 million, according to

2011 figures, and headquartered in Florida,

this acquisition will help us meet the pre-

sent and future demands of our customers

in both markets.

as we work within the framework of an

industry that must adapt to new sanitary

regulations, among those one which vir-

tually eliminates egg imports, our subsidiary

landcatch, which focuses on genetics, pro-

duced approximately 24 million eggs for our

use and approximately 42 million to supply

the domestic market.

2011 was also memorable in terms of re-

sults: we have become the world’s fastest-

growing salmon company and one of the

most profitable on a national scale, with an

approximate production of 30,000 tons of

salmon, sales of $164 million uSD and pro-

fits of $27.4 million uSD, 59% more than

that obtained in 2010.

In 2012 we plan production to be above

40,000 tons of salmon, and then we plan to continue with our previously designed pro-duction plans.

We understand that we are in a solid po-

sition to face the next periods, which will

bring changes in salmon and trout prices

due to increased global supply from the ra-

pid recovery of the Chilean salmon industry.

We have a solid financial position, outstan-

ding assets, good technical foundations

and a team of expert executives, which will

enable us to execute our ambitious develo-

pment plan and consolidate the position of

australis in the industry.

We will face these coming months in the

way we know best, with our low-cost poli-

cy and flexibility to adapt to challenges and

seize new opportunities that arise, while

maintaining our conviction that our me-

dium- and long-term business foundations

are solid.

roDrIGo arrIaGaDa aStroSa

President of the Board

Australis Seafoods S.A.

Rodrigo Arriagada Astrosa

letter FroM tHe preSIDent

Fry with Atlantic salmon yolk sac. Landcatch

Reproduction Program.


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IMportant MIleStoneS 201 1

We successfully opened on the stock market and managed to

collect approximately tuSD$71 to finance the

company’s development plan. this became

the moment when investors recognized the

company’s strength and reputation.

2. Important Milestones 2011

We created a major purchase plan that allowed us to stimulate

growth and consolidate our position raising

freshwater smolt in controlled environments.

as part of this plan, we acquired three fish

farms: las Vertientes, located in the Cunco

commune, la araucanía region; Ignao, lo-

cated in the lago ranco commune, los ríos

region; and Ketrún rayén, located in the los

Ángeles commune, Bío Bío region.

We acquired Salmones Galway and Salmones Mitahues, holders

of aquaculture concession applications in the

aysén region, which allows us to make fur-

ther projections for operations.

In order to increase sales in north america, we purchased 50% of

true Salmon pacific Holding, the second lar-

gest fish and seafood product marketer in the

united States and Canada by volume.

We obtained the Global Gap certi-

ficate for all operational farms and processing

plants. this organization sets voluntary stan-

dards for certifying aquacultural and agricul-

tural products worldwide. this facilitates our

entrance into european, asian and north ame-

rican markets.


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number of shareholders

name of major shareholders

103

asesorías e Inversiones Benjamín S.a.

private Investment Fund australis,

represented by administradora e Inversiones

tamarindo S.a.

4. ownership and Control of the entity

a) Basic identification

name australis Seafoods S.a.

Fictitious business name n/a

address av. presidente riesco 5711, of. 1603, las Condes

rut* 76.003.557-2

type of company publicly traded Corporation

b) Constitutive documents

Articles of association City Santiago

Date october 31st, 2007

notary’s office Iván torrealba acevedo

LegalizationDate published in

official Journal november 21st, 2007

entry in registry

of Commerce Santiago

pages 48,775

number 34,583

Date november 16th, 2007

c) Addresses, phone numbers, etc.

Main address av. presidente riesco 5711, of. 1603, las Condes

phone number (02) 299.58.00

Fax (02) 798.96.52

email [email protected]

3. Company Identification

CoMpany IDentIF ICatIon

Atlantic Salmon smolt.

* RUT = National Identification Number.


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name of controller(s) rutDirect ownership percentageIndirect ownership percentage

Means of exercising control

Major changes in ownership during 2011

In late 2010 the Company underwent a res-

tructuring process that rationalized the

number of subsidiaries of the company,

leaving a subsidiary for freshwater ope-

rations, landcatch Chile S.a., and another

for sea water fattening activities, austra-

lis Mar S.a.

In addition, on november 18th, 2010, the

company effected a capital increase equal

Quiroga Moreno, Isidoro ernesto6.397.675-K0%86.957%

Mr. Isidoro ernesto Quiroga Moreno exercises control of australis Seafoods S.a. through the

company asesorías e Inversiones Benjamín S.a. and the australis private Investment Fund. Mr. Isidoro ernesto Quiroga Moreno owns 0.1% of asesorías e Inversiones Benjamín S.a. and the remaining 99.9% belongs to Inversiones el aromo limitada, a company in which Mr. Quiroga

Moreno owns 99% of the social rights. the only contributor to the australis private Investment

Fund is the company rentas acuícolas limitada, whose members are asesorías e Inversiones

Benjamín S.a., with 99.99% of the social rights, and Inversiones el aromo limitada, with 0.01%.

on June 9th, 2011, there was an initial placement of shares on the Stock exchange. these

newly issued shares were representative of 12.830% of the issued shares.

to $23,643,442,802, which was fully subs-

cribed by shareholder australis private In-

vestment Fund, who had bought the share

belonging to the previous shareholder In-

versiones el aromo limitada.

Subsequently, on December 31st, 2010,

the Company underwent a division (which

affected shareholders starting on January

1st, 2010) that created a new company

concentrating investments in the ex-

subsidiary australis S.a. and which is not

part of the group of companies organized

under australis Seafoods S.a. (hereinafter

“Grupo aSF”). Investments were maintai-

ned in companies landcatch Chile S.a. and

australis Mar S.a. under australis Seafoods

S.a., continuing company.

oWnerSHIp anD Control oF tHe entIty

list of twelve largest shareholders on December 31st, 2011

No. Name Rut Shares %

1 Fondo de Inversión privado australis 76.123.347 1,101,077,936 78.48

2 asesorías e Inversiones Benjamín S.a. 79.744.960 106,924,508 7.62

3 larraín Vial S.a. Corredora de Bolsa 80.537.000 42,293,121 3.01

4 Fondo de Inversión larraín Vial Beagle 96.955.500 40,082,255 2.86

5 aFp Hábitat S.a. para Fondo pensión C 98.000.100 16,043,158 1.14

6 Fondo de Inversión Santander Small Cap 96.667.040 13,584,418 0.97

7 Compass Small Cap Chile Fondo de Inversión 96.804.330 12,254,012 0.87

8 aFp Hábitat S.a. Fondo tipo B 98.000.100 10,414,253 0.74

9 aFp Hábitat S.a. Fondo tipo a 98.000.100 8,969,575 0.64

10 Bolsa de Comercio de Santiago Bolsa de Valores 90.249.000 8,250,525 0.59

11 Siglo XXI Fondo de Inversión 96.514.410 5,134,128 0.37

12 linzor absolute return Fondo de Inversión privado 76.094.741 4,235,964 0.30


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our teamled by a top-level board of directors and a highly experienced professional team, at australis we understand that our main strength is in the people who put forth their best effort everyday to tackle and achieve our goals.

Harvest Site, Humos 1 Center,

Aysén Region.


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a) Description of organization australis Seafoods S.a. is a company that,

through its subsidiaries, holds interests in

the aquaculture sector, in particular in the

area of egg and smolt production, salmon

5. administration and personnel

species fattening, and the export and mar-

keting of these products.

to date, it has two major companies: one

concentrated on freshwater production

and the other on seawater fattening.

Below is the general organizational chart of

the company and its subsidiaries:

b) Board of directors and administrators

the company’s board of directors is made

up of the following people:

this structure allows for proper vertical

integration of the businesses, because

within the group, salmonid species produc-tion is managed all the way from genetic de-

velopment to final marketing. additionally, it

is possible to add value at each business

stage, which are indicated in the following

table, together with the company of the

group executing the respective stage:

From left to right: Federico Rodríguez, Rodrigo Arriagada, Isidoro Quiroga, Andrés Saint Jean, Rafael Fernández, Luis Felipe Correa.

aDMInIStratIon anD perSonnel

pisciculturarío Maullín

Spa

Comercializadora australis Spa

landcatch Chile S.a.(laCSa)

piscicultura río Salvaje

true pacific Holding

Company, InC

true Salmon pacific

Holding, llC

South pacific Specialties, llC

Salmon processors, llC

true nature Seafood, llC

Inversiones ovas del pacífico ltda.

Chile Seafood S.a.

Salmones Gamaltda.

Sociedad de Inversiones

Caiquenes ltda.

Galways

Mitahues

procesadora alimentos

australis Spa

100%

99.99998 %

0.00002 % 0.05 %

99.50%

99.00%

99.95%

99.00%1.00%

99.00%1.00%

99.00%

99.00%

99.00%

100%

1.00%

1.00%

1.00%

0.50%

1.00%

australis Seafoods S.a.

australis Mar S.a.(aMSa)

100%

50%

50%

100%

100%

Stage Company

Genetic development and egg production landcatch Chile S.a.

raising and fattening in freshwater landcatch Chile S.a.

Fattening in seawater australis Mar S.a.

Marketing and export australis Mar S.a.

Name RUT Profession

Isidoro Quiroga Moreno 6.397.675-K Civil engineer

rodrigo arriagada astrosa (president) 8.547.812-5 Civil engineer

Federico rodríguez Marty 9.357.625-K lawyer

luis Felipe Correa González (Secretary) 11.947.424-8 lawyer

rafael Fernández Morandé 6.429.250-1 Civil engineer

100%


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Australis Seafoods S.A.

Andrés Saint-Jean HernándezGeneral ManagerMechanical Civil engineer, universidad de ConcepciónDpa, universidad adolfo Ibáñezrut: 7.085.033-8

Luis Felipe Correa GonzálezChief legal Counsellawyer universidad Diego portalesMaster of Business law of the universidad de los andesrut: 11.947.424-8

Ricardo Daniel Misraji VaizerChief Financial officerBusiness administration universidad Católica de ChileMBa, university of Cambridge, uK.rut: 8.967.131-0

Australis Mar S.A.

Andrés Saint-Jean HernándezGeneral ManagerMechanical Civil engineer, universidad de ConcepciónDpa, universidad adolfo Ibáñezrut: 7.085.033-8

Gabriel Guajardo Gonzálezproduction ManagerFisheries engineer, universidad Católica de ValparaísoMBa, Faculty of economics and administra-tion universidad australrut:7.853.905-4

Luis Norambuena AstorgaChief Financial officeraccountant, universidad australrut: 9.976.863-0

Carlos Palma OpazoBusiness ManagerIndustrial Civil engineer, pontificia universi-dad Católica de Chile

rut: 8.934.457-3

Landcatch Chile S.A.

José Manuel Bernales BalbontínGeneral Manager Fisheries technician, universidad técnica del estadorut: 8.558.354-9

Dionisio Ramos Salgadoproduction ManagerFisheries technician, universidad técnica del estadorut: 9.020.136-0

Fernando Silva VillanuevaChief Financial officeraccountant, universidad de la Fronterarut: 7.485.399-4

c) Organization personnel

the following chart gives a list of company

personnel at the end of 2011:

From left to right: Luis Felipe Correa, Carlos Palma, Gabriel Guajardo, Andrés Saint Jean, Luis Norambuena, Fernando Silva, José Manuel Bernales, Dionisio Ramos, Ricardo Misraji.

For the period ending on December 31, 2011,

the Company paid president rodrigo arria-

gada astros $4,000,000, Director Isidoro

Quiroga Moreno $6,000,000, Director luis

Felipe Correa $6,000,000, Director Federico

rodríguez Marty $6,000,000, and Director

rafael Ferández Morandé $6,000,000..

the Company incurred no board advising ex-

penditures in 2010.

6. remuneration

the Company does not have a Directors

Committee and therefore incurred no expen-

ditures in this regard.

total paid remuneration for managers and

executives reached $2,325,000 uSD in 2011.

the Company made no compensation pa-

yments for years of service to its managers

and chief executives in 2011.

the names and positions of each manager and senior executive are listed below:

aDMInIStratIon anD perSonnel

Company AMSA LACSA ASF Total

executives 9 3 2 14

professionals and technicians 67 38 1 106

administrators 20 11 0 31

Workers 10 186 0 196

total 106 238 3 347


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allowed operations to be expanded within

the value chain of atlantic pacific salmon

(coho) and trout and the different processes

in each of the companies to be optimized.

It is worth noting that aMSa’s beginning of

operations in March of 2008 coincided with

one of the biggest crises that have affec-

ted the salmon industry in Chile. the rise in

energy supplies and raw materials, a rapid

deterioration of the exchange rate, and the

greatest health crisis in the national salmon

industry caused by the ISa caused a great

value loss in the industry.

In response to the situation, there were

constant modifications to company proces-

ses in the year 2008 in order to minimize

the risks that were so prominent in the in-

dustry. as a result, aMSa’s operating inco-

me for 2008, its first year of operation, was

$565,000 uSD, and for their second year of

operation, tuSD$12.2. the latter result con-

trasts strongly with the results obtained in

the same period by the rest of the industry,

which suffered the greatest losses in its

history. It is worth adding that australis has

had a successful track record, with an ope-

rating income for aMSa in 2011 greater than

In mid-2003, Mr. Isidoro Quiroga Moreno

acquired a stake in the freshwater smolt

production company australis S.a. (herei-

nafter “aSa “) and became its controller in

2005. In 2007, through different companies,

the acquisition of 100% of aSa shares was

completed. at this time the company had

fish farms located in the Metropolitan re-

gion, and facilities in the la araucanía re-

gion were subsequently incorporated.

that same year, australis Seafoods S.a. was

established as the parent company (Gru-

po aSF) in order to give a corporate group

structure to the activities in the aquaculture

industry.

In addition, the Group decided to participa-

te in the business of seawater salmon and

trout fattening and marketing the fish in in-

ternational markets. For this purpose, in no-

vember of 2007, the company australis Mar

S.a. was established (hereinafter “aMSa “).

the integrated operation of aSa and aMSa

grew to include everything from the buying

of eggs and/or smolts (cultivated in the fres-

hwater facilities of aSa) to fattening in the

aMSa cultivation centers, where the pro-

duction cycle ended. this business model

7. Historical overview

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H IStorICal oVerVIeW

tuSD$45, confirming its consolidation.

Furthermore, Grupo aSF understood that

the need to integrate the production of eggs

into a genetic enhancement program (family

selection) in Chile was an essential element

for the development of the business and its

value chain. the high risk associated with

egg import was considered, as it is known

that this can be a vehicle for the transmis-

sion of new diseases for these species. to

this end, in late october 2009, Grupo aSF

acquired 100% of the shares of landcatch

Chile S.a. (hereinafter “laCSa”), from the

Scottish companies landcatch limited and

landcatch natural Selection limited. laCSa

has one of the best and oldest breeding pro-

grams in the country, which makes Grupo

aSF stand out in the industry.

along with the purchase of laCSa shares, a

technical Support Contract was signed with

landcatch natural Selection limited, who

agreed to provide technical consulting to

laCSa on breeding issues in the reproduc-

tion of salmonid species and reproduction

programs, among other similar issues, effec-

tive until December 31st, 2015, renewable for

periods of three years from that date onwards.

In 2010, in consideration of the growth

of Grupo aSF, the new acquisitions and,

above all, the new challenges ahead, the

Company decided to execute a corporate

re-organization process of its subsidiaries,

in which laCSa assumed all the activities

of aSa. as a result of this process, the acti-

vities of Grupo aSF were separated into two

business areas: (i) production of genetically

improved eggs, fry and smolts exclusively in

freshwater through laCSa, and (ii) fattening

of salmonid products and the marketing and

export of salmon to primarily foreign mar-

kets, through aMSa.

In June 2011, australis Seafoods opened on

the Santiago Stock exchange, successfully

raising tuSD$71.3 to finance the company’s

growth plan.

Finally, in December 2011, australis Seafoods

acquired 50% of the main salmonid marke-

ter in the united States, true Salmon pacific

Holding, for uSD$7,525,000. the purchase

of this strategic asset will allow better dis-

tribution of products in the american market.

In this stage of development of Grupo aSF

and its business, its controller, manage-

ment, employees and partners understand

that the Company operates under a mission,

vision and values that are summarized as

follows:

Missionto offer world-class products, developed by a production process that is environmentally friendly,

has the highest hygiene standards and is responsible towards its workers, all under an efficient

and flexible modern management system.

Vision to be recognized as an innovative, efficient and environmentally friendly company that is respec-

tful of the social environment in which it operates, becoming a leading company in terms of costs

and profitability.

Values Commitment to workers: promoting the integral development of our employees in a safe, respectful

and peaceful environment.

Innovation and quality in harmony with the environment: Constant search for the best operating

solutions in order to achieve high-quality production, with the utmost caution and care for the

environment and the surrounding communities.

Best practices: adherence to the principles of best business practices in compliance with the cu-

rrent standards and regulations for all the activities undertaken by Directors, Managers and em-

ployees of Grupo aSF.


Matilde 2 Fattening Center,

Aysén Region.


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the Salmon Industry Following the salmon industry’s vigorous recovery, accompanied by strict sanitary regulations for land and sea production, we know that medium- and long-term business fundamentals are more solid than ever. Chile is positioned as the top producer to respond to growth of global demand.


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8. the Salmon Industry GrapH no. 2: FarMeD atlantIC SalMon

proDuCtIon by Country (2011)

Source: Kontal i

14%

10%

7%3%1% 3%

62%

GrapH no. 3: FarMeD trout proDuCtIon by

Country (2011)

Source: Kontal i

5%3%

2%1%3%14%

Source: Kontal i

601632 654

790827

936991

1054

1200

1000

800

600

400

04 05 06 07 08 09 1 0 1 1 e

norwayChile

572612 607 634

700

509 431

574

GrapH no. 4: evolutIon oF atlantIC SalMon, trout anD paCIFIC SalMon (CoHo) FarMeD In CHIle anD norWay

Source: Kontal i

thou

sand

s of

tons

. WFe

thou

sand

s of

tons

. WFe

3000

2500

2000

1500

1000

500

0

01 02 03 04 05 06 07 08 09 1 0 1 1 e

Farmed Salmon Wild Salmon

GrapH no. 1: Global SalMon Supply

839

732

932

801

933

858

1019

758

1109 90

7

1001

1139

1200

1271

1333 14

01

1408

1529

1598

1624

1589

1777

72%


Patranca Fattening Center,

Aysén Region.

a. The Market

Supplythe supply of salmon around the world has

increased steadily in recent years, mainly due

to increased production of farmed salmon. the

catch of wild salmon, meanwhile, has remai-

ned relatively stable over the last decade. Cu-

rrently, approximately 64% of global salmon

production is farmed salmon. (Graph no.1)

the main producers of farmed salmon and

trout are norway and Chile, together accoun-

ting for near 76% of global salmon production

and 86% of global trout production. Both

countries have climatic and sea conditions fa-

vorable for farming these fish, which explains

the high concentration on the supply side.

Graph no.2 and no.3)

prior to the sanitary crisis, which was mainly

due to the ISa virus that hit Chile in 2007,

salmon and trout production in the country

was similar to that of norway. However, the

gap in production between the two coun-

tries increased significantly due to the high

mortality rates affecting Chile in 2008 and

2009.

Since 2009, norway’s total production has

approximately doubled Chilean production,

but this gap is expected to decrease begin-

ning in 2012.

Chile Ireland

Canadaunited Kinsdon others

norway Faroe Islands

Chile Sweden

DenmarkFinland others

norway Faroe Islands


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tHe SalMon InDuStry

table no. 1: Format and destination of norwegian atlantic salmon exports in 2011 (thousands of tons WFe)

Destination Fresh Frozen Filet fresh

Filet frozen Smoked Other Total

european union 554.0 5.7 63.8 22.7 1.2 1.0 648.5

Japan 22.1 1.3 5.4 4.9 0.1 0.1 34.0

Hong Kong 14.9 2.1 0.1 0.0 0.0 0.2 17.3

China 4.6 2.2 0.0 0.0 0.0 0.1 7.0

uSa 0.6 2.7 11.6 13.5 0.1 0.0 28.6

russia 110.0 4.7 0.1 0.2 0.0 0.3 115.4

others 60.2 39.6 3.9 12.2 2.0 2.7 120.5

total 766.5 58.4 84.9 53.6 3.5 4.5 971.3Source: Kontali

table no. 2: Format and destination of norwegian trout exports in 2011 (thousands of tons WFe)



russia 20.9 2.2 0.0 0.0 0.0 0.0 23.0

Japan 0.7 3.4 0.0 0.0 0.0 0.0 4.2

China 0.0 3.3 0.0 0.0 0.0 0.0 3.3

european union 4.5 0.7 0.3 0.4 0.0 0.0 5.9

uSa 0.1 0.1 0.0 0.0 0.0 0.0 0.2

others 4.9 4.2 0.0 0.6 0.0 0.0 9.7


table no. 3: Format and destination of Chilean atlantic salmon exports in 2011 (thousands of tons WFe)



uSa 1.9 0.7 65.9 11.4 5.1 14.2 99.1

Brazil 37.4 2.0 0.7 2.8 0.2 0.1 43.0

Japan 0.0 0.9 0.0 4.4 0.2 0.2 5.8

rusia 0.0 1.0 0.0 0.0 0.0 0.1 1.0

european union 0.0 0.4 0.3 9.4 0.1 7.1 17.2

China 0.0 3.7 0.0 0.2 0.0 0.0 3.8

others 4.6 19.1 3.0 8.3 1.0 1.3 37.4


table no. 4: Format and destination of Chilean trout exports in 2011 (thousands of tons WFe)



Japan 0.0 35.9 0.0 66.2 0.0 8.8 110.9

thailand 0.0 15.9 0.0 0.5 0.0 0.4 16.8

uSa 0.0 0.3 13.1 2.9 0.0 0.7 16.9

russia 0.0 15.8 0.0 0.0 0.0 0.1 15.9

european union 0.0 0.8 0.0 0.5 0.0 0.7 2.0

others 1.7 18.8 0.4 5.9 0.0 0.3 27.2

total 1.8 87.5 13.5 76.0 0.0 10.9 189.7 Source: Kontali

table no. 5: Format and destination of Chilean pacific salmon (coho) ex-ports in 2011 (thousands of tons WFe)



european union 0.0 0.1 0.0 0.3 0.0 1.5 2.0

Japan 0.0 124.6 0.0 1.2 0.2 0.2 126.2

China 0.0 6.3 0.0 0.0 0.0 0.0 6.3

others 0.2 9.2 0.2 4.6 0.0 1.0 15.1


table no. 6: evolution of global demand for atlantic salmon in the main markets (thousands of tons WFe)

2009 2010 2011* ∆% 2011/2010

european union 766 737 785 6.5%

ee.uu. 281 257 287 11.7%

Japan 40 34 45 32.4%

others 418 418 501 19.9%

total 1.505 1.446 1.618

Growth -3.9% 11.9% *actual values through november, December; estimated

Source: Kontali

DemandIn 2011, the global demand for atlantic salmon

grew 11.9% from 2010. However, let us recall that

in 2010 there was a decrease in the demand,

with respect to the previous year, due to a re-

duced supply, consequence of the reduction

affecting Chilean production. the main salmon

markets, including the european union, united

States and Japan, together accounted for 69%

of global demand. (table no.6)

PricesIn 2011, the average price for atlantic salmon

was $8.50 uSD/kg FoB Chile, which is an in-

crease of 3% from 2010. pacific salmon

(coho) and trout, meanwhile, reached ave-

rage prices of $5.80 uSD/kg and $8.20 uSD/

kg, respectively, reflecting an increase of 10%

and 15% compared to the previous year. It is

important to note that these two species are

not affected by the ISa virus. (table no.7)

the main destination markets for global sal-

mon and trout exports are the united States,

asia, the european union, russia, and since

2010, latin america. Within these markets,

the norwegian industry primarily caters to

the european union, while Chilean produc-

tion mainly goes to markets in the united

States, asia and latin america.

(tables no.1,2,3,4 and 5)


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tHe SalMon InDuStry

table no. 7: accumulated average prices FoB Chile uSD/kg

Especie 2008 2009 2010 2011

atlantic salmon 6.4 6.0 8.3 8.5

pacific salmon (coho) 3.6 4.7 5.2 5.8

trout 4.7 6.0 7.1 8.2Source: Infotrade

table no. 8: accumulated average price by export desti-nation FoB Chile (uSD/kg) January - December 2010/2011

Market Species 2010 2011 % Variation

atlantic 8.8 8.7 -2%

Japan Coho 5.0 5.6 12%

trout 7.6 9.0 19%

atlantic 10.3 10.4 1%

uSa Coho 9.3 9.9 6%

trout 8.8 9.4 7%

atlantic 7.0 7.0 -1%

a.l. Coho 6.6 6.6 -1%

trout 6.1 6.5 6%

atlantic 8.9 9.7 10%

u.e. Coho 9.6 10.4 8%

trout 5.0 5.4 8%

atlantic 8.1 8.1 0%

others Coho 5.2 6.0 16%

trout 6.0 6.7 13%Source: Infotrade

Graph no. 9: ranking of the top ten exporters

Company Thousands of dollars

Net tons

MaInStreaM CHIle S.a. 247,136.5 37,155.2

SalMoneS MultIeXport S.a. 219,994.8 22,859.3

loS FIorDoS lIMItaDa 194,460.8 30,138.5

SalMoneS antÁrtICa S.a. 156,352.8 18,974.2

truSal S. a. 148,736.7 17,463.4

auStralIS Mar S.a. 147,246.5 18,882.7

MarIne HarVeSt CHIle S.a. 144,293.2 19,298.7

Grupo aCuInoVa CHIle 143,440.3 20,291.7

aGuaS ClaraS S.a. 129,112.9 16,493.1

GranJa MarIna tornaGaleoneS S.a. 121,236.4 18,840.5

eMpreSaS aQuaCHIle S.a. 115,263.9 18,219.2 Source: Infotrade

8

7

6

5

4

3

2

1

0

uS

D/K

g

99 01 03 05 07 09 11

Graph no. 5: evolutIon oF averaGe prICe Fob CHIle uSD/kG 1999-2011 (atlantIC SalMon, CoHo anD trout)

GrapH no. 6: atlantIC SalMon exportS by CoMpany (net tonS)January - DeCeMber 2011

25,000

20,000

15,000

10,000

5,000

0

net

ton

MarIn

e Har

veSt

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S.a.

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oneS

Mul

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.a.

loS F

IorDo

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ItaDa

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trea

M CH

Ile S.

a.

auSt

ralIS

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S.a.

SalM

oneS

CupQ

uela

n S.a.

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ar De

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as for the price of Chilean exports accor-

ding to destination, the growth in trout

shipments to Japan was notable, with

a rise of 19% between 2010 and 2011.

prices of exports to north america for

the same period did not experience sig-

nificant variations for the atlantic species.

However, we can see price increases of

16% for pacific salmon and 13% for trout

in “other markets.” Finally, despite the eu-

ropean crisis, there were increases of 10%,

8% and 8% for atlantic salmon, pacific

salmon and trout, respectively. (table no.8)

If the average annual prices from Decem-

ber 2011 are compared with past prices,

we can see they are the highest in the

last 10 years. (Graph no. 5)

b. The competition an analysis of the number of companies

involved in salmon farming globally shows

a downward trend in the number of partici-

pants, a trend that could take place in Chile as

well. In norway, the number of companies

making up 80% of farmed salmon produc-

tion decreased from 70 to 25 between 1997

and 2009. In Chile this trend stopped in

2009 due to the entry of new players into

the industry. However, in light of new regu-

lations and a new production system, the

industry is expected to consolidate in the

coming years. Currently, more than 50%

of export sales and exported tonnage are

concentrated in the top ten companies.

(table no.9)

d. Trends

Demandon the demand side, there has been an

increased global consumption of animal

protein in recent years, mainly due to an

increasingly wealthier world population.

this, coupled with the global trend towards

increased consumption of healthy foods,

such as white meat and seafood in general,

puts the salmon industry in a position with

high growth potential for the coming years.

In addition, we can see an increase in sales

of products designed for greater consumer

convenience, which will lead to an increased

supply of products with a higher added value.

Globally, there is also a high penetration in

marketing channels in the major markets,

which today require continuous availability

of product. Salmon is an attractive product

that meets this retail industry demand.

a recovery of the major world economies,

after the global financial crisis of 2007 and

2008 and the european crisis in late 2011,

is expected in the coming months, which

would result in a resumption of the growth

in demand seen before these events.

Furthermore, the incorporation and conso-

lidation of new salmon export markets such

as russia and Brazil will create, in the opi-

nion of Grupo aSF, an increase in demand in

coming years.

Supplythe limited capacity for growth of norwe-

gian salmon production and sanitary pro-

blems in the main production area, plus the

fact that wild salmon catches have remai-

ned stable in recent years, place Chile as

the main producer to meet the needs of the

growing global demand.

locally, changes in the regulatory fra-

mework and the implementation of a series

of measures for the industry, including the

creation of production areas or “neighbor-

hoods,” should ensure good sanitary and

environmental conditions that result in

long-term sector sustainability.

the industry is continuously improving the

production system, which, coupled with the

development of new technologies for redu-

cing sanitary risk, should generate better

performance in production and an increa-

sed survival rate.

the sustained supply of salmon throughout

the year has resulted in an increased share

of salmon in distribution channels, and this

trend is expected to continue.

c. Relative market share and evolution

aMSa’s first salmon and trout harvest was

in 2008 and the company’s initial mar-

ket share was modest. Starting in 2010 it

strengthened its position, and in December

2011 it occupied the fifth spot in the leading

atlantic salmon producers ranking.

In the national market, laCSa has been the

main egg supplier and also a major supplier

of high quality smolts. (Graph no.6)


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In the sea centers, the fish are monitored

the entire time they are there, which can be

between 10 and 18 months, depending on

the species. this monitoring encompasses

all variables that affect the development

and fattening of the fish, such as their

health and weight gain, among others.

once the fish have reached the harvest

weight or commercial size, they are trans-

ported to processing plants that supply

aMSa with services of live fish collection,

slaughtering and processing, and which

are located in the Chonchi (Chiloé) and

puerto Montt area.

aMSa uses the well boat live harvest sys-

tem, which allows the fish to be transpor-

ted live from the farms to the processing

plants. the system sucks the fish up from

their floating cages and deposits them in

the storage tanks on the well boat.

the advantages of using this harvest sys-

tem are operation speed, reduction of fish

stress, improved quality of raw material

entering the plant, and, of course, sanitary

control of production.

the slaughter process is painless for the

fish and animal welfare and sanitary con-

ditions are carefully monitored throughout

the process.

the processing plants receive the raw ma-

terial (whole trout or salmon) and, using

the latest technology and skilled labor,

transform it into value added products ba-

sed on the requirements of the customers

in the target markets.

once the plant process is over, the end

products, both fresh and frozen, are put

in cold storage. From there, the fresh pro-

ducts are shipped daily in refrigerated

trucks to Santiago’s international airport.

Meanwhile, the frozen products are kept in

cold storage until they are loaded into con-

tainers at -18°C to be transported by sea to

different ports.

the products undergo a strict inspection

in controlled land farms. each of these fish

farms has high sanitary standards in order to

produce and deliver high quality fish.

Fattening in seawater:raising and fattening the fish in seawater

begins when the smolts enter the various

centers, and finishes with the harvest of

fish with a weight of three to five kilograms,

depending on the species. the process

takes place in aMSa facilities or centers,

which are located in the aysén region.

production of atlantic salmon, pacific sal-

mon and trout is detailed below (table no.11):

Genetic development:the genetic program is based on cons-

tant improvement of each generation of

spawning fish. attributes such as growth,

meat color and disease resistance, among

others, are enhanced so that each new

generation has an increasingly high per-

formance. as a result, this genetic im-

provement program satisfies the need to

reproduce fish with high reproductive per-

formance, for both the freshwater phase

and the seawater fattening phase.

It is worth noting that in 2011, 23 million

units of atlantic salmon eggs were produ-

ced in the summer, replacing the need to

import them and surpassing the produc-

tion plan of 16 million for that period.

Below is a table with laCSa’s egg produc-

tion (table no.10):

Raising and fattening in freshwater:raising and fattening in freshwater in-

cludes the incubation, smoltification and

spawning processes of the fish, that is, the

incubation and hatching of the eggs until

they become fry (15 g approx.) and the sub-

sequent raising and fattening of the fry until

they reach smolt condition (100 g approx.).

all these processes take place in laCSa fish

farms located in the Metropolitan, Bío Bío, la

araucanía and los lagos regions in Chile.

We add that Grupo aSF does not have any

lake or estuary concessions for the smolti-

fication process. this process takes place 8.1 business Descriptions

the salmon business is managed through

a value chain extending from the species’

genetic development to export and final

marketing of the products in their various

shapes and sizes.

Salmon farming uses both freshwater and

seawater in its different processes.

the freshwater phase begins with egg pro-

duction, obtained from the spawning sal-

mon (males and females) that, in the case

of laCSa, have spent their whole lives in

freshwater fish farms. the next step is

hatching and raising and fattening the fry

until they become smolts, a condition ne-

cessary for transferring them to seawater.

the sea phase is the last in the farming

process and involves raising and fattening

the fish until they reach the weight requi-

red for processing and marketing.

Below is a brief explanation of each of the-

se processes.

BuSIneSS DeSCrIptIonS

table no. 11: aMSa production volumes by species.

Tons by species 2010 2011 % Variation 2010/2011

atlantic salmon 7,926 21,394 170%

pacific salmon (coho) 6,955 4,607 -34%

trout 583 4,081 600%

total 15,464 30,082 95%

Source: Grupo aSF

table no. 10: laCSa’s egg production.

2006 2007 2008 2009 2010 2011

atlantic salmon egg production

(Millions)

30.1 16.1 30.9 23.6 25.6 67.4

Source: Grupo aSF

Fish eggs, Cululí Fish Farm, Los Lagos Region


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atlantic salmon exports in 2011 were sent to

the following markets:

Insurance on production and assets: Grupo

aSF’s policy is to continuously assess the

benefits of having proper insurance coverage

for the biomass found in both fresh and sea

water in all of its stages (eggs, fry, smolt or

other). Grupo aSF’s main assets, including in-

land fish farms and sea centers, are insured.

the following table shows aMSa sales vo-

lumes for different species (table no.12):

process and are subjected to a microbio-

logical laboratory analysis at every stage

of the process.

Marketing and export:as a result of the strategy mentioned abo-

ve, a variety of products and retail formats

are obtained, depending on the destination

country. the following business strategy is

used to market seawater products:

Pre-sold production and signing medium- and

long-term contracts: 100% of the raw mate-

rial that is transported from the farms to the

collection centers of the processing plants is

pre-sold (supply agreements). For pacific sal-

mon (coho) and trout, prices are agreed upon

for the entire harvest season. For atlantic

salmon, prices for a share of the production

(fresh to the united States) is set a week in ad-

vance, and for other markets (latin america),

set for an entire month. For frozen products,

business closures can go as long-term pro-

grams (3, 6 or more months), depending on

each case. this policy allows for price opti-

mization and reduction of fluctuations of the

spot market price.

Market diversification: the Grupo aSF sales

portfolio is diversified into several markets,

which mitigates the risks and threats of each.

a policy of continuous new market develop-

ment has made this possible.

Client development: Having the best clients

in each market and developing long-term bu-

siness relationships with them is a constant

concern. to foster this, aSF acquired 50% of

true pacific Salmon Holding (tSp), one of the

largest traders of fish and seafood in the uSa

by sales volumes.

BuSIneSS DeSCrIptIonS

table no. 12: aMSa finished product sales volumes by species.

Tons by species 2010 2011 Variation % 2010/2011

atlantic salmon 8,342 20,569 147%

pacific salmon (coho) 6,698 4,203 -37%

trout 553 3,684 566%

total 15,593 28,456 82%

Source: Grupo aSF

GrapH no. 7: aMSa atlantIC SalMon export

DeStInatIon 2011

57%23%

8%

7%1% 1% 3%

Source: Infotrade

Atlantic Salmon, headed to

Colombia.

latin america Hong Kong

FranceBrazil others

uSa Spain


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8.2 risk Factors

rISK FaCtorS

table no. 13: Detail of assets of Grupo aSF on December 31st, 2011, in tuSD$

Asset Dec.2011

Current assets 172,769

Cash and cash equivalents 51,480

Biological assets, flows and inventories 90,303

trade receivables 16,864

other current assets 14,122

Fixed asset 60,373

Construction and work in progress 9,274

land 4,952

Buildings 981

plants and equipment 54,778

Information technology equipment 206

Fixtures and fittings 3,071

accumulated depreciation (12,889)

non-current assets 62,463

non-current biological assets 28,860

Intangible assets 14,456

other non-current assets 19,147

total 295,605

Atlantic Salmon, headed to

the United States.

the salmon business inherently involves

a number of risks that affect industry de-

velopment. Some of the factors are:

Market risk: Salmon products fall into the

commodities category, and are therefore

subject to the price variations of the inter-

national market. Because of this, the sales

prices of these products are subject to sea-

sonal fluctuations in price that can be either

upward or downward.

Exchange rate risk: Grupo aSF sales are made

in uSD, and there is an implicit risk in the

appreciation of this currency as compared

to the Chilean peso. Both appreciations and

depreciations of the local currency directly

affect Grupo aSF’s results, since some ex-

penses are in local currency.

Cost of food: among the costs of production

of salmon and trout, food is the most signi-

ficant direct cost, both in freshwater and

fattening business but more so in the latter.

price variations of food come from variables

exogenous to Grupo aSF, such as the price or

cost of fish meal, which in turn depends on

the costs of the extractive fishing industry.

Interest rate: over 75% of the company

debt is subject to a lIBor rate and a fixed

spread, so the variations of this rate directly

affect the company. to date there is no me-

chanism for setting this lIBor rate. the rest

of the debt is in uSD and with fixed rates, so

there is no exposure to rate variations.

Operating risks: Because they are biologi-

cal assets, salmon production is potentia-

lly affected by a number of biological risks.

Some are:

Disease: although diseases are currently

controlled by vaccines, antibiotics, good

handling practices and through the pro-

duction of high quality smolts, we cannot

rule out the emergence of new diseases

or epidemics that could affect production.

predators: the presence of natural salmon

predators, such as sea lions, can mean a

loss of biomass and even the destruction

of the net cages. the industry has imple-

mented a series of preventive measures

that help mitigate the adverse effects

caused by these predators.

natural risks: Salmon growth depends,

among other factors, on climatic and

ocean conditions such as ambient bright-

ness or water temperature that can have

negative effects on fish growth and food

consumption.

Investment and finan-cing policies Considering the country’s egg import res-

trictions, designed to protect the indus-

try from outbreaks of high risk disease

from abroad (case of ISa crisis), and in

order to supply its own needs and those

of third parties, Grupo aSF acquired lan-

dcatch Chile S.a. (“laCSa”) at the end of

2009. this company is a national leader

in supplying smolts and eggs and has de-

veloped a genetic enhancement program

(family selection) that enhances attribu-

tes that increase profitability in salmon

production. additionally worth noting is

the plan this company is developing to

implement infrastructure for meeting in-

ternal egg needs and egg needs of third

parties, as well as internal smolt needs,

in accordance with the spawning pro-

gram that is projected until 2015.

aMSa investments in 2010 were focused

on buying concessions and opening the

ocean centers necessary for fish fat-

tening in the already available conces-

sions. these investments were financed

with medium-term bank credits obtained

at the end of 2008 and refinanced in

2010, and also with the company’s own

resources defined for its reinvestment

plan. In 2011, aMSa made investments

related to the implementation of new

centers necessary for carrying out its

development plan and to the buying of

concessions.

Financing of laCSa and aMSa was co-

ordinated based on the policies of Grupo

aSF, each one maintaining a direct finan-

cing structure with the financial system.

Main Assets on December 31st, 2011, the Company’s

main assets are the following (table no.13):


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rISK FaCtorS

Humos 1 Fattening Center, Aysén

Region, during the harvest process

in December 2010.

Sensen Fish Farm. Ignao Fish Farm. Curacalco Fish Farm.

Detail of assets:the list above shows an amount of

tuSD$60,373 for fixed assets. laCSa has its

own fish farms, four in financial leasing and

four under long-term lease contracts.

on December 31st, 2011, aMSa had 17 centers

in operation, all located in the aysén region.

Aquaculture concessions and water rights: Grupo aSF has property and freshwater usa-

ge rights for aquaculture development in the

los ríos and los lagos regions. It also has

sea concessions and applications in the pro-

cess of becoming sea concessions, with the

technical capability to produce and/or harvest

a biomass easily satisfying the 80 thousand

tons projected in the 2015 plan.

Properties:Grupo aSF properties include the Curacalco

fish farm in the la araucanía region and the

property and water usage rights in the la

araucanía and los lagos regions. aMSa’s

main assets are the concessions and the

equipment of the fattening centers.

Equipment:the main equipment of Grupo aSF is that loca-

ted inside the fish farms and the sea centers.

More specifically, in the freshwater phase,

there are filters, tanks and all assets related to

water purification and circulation. In the case

of seawater, the equipment is everything lo-

cated in each of the fattening centers, such

as pontoons, power supply systems, cages

and nets.


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Main assets We have fish farms, operation centers, aquaculture concessions, genetics, water rights and equipment that give us a solid strategic position for sustaining our future development plans.

Female Atlantic Salmon,

Ignao Fish Farm. Landcatch

Reproduction Program.

.


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SuBSIDIarIeS anD aFFIl IateS

In 2011, aSF did not have any business with its subsidiaries and affiliates

(other than property relations). there were no contracts signed between

aSF and its subsidiaries and affiliates that significantly influence aSF ope-

rations and results.

10. Distributable profitDuring the period covered in the current annual report, the company made a profit of $27,429 thousand uSD. the Board of Directors proposes to the shareholders’ meeting that the amount of $8,243 thousand uSD be distributed. the amount to be distributed corresponds to 30% of the net income minus all the effects of Fair Value in 2011.

9. Information on Subsidiaries and affiliates and Inves-tments in other Companies

Australis Mar S.A.

name australis Mar S.a.

legal nature Corporation

Capital subscribed and paid tuSD$ 5,066

purpose Breeding and marketing of aquatic species, particularly salmonid species

Board of Directors rodrigo arriagada astrosa

Federico rodríguez Marty

alfredo Carvajal Molinare

General Manager andrés Saint Jean Hernández

% total participation in the matrix 100%

proportion of investment in the represented as-set in the matrix

40%

on December 31st, 2011, the main subsidiaries of Grupo aSF are the following:

Landcatch Chile S.A.

name landcatch Chile S.a.

legal nature Corporation

Capital subscribed and paid tClp$ 5,066,055

purpose production, distribution and marketing of salmon and other fish varieties in different stages of the production cycle, bred and genetically enhanced for fresh or salt water



andrés Saint Jean Hernández

General Manager José Manuel Bernales Balbontín

% total participation 100%


9%

Piscicultura Río Maullín SpA

name piscicultura río Maullín Spa

naturaleza Jurídica Joint-stock Company

Capital subscribed and paid tClp$ 1

purpose Buying, selling, breeding, cultivation, import, export and distribution of all type of marine resour-ces, and in particular, salmonid species



luis Felipe Correa González

General Manager rodrigo arriagada astrosa



0%

Comercializadora Australis SpA

name Comercializadora australis Spa

legal nature Joint-stock Company

Capital subscribed and paid tClp$ 1

purpose Import, export, distribution, representation and marketing of all types of merchandise, goods and products, and above all, any sort of marine resource and salmonid species; investment in all sorts of immovable or movable property, corporeal or incorporeal, such as stocks, rights, bonds and debentures, negotiable instruments, shares or rights in any type of company


alfredo Carvajal Molinare

luis Felipe Correa González

General Manager andrés Saint Jean Hernández



0%

11. Dividend policythe company annually distributes at least 30% of net profits from each financial year as a cash dividend to shareholders, provided the balance between accumulated loss and net income is positive. this is without prejudice to the case in which the company’s dividend is reinvested by shareholders. In this last case, the amount of the divi-dends may be up to the total of the year’s net income.


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InForMatIon

12. Share transactions For the period herein reported, the company had the following share

transactions:

• on March 14th, 2011, Director rodrigo arriagada astrosa subscribed to 2,000,000 company shares. the share price is equal to the price at which each share was offered when it first entered the stock exchan-

ge, that is, $185. the transaction amount was $370,000,000, and the

payment deadline is pending. this subscription was not made with the

intention of acquiring control of the Company, but rather was a financial

investment.

• on March 14th, 2011, Director Federico rodríguez Marty subscribed to 1,000,000 company shares. the share price is equal to the price at

which each share was offered when it first entered the stock exchan-

ge, that is, $185. the transaction amount was $185,000,000, and the

payment deadline is pending. this subscription was not made with the

intention of acquiring control of the Company, but rather was a financial

investment.

• on June 14th, 2011, the company C. rodríguez y Cia. limitada, con-nected to Director Federico rodríguez, bought 54,000 shares of the Company on the stock exchange, at a unit price of $185. the total transaction amount was $9,990,000. this purchase was not made with the intention of acquiring control of the Company, but rather was a financial investment.

13. Information on essential or relevant Facts

During 2011 the Company reported the following essential or relevant

facts:

• on april 8th, 2011, by public deed executed by the Santiago notary’s

office eduardo avello Concha, the subsidiary landcatch Chile S.a. acqui-

red the entire economic unit of the las Vertientes Fish Farm, located in

the la araucanía region, Cunco Commune. It was purchased from a

non-related company and the price amounted to uSD$5,600,000.

• By deed, on april 20th, 2011, executed by the Santiago notary’s office

eduardo avello Concha, the subsidiary landcatch Chile S.a. acquired the

entire economic unit of the Ignao Fish Farm, located in the los ríos re-

gion, lago ranco Commune. It was purchased from a non-related com-

pany and the price amounted to uF 98,556.

• the shares registered by the company in the Securities registry of the

Securities and Insurance Superintendency, to be placed on the market

under the number 925, received the following risk classification on May

20th, 2011: (i) Fitch Chile Clasificadora de riesgo ltda: First Class level 4.

(ii) Clasificadora de riesgo Humphreys limitada: First Class level 4.

• By means of private instruments, on May 2nd, 2011 and July 19th, 2011,

the subsidiary australis Mar S.a. and amado rodríguez, alejandro almeida

and Francisco pinto signed a Memorandum of understanding in which both

parties reached an agreement on the terms and conditions under which

australis Mar S.a. acquires 50% of the shares of true pacific Holding Com-

pany, Inc., a company constituted in the state of Florida, united States of

america, whose orientation and experience is marketing fish and seafood.

• on May 19th, 2011, the Board of Directors approved the “regularity po-licy on related party operations” and the “policies of Information Dis-

closure and treatment and ownership and transaction of Securities Is-

sued by australis Seafoods S.a,” hereinafter the “policies,” which must

comply with articles 9, 10, 12, 16 and subsequent articles of the law no.

18,045 on the Securities Market and article 147 of law no. 18,046 on Cor-

porations and the General Standards no. 269 and no. 270 of the Securi-

ties and Insurance Superintendency.

• By means of deeds dated June 3rd, 2011, issued in Mr. ricardo Fontecilla’s notary’s office of llanquihue, the subsidiaries of the compa-nies australis Mar S.a. and piscicultura río Maulín Spa acquired 100% of the social rights of Salmones Galway limitada and Salmones Mitahues limitada. these companies are owners of 89 requests for aquaculture

concessions in different sectors of the ocean in the aysén region. the

price of the aforementioned concessions was established on the basis

of a fixed price, a sum of tuSD$2, paid with the signature of the co-

rresponding deeds, and a variable price of tuSD$3, associated with the

progress of the concession requests owned by the acquired companies

and obtaining certain resolutions from relevant authorities regarding

these requests. In addition, tuSD$100 will be paid for each concession

awarded to a specific technical project starting with number 14, which

has been favorably approved.

• on June 8th, 2011, the Board of Directors declared successful the pla-

cement of 180,000,000 first issue shares, representative of 12.77% of

the Company’s capital stock. this placement took place on June 9th,

2011 in the Santiago Stock exchange. the first issue share offer took pla-

ce in the local market through larraín Vial S.a. Stockbrokerage, acting

as placement agent, and the sale was executed in the Santiago Stock

exchange, Securities exchange by means of the trading method “orders

Book auction.” the auction price of the offered shares was fixed by the

Company for a sum of $185 per share, making the total amount of the

share placement $33,300,000,000.

• through public deeds awarded the 5th and 15th of July, 2011, in the

Santiago notary’s office of Mr. eduardo avello, the Company’s subsidiary

procesadora de alimentos australis Spa bought, from an unrelated third

party, the facilities and equipment of the seafood processing plant in the

industrial sector of puerto Chacabuco, commune and province of aysén.

the total price of the sale amounted to $1,125,000,000.

• the subsidiary landcatch Chile S.a., through public deeds on June

30th, 2011, carried out two transactions with Banco Santander Chile in

order to refinance the acquisition of the las Vertientes and Ignao fish

farms. the total amount is $8,681,309 for a period of eight years with one

grace year, 4.62% annual interest and option to prepay under parame-ters established starting in month 25.

• By means of public deeds issued September 13th, 2011, in the los Án-

geles notary’s office of Mr. Selim parra, landcatch Chile S.a. bought,

from an unrelated third party, the Ketrún rayén fish farm, located in the

commune of los Ángeles, Bio Bio region. the unit and total price of the

sale amounted to $2,863,063,905.

• on october 20th, 2011, a Special Shareholders Meeting was held. Sha-reholders representing 97.274% of the total shares with voting entitle-ment attended, and the following was decided: (i) the revocation of the current Board, and the election of new members, including Mr. rafael Fernández Morandé, who was nominated by the shareholder aFp Há-bitat S.a. to represent pension funds it manages, and who was elected without the controlling shareholder votes. the other directors elected were nominated by the controlling shareholder and were already acting as directors of the Company; (ii) Determination of remuneration of Direc-tors in their offices until the next regular shareholder meeting; (iii) Modi-fication of currency used for Company accounting and stating statutory capital from Chilean pesos to united States Dollars; (iv) Capitalization of

the highest value obtained in the placement of shares on June 9th, 2011,

taking out issue and placement costs, in compliance with paragraph two

of article 26 of the Corporations law, this capital being fixed at a sum of

uSD$123,032,084; (v) reform of the permanent fifth and temporary first ar-

ticles of the bylaws, in order to reflect the new agreements of the previous

points.

• the subsidiary landcatch Chile S.a., by means of a public deed dated no-

vember 21st, 2011, made a leaseback transaction with BBVa Chile regarding

the Ketrún rayén fish farm, located in the commune of los Ángeles, Bio Bio

region, for price of $5,708,336.00 for a period of eight years with a six mon-

th grace period.

• on December 9th, 2011, the subsidiary Comercializadora australis Spa acquired 50% ownership of true Salmon pacific Holding Co. (hereinafter

“tSp”), owner of 100% of the social rights or shares of true nature Se-

afoods Inc. and South pacific Specialties llC, companies through which it

markets fish and seafood in the united States of america and Canada to

unrelated third parties. the total price amounts to $7,525,000 uSD.

• on December 15th, 2011, Mr. ricardo Daniel Misraji Vaizer replaced Mr. al-

fredo Carvajal Molinare as the new Chief Financial officer of australis Se-

afoods S.a.

14. Summary of Sharehol-der Comments and propo-salsIn 2011 the company did not receive any comments or proposals from shareholders owning 10% or more of the issued shares. In this period

the company did not have a board of directors.

15. Financial reports annex no. 1 presents the company’s financial reports, properly audi-ted under their respective rationales.


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ConSolIDateD F InanCIal StateMentS

Declaration of responsibility

the undersigned affirm that all the information contained in this 2011 annual report is reliable and true.

Rodrigo Arriagada Astrosapresident of the Board

8.547.812-5

Isidoro Quiroga MorenoDirector

6.397.675-K

Federico Rodríguez MartyDirector

9.357.625-K

Luis Felipe Correa GonzálezSecretary Director

11.947.424-8

Rafael Fernández MorandéDirector

6.429.250-1

Andrés Saint-Jean HernándezGeneral Manager

7.085.033-8


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Consolidated Financial Statements auStralIS SeaFooDS S.a. anD SubSIDIarIeS

ContentIndependent auditors report 47

Classified consolidated statement of financial position 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$ - uS dollars

tuSD$ - thousands of uS dollars

December 31, 2011



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Independent auditors report Santiago, March 14, 2012

Dear Shareholders and Directors

australis Seafoods S.a.

We have audited the consolidated statements of financial position of australis S.a. and subsidiaries as of December 31, 2011 and 2010, the

consolidated statement of financial position from opening on January 1, 2010 and of the corresponding consolidated statements of compre-

hensive income, of the changes in equity and of cash flows for the years ending on these dates. the preparation of these financial statements

(including the related notes) is the responsibility of the administration of australis Seafoods S.a. and subsidiaries. our responsibility is to give

our opinion about these financial statements based on the audits we conducted.

these audits were conducted in accordance with the auditing standards generally accepted in Chile. these standards require that we plan

and conduct the audit to obtain reasonable assurance that the consolidated financial statements are free of significant incorrect representa-

tions. an audit includes examining, based on tests, of evidence supporting the amounts and disclosures shown in the consolidated financial

statements. an audit also includes an evaluation of the accounting principles used and the significant estimates made by Company admi-

nistration, as well as an evaluation of the overall presentation of the consolidated financial statements. We believe that our audits provide a

reasonable basis for our opinion.

In our opinion, these consolidated financial statements present accurately, in all significant aspects, the financial position of australis

Seafoods Sa and subsidiaries as of December 31, 2011 and 2010 and of January 1, 2010, the comprehensive income of its operations and cash

flows for the years ending December 31, 2011 and 2010, according to International Financial reporting Standards.

luis enrique alamos o.

rut: 7.257.527-8


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auStralIS SeaFooDS S.a. anD SuBSIDIarIeS

Classified Consolidated Statement of Financial position

the attached notes, numbers 1-34, form an integral part of these consolidated financial statements. the attached notes, numbers 1-34, form an integral part of these consolidated financial statements.

Assets NoteAs of December 31, 2011 TUSD$

As of December 31, 2011 TUSD$

As of January 1, 2010 TUSD$

Current assetsCash and Cash equivalents 7 51,480 11,768 3,670other non-financial assets, current 426 377 35trade debtors and other receivables, current 9 16,864 10,175 11,133accounts receivable to related entities, current 10 5,751 9,462 1,523Inventories 11 11,506 2,617 3,494Biological assets, current 12 78,797 57,651 29,523assets for taxes, current 13 7,945 5,748 1,211Total of Current Assets 172,769 97,798 50,589

Non-current assetsother non-financial assets, non-current 14 7,535 8,929 5,553Investments recorded using accounting method of partici-pation

15 7,612 - -

Intangible assets other than goodwill 16 14,456 10,422 6,775properties, plant and equipment 17 60,373 30,664 20,888non-current biological assets 12 28,860 16,343 9,445assets for deferred taxes 18 4,000 1,593 1,283Total of non-current assets 122,836 67,951 43,944

Total of Assets 295,605 165,749 94,533

Equity and Liabilities NoteAs of December 31,

2011 TUSD$As of December 31, 2011 TUSD$


LiabilitiesCurrent liabilitiesother current financial liabilities 19 16,445 12,630 40,365trade accounts and other receivables, current 20 51,330 35,244 14,283Current accounts payable to related entities 10 3,893 557 2,990provisions for employee benefits, current 21 2,604 1,900 465Total of current liabilities 74,272 50,331 58,103

Non-current liabilitiesother non-current financial liabilities 19 65,725 52,252 379other non-current, payable accounts 20 - - 5,259non-current accounts payable to related entities 10 - 628 11,395liability for deferred taxes 18 8,877 5,617 3,791other non-financial liabilities, non-current - - 10provisions for employee benefits, non-current 21 1,507 360 -Total of non-current liabilities 76,109 58,857 20,834

Total of liabilities 150,381 109,188 78,937

EquityIssued capital 22 123,081 46,652 20,114acumulated earnings (losses) 23 24,163 11,929 (4,708)other reserves (2,020) (2,020) -equity attributable to the owners of the controller 145,224 56,561 15,406non-controlling participation - - 190Total equity 145,224 56,561 15,596

Total of Liabilities and Assets 295,605 165,749 94,533


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Consolidated Income Statement by FunctionauStralIS SeaFooDS S.a. anD SuBSIDIarIeS

Consolidated Statement of Comprehensive Income

the attached notes, numbers 1-34, form an integral part of these consolidated financial statements

For the financial year ending on

NoteDecember 31, 2011

TUS$December 31, 2010

TUS$Income Statement of Earnings (loss) Income from regular activities 25 163,664 84,401 Cost of sales (113,315) (58,307) Gross profit pre fair value 50,349 26,094

(charge) credit to Fair Value earnings of biological assets harvested and sold (23,479) (14,627) (charge) credit to Fair Value earnings for current development of assets 23,420 13,608 Gross profit 50,290 25,075

other earnings, per function 26 450 2,200 Distribution cost 27 (2,025) (1,257) Management expenses 28 (8,317) (5,217) other expenses, per function 26 (1,700) (2,736) Financial earnings 1,921 238 Financial Costs 29 (1,901) (1,241) Interests in earnings (losses) from associates and joint ventures that are recorded using the method of participation

15 87 -

exchange differences 30 (4,680) 2,362 Income (loss), before taxes 34,125 19,424

expenses per income tax 18 (6,696) (2,047)

Income (loss) from on-going operations 27,429 17,377 Income (loss) from ceased operations - -

Income (loss) 27,429 17,377

Income (loss), attributable to Income (loss), attributable to owners of the controllers 27,429 17,377 Income (loss), attributable to non-controlling interests - -

Income (loss) 27,429 17,377

Income per asset

Income per basic and diluted asset Income (loss) per basic and diluted asset in on-going operations 0.020 847 Income (loss) per basic and diluted asset per ceased operations - -

Income (loss) per basic asset 0.020 847

the attached notes, numbers 1-34, form an integral part of these consolidated financial statements.

Por el ejercicio terminadoAs of December 31

of 2011 TUSD$As of December 31

of 2010 TUSD$

Consolidated statement of comprehensive income -

Income (loss) 27,429 17,377

Elements of other comprehensive results, before taxes

Conversion exchange differences

Income (loss) per conversion exchange differences, before taxes - -

Other comprehensive income, before taxes, exchange differences pro conversion - -

Other elements of comprehensive income, before taxes - -

Other comprehensive income - -

Total of comprehensive income 27,429 17,377

Comprehensive income attributable to

Comprehensive income attributable to owners of controller 27,429 17,377

Comprehensive income attributable to non-controlling interests - -

Total of comprehensive income 27,429 17,377


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Consolidated Statement of Changes in net equityaS oF DeCeMBer 31, 2011 anD 2010

Issued capital Share premium Other reserves Acumulated earnings (losses)

Equity attri-butable to the owners of the

controller

Non-controlling interests

Total equity

TUSD$ TUSD$ TUSD$ TUSD$ TUSD$ TUSD$opening balance current period 01/01/2011 46,652 - (2,020) 11,929 56,561 - 56,561Increase [decrease] due to changes in accounting policies - - - - - -Increase (decrease] for error corrections - - - - - -Opening balance restated 46,652 - (2,020) 11,929 56,561 - 56,561Changes in equity Comprehensive income profit (loss) - - 27,429 27,429 - 27,429 other comprehensive income - - - - - - Comprehensive income - - 27,429 27,429 - 27,429 Issuance of equity 7,790 61,687 - 69,477 - 69,477 Dividends - - (8,243) (8,243) - (8,243) Increase (decrease] due to other owner contributions 6,952 - (6,952) - - - Capitalization premium 61,687 (61,687)Total changes in equity 76,429 - - 12,234 88,663 - 88,663Final balance current period 12/31/2011 123,081 - (2,020) 24,163 145,224 - 145,224

Issued capital Share premium Other reserves Acumulated earnings (losses)

Equity attri-butable to the owners of the

controller

Non-controlling participation

Total equity

TUSD$ TUSD$ TUSD$ TUSD$ TUSD$ TUSD$opening balance current period 01/01/2010 20,114 - - -4,708 15,406 190 15,596Increase [decrease] due to changes in accounting policies - - - - - - -Increase (decrease] for error corrections - - - - - - -Opening balance restated 20,114 - - (4,708) 15,406 190 15,596Changes in equity Comprehensive income profit (loss) - - - 17,377 17,377 - 17,377 other comprehensive income - - - - - - - Comprehensive income - - - 17,377 17,377 - 17,377 Issuance of equity - 0 - 0 Dividends (9,466) (9,466) (9,466) Increase (decrease] due to other owner contributions 50,519 50,519 50,519 Increase (decrease] due to other owner distributions (18,083) (18,083) (190) (18,273) Increase (decrease] due to transfers and other changes (8,152) 8,152 0 0 Increase (decrease] due to portfolio transactions 458 458 458 other increases 2,254 (2,020) 116 350 350Total changes in equity 26,538 - (2,020) 16,637 41,155 (190) 40,965Final balance current period 12/31/2010 46,652 - (2,020) 11,929 56,561 - 56,561

the attached notes, numbers 1-34, form an integral part of these consolidated financial statements. the attached notes, numbers 1-34, form an integral part of these consolidated financial statements.


Consolidated Statement of Cash Flows Indirect Method

as part of the other reserves account balance, accounting effects derived from the application of official Memorandum no. 456 of the SVS.

01/01/2011 01/01/201112/31/2011 12/31/2011

Statement of cash flowsCash flows from / (used in) operating activities

Income (loss) 27,429 17,377Adjusments per income (loss) reconciliation

adjusment per expenses per income tax 6,696 2,047adjustments per decrease (increase) of inventories (42,300) (34,681)adjustments per decrease (increase) in comercial payable accounts (6,602) 2,415adjustments per decrease (increase) in other receivable account from operation activities (803) -adjustments per increases (decrease) in comercial payable accounts 6,837 13,003Depreciation and amortization adjustments 2,771 1,300provision adjustment 2,767 1,106adjustments of unperformed foreign exchange losses (earnings) 4,680 (2,362)adjustments per loss (earnings) of fair value 59 1,019other adjustments per items different from cash - -adjustments per non-distributed earnings of associates (87) -Total of adjustments per income (loss) reconciliation (25,982) (16,153)

paid dividends (9,248) -Net cash flows from / (used in) operating activities (7,801) 1,224

Cash flows from / (used in) investment activitiesother payments to acquire participation in joint ventures (4,000) -Charges to related entities 9,248 -Carrying amounts from properties, plant and equipment sold 8,782 -purchasing of properties, plant and equipment (32,877) (14,161)purchasing of intangibles assets (2,666) (490)Net cash flows from / (used in) investment activities (21,513) (14,651)

Net cash flows from / (used in) financing activitiesItems from share issue 69,477 -Items from long term loans 5,292 32,367Items from short term loans 9,248 -loans to related entities - 640payment of loans (12,600) (11,285)payment of liabilities due to financial leases (230) (197)paid interests (1,533) -payments of loans to related entities (628) -Net cash flows from / (used in) financing activities 69,026 21,525

Net increase (decrease) in cash and cash equivalents before the effect of the changes in the foreign exchange rate 39,712 8,098

effects of the variation on the exchange rate on cash and cash equivalentsNet increase (decrease) in cash and cash equivalents 39,712 8,098Cash and cash equivalents at the start of the period 11,768 3,670Cash and cash equivalents at the end of the period 51,480 11,768


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notes to the Consolidated Financial Statements as of December 31, 2011

note 1 - General Informationaustralis Seafoods S.a. rut 76.003.557-2 (hereinafter “australis Seafoods” or the “Company”) is a Corporation constituted by

means of a public deed on october 31, 2007, executed in the notary’s office of Iván torrealba acevedo, according to index no. 11.568-

07. an extract of this deed was entered in the register Commerce of the real estate office of Santiago, pages 48,775 no. 34,583.

the Company is located on avda. presidente riesco 5711, office 1603, las Condes, notwithstanding the agencies, offices or branches

established in the country or abroad. the duration term of the Company is indefinite.

on May 19, 2011, the Company was registered under the number 1074 in the Securities registry of the SVS.

the capital of the Company is one hundred and twenty-four million four hundred and seventy-seven thousand u.S. dollars (tuSD $

124,477) which is divided into 1,403,002,444 shares (one billion four hundred and three million two thousand four hundred and

forty-four).

the Society corresponds to a parent company that integrates a group of four subsidiaries; landcatch Chile S.a., australis Mar S.a.,

río Maullín Spa. Fish Farm and Comercializadora australis S.a. this structure was defined at the end of 2010 in order to focus and

strengthen the different businesses in the group, that is, the freshwater business through the subsidiary landcatch Chile S.a. and

the seawater business through the subsidiary australis Mar S.a. this was done considering that the previous structure of the group

included two subsidiaries for freshwater business, one subsidiary for seawater fattening and other additional subsidiaries, which

made the group’s business development less efficient. Subsequently, in July 2011, the subsidiary Comercializadora australis Spa

was incorporated.

the company’s social purpose, as defined in its charter, is:

a) the import, export, distribution, representation and marketing of all kinds of merchandise, goods and products.

b) the purchase, sale, exchange, leasing and disposal of all types of real estate and movable assets, aquaculture concessions,

fishing and fish farm authorizations, rights and other similar assets.

c) the supply of all types of services, from the company or from third parties and consultants, including those services related to

fishing and fish farming, among others.

d) the buying, selling, breeding, cultivation, import, export and distribution of all type of hydro-biological resources, and in particular,

salmonidae species, and also all business directly or indirectly related with fishing and fish farming activities.

e) Investment in all types of movable or inmovable assets, tangible or intangible assets, such as stocks, bonds and debentures,

commercial instruments, savings schemes, shares or rights in any sort of company, whether commercial or civil, communities

or associations, and in any type of bond or security, and in general, to execute all contracts and acts to achieve these ends, and

f) to form, constitute or integrate companies, associations or corporations of any type in order to achieve the social purposes.

these financial statements of austalis Seafoods S.a. and subsidiaries consist of the classified Consolidated Statement of financial

position, the Consolidated Statement of comprehensive income by function, the Consolidated Statement of indirect cash flow, the

Consolidated Statement of changes in net equity and the Complementary notes with disclosures to these consolidated financial

statements.

the financial statements present an accurate image of the net worth and financial position on December 31, 2011, as well as results

of operations, changes in equity and cash flows that occurred in the company for the financial year ending on December 31, 2011.

For the purpose of comparison, the classified Statement of financial position and the associated explanatory notes are compared

with the balances of December 31, 2010 and January 1, 2010, and the Consolidated Statement of indirect cash flow and the Conso-

lidated Statement of changes in net equity are given for the financial year ending on December 31, 2011 and 2010.

the consolidated financial statements of australis Seafoods S.a. were prepared on a going concern basis.

the consolidated financial statements of australis Seafoods S.a. and subsidiaries corresponding to the financial year ending on

December 31, 2011 were approved by the board during a meeting on March 14, 2012.

note 2 - Summary of the Main accounting policies Below, the main accounting policies adopted for preparation of consolidated financial statements are described. these will be applied

uniformly to all financial periods presented in these financial statements.

2.1 Basis of preparationthese consolidated financial statements of australis Seafoods S.a. a December 31, 2011 were prepared in accordance with the Inter-

national Financial reporting Standards (IFrS). the company has adopted the International Financial reporting Standards starting on

January 1, 2011, and therefore the transition date to these standards is January 1, 2010. the financial statements from December 31,

2011 have been prepared in order to comply with SVS requirements.

In accordance with the provisions of IFrS 1, the date of transition of australis Seafoods S.a. and subsidiaries is January 1, 2010 and

the date of adoption is January 1, 2011.

the preparation of these consolidated financial statements in conformity with IFrS requires the use of certain accounting estimates

and criteria. It also requires that the administration exercises judgment during the process of applying the Company´s accounting

policies.

note 5 gives the areas involving a higher degree of judgment and complexity or the areas where assumptions and estimates are

relevant and significant for the consolidated financial statements.

at the date of these financial statements, there are no significant uncertainties regarding events or conditions that may cause signi-

ficant doubts as to whether the entity will continue to operate normally on a going concern basis.

2.2 New issued standards and interpretationsa) the following standards, interpretations and amendments are mandatory for the first time for the financial periods beginning on

January 1, 2011:

Standards and interpretations

Mandatory for periods

beginning on

IaS 24 (revised) “Disclosures of related parties” 01/01/2011


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Amendments and improvements Mandatory for periods beginning on

IaS 32 “Financial Instruments: presentation” 02/01/2010

IFrS 1 “First-time adoption of International Financial reporting Standards” 07/01/2010

Improvements to International Standards: there have been improvements made to the IFrS 2010 in May 2010 for a set of standards and interpretations. the effective adoption dates of these minor modifications vary from standard to standard, but the majority have an adoption date of January 1, 2011:

IFrS 1 “First-time adoption of International Financial reporting Standards” 01/01/2011IFrS 3 (revised) “Business Combinations” 07/01/2010IFrS 7 “Financial Instruments: Disclosures” 01/01/2010IaS 1 “presentation of Financial Statements” 01/01/2011IaS 27 “Consolidated and Separate Financial Statements” 07/01/2010IaS 34 “Interim reporting” 01/01/2011IFrIC 13 “Customer loyalty programs” 01/01/2011

the adoption of the standards, amendments and interpretations described above do not have a significant impact on the consoli-

dated financial statements of the Company.

b) the newly issued standards, interpretations and amendments, not in force for the financial year 2011, have not yet been adopted.

Standards and interpretationsMandatory for periods

beginning onrevised IaS 19 “employees benefits” 01/01/2013

IaS 27 “Separate Financial Statements” 01/01/2013

IFrS 9 “Financial Instruments” 01/01/2015

IFrS 10 “Consolidated Financial Statements” 01/01/2013

IFrS 11 “Joint agreements” 01/01/2013

IFrS 12 “Disclosure of shareholdings in other entities” 01/01/2013

IFrS 13 “Fair value measurements” 01/01/2013

IFrIC 20 “Stripping Costs in the production phase of open pit mines” 01/01/2013

Amendments and improvementsMandatory for periods

beginning onIaS 1 “presentation of Financial Statements” 07/01/2012

IaS 12 “Income taxes” 01/01/2012

IFrS 1 “First-time adoption of International Financial reporting Standards” 07/01/2011

IFrS 7 “Financial Instruments: Disclosures” 07/01/2011

IaS 28 “Investments in associates and joint ventures” 01/01/2013

Company administrations deems that the standards, amendments and interpretations adoption described above do not have a significant impact on the Company´s consolidated financial statements in the first period of application.

2.3. Basis of consolidationa) Subsidiaries

Subsidiaries are all entities over which australis Seafoods S.a. and subsidiaries have power to govern financial and operating poli-

cies, which generally comes with a stake of more than half of the voting rights. When evaluating if the group of companies organized

under australis Seafoods S.a., hereinafter the “Group,” controls another entity, the existence and effect of potential voting rights

that are currently possible to exercise or convert are considered. the subsidiaries are consolidated from the date on which control

is transferred, and are excluded from the consolidation on the date that control ends.

the acquisition accounting method is used for subsidiary acquisition. the acquisition cost is the fair value of the assets relinquis-

hed, of the equity instruments issued and of the incurred or assumed liabilities at the date of exchange, plus the costs directly

attributable to the acquisition. the identifiable acquired assets and the assumed identifiable liabilities and contingencies in a busi-

ness combination are initially measured by their fair value at the date of acquisition, independently of the extent of non-controlling

interests. the cost excess of acquisition on the fair value of the Company´s participation in the identifiable net assets acquired is

recognized as goodwill. If the cost of acquisition is less than the fair value of the net assets of the acquired subsidiary, the difference

is recognized directly in the income statement.

Intercompany transactions are eliminated, along with balances and unrealized earnings from transactions between related entities.

unrealized losses are also eliminated, unless the transaction provides evidence of a loss due to depreciation of the transferred

asset. When it is necessary in order to ensure uniformity with the policies adopted by australis Seafoods S.a. and subsidiaries, the

subsidiaries’ accounting policies will be modified.


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Below are the details of the companies included in these consolidated statements of financial position

Company Name RutCountry of origin

Functio-nal

currency

As of December 31, 2011 As of December 31, 2011 %

As of January 1,

2010 %Direct

%Indirect

%Total %

landcatch Chile S.a. (i) 77.071.070-7 Chile uSD - - - - 100.00

australis Mar S.a. 76.003.885-7 Chile uSD 99.95 0.05 100.00 100.00 100.00

pisc. río Maullín Spa 76.082.694-4 Chile uSD 100.00 - 100.00 100.00 100.00

landcatch Chile S.a. (ex pisc.

río Calle Calle S.p.a.) 76.090.483-k Chile uSD 99.9998 0.0002 100.00 100.00 100.00

Comercializadora australis Spa 76.126.907-0 Chile uSD 100.00 - 100.00 - -

Chile Seafoods S.a. 96.943.600-0 Chile uSD - 100.00 100.00 100.00 100.00

Inversiones Caiquenes ltda 76.043.420-5 Chile uSD - 100.00 100.00 100.00 100.00

Salmones Gama ltda. 76.065.730-1 Chile uSD - 100.00 100.00 100.00 100.00

Food processor

australis Spa 76.126.902-k Chile uSD - 100.00 100.00 - -

Inversiones ovas del pacifico 76.088.812-5 Chile uSD - 100.00 100.00 100.00 -

piscicultura río Salvaje 76.847.050-2 Chile uSD - 100.00 100.00 100.00 -

at the end of the 2010 financial year, australis Seafoods S.a. (parent Company) underwent a restructuring of the company

group in order to simplify its operations, separately defining the freshwater business and seawater fattening business. this

restructuring included the sale of shares within the group, leaving a simpler structure that included the concentration of

freshwater operations in the subsidiary landcatch Chile S.a. (before piscicultura río Calle Calle Spa.) and fattening in seawater

operations in the subsidiary australis Mar S.a.

as a result of this restructuring, the following transactions, among others, were done: on December 16, 2010, australis S.a. sells

a share of landcatch Chile S.a. to piscicultura río Calle Calle S.p.a. on the other hand, on December 20, 2010, at the Sharehol-

ders extraordinary General Meeting, it was agreed to increase the social capital of piscicultura río Calle Calle Spa by tuSD$

10,723 by issuing the respective payment shares. that increase was signed and paid in full by australis Seafoods S.a. (parent

company) by providing all shares held in landcatch Chile S.a. (old) plus a demand note. By virtue of the foregoing, piscicultura

río Calle Calle Spa becomes owner of 100% of the shares of landcatch Chile S.a. (old), so that the latter dissolves and the

former becomes its legal successor. additionally, in the same act, the joint stock company “piscicultura río Calle Calle Spa”

was transformed into a closed stock corporation named “landcatch Chile S.a.”

on December 31, 2010, in extraordinary Shareholders Meeting, the division of australis Seafoods S.a. into two companies was

approved. a new company with the name or trade name “Inversiones en aquicultura S.a.” comes into effect, while the former

maintains the same name and rut. In the same act, the entire equity of the new company and the assets and liabilities of the

divided company they correspond to the new company are approved, all with effect of January 1, 2010. the equity of the new

company, and therefore the amount by which the social capital of australis Seafoods S.a. is decreased, goes to tuSD$ 9,714,

which corresponds to the investment in australis S.a. together with the respective negative goodwill. In virtue of the foregoing,

australis Seafoods S.a. is no longer owner of the company australis S.a.

Subsequently, in July 2011, the Company acquired all the shares of Comercializadora australis Spa, an entity that at that date

had no activity. through this entity, on December 9, 50% of true pacific Salmon Holding Co. was acquired. this company owns

100% of the social rights or shares of true nature Seafoods Inc. and South pacific Specialties llC, companies through which

it develops its marketing of fish and seafood in the united States and Canada.

b) transactions and non-controlling shares

the non-controlling interests are presented under the heading net equity of the Classified consolidated statement of financial po-

sition. the earning or loss attributable to the non-controlling share is presented in the consolidated statement of comprehensive

income by function shaping the earning (loss) of the financial year. the results of the transactions between non-controlling sha-

reholders and shareholders of the companies where ownership is shared are recognized within the equity, and, therefore, shown

in the Consolidated statement of changes in net equity.

c) Joint ventures

Shares in joint ventures are integrated by the equity method as described in IaS 31 paragraph 38.

2.4. Financial Information by operating segment IFrS 8 requires entities to adopt the “administration’s focus” when disclosing information about the income of its operating segments.

In general, this is the information that the administration uses internally in order to evaluate segment performance and decide how

to allocate resources.

australis Seafoods S.a. and subsidiaries present information by segments (corresponding to business areas) based on the financial

information made available to decision makers, with respect to matters such as profitability measurement and investment allocation,

and based on product differentiation, in accordance with the provisions of IFrS 8 - operating Segments. this information is presented

in detail in note 6.

Segments disclosed by australis Seafoods S.a. and subsidiaries are:

- Freshwater salmon cultivation

- Seawater salmon and trout cultivation

2.5. Foreign currency transactionsa) presentation currency and functional currency

the items included in the financial statements for each entity of australis Seafoods S.a. and subsidiaries are measured using the cu-

rrency of the primary economic environment in which the entity operates (functional currency). the functional currency of australis

Seafoods S.a. and subsidiaries is the u.S. dollar, which is also the presentation currency for the consolidated statements of financial

position.

b) transactions and balances

transactions in foreign currency are converted to the functional currency using the exchange rates in effect on the transaction da-

tes. the losses and earnings in foreign currency, resulting from the transactions liquidation and from the conversion to the exchange

rates at the closing of monetary assets and liabilities denominated in foreign currency, are recognized in the income statement.

c) Foreign currency exchange rates

the exchange rates of the major currencies used in the accounting processes of australis Seafoods S.a. and subsidiaries, against

the dollar, on December 30, 2011, December 31, 2010 and January 1, 2010 are the following:

As of December 31, 2011 As of December 31, 2010 As of January 1, 2010

ClosingCumulative

monthly average ClosingCumulative

monthly average ClosingCumulative

monthly average

Chilean peso 519.2 483.54 468.01 515.26 507.10 559.61

2.6. Properties, plant and equipmentthe Company’s fixed assets consist of land, buildings, infrastructure, machinery, equipment and other fixed assets. the main

fixed assets of australis Seafoods S.a. and subsidiaries are lands, freshwater fish farms with their equipment and machinery and

seawater fattening centers.

the buildings, plant, equipment and machinery are recognized both initially and subsequently at their historical cost minus any

cumulative depreciation and impairment, if there was any.


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For the purposes of transition to IFrS, as permitted by IFrS 1, the most significant land and buildings of the Company’s freshwater

subsidiary were revalued at January 1, 2010. these valuations were carried out based on market value. their subsequent measure-

ment is done in accordance with IaS 16 using the historical cost method. Seawater fixed assets are accounted for both initially and

subsequently at their respective historical cost, minus any cumulative depreciation and impairment, if there was any.

Subsequent costs (replacement parts, improvements and expansions) are included in the initial asset value or are recognized as a

separate asset, only when it is likely that future economic benefits associated with the fixed asset elements will go to the Group and

the cost of the element can be reliably determined. the value of the substituted part is written off in the account. all other repairs and

maintenance are charged in the income statement of the financial year, or the financial year in which they are incurred.

Daily maintenance and common repair costs are included in the profit or loss of the financial year. this is not so for replacements

of significant or strategic parts which are capitalized and depreciated over the remaining useful life of the assets, based on each

component.

Depreciation of assets is calculated using the straight-line method, systematically distributed throughout useful life. useful life has

been determined based on naturally expected wear and tear, by technical or commercial obsolescence arising from changes and/

or improvements in production and by changes in market demand for the products obtained using these assets. land is not depre-

ciated.

estimated technical useful life and their residual values are the following:

Freshwater SeawaterUseful life

Average

Residual value

TUSD$

Useful life

Average

Residual value

TUSD$Buildings 13 142 - -plant and equipment 7 234 10 661Information technology equipment 3 3 - -Fixtures and fittings 4 3 10 20

the assets residual value and useful life are reviewed and adjusted if necessary at closing of each statement of financial position,

in order to obtain the remaining useful life according to the value of the assets.

When the value of an asset exceeds it estimated recoverable value, its value is immediately reduced to its recoverable amount, by

means of the application of impairment tests.

Gains or losses from the sale of property, plant and equipment is calculated by comparing proceeds from the sale with the asset’s

carrying value (depreciation net) and are included in the Income statement.

2.7 Biological assetsCoho and atlantic species salmonidae biological assets as well as trout in the seawater fattening stage are measured at fair value

minus the estimated costs at the point-of-sale, applying weight considerations which are detailed later under this same point, ex-

cept when the fair value cannot be determined reliably in accordance with the definitions in IaS 41. In this case the first consideration

should be finding an active market for these assets.

Moreover, the biological assets associated with the freshwater stage, that is, spawning fish, eggs, juvenile fish and smolts, are

valued at the cumulative cost at the closing date.

the direct and indirect costs incurred in the production process are part of the value of the biological asset, through activation. the

accumulation of these costs at the close of each financial period are compared with the fair value of the biological asset.

Changes in the fair value of these biological assets are reflected in the income statement for the financial year. the biological assets,

which have a projected harvest date of less than 12 months, are classified as current assets.

Calculation of the fair value is based on market prices for harvested fish and adjusted for distribution differences of size and quality

or ranges of normal weights at harvest, taking into account the weight considerations indicated in the following table. this price is

adjusted for harvest, transportation and processing costs, to bring it to its value and condition of bled fish at breeding stage. there-

fore, the evaluation includes the lifecycle stage, the current weight and the expected distribution by size of the fish harvest. this fair

value estimate is stated in the Company’s income statement.

Below is a summary of the valuation criteria:

Stage Asset Valuation

Freshwater Spawning fish Direct and indirect cumulative cost.

Freshwater eggs Direct and indirect cumulative cost.

Freshwater Smolts and juvenile fish Direct and indirect cumulative cost in different stages

Seawater

.

Sea fish Fair value, according to the following:

• atlantic salmon from 4.3 kg in water (4.0 bled), Hon ave-

rage price.

• Coho salmon from 2.5 kg in water (2.3 bled), H&G average

price.

• trout from 2.5 kg in water (2.3 bled), H&G average price

Valuation model

the assessment is reviewed for each cultivation center, based on the biomass of the existing fish at the end of each financial

year (inventory). Details include the total number of fish being bred, their average weight and the cost of the fish biomass. In

the calculation, the value is estimated by considering the average weight of this biomass, which is then multiplied by the value

per kilo reflected by market price. the market price is obtained from a range of prices of latest sales in the month.

Assumptions used to determine the fair value of the fish being bred

the estimation of the fair value of the fish biomass will be always based on uncertain assumptions, even when the Company

has significant experience with these factors. estimates are applied considering the following: fish biomass volume (applying the

subsidiary’s average mortality), average biomass average weight, distribution of weights at harvest and market prices.

Fish biomass volume

the fish biomass volume is an estimate based on the number of smolts in the water, the growth estimate at the time, the application

of the mortality observed in the period, etc. the uncertainty regarding biomass volume is usually lower in the absence of mass mor-

tality events during the cycle or if the fish for some reason have been affected by illness.

together with the above, it is worth noting that this volume, use to calculate the biological asset, includes fish whose average weight

is greater than the cuts already defined for each type. the foregoing translates into an estimate very close to the final volume to be

harvested.

Market Prices

Market prices´ assumptions are important for assessment. In the case of the subsidiary australis Mar S.a. and for the financial

periods corresponding to January 1, 2010, December 31, 2010 and to December 31, 2011, the average prices of recent sales by the

subsidiary were used.


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2.8. Intangible assets other than goodwilla) aquaculture concessions

aquaculture concessions acquired from third parties are recognized at historical cost. the useful life of these concessions is mainly

indefinite, since they have no expiration date and do not have a predictable useful life, and therefore, they are not depreciated. Con-

cessions obtained under the new fishing law have a useful life of 25 years. this is renewable according to compliance with sanitary

and environmental conditions. these concessions are depreciated based on useful life.

b) Software

purchased licences for software programs are capitalized based on costs incurred to acquire and prepare them in order to use the

specific program. these costs are amortized over their estimated useful life of 4 years.

Costs associated to the development or maintenance of software programs are recognized when they are incurred. Costs directly

related to production of unique, identifiable software controlled by australis Seafoods S.a. and subsidiaries, which will likely generate

economic benefits that exceed costs for more than one year, are recognized as intangible assets. Direct costs include staff costs

who develop software, and any type of cost incurred in development or maintenance.

c) Water rights

these correspond to the rights of water use associated with fish farming technical projects. these rights are indefinite and therefore

not amortized. Water rights acquired from third parties are recognized at heir historical cost.

d) research and development costs

research costs are recognized when incurred. Costs incurred in development projects (related to design and testing of new or im-

proved products) are recognized as an intangible asset when the following requirements are met:

a) technically, it is possible to complete the production of the intangible assetct so that it is available for use or sale.

b) the administration intends to complete the intangible asset in question for use or sale.

c) It is possible to use or sell the intangible asset.

d) It is possible to demonstrate how the intangible asset will generate likely economic benefits in the future.

e) there are adequate technical, financial or other types of resources available to complete development and to use or sell the

intangible asset.

f) It is possible to reliably assess the expenditure attributable to the intangible asset during its development.

2.9. Interest costsWhen applicable, costs due to incurred interests for the construction of any qualifying asset are capitalized during the period of time

needed to complete and prepare the asset for its intended use. other interest costs are reported in the outcomes.

2.10 Impairment of non-financial assetsassets that have an indefinite useful life are not subject to depreciation and undergo anual tests for value impairment losses.

assets subject to depreciation are tested for impairment losses whenever an event or change in business circumstances indicates

that the carrying amount of the assets may not be recoverable. an impairment loss is recognized when the carrying amount is

greater than the recoverable value.

the recoverable value of an asset is the larger of the fair value of an asset minus sale costs and its value in use. In order to evaluate

value impairment losses, the assets are grouped at the lowest level for which there are separately identifiable cash flows (CGu).

non-financial assets other than bought Goodwill that have suffered an impairment loss are subject to review on each statement of

financial position closing date in order to see if reversals of losses have taken place.

losses due to value impairment may be reversed for accounting purposes only up to the amount of losses recognized in previous

financial years, so that the carrying amount of these assets does not exceed the value that they would have had if these ad-

justments had not been made. this reversal is recorded in the account other earnings (losses).

2.11 Financial assetsaustralis Seafoods S.a. and subsidiaries classifies financial assets in the following categories: at fair value through profit or loss,

loans and receivables, financial assets held to maturity and available for sale. the classification depends on the purpose for which

the financial assets were acquired. the administration determines the classification of its financial assets at the time of the initial

recognition.

Classification of financial assets:

a) Financial assets at fair value changes in profit or loss

Financial assets at fair value through profit or loss are financial assets held for negotiation. a financial asset is classified in this

category if it is acquired principally for the purpose of being sold in the short term. assets in this category are classified as current

assets.

b) loans and receivables

loans and receivables are non-derivative financial assets with fixed or determinable payments not listed in an active market. those

items with expiration of less than 12 months are classified as current assets. Items with an expiration of more than 12 months are

classified as non-current assets.

loans and receivables are included in trade and other receivables. these must be accounted for initially at their fair market value,

recognizing a financial result for the financial period that takes place between its recognition and subsequent valuation. In the case

of trade, other debtors and other receivables, it was decided to use the nominal value, keeping in mind the short collection periods

of the Company.

c) recognition and measurement of financial assets

the acquisitions and disposals of financial assets are recognized on the trade date, that is, the date that australis Seafoods S.a.

agreed to acquire or sell the asset.

i) Initial recognition

Financial assets are initially recognized for their fair value plus transaction costs for all financial assets not carried at fair value

through profit or loss. Financial assets at fair value through profit or loss are initially recognized at fair value and transaction

costs are expensed.

ii) later valuation

Financial assets available for sale and financial assets at fair value through profit or loss or later accounted for at fair value are

accounted later for their fair value (with compensation in other comprehensive income and results, respectively). loans and

receivables are accounted for at amortized cost with the effective interest rate method.

Financial assets are written off in the account when rights to receive cash flows from investments have expired or have been

transferred, and australis Seafoods S.a. and subsidiaries has transferred all the risks and rewards derived from ownership.

australis Seafoods S.a. and subsidiaries evaluates, on the date of each statement of financial position, if there is objective

evidence that a financial asset or a group of financial assets have suffered impairment losses.

2.12 InventoriesStocks are valued at acquisition cost or net realizable value, whichever is lower. the cost is determined by the weighted average

price (Wap) method.

the cost of finished products and products in processing includes the cost of raw materials (value of harvested biological assets),

direct labor, other direct costs and general production overheads (based on normal operating capacity).


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net realizable value is the estimated selling price in the ordinary course of business, minus variable applicable selling costs.

obsolete products or products of slow movement are recognized at their fair value.

2.13 Trade and other receivablestrade accounts receivable are recognized at nominal value, since the average expiration periods do not exceed 90 days. If there is

income associated with the longer term of payment, it is reported as deferred income in the current liability and the accrued portion

is reported in the financial income. at December 31, receivables held by the Company do not exceed 90 days.

additionally, estimates are made on doubtful accounts based on an objective review of all outstanding amounts at the close of the

financial statements. Impairment losses on doubtful debts are reported in the Statement of comprehensive income in the financial

year in which they occur. Commercial loans are included in the current asset in trade and other receivables, to the extent that their

collection estimate does not exceed one year from the date of the financial statement.

2.14 Cash and cash equivalentsaustralis Seafoods S.a. and subsidiaries considers cash and cash equivalents to be cash holdings or cash held in bank current

accounts, fixed-term deposits and other financial investments (high liquidity securities) with an expiration at less than 90 days from

the investment date. also included in this item are those investments of the cash administration, such as repurchase and resale

agreements whose expiration is consistent with the definitions above.

Bank overdraft lines used are included in other financial liabilities.

2.15 Social capitalSocial capital is represented by a single class of ordinary shares.

Minimum legal dividends on ordinary shares are recognized as the lower value of equity when accrued.

2.16 Trade accounts payable and other accounts payabletrade accounts payable are recognized initially at fair value and later valued for their amortized cost using the effective interest rate

method, when these accounts have obtained a payment period exceeding 90 days. For shorter payment periods, they are registe-

red at nominal value, not presenting significant differences with fair value.

2.17 Other financial liabilitiesliabilities with banks and financial institutions are initially recognized at fair value, net of the costs incurred in the transaction. Sub-

sequently, external resources are valued at amortized cost and any difference between the proceeds (net of costs necessary to

obtain them) and redemption value is recognized in the income statement during the debt´s life according to the effective interest

rate method. the effective interest rate method consists of applying the market reference rate for debts with similar characteristics

to the value of the debt (net of costs necessary to obtain them).

It is worth mentioning that if the difference between the nominal value and the fair value is not significant, the nominal value is used.

2.18 Income tax and deferred taxesthe cost of income tax for the financial year includes taxes of australis Seafoods S.a. and its subsidiaries, based on taxable income

for the year, together with fiscal adjustments from previous years and the change in deferred taxes.

Deferred taxes are calculated, according to the liability method, based on the temporary differences arising between the asset and

liability tax bases and their carrying amounts. However, if the deferred taxes arise from initial recognition of a liability or an asset in a

transaction other than a business combination, which at the moment of transaction does not affect the accountable result or the

fiscal earning or loss, it is not included in the accounting.

Deferred tax is determined using approved (or about to be approved and highly likely to pass) tax rates (and laws), in each country of

operation, on the date of the statement of financial position, and which is expected to be applied when the corresponding deferred

tax asset is realized or the deferred tax liability is settled.

Deferred tax assets are recorded when it is likely that the group entities will have sufficient future tax benefits against which other

differences can be compensated.

the Company does not record deferred taxes based on temporary differences arising in the investments in related companies, since

it controls the date on which these will be reversed.

2.19 Employees benefitsa) Staff holidays

australis Seafoods S.a. and subsidiaries recognize the cost of staff holidays using the accrual method, which is recorded at nominal

value.

b) post-employment benefits

the subsidiary landcatch Chile S.a. has contracts with its executive staff which include compensation benefits for years of service

in the event of voluntary retirement or termination. this liability is recognized according to technical standards, and considering that

the actuarial value does not vary significantly from the cost, the latter has been maintained, with periodic evaluations in case some

of the variables change.

earnings or losses due to changes in actuarial variables, if any, are recognized in the income of the financial year in which they occur.

In addition, the Company recognizes a liability for bonuses for top executives, when it is contractually obligated or when past prac-

tice has created an implicit obligation.

2.20 Provisionsaustralis Seafoods S.a. and subsidiaries recognize a provision when it is contractually obligated and when past practice has created

an assumed obligation.

provisions for onerous contracts, litigations and other contingencies are recognized when:

(i) australis Seafoods S.a. and subsidiaries have an obligation, either legal or implied, as a result of past events,

(ii) It is likely that an outflow of resources will be necessary to settle the obligation; and

(iii) the value has been reliably estimated.

provisions are valued by the current value of expenditures expected to be necessary to settle the obligation, using the best estimate

of australis Seafoods S.a. and subsidiaries. the discount rate used to determine the current value reflects current assessments

of the market on the date of the statements of financial position, the time value of money as well as the specific risk related to the

particular liability.

2.21 Recognition of incomeordinary income includes the fair value of the considerations received or to be received for the sale of goods and services in the

ordinary course of the activities of the Company. ordinary income is presented as net of sales tax, returns, rebates and discounts (if

any) and after eliminating sales within the Group.

australis Seafoods S.a. and subsidiaries recognize income when the value thereof can be reliably measured, when it is likely that

the future economic benefits will flow to the entity and when specific conditions for each Group activity are met, as described below.


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a) Sales of goods

revenues from sales of goods are recognized when a Group entity has transferred the risks and benefits of the products of these

goods to the buyer and does not retain the right to dispose of them or the right to maintain effective control. In general, this means

that sales are recorded at the moment of the transfer of risks and benefits to the clients in accordance with the terms agreed upon

in trade agreements.

b) Interest income

Interest income is recognized using the effective interest rate method.

c) Sales of services

ordinary revenue from sales of services is recorded when the service has been rendered. a service is considered rendered at the

time it is received satisfactorily by the client.

2.22 Leases

When an entity of the Group is the lessee - Financial lease.

australis Seafoods S.a. and subsidiaries lease certain fixed assets. Fixed asset leases, when the Company has substantially all

the risks and benefits inherent to ownership, are classified as financial leases. Financial leases are capitalized at the beginning of

the lease at fair value of the property or asset leased or, at the present value of the minimum lease payments, whichever is lower.

each lease payment is distributed between the liability and the financial burden in order to obtain a constant interest rate on the

outstanding debt balance. Corresponding lease obligations, net of finance burden, are included in other financial liabilities. the

finance cost interest element is charged in the income statement during the financial period of the lease, so as to obtain a constant

periodic interest rate on the outstanding liability balance for each financial period. the asset acquired under financial lease is depre-

ciated over their useful life or the duration of the contract, whichever is less.

For sales transactions with lease-back, the differentials produced by the nature of the transaction are a part of the asset value.

this amount is incorporated into the fixed asset leased goods and is depreciated based on useful life of associated leased assets.

When an entity of the Group is the lessee - Financial operating lease.

leases where the lessor retained a significant part of the risks and rewards derived from ownership of the asset are classified as

operating leases. payments under operating leases (net of any incentive received from the lessor) are charged in the income state-

ment on a straight-line basis during the financial period of the lease.

2.23 Dividend policyunder the provisions of the Corporations law, the Company is obligated to distribute a minimum dividend equal to 30% of the profits,

unless shareholders unanimously agree on a lower amount.

under IFrS, recognition of obligation to shareholders must be anticipated at the date of the closing of the annual statements of

financial position, with the consequent decrease in equity.

according to the SVS, related to memorandum no. 1945, to determine net profits distributable of the parent Company to be conside-

red in the calculation of dividends for the financial year 2010, the following is excluded from the income:

i) unrealized profits or losses, related to the recording at fair value of biological assets regulated by the accounting standard “IaS

41,” reintegrating them into net profits the moment they are realized. For this purpose, realized will be understood as the portion

of these fair value increases corresponding to the assets sold or disposed of by other means.

ii) the effects of deferred taxes associated to the concepts indicated in i) will have the same fate as the item that gave rise to

them.

2.24. Environmentexpenditures related to improvement of and/or investment in production processes that improve environmental conditions are ex-

penditures in the financial period in which they are incurred. When these expenditures are part of investment projects, they are

recognized as the added value of the category properties, plant and equipment.

the Group has established the following types of expenditures for environmental protection projects:

a) Costs associated with legal compliance for the activity. Some of these expenses are: monitoring of effluents of the fish farms,

mortality removal service, effluent treatment plant maintenance, etc.

b) additional activity costs aimed at improving productive processes. Some of these expenses are: implementation of a uV disin-

fection system, analysis of oceanographic information, staff training on environmental variables, implementation of biosecurity

measures and infectious vector control, etc.

note 3 - transition to International Financial reporting Stan-dards3.1 Basis of transition to IFRS

3.1.1. Application of IFRS 1the transition date of australis Seafoods S.a. and subsidiaries is January 1, 2010. australis Seafoods S.a. and subsidiaries has

prepared an opening statement of financial position according to IFrS to this date. the adoption date of australis Seafoods S.a. and

subsidiaries was January 1, 2011.

according to IFrS 1, to prepare the aforementioned consolidated financial statements, all obligatory exceptions have been applied

and some optional exemptions to the retroactive application of IFrS have also been applied and are detailed below.

3.1.2 Exemptions to retroactive applications chosen by Australis Seafoods S.A. and subsidiariesaustralis Seafoods S.a. and subsidiaries have chosen to apply the exemptions to retroactive application of IFrS detailed below:

a) Business combinations

the exemption makes it so that business combinations prior to the transition date are not submitted. It is possible for IFrS 3 not to

be applied to business combinations before the transition date.

australis Seafoods S.a. and subsidiaries have applied this exemption taken from IFrS 1 for business combinations. therefore, busi-

ness combinations that took place before the transition date of January 1, 2010 have not been restated.

b) Fair value or revaluation as an acquired cost

the entity may elect at the date of transition to IFrS to measure a fixed asset item at fair value and to use this fair value as the

deemed cost at that date.

australis Seafoods S.a. and subsidiaries in some cases opted to measure their fixed asset at fair value and to use this value as the

initial historical cost in accordance with IFrS 1 (standards of the first adoption). the fair value of the fixed assets was measured ac-

cording to an assessment by external, independent experts for certain assets and, in other cases, the historical cost of acquisition

was used. In particular, for the subsidiary landcatch Chile S.a., and investment done by external experts was used, while for the

subsidiary australis Mar S.a., the historical cost of acquisition was used. notwithstanding the foregoing, for this latter subsidiary the

useful lives of the assets and their residual values were reviewed with external experts.


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c) employees benefits

the first-time adopter may opt to recognize all cumulative actuarial earnings and losses from the beginning of the plan until the date

of transition to IFrS.

this exemption does not apply, since australis Seafoods S.a. and subsidiaries maintain employee benefits that imply actuarial and

investment risk at the transition date, the amount is considered immaterial.

3.1.3 Exceptions to retroactive application followed by the Groupaustralis Seafoods S.a. and subsidiaries should not have to apply the required exceptions to the IFrS retroactive application, due to

not having presented these particular items.

3.2. Reconciliation between IFRS and the generally accepted accounting principles (GAAP) in Chilethe reconciliations presented below quantify the impact of the transition to IFrS on australis Seafoods S.a. and subsidiaries. recon-

ciliation has the following impact:

a) reconciliation of net equity on the adoption date, December 31, 2010, and on the transition date of the statements of financial

position on January 1, 2010.

b) reconciliation of the Comprehensive income statement for the financial year ending on December 31, 2010.

c) Statement of indirect cash flow for the financial year ending on December 31, 2010.

3.2.1 Summary of net equity adjustments and results

3.2.1.1 Equityreconciliation of equity under the Generally accepted accounting principles (Gaap) and under the International Financial reporting

Standards (IFrS) between January 1 and December 31, 2010.

At December 31, 2010 At January 1, 2010 TUSD$ TUSD$total net equity according to Gaap 52,720 12,472 negative goodwill (1) 1,422 134 Intangibles (2) 294 214 Biological assets (3) 5,503 5,072 properties, plant and equipment (4) (812) (563)Deferred taxes (5) (859) (983)Stock (6) 160 414 Functional currency (7) (1,467) (1,539)years of service indemnity activation (8) (287) -others (9) (113) 185 non-controlling interests reclassification - 190

Adjustments to IFRS convergence 3,841 3,124 Net equity according to IFRS 56,561 15,596

Below is an explanation of the most significant adjustments incorporated in the statement of financial position.

1) negative goodwill

In accordance with technical Bulletin no. 72, the excess of net assets in relation to the price paid in a business combination is paid

to a liability account, which is carried to the results in the estimated period of investment recovery.

according to IFrS 3, this concept is paid directly to income, and therefore higher investment balances were attributed to the cumu-

lative results at the transition date.

2) Intangibles

according to Gaap, intangible assets expected to generate benefits in future financial years are recognized at cost, adjusted for the

effect of linearly calculated depreciation during the financial year in which they are expected to generate these benefits.

according to IFrS aquaculture concessions have indefinite useful lives and are therefore subject to annual impairment tests. Its

depreciation has been reversed and its effects recognized in cumulative results.

3) biological assets

according to prior Gaap, fish were classified as stocks and were recorded at cost or at market value, if this was lower.

In accordance with IFrS 41, fish must be classified as biological assets and are valued at fair value.

4) properties, plant and equipment

For the application of IFrS it has been defined that opening balances on January 1, 2010 are recorded at fair value, and therefore:

i) For the case of subsidiary landcatch Chile S.a., an assessment of lands, use of water rights, equipment and buildings of the

Company was performed.

ii) For the case of subsidiary australis Mar S.a., the method of historical cost of assets was used and the useful lives and residual

values of these assets were verified.

these procedures, carried out by experts, generated a lower value in the assets of both subsidiaries, which was recorded against

cumulative results in net equity.

5) Deferred taxes

as described in note no. 2.18, according to IFrS, the effects of the deferred taxes for all temporary differences between the tax and

financial balances must be recorded, based on the liability method.

although the method established in IaS 12 is similar to the Chilean Gaap, the following adjustments must be made to the IFrS:

a) the elimination of “tax-deferred complementary accounts,” which deferred the effects on equity of the initial application of the

technical Bulletin no. 60 of the Colegio de contadores de Chile aG (Chilean association of accountants) (Bt 60), being amortized

with a charge/credit to the profits or losses in the planned time period for reversal of the difference (or consumption of the related

tax loss);

b) the determination of the deferred tax on items not subject to the calculation under Bt 60 (permanent differences), but which

qualify as temporary differences according to IFrS; and

c) the calculation of the tax effect of the IFrS transition adjustments. retained earnings


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d) Below is a table of deferred taxes as of December 31, 2010:

Taxesdeferred GAAP

TUSD$Adjustments

TUSD$

Taxesdeferred IFRS

TUSD$Stock inventory differences provision (92) - (92)Various provisions 240 - 240Holidays provision 5 - 5Staff provision 82 - 82tax losses 494 - 494Intangibles 158 53 211uncollectible accounts provision 2 - 2Fixed assets (262) 214 (48)Indirect costs activated in stock (3,839) - (3,839)Concessions (111) 64 (47)Compensation for years of service (29) 57 28other 187 (19) 168Biological assets - (1,253) (1,253)leaseback contract result - 25 25 Total (3,165) (859) (4,024)

6) Stocks

the adjustment done corresponds to the portion of the fair value included in the finished products, done for the valuation of the

biological asset adjustment.

7) Functional currency

according to previous Gaap, the Company had some subsidiaries in Chilean pesos. When evaluating the functional currencies of

each of the group’s companies, it was concluded that their operations were primarily carried out in united States dollars, hereinafter

“Dollars,” and therefore these operating subsidiaries with different currencies were converted, in accordance with the following:

a) Monetary assets opening exchange rate on January 1, 2010 or at closing on December 31, 2011.

b) non-monetary assets: Historical exchange rate.

non-operative subsidiaries were considered as an extension of operations, and therefore their functional currencies were changed

to dollars, applying the same criteria as above.

8) years of service indemnity capitalization

according to previous Gaap, the company had capitalized expenses for indemnity for years of service, and according to IFrS they

were adjusted.

9) others

Includes leaseback adjustments, monetary correction and other minor adjustments.

3.2.1.2 Resultreconciliation of results according to Generally accepted accounting principles (Gaap) and according to International Financial

reporting Standards (IFrS).

01/01/2010 to 12/31/2010 TUSD$

Gaap result 16,316 Stocks (1) (254)Concessions amortization replacement (2) 78 Biological asset valuation (3) (765)Deferred taxes (4) 124 elimination of negative goodwill amortization (5) 1,422 Functional currency (6) 991 Indemnity for years of service (7) (287)properties, plant and equipment (8) (243)others (9) (5) Convergence adjustments to IFRS 1,061 Results under IFRS 17,377

1) Stocks

the adjustment done corresponds to the portion of the fair value included in the finished products, done for the adjustment valuation

of the biological asset, which increases the cost of sale of the finished products.

2) replacement amortization concessions

the replacement of the concessions depreciation is generated upon defining, according to IaS 38, that these intangibles have an

indefinite useful life, and so the effects of depreciation are recovered.

3) valuation of biological assets

this effect arises as a consequence of the valuation at fair value of fish and spawning fish through profit or loss and the greatest

cost component at the time of their sale.

4) Deferred taxes

as described in note no. 3.2.1.1.5, according to IFrS, the effects of the deferred taxes for all temporary differences between the tax

and financial balances must be recorded, based on the liability method.

although the method established in IaS 12 is similar to the Gaap, the following adjustments must be made to the IFrS:

a) the determination of the deferred tax on items not subject to the calculation according to Bt 60 (permanent differences), but

which qualify as temporary differences according to IFrS; and

b) the calculation of the tax effect transition adjustments to IFrS.

5) elimination of negative goodwill amortization

this corresponds to effects on profits or loss, generated by the elimination of negative goodwill against cumulative results at the date

of transition, and therefore of amortization, in accordance with IFrS.


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6) Functional currency

according to the previous Gaap, the company had some subsidiaries in Chilean pesos. When evaluating the functional currencies

of each of the group’s companies, it was concluded that their operations were primarily carried out in dollars, and therefore these

operating subsidiaries with different currencies were converted, in accordance with the following:

a) Monetary assets Initial exchange rate on January 1, 2010 or at closing on December 31, 2011.

b) non-monetary assets: Historical exchange rate.

non-operative subsidiaries were considered as an extension of operations, and therefore their functional currencies were changed

to dollars, applying the same criteria as above.

7) years of service indemnity capitalization

according to previous Gaap, the company had capitalized expenses for retrospective indemnity for years of service, and according

to IFrS they were adjusted.

8) properties, plant and equipment

as described in note 3.2.2.4, according to IFrS there was a reassessment of the main land and buildings of the subsidiary land-

catch Chile S.a. In addition, the functional currency switch was made, bringing the fixed assets to historical exchange rate, so the

adjustment made in 2010 corresponds to the increase in depreciation of these concepts.

9) others

Includes leaseback adjustments, monetary correction and other minor adjustments.

note 4 - Financial risk Managementthe salmon business inherently involves a number of risks that, in one way or another, affect industry development. Some of the

factors are:

I Credit risk

a) Cash surplus investment risk:

the quality of the financial institutions australis Seafoods S.a. and subsidiaries works with and the type of financial product in which

such investments materialize define a low-risk policy for the Company.

b) risk from sales transactions:

australis Seafoods S.a. and subsidiaries operates with clients by credit card sales, through advance payments, or with clients with

an excellent credit performance, as demonstrated in their payment histories. In fact, in the last three years, the amount of uncollec-

table debts of the subsidiary australis Mar S.a. has been tuSD$ 11.

II Liquidity risk

liquidity risk arises from the possibility of imbalance between the needs for funds (operating and financial costs, investments in

assets, debt maturities and compromised dividends) and their source (income from securities redemptions or financial placements,

collection of clients debts and financing from financial institutions). the Company has a prudent management policy on liquidity risk,

maintaining enough cash and tradable securities, and managing to keep proper availability of bank financing.

the following table details non-discounted contractual flows, committed from bank loans, financial leases and accounts payable,

grouped by commitment, at December 31, 2011:

Between 1 and 3 months

TUSD$

Between 3 and 12 mon-ths TUSD$

Between 1 and 5 years

TUSD$

More than 5 years TUSD$

Total TUSD$

Bank loans 1,036 15,771 63,035 5,380 85,222payable dividends 8,243 (1) 8,243trade accounts and other receivables 21,232 21,755 43,087accounts payable to related entities 3,525 368 3,893

(1) the amount of the “payable Dividends” account reflects the application of IFrS regulation and does not correspond to temporary

or definite dividends approved by the Board of Directors or the Company Shareholders.

III Market risk

a) exchange rate risk:

Since the vast majority of sales of the group companies are conducted in dollars, there is no implicit risk involved in the valuation

of this currency against the Chilean peso. therefore, both appreciations and depreciations of the local currency directly affect the

company’s results whenever some expenses are in local currency.

at December 31, 2011, the Company’s consolidated balance sheet has a net asset in pesos in the range of MtuSD$37, and so a

variation of 5% increase in the exchange rate generates a loss by an exchange difference of MtuSD$0.9, in turn, a 5% decrease in

the exchange rate generates a profit of the same amount.

b) Interest rate risk:

Interest rate variations modify future flows of assets and liabilities linked to a variable interest rate.

australis Seafoods S.a. and subsidiaries are exposed to interest rate risk, since their long-term financing is the sum of 180 day lIBor

plus an additional fixed spread for the case of subsidiary australis Mar S.a. For landcatch Chile S.a., long-term debts are registered

with fixed rates. normally, the administration and the Board of Directors keep track of these credit conditions, and the advisability of

acquiring interest rate insurance is evaluated, to reduce the impact of 180 day lIBor rate variations.

at December 31, 2011, the Group has a total of tuSD$ 63,120 which correspond to bank liabilities in dollars with a variable interest

rate. In a sensitivity analysis of the interest rates on the capital of these bank liabilities, it is observed that when the current rates are

increased or decreased by 1% annually with respect to the value used, the effect on results at the close of the financial year would

be equal to tuSD$ 631 of a higher or lower financial expense, as applies.

c) Market risk:

Salmon products fall within the commodities category. Commodities, as inferred by their definition, are subject to price variations

in the international market. taking this into account, experience tells us that sales prices of our products are subject to seasonal

fluctuations that can either raise or lower prices and tend to have cyclical variations over time.

note 5 - Significant accounting estimates and Criteriathe estimates and criteria used are continually evaluated and are based on historical experience and other factors, including expec-

tations of future events considered reasonable within the circumstances.

australis Seafoods S.a. and subsidiaries makes estimates and assumptions considering the future. estimates and assumptions

with a significant risk of causing material adjustment to the assets and liabilities balances in the next financial year are given below:


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a) useful life of plant and equipment:

the administration of australis Seafoods S.a. and subsidiaries determines the estimated useful lives and the corresponding depre-

ciation charges for plant and equipment. Changes in estimates could occur as a result of technical innovation and reactions of the

competition to severe industry cycles. the administration will increase the depreciation charge when useful life is less than the pre-

viously estimated lives or will amortize or eliminate technically obsolete or non-strategic assets that have been abandoned or sold.

b) biological assets:

the accounting principles and valuation model applied for measuring biological assets are described in note 2.7.

note 6 - Financial Information by Segmentsthe Company reports financial information by segments in accordance with the provisions of IFrS 8 “operating segments.” this

standard regulates segment information reporting in financial statements as well as disclosures about products and services, geo-

graphical areas and main customers. an operating segment is defined as a component of an entity, about which there is separate

financial information that is regularly evaluated by senior administration for decision-making purposes regarding allocation of re-

sources and evaluation of results. the Group segments of financial information by business, identifying the following lines:

a) Freshwater salmon cultivation (freshwater)

b) Seawater salmon and trout cultivation (seawater)

assets and liabilities by segment at December 31, 2011, December 31 and January 1, 2010, are as follows:


Classified statement of financial position

SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$Total

TUSD$

SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$Total

TUSD$

SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$Total

TUSD$

assets

Current assets 27,307 145,462 172,769 10,817 86,981 97,798 4,013 46,576 50,589

non-current assets 32,155 90,681 122,836 18,807 49,144 67,951 10,170 33,774 43,944

Total Assets 59,462 236,143 295,605 29,624 136,125 165,749 14,183 80,350 94,533

total net liabilities and assets

Current liabilities 18,795 55,477 74,272 8,788 41,543 50,331 3,594 54,509 58,103

non-current liabilities 26,854 49,255 76,109 9,615 49,242 58,857 1,666 19,168 20,834

total net equity 13,813 131,411 145,224 11,221 45,340 56,561 8,923 6,673 15,596

Net Liabilities and Assets 59,462 236,143 295,605 29,624 136,125 165,749 14,183 80,350 94,533

Geographical distribution of non-current assets at December 31, 2011, December 31, 2010 and January 1, 2010


Geographic Distribution SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$Total

TUSD$

SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$Total

TUSD$

SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$Total

TUSD$

non-current assets in Chile 32,155 83,069 115,224 18,807 49,144 67,951 10,170 33,774 43,944

non-current assets in the united States - 7,612 7,612

Non-current assets 32,155 90,681 122,836 18,807 49,144 67,951 10,170 33,774 43,944

results by segment on December 31, 2011 and 2010 are as follows:

As of December 31, 2011 As of December 31, 2011

SalmonFres-

hwaterTUSD$

SalmonSeawater

TUSD$

Ad-justmentsConsolida-

tionTUSD$

TotalTUSD$

SalmonFreshwater

TUSD$

SalmonSeawater

TUSD$

Ad-justmentsConsolida-

tionTUSD$

TotalTUSD$

ordinary incomes 20,395 155,551 (12,282) 163,664 5,373 80,220 (1,192) 84,401external income 9,400 154,264 163,664 4,181 80,220 84,401Internal income 10,995 1,287 (12,282) 1,192 (1,192)Cost of Sales (14,681) (109,772) 11,138 (113,315) (4,466) (55,359) 1,518 (58,307)

Gross profit pre fair value 5,714 45,779 (1,144) 50,349 907 24,861 326 26,094

(charge) credit to Fair Value results of biological assets harvested and sold

(23,479) (23,479) (14,627) (14,627)

(charge) credit to Fair Value results due to increase of the current biological assets

23,420 23,420 13,608 13,608

Gross profit 5,714 45,720 (1,144) 50,290 907 23,842 326 25,075

other earnings, per function 74 376 - 450 2,436 445 (681) 2,200Distribution costs - (2,025) - (2,025) - (1,257) - (1,257)Management expenses (2,868) (8,158) 2,709 (8,317) (1,892) (3,325) - (5,217)other expenses, per function (251) (1,449) (1,700) (343) (2,393) - (2,736)Financial income 2 1,919 1,921 1 237 - 238Financial cost (246) (1,655) (1,901) (167) (1,074) - (1,241)Interests by asset method 87 87

exchange differences 586 (5,266) (4,680) (72) 2,434 - 2,362

Income (loss), before taxes 3,011 29,549 1,565 34,125 870 18,909 (355) 19,424

expenses per income tax (419) (6,277) (6,696) 1,462 (3,509) (2,047)

Income (loss) from on-going operations 2,592 23,272 1,565 27,429 2,332 15,400 (355) 17,377

Income (loss), attributable to non-controlling participations

- - - - - 1 -1 -

Income (loss), attributable to the owners of the controller 2,592 23,272 1,565 27,429 2,332 15,401 (356) 17,377


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the breakdown of revenue from ordinary activity, classified by external client and geographical location, for the financial years en-

ding on December 31, 2011 and 2010 is as follows:

As of December 31, 2011 As of December 31, 2010

Salmon Freshwater

TUSD$

Salmon Seawater

TUSD$

Total

TUSD$

Salmon Freshwater

TUSD$

Salmon Seawater

TUSD$

Total

TUSD$Internal clientsChile 9,400 8,734 18,134 5,604 12,708 18,312

Total of internal clients 9,400 8,734 18,134 5,604 12,708 18,312

External clients 0 0north america - 67,574 67,574 - 14,301 14,301asia - 35,914 35,914 - 25,418 25,418rest of america - 36,985 36,985 - 25,841 25,841europe - 5,057 5,057 - 529 529others - - - - 0 0

Total of external clients - 145,530 145,530 - 66,089 66,089

Total 9,400 154,264 163,664 5,604 78,797 84,401

at the close of financial years 2010 and 2011, there are no customers whose transactions represent an amount equal to 10% or more

of total revenue from ordinary activities.

note 7 - Cash and Cash equivalentsCash and cash equivalents are balances of cash held in bank current accounts, fixed-term deposits and other financial investments

with an expiry date of less than 90 days. also included in this item are those investments having to do with cash management, such

as overnight investments whose maturity is consistent with the aforementioned, in the terms described in IaS 7.

the composition of cash and cash equivalents on December 31, 2011, December 31, 2010 and January 1, 2010 is as follows:

Classes of Cash and cash equivalents As of Dec. 31, 2011 TUSD$

As of Dec. 31,2010 TUSD$

As of Jan. 1, 2010 TUSD$

Balance in banks 1,190 1,787 547Fixed-term Deposits 22,237 6,681 2,190

Mutual Funds 27,880 3,300 933agreements 173 - -Total of cash and cash equivalent 51,480 11,768 3,670

Currency balances that make up cash and cash equivalents at December 31, 2011, December 31, 2011 and January 1, 2010 are as

follows:

type of currency As of Dec. 31, 2011 TUSD$

As of Dec. 31,2010 TUSD$

As of Jan. 1, 2010 TUSD$

united States dollar 2,016 11,743 2,884

Chilean peso 49,464 25 786

Total 51,480 11,768 3,670

Fixed-term investments As of Dec. 31, 2011TUSD$

As of Dec. 31, 2010TUSD$

As of Jan. 1, 2010TUSD$

Corpbanca 9,630 - -Citibank 1,051 6,681 2,190Banco Santander 11,506 - -

Total fixed-term investments 22,237 6,681 2,190

Investments in agreements As of Dec. 31, 2011TUSD$


As of Jan. 1, 2010TUSD$

Corpbanca 173 - -Total investments in agreements 173 - -

Investments in mutual funds As of Dec. 31, 2011TUSD$



Fondo Mutuo BCI - - 100 Banchile - 3,300 833 larraín Vial 27,880 - - Total investments in mutual funds 27,880 3,300 933

Mutual fund shares are fixed income and are carried in market value by means of the share value at the close of each financial year.

Mutual funds are held by the Group until operational obligations are met.

Cash and cash equivalents reported in the Statement of cash flow are as follows:

Type of AssetAs of Dec. 31, 2011

TUSD$As of Dec. 31,2010

TUSD$As of Jan. 1, 2010

TUSD$

united States dollar 51,480 11,743 3,670Cash and Cash Equivalents in the Cash Flow

Statement 51,480 11,768 3,670

note 8 - Financial Instruments8.a) Financial Instruments by Category

Loans andaccountspayableTUSD$

Assets at valuefair

resultTUSD$

Total TUSD$

At Dec. 31, 2011 Cash and cash equivalents 23,427 28,053 51,480trade accounts and other receivables 16,864 - 16,864accounts receivable to related entities 5,751 - 5,751Total 46,042 28,053 74,095


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Assets at fairvalue withchanges in

TUSD$

Other liabilitiesfinancial result

TUSD$ Total

TUSD$At Dec. 31, 2011trade accounts payable and other accounts payable - 51,330 51,330Current accounts payable to related entities - 3,893 3,893other current financial liabilities 12,565 - 12,565other non-current financial liabilities 69,605 - 69,605non-current accounts payable to related entities - - - Total 82,170 55,223 137,393 Loans and

accountspayableTUSD$

Assets at valuefair

resultTUSD$

TotalTUSD$

At Dec. 31, 2010Cash and cash equivalents 8,468 3,300 11,768trade accounts and other receivables 10,175 - 10,175accounts receivable to related entities 9,462 - 9,462Total 28,105 3,300 31,405 Assets at fair

value withchanges in

TUSD$


TUSD$ Total

TUSD$At Dec. 31, 2010trade accounts payable and other accounts payable - 35,244 35,244Current accounts payable to related entities - 557 557other current financial liabilities 12,630 - 12,630other non-current financial liabilities 52,252 - 52,252non-current accounts payable to related entities - 628 628Total 64,882 36,429 101,311

Loans andaccountspayableTUSD$

Assets at valuefair

resultTUSD$

TotalTUSD$

At Jan. 1, 2010 Cash and cash equivalents 2,737 933 3,670trade accounts and other receivables 11,133 - 11,133accounts receivable to related entities 1,523 - 1,523Total 15,393 933 16,326

Assets at fairvalue withchanges in

TUSD$


TUSD$Total

TUSD$At Jan. 1, 2010trade accounts payable and other accounts payable - 14,283 14,283Current accounts payable to related entities - 2,990 2,990other non-current, payable accounts - 5,259 5,259other current financial liabilities 40,365 - 40,365other non-current financial liabilities 379 - 379non-current accounts payable to related entities - 11,395 11,395Total 40,744 33,927 74,671

8.b) Credit quality of financial assets the Company’s financial assets can be classified into two main groups i) Commercial Credits with Customers, which, to measure

their degree of risk, are classified by the age of the debt, and in addition, provisions for loan defaults are made, and ii) Financial

Investments, which the Company makes in accordance with criteria indicated in note 4.

8.b) CreDIt QualIty oF FInanCIal aSSetS At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$Cash and cash equivalentsMutual Funds and fixed-term deposits classification aa+fm/M1 50,290 9,982 3,123aaa Bank Current accounts 1,190 1,122 178aa+ Bank Current accounts - 340 365aa Bank Current accounts - 7 4portfolio cheques - 317 -Total 51,480 11,768 3,670

trade debtors and other receivables1 to 15 days 4,901 8,386 2,81216 to 30 days 3,610 246 6,969more than 30 days 8,343 857 44no credit rating 10 686 1,308Total 16,864 10,175 11,133

as shown above, the Company assesses credit risk by applying expiry dates to receivables.

none of the outstanding financial assets have been renegotiated during the financial year.

8.c) Estimated Fair Valueat December 31, 2011, the Company held financial instruments that had to be recorded at fair value. these include:

a) Investments in short-term Mutual Funds (cash equivalent).

the Company classified fair value measurement using a hierarchy that reflects the level of information used in the valuation. this

hierarchy is composed of three levels; (I) fair value based on quotations in active markets for a similar class of asset or liability, (II)

fair value based on valuation techniques that use market prices or market price derivatives of similar financial instruments and (III)

fair value based on valuation models that do not use market information.

the fair values of the financial instruments traded in active markets, such as the investments acquired for their negotiation, are

based on market quotations at the close of the financial statements using the current purchase price.


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the following table shows the classification of financial instruments at fair value at December 31, 2011, according to the level of

information used in the valuation:

Fair value at Dec-ember 31, 2011

Fair value measurements using values:

Assets

TUSD$Level I TUSD$

Level II TUSD$

Level III TUSD$

Short-term mutual funds 27,880 27,880 - -Short-term agreements 173 173 - -Total 28,053 28,053 - -

Fair value at Dec-ember 31, 2010


Assets

TUSD$Level I TUSD$

Level I ITUSD$

Level III TUSD$

Short-term mutual funds 3,300 3,300 - -

Fair value at January 1, 2010


Assets TUSD$ Level I

TUSD$Level II TUSD$

Level III TUSD$

Short-term mutual funds 933 933 - -

additionally, on December 31, 2011, the Company holds financial instruments that are not recorded at fair value. In order to comply

with fair value disclosure requirements, the Company valued these instruments as shown in the following table:

At Dec. 31, 2011 At Dec. 31, 2010 At Jan. 1, 2010Carrying

valueTUSD$

Fair valueTUSD$

Carrying valueTUSD$

Fair valueTUSD$

Carrying valueTUSD$

Fair valueTUSD$

Cash and cash equivalentCash on handBalance in banks 1,190 1,190 1,787 1,787 547 547Fixed-term Deposits 22,237 22,237 6,681 6,681 2,190 2,190

trade debtors and other receivables 16,864 16,864 10,175 10,175 11,133 11,133accounts receivable to related entities 5,751 5,751 9,462 9,462 1,523 1,523other financial liabilities 16,445 16,445 12,630 12,630 40,365 40,365other non-current financial liabilities 65,725 65,725 52,252 52,252 379 379trade accounts and other receivables, current 51,330 51,330 35,244 35,244 14,283 14,283accounts payable to related entities 3,893 3,893 1,185 1,185 14,385 14,385other non-current payable accounts 5,259 5,259

the carrying amount of receivables and payables is assumed to be near their fair values, due to their short-term nature. In the case

of cash, bank balances, fixed-term deposits and other non-current accounts payable, the fair value approximates the carrying

value.

note 9 - trade and other receivablesthe breakdown of trade and other receivables is as follows:

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$national trade receivables 1,697 934 7,328Foreign trade receivables 7,732 7,968 2,727uncollectible provision (78) (83) (67)Trade receivables – net 9,351 8,819 9,988other accounts payable 7,127 1,356 1,145others 386 - -Total 16,864 10,175 11,133

the fair value of the trade and other receivables does not significantly differ from their carrying value.

the Company sets up provisions based on evidence of bad debts. the criteria used to determine that there is objective evidence of

bad debts are the maturity of the portfolio, concrete impairment facts (default) and concrete market signals.

Balances by currency that make up non-current trade and other receivables on December 31, 2011, December 31, 2010 and January

1, 2010 are as follows:

At Dec. 31, 2011TUSD$


At Jan. 1, 2010TUSD$type of currency

united States dollar 14,276 10,175 11,133Chilean peso 2,588 - -Total 16,864 10,175 11,133

the balance of the trade receivables classified by segments type is as follows:At Dec. 31, 2011

TUSD$At Dec. 31, 2010

TUSD$At Jan. 1, 2010

TUSD$

Seawater 7,709 8,632 9,795Freshwater 1,642 187 193Total 9,351 8,819 9,988

the age of accounts receivable is as follows:Up to 90 days



At Jan. 1, 2010TUSD$

accounts receivable 9,351 8,819 9,988Total 9,351 8,819 9,988

the Company does not have individually impaired trade and other receivables that have been renegotiated.


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the Company sets up provisions based on evidence of impairment of trade receivables. the criteria used to determine that there

is objective evidence of impairment loss are the maturity of the portfolio, concrete impairment facts (default) and concrete market

signals.

Maturity Impairment%

Debtors - more than 1 year 100receivables in judicial collection 100

provision movement due to impairment losses of national trade receivables between January 1, 2011 and December 30, 2011 is as

follows:

TUSD$At Jan. 1, 2011 (83)penalties -recoveries of uncollectibles 5Increases in provisionBalance at Dec. 31, 2011 (78)

once all pre-litigation and litigation efforts at collection have been exhausted, the assets are charged against the constituted provi-

sion. the Company only uses the provision method, and not the penalty method, for better control.

Historical, currently in effect renegotiations are not very significant, and the policy is to analyze them case by case and to classify

them according to the existence of risk, having determined if their reclassification puts them in the category of accounts receivable.

If reclassification is warranted, it is constituted as an expired provision or a provision about to expire.

the parent company and its subsidiaries do not consider themselves to be exposed to high risk of liquidity of these financial assets,

since the credit quality is protected by the highly diversified portfolio of the Company´s clients. these clients are economically and

geographically dispersed and come from countries with low sovereign risk.

there are no significant guarantees for credit operations conducted with clients with stable business relations and excellent pay-

ment behavior, or with clients who pay in advance. However, there are contractual agreements to protect certain business.

Maximum exposure to credit risk on the present information´s date is the fair value of each of the categories of receivables mentio-

ned above.

At Dec. 31, 2011 At Dec. 31, 2010 At Jan. 1, 2010

Gross exposure according to balance

TUSD$

Gross exposure deteriora-

tedTUSD$

Net concen-

trated risk exposure

TUSD$

Gross exposure

according to balanceTUSD$

Gross exposuredeteriora-

tedTUSD$

Net concen-

trated risk exposure

TUSD$

Gross exposureaccording to balance

TUSD$

Gross expo-sure

deteriora-ted

TUSD$

Net concen-trated risk exposure

TUSD$

trade receivables 9,429 (78) 9,351 8,902 (83) 8,819 10,055 (67) 9,988

other accounts receivables

7,513 - 7,513 1,356 - 1,356 1,145 - 1,145

Total 16,942 (78) 16,864 10,258 (83) 10,175 11,200 (67) 11,133

note 10 - accounts receivable and payable to related entitiesrelated parties include the following entities and individuals:

a) Shareholders who may exercise control.

b) Subsidiaries and members of subsidiaries.

c) parties with an interest in the entity which gives them significant influence over it.

d) parties with joint control of the entity.

e) associates.

f) Interests in joint ventures.

g) Key management staff of the entity or its parent.

h) Close relatives of the individuals described in the preceding points.

i) an entity controlled by any of the individuals described in the two preceding points, or jointly controls, or has significant influence

over, or has directly or indirectly a significant part of the voting power.

j) accounts receivable to related entities

In general, transactions with related parties are immediately paid or charged, and are not subject to special conditions. these ope-

rations are adjusted as established in articles 146 and the following articles of law no. 18,046 on Corporations.

transfer of short-term funds from and to the parent company or related companies that do not correspond to charging or payment

of services is structured under the mercantile current account model.

a) accounts receivable to related entities

accounts receivable to related entities on December 31, 2011, December 31, 2010 and January 1, 2010, respectively, are detailed below:

Current

Rut

Nature of rela-

tionship

Country

of Origin

Type of

currency

At Dec. 31,

2011

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$Company

Inversiones australis ltda ( ex australis S.a.) 96.631.730-2 Common share-

holders

Chile pesos - - 1,523

asesorías e Inversiones Benjamín S.a. 79.744.690-1 Shareholder Chile pesos 9 10

Fondo de inversión privado australis 76.123.347-5 parent company Chile pesos - 9,452

true nature Seafoods Foreign Joint Venture uSa Dollars 5,108 -

South pacific specialities Foreign Joint Venture uSa Dollars 593 -

piscicultura los navegantes 96.862.150-5 Shareholder Chile pesos 41 -

Total 5,751 9,462 1,523


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b) accounts payable to related entities accounts payable to related entities on December 30, 2011, December 31, 2010 and January 1, 2010, respectively, are detailed below:

Current

Rut

Nature

of the relationship

Country of

Origin

Type of

currency

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$Company

Inversiones australis ltda ( ex australis S.a.) 96.631.730-2 Common share-

holders

Chile pesos 368 553

asesorías e inversiones Benjamín S.a. 79.744.690-1 Shareholders Chile pesos 4 2,990

true Salmon pacific Holding Co., llC Foreign Joint Venture united

States

Dollars 3,525

Total 3,893 557 2,990

Non-Current

Rut

Nature

of the relationship

Country of

Origin

Type of

currency

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$Company

asesorías e inversiones Benjamín S.a. 79.744.690-1 Shareholder Chile pesos - 628 11,395

Total - 628 11,395

c) transactions with related parties and their effects on results

Here are the operations and their effects on results for the financial periods ending on December 31, 2011 and December 31, 2010.

At Dec. 31, 2011 At Dec. 31, 2010

Company RutNature of

relationshipCountry of origin

Description of tran-saction

Type of currency

AmountTUSD$

Effect on resultTUSD$

AmountTUSD$

Effect on resultTUSD$

asesorías e Inversiones Benjamín S.a. 77.029.880-6 Shareholder Chile remittances received (1) pesos - - 640 -

asesorías e Inversiones Benjamín S.a. 77.029.880-6 Shareholder Chile remittances paid pesos 884 - - -

true nature Seafoods (*) Foreign Joint Venture

united States

Sale finished products Dollar2,949 298 - -

South pacific Specialties Inc .(*) Foreign Joint Venture

united States

Sale finished products Dollar543 119 - -

(*) at December 9, 2011, australis Seafoods, through its subsidiary Comercializadora australis Spa acquired 50% ownership of true

Salmon pacific Holding Co., owner of 100% of the social rights or shares of true nature Seafoods Inc. and South pacific Specialties

llC, companies through which it markets fish and seafood in the united States of america and Canada, and companies to whom

australis Mar sells part of its production. the transactions presented here took place between December 9 and 31 of 2011.

(1) Mercantile current account between asesorías e Inversiones Benjamín (aIB) and australis Seafoods S.a. (aSF) that shows the

transactions between these two companies. this operation is non-interest bearing and the amount indicated is mainly remittances

from aIB to aSF.

australis Seafoods S.a. and subsidiaries has a policy to report all transactions done with related parties during the financial year that

are greater than tuSD$ 100, excluding paid dividends and received capital contributions, which are not considered transactions.

d) remunerations and fees of the board of Directors and the Directors Committee and remuneration of key executives.

at the extraordinary shareholders meeting of october 20, 2011, it was agreed to pay each director M$ 2,000 for attending board

meetings.

the amount reflected in the expenditures at December 31, 2011 was tuSD$ 58

Furthermore, the total gross remuneration received by executives of australis Seafoods and subsidiaries amounted to tuSD$ 2,325

at December 31, 2011. (tuSD$ 1,841 at December 31, 2011)

Moreover, it is noted that the above amounts include the incentives system, which consist of an annual bonus applicable to top

executives and positions eligible for participation according to Company criteria. the amount for this item at December 31, 2011 is

tuSD$ 2,043.

this compensation system is designed to motivate, recognize and retain executives through a formal system that rewards individual

as well as team performance.

top managers and executives are those who have authority over and responsibility for planning, directing and controlling the

entity’s activities, whether directly or indirectly, including any member (executive or not) of the Board of Directors or the company’s

equivalent governing body.

e) Share subscription.

the Company’s Board of Directors, at its meeting of March 8, 2011, directly offered 3,000,000 shares constituting capital increase, in

accordance with the powers given by the extraordinary Shareholders Meeting on March 4, 2011 to the company´s directors. of these

directors, only rodrigo arriagada astrosa, for 2 million shares, and Federico rodríguez Marty, for 1 million shares, accepted the offer.

these shares were subscribed by private contracts on March 14, 2011, payment pending to-date. the price, determinable, (i) may

not be less than $20.224 per share, (ii) will be equal to the price at which all 180,000,000 shares, placed among third parties in the

Santiago Stock exchange on June 9, 2011, were awarded, that is, $185 (Chilean pesos) per share, (iii) must be paid within a maximum

period of 3 years starting on March 4, 2011, and (iv) if in these 3 years, all or part of the shares designated for the Shareholders are

not placed on the Stock exchange, the subscription price of these shares will go up to $20.224 per share.

note 11 - InventoriesInventory composition at the close of each financial period is as follows:

Inventory typesAt Dec. 31, 2011



TUSD$Finished product 8,006 961 2,485Material Inputs 350 90 -Fish food 2,698 1,476 982packaging materials 172 31 27Medicinal products and additives 280 59 -Total 11,506 2,617 3,494

Inventory policies

Group inventories are measured at cost or net realizable value. the lesser.

Inventory measurement policy.

the Group values its inventories according to the following:


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a) the cost of production of the manufactured inventories includes costs directly related to units produced, such as labor and varia-

ble and fixed costs that were included to transform raw materials into finished products.

the cost of production of fresh and frozen salmon is determined from the last fair value of the biological asset at harvest point, plus

direct and indirect costs of production.

b) For acquired inventory cost, the acquisition cost will include the sale price, import duty, transportation, storage and other costs

attributable to acquisition of goods and materials.

Formula for calculating inventory cost.

Inventories of finished products are valued using the weighted average cost method, that is, the cost of each product unit is de-

termined from the weighted average of the recorded cost at the beginning of the financial period, and from the cost of the articles

bought or produced during the period.

Inventories of raw materials, containers and materials are valued at weighted average cost.

Information on finished products.

the Company has not imposed penalties on finished products at the close of each financial period. During the financial year ending

on December 31, 2011, December 31 and January 1, 2010, no inventories have been pledged as security.

Inventories recognized in the cost of sales at the close of each financial year are summarized below:

Cumulative

At Dec. 31, 2011

Cumulative

At Dec. 31, 2010Inventory / cost of sale

TUSD$ TUSD$Cost of Sales 113,315 58,307Total 113,315 58,307

note 12 - Biological assetsthe biological assets of australis Seafoods S.a. and subsidiaries consist of fish in water in the case of the subsidiary australis Mar,

and spawning fish, eggs, juvenile and smolts for the subsidiary landcatch Chile S.a.

the Company does not have restrictions on its biological assets, and they have not been used as guarantees for financial obliga-

tions.

Biological assets that the administration believes will be harvested within a year are classified as current biological assets:

CurrentAt Dec. 31, 2011



TUSD$Freshwater salmon 16,155 6,603 963Seawater salmon 62,642 51,048 28,560Total 78,797 57,651 29,523

Non-current At Dec. 31, 2011TUSD$



Freshwater salmon 4,375 10,158 5,671Seawater salmon 24,485 6,185 3,774Total 28,860 16,343 9,445

Total 107,657 73,994 38,968

Movement of biological assets at December 31, 2011 and December 31, 2010 is as follows:

01/01/201112/31/2011

TUSD$

01/01/201012/01/2010

TUSD$Biological assets at opening 73,994 38,968Increase from fattening and production 140,808 80,000Decrease from sales and harvests (106,351) (43,795)adjustment to fair value of the financial year, fair value increase/decrease * 23,420 13,608 Decrease in fair value from harvests ** (23,479) (14,627)Decrease in fair value for harvests maintained in finished products at Dec-

ember 31 ***

(454) (160)

extraordinary mortality (281) -Balance at the closing of the period 107,657 73,994

* amounts recognized in the income statement for biological assets increase, this effect is presented separately in the statement of income by function.

** Value for the fair value adjustment transferred to the finished products, as a result of the harvests performed during the year. at the closing of the financial year this amount was charged to the results of finished products sales. this effect is shown separately in the statement of income by function.

* ** Value for fair value adjustment transferred to the finished products that are still in inventory at the close of the financial year.

at December 31, 2011, the balance of seawater biological assets includes the effect of fair value determined at the close of the finan-

cial year for an amount of tuSD 4,991.

the quantitative summary of biological assets at December 31, 2011, December 31 and January 1, 2010 is the following:

a) Freshwater

Freshwater On Dec. 31, 2011Units

On Dec. 31, 2010Units

At Jan. 1, 2010Units

eggs 1,374,983 - -Spawning fish 455,462 316,811 265,116Juvenile 20,762,491 6,216,498 0Smolts 1,524,574 4,894,661 1,742,906Total freshwater 24,117,510 11,427,970 2,008,022

b) Seawater Seawater At Dec. 31, 2011

UnitsAt Dec. 31, 2010

UnitsAt Jan. 1, 2010

UnitsFish in fattening 16,584,923 8,326,881 8,539,111Total seawater 16,584,923 8,326,881 8,539,111

At Dec. 31, 2011 At Dec. 31, 2010 At Jan. 1, 2010Tons in Seawater 20,444 13,937 7,560

biological asset policies

Biological assets are valued at fair value minus the costs estimated at the point-of-sale in accordance with the definitions contained

in IaS 41 and the provisions of note 2.7.

at the close of the financial statements, the effect of the fish’s natural growth in water, expressed in fair value minus the estimated

costs at the point-of-sale, is recognized according to a measurement based on market prices adjusted for quality and size. the

higher or lower resulting value is recorded in the income statement under other Income by Function. Similarly, the higher cost of the

exploited and sold part derived from this revaluation is also under other Income by Function. according to the above, this account

shows the total net effect of biological asset valuation for the financial year ending at December 31, 2011 and has a charge for tuSD$

59 (charge for tuSD$ 1,019 in 2010).


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operating risks

Because salmon are biological assets, salmon production is potentially affected by a number of biological risks. Some are:

a) Disease: although diseases are currently controlled by vaccines, antibiotics, good handling practices and by the production of

high quality smolts, we cannot rule out the emergence of new diseases or epidemics that could affect production.

b) Failure to comply with current legislation and, in particular, failure to comply with resting breaks and district regulations on the part

of other production companies, could lead to a decline in the necessary sanitary levels for a healthy biomass growth.

c) predators: the presence of natural salmon predators, such as sea lions, can mean a loss of biomass and even the destruction of

the net cages. the industry has implemented a series of preventive measures that help mitigate the adverse effects caused by

these predators.

d) natural risks: Salmon growth depends, among other factors, on climatic and ocean conditions such as environment brightness or

water temperature, which can have effects on fish growth and their food consumption.

e) Food cost: Food is the most significant direct cost for trout and salmon production. Its price varies due to variables exogenous

to the australis Seafoods Group, such as the price or cost of fishmeal, which in turn depends on the extractive fishing industry.

note 13 - tax assetsCurrent tax assets are as follows:

Accounts receivable for taxes At Dec. 31, 2011TUSD$



Vat tax Credit 3,997 4,853 835

Fixed asset 4% credit 38 40 47

provisional monthly payments for absorbed income 9 306 288

provisional Monthly payments 3,724 579 77

SenCe (Servicio nacional de Capacitación y empleo)

credit

45 8 11

provision for income taxes (5,827) (934) (904)

ley austral (Southern law) * 5,789 889 857

other recoverable taxes 170 7 -

Total 7,945 5,748 1,211

the provision for First Category Income tax for a value of tuSD$ 5,827 and tuSD$ 934 in 2011 and 2010, respectively, does not cons-

titute cash flow for the company as a result of credit from the ley austral (Southern law) application, that is, it will be compensated

on the next payment date because of this law.

note 14 - other non-Current assetsAt Dec. 31, 2011



TUSD$ley austral * 7,379 8,694 5,550others 156 235 3Total 7,535 8,929 5,553

* tax credit regarding movable assets in an investment project in regions XI and XII and in the palena province, until December 31, 2011 this credit is

attributable due to the first category tax of the income tax law, and, therefore, is considered an asset. the Company’s deadline for using this credit is

December 31, 2031.

note 15 - Investments reported using the participation Method

on December 9, 2011, australis Seafoods S.a., through its subsidiary Comercializadora australis Spa, acquired 50% ownership of

true Salmon pacific Holding Co., owner of 100% of the social rights or shares of true nature Seafoods Inc. and South pacific Specia-

lities llC, companies through which it markets fish and seafood products in the united States of america and Canada.

the valuation of the investment in the joint venture at December 31, 2011 is as follows:

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$

true Salmon pacific Holding Co. 7,612 - -

TOTAL 7,612 - -

the aforementioned value includes goodwill generated at the time of acquisition, which has no impairment at December 31, 2011:




true Salmon pacific Holding Co. 6,523 - -TOTAL 6,523 - -

the result accrued in joint ventures is as follows:




true Salmon pacific Holding Co. 87 - -TOTAL 87 - -

Investment movement in joint ventures at December 31, 2011 is as follows:




opening balance Investments in joint ventures 7,525 participation in joint ventures earning 87 TOTAL 7,612


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Summary of financial information oftrue Salmon pacific Holding Co. at December 31, 2011 is as follows:

At Dec. 31, 2011Current assets 19,115non-current assets 291Total assets company with joint control 19,406Current liabilities 15,261non-current liabilities 1,406equity 2,739Total liabilities and equity jointly controlled company 19,406ordinary income (*) 12,774ordinary expenses (*) (12,599)Net earning/(loss) (*) 175

(*) For the period between December 1 and 31, 2011

note 16 - Intangible assets other than Goodwillthe breakdown of the main types of intangible assets not generated internally is as follows:

Useful Life At Dec. 31, 2011TUSD$



aquaculture Concessions Indefinite 3,945 3,091 3,827aquaculture Concessions Finite 7,518 5,518 890Water rights Indefinite 2,735 1,813 2,058trademark rights Finite 61 - -Computer licenses Finite - - -others Indefinite 197 - -Total 14,456 10,422 6,775

a) aquaculture concessions and water rights

aquaculture concessions acquired from third parties are recognized at historical cost. the useful life of these concessions is mainly

indefinite, since they have no expiration date and do not have a predictable useful life, and therefore, not amortized. Concessions

obtained under the new fishing law have a useful life of 25 years. this is renewable according to compliance with sanitary and envi-

ronmental conditions. these concessions are depreciated based on useful life.

these water rights are usage rights associated with fish farm technical projects. these rights are indefinite and therefore not amor-

tized. Water rights acquired from third parties are recognized at their historical cost.

b) Intangibles subject to guarantees or restrictions

on the accounting closing date of these financial statements, the company and its subsidiaries do not have any kind of guarantee

purchases of intangibles.

Movement of intangible assets at December 31, 2011 is as follows:

Useful LifeIndefinite

TUSD$

Useful Life DefiniteTUSD$

TotalTUSD$

opening balance at January 1, 2011 4,904 5,518 10,422

Cumulative amortization and impairment (32) - (32)

additions 2,005 2,061 4,066

Balance at Dec. 31, 2011 6,877 7,579 14,456

Movement of intangible assets at December 31, 2010 is as follows:

Useful LifeIndefinite

TUSD$

Useful LifeDefiniteTUSD$

TotalTUSD$

opening balance on January 1, 2010 6,775 - 6,775transfers (1,871) 1,871 -additions - 3,647 3,647Balance at Dec. 31, 2010 4,904 5,518 10,422

the breakdown of concessions and water rights at December 31, 2011 is as follows:

a) aquaculture Concessions - Seawater

own concessions

No. Name Type Region Hectares In use at close of financial period 2011

1 Humos 3 Salmonids XI 4.5 yeS

2 Burr 1 Salmonids XI 3.8 yeS

3 rivero 1 Salmonids XI 3.9 yeS

4 elefante 1 Salmonids XI 4.0 -

5 rivero 2 Salmonids XI 8.1 yeS

6 pulluche 1 Salmonids XI 15.0 -

7 I rojas 2 Salmonids XI 4.0 -

8 rivero 4 Salmonids XI 5.9 -

9 Salas 5 Salmonids XI 3.0 -





14 Matilde 1 Salmonids XI 3.0 yeS

15 Humos 6 Salmonids XI 4.5 -

16 Italia Salmonids XI 2.0 -



19 luz 1 Salmonids XI 2.0 -

20 Matilde 2 Salmonids XI 3.0 yeS

21 patranca 1 Salmonids XI 6.0 yeS

22 luz 2 Salmonids XI 2.0 yeS


24 pulluche 2 Salmonids XI 2.0 yeS



27 I rojas Salmonids XI 6.0 -



30 Fitz roy Salmonids XI 1.5 -

31 pulluche 3 Salmonids XI 6.0 yeS

32 Fitz roy Salmonids XI 1.0 -

33 205111340 Salmonids XI 1.5 -


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34 luz 4 Salmonids XI 2.0 yeS

35 Dring 1 Salmonids XI 2.0 -

36 luz 3 Salmonids XI 2.0 -

37 Matilde 3 Salmonids XI 2.0 -

38 Melchor 1 Salmonids XI 5.8 -

39 Melchor2 Salmonids XI 1.5 -

40 Isquiliac 3 Salmonids XI 3.0 -


42 Isla Quemada 2 Salmonids XI 1.5 -

43 MItaHueS 2 Salmonids XI 2.0 -

44 MItaHueS 3 Salmonids XI 7.9 -

45 raBuDoS Salmonids XI 6.0 yeS

46 Guar Salmonids X 3.0 -

47 rulo Salmonids X 5.4 -

48 Caicaen Salmonids X 1.0 -

own concessions - leased to third parties


1 puluqui 1 Salmonids X 11.7 -

Concessions leased from third parties


1 Jorge 1 Salmonids XI 6 yeS

b) Water rights - Freshwater

own water rights

No. Name Type Region In use at close of finan-cial period 2011

1 río negro 1 Freshwater X -



4 estero Caren 1 Freshwater IX -

5 estero Caren 2 Freshwater IX -

6 est. allipén Freshwater IX yeS

7 río Curacalco Freshwater IX yeS

8 Canal del laja Freshwater VIII yeS

Water rights under financial lease


1 río Cululí Freshwater X yeS2 río Ignao Freshwater XIV yeS3 pozo Ignao Freshwater XIV yeS4 río Caliboro Freshwater VIII yeS5 Vertiente Sn Freshwater IX yeS6 rio alllipen Freshwater IX yeS

Water rights under operating lease


1 estero del Diablo Freshwater IX yeS2 estero Matanza Freshwater IX yeS3 estero Sen Sen Freshwater IX yeS

note 17 - properties, plant and equipmentthe breakdown of the different categories of property, plant and equipment and their movement at December 31, 2011 is as follows:

Net cons-tructions

TUSD$Land

TUSD$

Net buil-dingsTUSD$

Net plant and equip-

mentTUSD$

Net information technology equipment

TUSD$

Net fix-tures and

fittingsTUSD$

Net motor vehiclesTUSD$

Net total Properties, plant and

equipmentTUSD$

at January 1, 2010 2,118 323 4,433 8 95 6,977Cost or valuation 17,025 1,821 18,846accumulated depreciation (570) (3,970) (6) (389) (4,935)Net amount at January 1, 2010 1,548 323 17,488 2 1,527 20,888

additions 1,221 265 8,752 153 836 11,227additions projects under construction 1,600 363 1,963Disposals (91) (387) (478)Depreciation (97) (2,457) (1) (381) (2,936)Net amount at December 31, 2010 2,672 588 25,292 154 1,958 30,664

additions 5,935 4,364 981 22,178 45 465 33,968additions projects under construction 881 881Disposals (122) (122)Depreciation (348) (10) (4,216) (38) (406) (5,018)Net amount at December 31, 2011 8,259 4,952 971 44,135 161 1,895 60,373


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at December 31, 2011 the breakdown of property, plant and equipment is as follows:

Gross ValueTUSD$

Depreciation cumulative

TUSD$Net value

TUSD$Construction and work in progress 9,274 (1,015) 8,259land 4,952 - 4,952Buildings 981 (10) 971plant and equipment 54,778 (10,643) 44,135Information technology equipment 206 (45) 161Fixtures and fittings 3,071 (1,176) 1,895Total Properties, plant and equipment 73,262 (12,889) 60,373

at December 31, 2010 the breakdown of property, plant and equipment is as follows:

Gross ValueTUSD$


TUSD$Net value

TUSD$Construction and work in progress 3,339 (667) 2,672land 588 - 588plant and equipment 31,719 (6,427) 25,292Information technology equipment 161 (7) 154Fixtures and fittings 2,728 (770) 1,958Total Properties, plant and equipment 38,535 (7,871) 30,664

at January 1, 2010 the breakdown of property, plant and equipment is as follows:

Gross ValueTUSD$


TUSD$Net value

TUSD$

Construction and work in progress 2,118 (570) 1,548

land 323 0 323

plant and equipment 21,458 (3,970) 17,488

Information technology equipment 8 (6) 2

Fixtures and fittings 1,916 (389) 1,527

Total Properties, plants and equipment 25,823 (4,935) 20,888

on December 31, 2011, the Company recognized financial year depreciation in the income results tuSD$ 2,771 (tuSD$ 1,300 in 2010).

a) valuation and updates

the administration has chosen the cost model as its accounting policy and applies this policy to all items that contain property, plant

and equipment.

the new properties, plant and equipment are reported at acquisition cost. acquisitions in the currency other than the functional

currency are converted at the exchange rate of the day of acquisition.

to measure major fixed assets and lands, which were acquired before transition to IFrS, their fair value was determined based on

valuations made by expert personnel, who were external and independent in the case of subsidiary landcatch Chile S.a. For all other

fixed assets, in particular for those associated with subsidiary australis Mar S.a., the historical cost model was used.

Daily maintenance and common repair costs are included in the profit or loss of the financial year. this is not so for replacements of

significant or strategic parts. these are considered improvements and capitalized and depreciated over the remaining useful life of

the assets, based on each component.

Gains or losses from the sale of property, plant and equipment is calculated by comparing proceeds from the sale with the asset’s

carrying value and included in the income statement.

b) Depreciation Method

Depreciation of assets is calculated linearly over their useful life. this useful life has been determined based on expected wear and

tear, technical or commercial obsolescence arising from changes and/or improvements in production and changes in market de-

mand for the products obtained using these assets.

c) estimated useful life or depreciation rates

estimating useful life by type of asset are as follows:

FreshwaterUseful lifeaverage

SeawaterUseful lifeaverage

Buildings 13 -plant and equipment 7 10Information technology equipment 3 -Fixtures and fittings 4 10

the residual value and useful life of the assets are reviewed and adjusted if necessary at the closing of each Statement of financial

position.

d) property, plant and equipment subject to guarantees or restrictions

on the accounting closing date of these financial statements, the company and its subsidiaries do not have any kind of guarantee

purchases of intangibles.

at December 31, 2011, the Company does not have legal or contractual obligation to dismantle, remove or rehabilitate sites where it

operates, and therefore its assets do not include costs associated with these requirements.

e) Insurance

the Group has insurance policies to cover risks for movable assets, equipment, plant and machinery. australis Seafoods S.a. and

subsidiaries believe that these policies have adequate coverage for the inherent risks in their activity.

the insurance policies that australis Seafoods S.a. and subsidiaries have are detailed below:

Type of asset Risks coveredequipment and facilities Basic coverage: natural risks.

additional coverage: theft, collision, fire.


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f) Financial leases

the detailed classification of assets acquired under the financial leasing model is presented below:

Properties, plant and equipment under financial leasing, net

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$Facilities under financial leasing 5,036 411 446land under financial leasing 2,280 50 50Buildings under financial leasing 971 - -plant and equipment under financial leasing 7,861 255 304TOTAL 16,148 716 800

Water rights under financial leasing

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

At Jan. 1, 2010

TUSD$Water rights under financial leasing * 1,368 - -TOTAL 1,368 - -

* this is given under the heading intangible assets other than goodwill.

on June 30, 2011, the subsidiary landcatch Chile S.a. signed two leaseback operations with Banco Santander -Chile for the amount

of tuSD 8,681 for an 8-year period with one grace year and an annual interest rate of 4.62% on the following fish farms:

a) piscicultura Ignao, located in the los ríos region, lago ranco Commune

b) piscicultura las Vertientes, located in the la araucanía region, Cunco commune

the Ignao and las Vertientes fish farms have a total carrying amount of tuSD$ 10,150 at the time they are sold to Banco Santander for

tuSD$ 8,681 to be received as financial leasing for the same amount. In this operation a differential of tuSD$ 1,469 was generated,

each do to the nature of the transaction forms part of the asset value. this amount is included in the leased assets of the fixed asset

and is amortized based on the associated leased assets useful lives.

on november 21, 2011 the subsidiary landcatch Chile S.a. signed a leaseback operation with Banco Bilbao Vizcaya argentaria, Chile

for the fish farm Ketrún rayén, located in the los angeles commune, Bío Bío region, for an amount of tuSD$ 5,788 for an 8-year

period with 6 months of grace and an annual interest rate of 3.94%. (In this operation no significant differences between the assets’

carrying value and the selling price to the bank were generated)

on november 3, 2011, australis Seafoods S.a. signed a leasing operation with Banco Bice, Chile for an amount of tuSD$ 981 for an

8-year period with a 4.7% interest rate. the asset acquired in this operation is the company’s corporate offices.

In addition the subsidiary landcatch Chile S.a. has held fish farm Cululi under financial leasing since 2008.

the value of the minimum payments associated with financial leasing are in note no. 19, b)

g) Fixed assets in disuse or fully depreciated

at December 31, 2011, the company does not have any fixed assets temporarily out of service or fully depreciated.

note 18 - Current Income taxes and Deferred taxesDeferred taxes mean the amount of taxes on the earnings that australis Seafoods S.a. and subsidiaries will have to pay (liabilities)

or recover (assets) in future financial periods, related to temporary differences between the tax base and the accounting carrying

amount of certain assets and liabilities.

the main deferred tax asset is tax losses of the parent company and subsidiaries to be recovered in future financial years. the main

deferred tax liability payable in future financial years are temporary differences arising from manufacturing expenses, revaluation of

biological assets and the revaluation of properties, plant and equipment at the date of transition to IFrS and from the application, for

tax purposes, of accelerated depreciation.

the breakdown of assets and liabilities by deferred taxes is as follows:

At Dec. 31, 2011 At Dec. 31, 2010 At Jan. 1, 2010Assets

for taxesdeferred-

TUSD$

Liabilitiesfor taxesdeferred

TUSD$

Assetsfor taxesdeferred

TUSD$


TUSD$

Assetsfor taxesdeferred

TUSD$


TUSD$Indirect costs activated in stock 7,049 3,840 1,368Biological asset valuation 1,121 1,253 1,216anticipated revenue 278 12Concessions 48 47 5tax losses 2,282 494 519provisions 101 43 62properties, plant and equipment 119 193 215 108 449Difference in inventory provision 554Holiday provisionStaff provision 637 131 54non-collectable account provision 2 2Intangible 440 211 45unrealized gains 324 121 146Valuation provision (149)Stock 100 101 192 689others 376 297 70 (73) 69Total 4,000 8,877 1,593 5,617 1,283 3,791

no deferred taxes have been recognized due to temporary differences between the tax value and accounting value generated by in-

vestments in related companies. therefore, no deferred tax is recognized from Conversion adjustments and associated adjustments

directly recorded in net equity.

With respect to the statute of limitations for tax losses likely attributable to future profits, we note that there are no limitations if they

are generated in companies in Chile.


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Movement of assets by deferred taxes is as follows:



opening balance 1,593 1,283 Variation of: Inventories (101) 101 Concessions - (5)properties, plant and equipment (193) 85 unrealized gains 203 (25)Intangible (211) 166 anticipated revenue 278 (12)tax loss 1,788 (25)provisions 564 (345)others 79 370 Final balance 4,000 1,593

Movement of liabilities by deferred taxes is as follows:



opening balance 5,617 3,791 Variation of: Manufacturing costs 3,209 2,472 Stocks (92) (497)Intangible 440 -Biological assets (132) 37 provisions - -Concessions 1 47 properties, plant and equipment (96) (234)others (70) 1 Final balance 8,877 5,617

to reflect the effect of legal modification of income tax, which raises the income tax rate in Chile from 17% to 20% for 2011 and to

18.5% for 2012, returning to 17% in 2013, all credits (charges) to the results have been recorded for deferred taxes from differences

in tax versus financial valuation, based on the ratio of the difference reversed in the years mentioned.

the income tax expense breaks down as follows:

Cumulative at Dec. 31, 2011TUSD$


Current tax expenditure (5,827) (934)effect of deferred tax (853) (1,516)others (16) 403 Total (6,696) (2,047)

the following is a breakdown of expense conciliation for Income tax, using the statutory rate with the tax expense using the effective

rate:

Cumulative at Dec. 31, 2011

TUSD$


TUSD$

Income tax expenditure using the statutory rate (6,825) (3,302)

tax effect of rates of other jurisdictions - -

other charge decreases for legal taxes 129 1,255

Expenditure (6,696) (2,047)

Within the expenditure line, for the previous income tax, the provision for First Category Income tax is given for a value of tuSD$

5,827 and tuSD$ 934 in 2011 and 2010, respectively. Due to credit accumulated from the ley austral (Southern law), this expense

will not generate an outflow of cash for the company. In other words, it will be compensated in the next payment date, as a result of

the application of this law. the remaining credit at December 31, 2011 is M$ 13,168.

note 19 - other Financial liabilitiesat December 31, 2011, australis Seafoods S.a. and subsidiaries has financial loans. these loans accrue interest at an effective inter-

est rate, which does not significantly vary from the nominal rate.

Interest bearing loans - Current At Dec. 31, 2011TUSD$



Bank loans 15,307 12,435 40,190Financial leasing obligations 1,138 195 175Total other financial liabilities expiring within 12 months 16,445 12,630 40,365

Interest bearing loans - Non-current At Dec. 31, 2011TUSD$



Bank loans 51,041 52,720 -Financial leasing obligations 14,684 227 379Total other financial liabilities expiring after 12 months 65,725 52,252 379


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additional information on financial liabilities

a) the breakdown of bank loans held by australis Seafoods S.a. and subsidiaries at December 31, 2011 and January 1, 2010 is as

follows:

2012

Rut Debtor Company

Debtor Company Country Deb-tor Company

Name creditor Rut Creditor Country Creditor

Currency Amortization Type

Effective rate

Nominal Rate Guaran-tees

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total current on

12-31-11TUSD$

Expiration 1 to 2 years

TUSD$


TUSD$


TUSD$


TUSD$

Non-current 5 or more

years TUSDS

Total Non-current on 12-

31-11 TUSD$

76.003.885-7 australis Mar S.a. Chile Banco de Chile 97.004.000-5 Chile uSD Quarterly 2.35% 2.35% yeS - - - - - - 8,332 - - - - - 8,332 - - - - - -

76.003.885-7 australis Mar S.a. Chile Banco de Chile 97.004.000-5 Chile uSD Quarterly 2.35% 2.35% yeS - - - - - - - - - - - 1,958 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 Quarterly 2.90% 2.90% yeS - - - - - - - - - - - 2,218 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 Quarterly 2.75% 2.75% yeS - - - - - - - - - - - 1,662 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 - - - - - - - - - 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 - - - - - - - - - 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 - - - - - - - - - 366 - - - - - -

76.090.483-k landcatch S.a. Chile Banco Santander 97.036.000-K Chile uSD Monthly 4.68% 4.68% no - - - - - 28 27 27 27 27 27 27 190 326 326 326 326 787 2,091

total Bank loans - - 947 - - 28 8,359 27 27 27 27 5,865 15,307 6,134 6,134 37,660 326 787 51,041

refinancing costs - - - - - - - - - - - - - - - - - - -

total - - 947 - - 28 8,359 27 27 27 27 5,865 15,307 6,134 6,134 37,660 326 787 51,041

2011

Rut Debtor Company




Effective rate



12-31-11TUSD$


TUSD$


TUSD$


TUSD$


TUSD$


years TUSDS


31-11 TUSD$

76.090.483-k landcatch S.a. Chile Banco Santander 97.036.000-K Chile pesos Monthly 0.68% 0.68% no - - 225 - - - - - - - - - 225 - - - - - 0

76.090.483-k landcatch S.a. Chile Banco de Chile 97.004.000-5 Chile pesos Monthly 0.59% 0.59% no - - 713 - - - - - - - - - 713 - - - - - 0

76.090.483-k landcatch S.a. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile pesos Monthly 0.47% 0.47% no - - 1,336 - - - - - - - - - 1,336 - - - - - 0

76.090.483-k landcatch S.a. Chile Banco Security 97.053.000-2 Chile pesos Monthly 0.63% 0.63% no - - 223 - - - - - - - - - 223 - - - - - 0

76.003.885-7 australis Mar S.a. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile uSD Quarterly 2.56% 2.56% yeS - - - - - - - - - - - - - 1,661 1,650 11,700 - - 15,011

76.003.557-2 australis Seafoods

S.a.

Chile Banco Corpbanca 97.023.000-9 Chile uSD Monthly 3.30% 3.30% no - - - - - 1,850 - - - - - - 1,850 - - - - - -

76.003.885-7 australis Mar S.a. Chile Banco de Chile 97.004.000-5 Chile uSD Monthly 2.61% 2.61% yeS - - - - - 8,088 - - - - - - 8,088 - - - - - 0

76.003.885-7 australis Mar S.a. Chile Banco de Chile 97.004.000-5 Chile uSD Quarterly 2.41% 2.41% yeS - - - - - - - - - - - - 0 2.201 2,200 2,200 13,400 - 20,001

76.003.885-7 australis Mar S.a. Chile Banco Corpbanca 97.023.000-9 Chile uSD Quarterly 2.41% 2.41% yeS - - - - - - - - - - - - - 1.883 1,870 1,870 11,390 - 17,013

total Bank loans - - 2,497 - - 9,938 - - - - - - 12,435 5,745 5,720 15,770 24,790 0 52,025

refinancing costs - - - - - - - - - - - - - - - - - - -

total - - 2,497 - - 9,938 - - - - - - 12,435 5,745 5,720 15,770 24,790 0 52,025

2010

Rut Debtor Company




Effective rate



12-31-11TUSD$


TUSD$


TUSD$


TUSD$


TUSD$


years TUSDS


31-11 TUSD$

77.071.070-7 landcatch S.a. Chile Banco Santander 97.036.000-K Chile pesos Monthly 0.45% 0.45% no - - 380 - - - - - - - - - 380 - - - - - -

77.071.070-7 landcatch S.a. Chile Banco de Chile 97.004.000-5 Chile pesos Monthly 0.42% 0.42% no - - 550 - - - - - - - - - 550 - - - - - -

77.071.070-7 landcatch S.a. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile pesos Monthly 0.51% 0.51% no - - 791 - - - - - - - - - 791 - - - - - -

77.071.070-7 landcatch S.a. Chile Banco Security 97.053.000-2 Chile pesos Monthly 0.40% 0.40% no - - 300 - - - - - - - - - 300 - - - - - -

77.071.070-7 landcatch S.a. Chile BCI linea crédito 97.006.000-6 Chile pesos Monthly - - no - - 43 - - - - - - - - - 43 - - - - - -

76.003.885-7 australis Mar S.a. Chile Banco de Chile 97.004.000-5 Chile uSD Quarterly 2.40% 2.40% SI - - - - - 28,074 - - - - - - 28,074 - - - - - -

76.003.885-7 australis Mar S.a. Chile Banco Corpbanca 97.023.000-9 Chile uSD Quarterly 1.68% 1.68% SI - - - - - 10,052 - - - - - - 10,052 - - - - - -

total Bank loans - - 2,064 - - 38,126 - - - - - - 40,190 - - - - - -

refinancing costs

total - - 2,064 - - 38,126 - - - - - - 40,190 - - - - - -

* the Guarantees and restrictions associated with the bank loans are detailed in note no. 30.

Bank obligations at 12/31/2011 do not have associated covenants.


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b) the breakdown of obligations due to financial leases held by australis Seafoods S.a. and subsidiaries at December 31, 2011 and

January 1, 2010 is as follows:

At Dec. 31, 2011 TUSD$ At Dec. 31, 2010 TUSD$ At Jan. 1, 2010 TUSD$

Minimum payments to be payed for

leasing, Financial leasing obligations

Gross ValueTUSD$

inter-est

TUSD$

Present ValueTUSD$

Gross ValueTUSD$

interestTUSD$

Present ValueTUSD$

Gross ValueTUSD$

inter-est

TUSD$

Present ValueTUSD$

no later than one year 1,500 362 1,138 217 22 195 200 25 175

More than one year but less than five 12,781 2,508 10,273 253 26 227 425 46 379

More than five years 4,593 182 4,111

TOTAL 18,874 3,052 15,822 470 48 422 625 71 554

obligations due financial leases correspond to the following leasing contracts:

Type InstitutionDate of

contractIM USS amount

Number of quotas

Annual interest

Option of purchase

TUSD$

piscicultura Cululi Banco BCI 01-31-2008 818 60 4.60% 17

piscicultura Huacamalal Banco Santander -(Chile 06-30-2011 3,330 96 4.62% 48

piscicultura las Vertientes Banco Santander -Chile 06-30-2011 5,351 96 4.62% 77

offices australis Seafoods S.a. Banco BICe 11-03-2011 981 96 4.70% 12

Ketrun rayen Fish Farm Banco BBVa 11-21-2011 5,788 96 3.94% 75

note 20 - trade accounts payable and other accounts payablethe items making up this category are:

Current At Dec. 31, 2011TUSD$



Suppliers 41,880 19,956 11,993Staff retention 243 152 278payable dividend 8,243 9,457 -others 697 348 2accounts payable 91 3,750 1,330Sundry creditors 176 1,581 680Total 51,330 35,244 14,283

Non-current At Dec. 31, 2011TUSD$



Sundry creditors l/p - - 5,259

Total - - 5,259

note 21 - provisions for employees Benefits, Current and non-currentprovision for staff bonuses

the Company has a provision for employee bonus payments when it is contractually obligated or when conditions of employee

compliance and performance at the close of the financial year merits it.

provision for employee holidays

the Company recognizes an employee holiday expense by the accrual method based on the amount of time worked by each indi-

vidual.

Indemnity for years of service

the subsidiary landcatch Chile S.a. has contracts with executive personnel which include compensation benefits for years of ser-

vice in the event of voluntary retirement or termination. this liability is recognized according to technical standards, and considering

that the actuarial value does not vary significantly from the cost, the latter has been maintained, with periodic evaluations in case

some of the variables change.

earnings or losses due to changes in actuarial variables, if any, are recognized in the income of the financial year in which they occur.

Because of this, there are no:

a) service costs for the current period

b) interest costs

c) contributions made by participants

d) accounting earnings and losses

e) expected return on plan assets

f) contributions made by the employer

the breakdown at the closing of each financial year is as follows:




provision for staff bonuses 2,043 1,466 210provision for employee holidays 561 434 255Total provisions for employee benefits, current 2,604 1,900 465

Indemnity for years of service 450 360 -provisions for other benefits 1,057 - -Total provisions for employee benefits, non-current 1,507 360 -

the variation from one financial year to another in these provisions is as follows:

Provision for staff bonuses At Dec. 31, 2011TUSD$


opening balance 1,466 210Increase (decrease) in existing provisions 2,043 1,466provision used (1,466) (210)TOTAL 2,043 1,466


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Provision for employee holidays At Dec. 31, 2011TUSD$


opening balance 434 255Increase (decrease) in existing provisions 429 273provision used (302) (94)TOTAL 561 434

Indemnity for years of service At Dec. 31, 2011TUSD$


opening balance 360 -Increase (decrease) in existing provisions 90 360provision used - -TOTAL 450 360

Provisions for other benefits At Dec. 31, 2011

TUSD$


opening balance - -Increase (decrease) in existing provisions 1,057 -provision used - -TOTAL 1,057 -

note 22 - Issued Capitalto date the capital subscribed and paid of the Company is one hundred and twenty-three million eighty-one thousand dollars (tuSD$

123,081) divided in one billion four hundred and three million two thousand four hundred and forty-four shares (1,403,002,444).

a) Capital

the Company’s paid capital breaks down as follows:

on Dec. 31, 2011

Series Subscribed CapitalN° of shares

Paid CapitalN° of shares

only 1,403,002,444 1,400,002,444

Ordinary sharesNumber of

sharesShares

ownOwn

Shares Totalat January 1, 2010 2,000 2,000 2,000 2,000Capital increase 18,507 18,507 18,507 18,507Balance at December 31, 2010 20,507 20,507 20,507 20,507

Ordinary sharesNumber of

sharesShares

ordinaryShares

own Totalat January 1, 2011 20,507 20,507 20,507 20,507exchange of shares 1,220,002,444 1,220,002,444 1,220,002,444 1,220,002,444Capital increase 183,000,000 183,000,000 183,000,000 183,000,000Balance at December 31, 2011 1,403,002,444 1,403,002,444 1,403,002,444 1,403,002,444

the main equity movements of the period are:

1.- on March 4, 2011, the auStralIS SeaFooDS S.a. extraordinary Shareholders Meeting act, held the same date, was summarized in

public deed before Iván torrealba acevedo. In this meeting the following, among other items, was decided:

a) to increase the Company’s capital from $21,833,579,871 to a total amount of $24,673,419,797, paid by shareholders by capitalizing

on profits retained by the Company, following loss absorption, corresponding to the account “other reserves,” with the capitalized

profits amount rose to $2,839,839,925.

b) to increase the number of shares among which the Company’s capital is divided from 20,507 registered shares, without nominal

value, of the same and unique series, each with equal value, to 1,220,002,444 registered shares, without nominal value, of the

same and unique series, each with equal value, without increasing statutory capital. For these purposes, the next step was the

exchange of the respective stock certificates in the manner determined by the Shareholders group. In accordance with the above,

each Company shareholder receives 59,492 shares for each currently issued share.

c) to request registration of the Company and its shares in the Securities registry of the Superintendencia de Valores y Seguros

(hereinafter the “Superintendencia”), with which, once the shares are registered, the Company would be subject to the standards

governing publicly traded corporations. the Company would be subject to Superintendencia audits, thus complying with articles

2 of the ley de Sociedades anónimas (Corporations law), 5 and 7 of law no. 18,045 of the Securities Market (hereinafter the “ley

de Mercado de Valores” (Securities Market law)) and 2 of the reglamento de Sociedades anónimas (Corporations regulations).

this is so, that the Company’s shares can be publicly offered and traded in Markets for emerging Companies that regulate Secu-

rities exchanges, in accordance with article 8 subsection 2 of the Securities Market law and the General Standard no. 118 of the

Superintendencia and its modifications.

d) to increase the capital of the Company from $24,673,419,797, including the revaluation of capital as reported in the General Sha-

reholder Meeting on March 4, 2011, divided in 1,220,002,444 registered shares, without nominal value, of the same and unique se-

ries, each of equal value, to the amount of $28,515,993,870, divided in 1,410,002,444 registered shares, without nominal value, of

the same and unique serie, each of equal value, which implies an increase in capital of the Company of $3,842,574,074, done by

issuing 190,000,000 new payment registered shares, without nominal value, of the same and unique serie, each of equal value,

the Shareholders setting the minimum placement value of the shares and, jointly, to approve the amount of $141,568,519 of this

capital increase to go to a compensation plan for employees of the Company or its subsidiaries, according to the terms of article

24 of the ley de Sociedades anónimas (Corporations law).

2.- on March 14th, 2011, Director rodrigo arriagada astrosa privately subscribed to 2,000,000 company shares. the share price

is equal to the price at which each year is offered when it first enters is exchange, that is, $185 (Chilean pesos). the transaction

amount was $370,000,000 (Chilean pesos), and the payment deadline is pending.

3.- on March 14th, 2011, Director Federico rodríguez Marty privately subscribed to 1,000,000 company shares. the share price is

equal to the price at which each year is offered when it first enters is exchange, that is, $185 (Chilean pesos). the transaction

amount was $185,000,000 (Chilean pesos), and the payment deadline is pending.

4.- on June 8th, 2011, the Board of Directors declared successful the placement of 180,000,000 first issue shares, representative

of 12.77% of the Company’s capital stock. this placement took place on June 9th, 2011 in the Bolsa de Comercio de Santiago (San-

tiago Stock exchange). the first issue share offer took place in the local market through larraín Vial S.a. Stockbrokerage, acting as

placement agent, and the sale was executed in the Santiago Stock exchange, Securities exchange by means of the trading me-

thod “Subasta de un libro de Órdenes” (orders Book auction). the auction price of the offered shares was fixed by the Company

for a sum of $185 (Chilean pesos) per share, making the total amount of the share placement $33,300,000,000 (Chilean pesos).

5.- on october 20th, 2011, a Special Shareholders Meeting was held. Shareholders representing 97.274% of the total shares with voting

entitlement attended, and the following, among other items, was decided:

a) the modification of currency used for Company accounting and stating statutory capital from Chilean pesos to united States of

america Dollars;

a. the capitalization of the highest value obtained in the placement of shares on June 9, 2011, discounting issue and placement

expenses, in compliance with subsection 2 of article 26 of the ley de Sociedades anónimas (Corporation law).


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- Dividend policy

In order to determine distributable net profit of the Company to be considered for dividend calculation, the following will be excluded

from the financial year results:

1) unrealized profits or losses, related to the recording at fair value of biological assets regulated by the accounting standard “IaS 41,”

reintegrating them into net profits the moment they are realized. For this purpose, realized will be understood as the portion of these

fair value increases corresponding to the assets sold or disposed of by other means.

2) unrealized income generated in the acquisition of other entities and, in general, unrealized results produced from the application

of paragraphs 34, 42, 39 and 58 of the accounting standard “Captain international Financial reporting Standard no. 3,” revised,

referring to business combination operations. these results will also be re-integrated into net profit at the moment of realization. For

these purposes, results will be understood as realized as long as acquired entities generate profit after acquisition, or when these

entities are sold.

3) the effects of deferred taxes associated with the items indicated in 1) and 2) will be regulated in the same way as the item that

gives rise to them.

Dividend provision

the Company reports as interim dividends the equivalent of 30% of distributable net profit for the 2011 period.

b) Distribution of Shareholders

the main shareholders of australis Seafoods S.a. are the following:

Name No. Shares % Ownership

FonDo De InVerSIÓn prIVaDo auStralIS 1,101,077,936 78.5%

aSeSorIaS e InV BenJaMIn S a 106,924,508 7.6%

larraIn VIal S a CorreDora De BolSa 42,293,121 3.0%

FonDo De InVerSIÓn larraIn VIal BeaGle 40,082,255 2.9%

aFp HaBItat S a para FDo penSIon C 16,043,158 1.1%

FonDo De InVerSIÓn SantanDer SMall Cap 13,584,418 1.0%

CoMpaSS SMall Cap CHIle FonDo De InVerSIÓn 12,254,012 0.9%

aFp HaBItat S a FonDo tIpo B 10,414,253 0.7%

aFp HaBItat S a FonDo tIpo a 8,969,575 0.6%

BolSa De CoMerCIo De SantIaGo BolSa De ValoreS 8,250,525 0.6%

SIGlo XXI FonDo De InVerSIÓn 5,134,128 0.4%

lInZor aBSolute return FonDo De InVerSIÓn prIVaDo 4,235,964 0.3%

1,369,263,853 97.6%

note 23 - Cumulative earnings (losses)the Cumulative results account breaks down as follows:

At Dec. 31, 2011

TUSD$

At Dec. 31, 2010

TUSD$

opening balance 11,929 (4,708)

Income results and comprehensive costs 27,429 17,377

other variations in equity (6,952) 8,726

Interim dividends (8,243) (9,466)

Total 24,163 11,929

as required by Memorandum no. 1,945 of the Superintendency of Securities and Insurance, Chile on September 29, 2009, below

are the adjustments of the first applications of IFrS, recorded with a credit to cumulative earnings (losses), pending realization.

2010 2011

Adjustmentscumulative at

01/01/2010

Amountrealizedin 2010

Balance forrealize at

12/31/2010



Items TUSD $ TUSD $ TUSD $ TUSD $ TUSD $

Biological assets (1) 5,072 (5,072) - -

Functional currency (2) (1,539) - (1,539) (1,539)

properties, plant and equipment (3) (563) - (563) (563)

Deferred taxes (4) (983) 1,216 233 233

Stock (5) 414 (414) - -

Intangibles (6) 214 - 214 214

negative goodwill (7) 134 (134) - -

others 185 - 185 185

reclassification of interests, non-controlling * 190

TOTAL 3,124 (4,404) (1,470) (1,470)

(1) Biological assets: according to prior Gaap, fish were classified as inventory and were recorded at cost or at market value, if this

was lower. In accordance with IFrS 41, fish must be classified as biological assets and are valued at fair value. this adjustment was

made in 2010 at the time of sale of these assets.

(2) Functional currency: according to previous Gaap, the Company had some subsidiaries in Chilean pesos. When evaluating the

functional currencies of each of the group’s companies, it was concluded that their operations were primarily carried out in united

States of america dollars, hereinafter “Dollars,” and therefore these operating subsidiaries with different currencies were converted

to “Dollars.” these adjustments were made to the extent that the item with which they are associated is disposed of.

(3) properties, plant and equipment: For the application of IFrS it has been defined opening balances at January 1, 2010 are recorded

at fair value, and therefore:

i) For the case of subsidiary landcatch Chile S.a., an assessment of lands, water use rights, equipment and buildings of the Company

was performed.

ii) For the case of subsidiary australis Mar S.a., the method of historical cost of the assets was used and the useful lives and residual

values of these assets were verified.


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these adjustments were made to the extent that the item with which they are associated is disposed of.

(4) Deferred taxes: according to IFrS, all effects of deferred taxes from temporary differences between the tax and financial balance

sheet must be recorded, using the liability method. these adjustments are made using the same ratio as the items with which they

are associated.

(5) Stocks: the adjustment done corresponds to the portion of the fair value included in the finished products, done for the valuation

of the biological asset adjustment. this adjustment was made in 2010 at the time of sale of these assets.

(6) Intangibles: according to IFrS aquaculture concessions have mainly indefinite useful lives and are therefore subject to annual

impairment tests. Depreciation has been reversed and its effects recognized in the cumulative results. these adjustments were made

to the extent that the item with which they are associated is disposed of.

(7) negative goodwill: according to IFrS 3, this concept is paid directly to income, and therefore higher investment balances were

attributed to the cumulative results at the transition date. this adjustment does not have an effect on future financial years, and

therefore has been considered as made in the adjusted period.

* non-controlling shares reclassification: according to IFrS, this item is considered part of equity, unlike according to the previous

Gaap. For this reason, it will not be applied in future financial years.

note 24 - earnings per Share and net Distributable profits24.1. Earning per share

earnings per share break down as follows:

At Dec. 31, 2011

US$/No. of shares

At Dec. 31, 2010

US$/No. of shares

earning per share 0.02 847

the calculation of basic earnings (losses) per share was done by dividing the profit attributable to shareholders by the number of

shares of the same unique serie. the Company has not issued convertible debt or other equity securities. as a result there are no

potentially diluting effects on the Company’s earning per share.

24.2. Distributable net profitDividend policy for the financial year 2011 is to distribute as a dividend at least 30% of net profit of the year ending on December 31,

2011, by means of the distribution of a final dividend. the ordinary Meeting of Shareholders must approve this, and it is payable on

the date they designate.

according to the provisions of memorandum no. 1945 of the SVS, dated December 29, 2009, it was agreed to establish as a general

policy that net profit, for purposes of the minimum obligatory dividend payment of 30%, established by article 79 of law 18,046, will

be determined based on total profits from the relevant changes of yet unrealized assets and liabilities, which must be re-integrated

into the calculation of net profit for the financial year in which these changes take place.

additional dividends will be determined based on these criteria according to the agreement adopted at the Shareholders Meeting.

as a result, it was agreed that, in order to determine distributable net profit of the Company, that is, net profit considered for calcu-

lating the minimum obligatory dividend for financial year 2011, the following aspects will be excluded from the results of the financial

year:

i) unrealized profits or losses, related to the recording at fair value of biological assets regulated by the accounting standard “IaS 41,”

reintegrating them into net profits the moment they are realized. For this purpose, realized will be understood as the portion of these

fair value increases corresponding to the assets sold or disposed of by other means.

ii) the effects of deferred taxes associated with the concepts indicated in i) will have the same fate as the item that gave rise to them.

although distributable profit for determining dividends is calculated based on annual results, for informational purposes, the deter-

mination of net profit for the financial year ending on December 31, 2011 is given below:


earning attributable to the controlling interest 27,429Change in the fair value of biological assets 59Deferred taxes associated with the fair value of biological assets (11) Distributable net profit 27,477 Application of dividend policy (30%) 8,243

note 25 - ordinary revenuethe revenue of the Group breaks down as follows:


TUSD$


TUSD$

Freshwater Sales 9,400 4,181

Seawater Sales 154,264 80,220

Total 163,664 84,401

the Group’s ordinary revenue mainly consists of sales from products derived from the harvest of biological assets.

note 26 - other Income/expenses by Functionthe revenue of the Group breaks down as follows:

Other operating income

At Dec. 31, 2011 At Dec. 31, 2010

negative goodwill from acquisitions - 1,556 others 307 546 leases 92 - Costs recovery - 63 reimbursements by law no.18,708 51 35 Total 450 2,200


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Other operating costs

At Dec. 31, 2011 At Dec. 31, 2010others (368) (477)penalties and disposals of fixed assets (27) (181)rest centers (1,305) (1,717)Confiscation of plant product - (74)Settled personnel compensation - (287)Total (1,700) (2,736)

note 27 - Distribution expensesDistribution costs are detailed below:



land transport (582) (251)third-party cold stores (262) (275)Selling costs (215) (56)General pre-shipment and shipment costs (367) (122)employees Salaries (451) (441)Commissions (75) (65)other selling costs (73) (47)Total (2,025) (1,257)

note 28 - administration CostsBelow are the main administration costs of the company at the close of the financial statements:


TUSD$


TUSD$lease (238) (181)employees costs (4,971) (3,025)Depreciation and amortization (47) (163)third-party services (1,896) (1,336)others (1,165) (512)Total (8,317) (5,217)

Employee costs

employee costs are detailed below:

employees costs: Cumulative at Dec. 31, 2011

TUSD$


TUSD$

Salaries (2,814) (2,775)

Benefits (2,085) (115)

others (72) (135)

Total (4,971) (3,025)

note 29 - Financial Costs (net)Financial CoStS at the closing of the financial statement are detailed below:


TUSD$


TUSD$Financial Interests (1,785) (1,162)loan Commission (65) (68)notary costs (18) (11)Bank costs (33) - Total (1,901) (1,241)

note 30 - exchange Differences of assets and liabilities in Foreign Currencya) Exchange differences recognized in results

exchange differences generated at December 31, 2011 and 2010 by the balances of assets and liabilities in foreign currencies other

than the functional currency were credited (charged) to the results of the financial year as follows:

CumulativeAt Dec. 31, 2011

TUSD$

CumulativeAt Dec. 31, 2010

TUSD$assets in foreign currency (5,910) 2,918liabilities in foreign currency 1,230 (556)Total exchange differences (4,680) 2,362

b) Assets and liabilities in foreign currency

Classes of current assets Currency

At Dec. 31, 2011

TUSD$

At Dec. 31, 2011


TUSD$

Cash and cash equivalents non-index linked pesos 49,371 26 57

Cash and cash equivalents Dollars 2,109 11,742 2,957

Cash and cash equivalents Index-linked pesos - - 656

Subtotal Cash and cash equivalents 51,480 11,768 3,670

other non-financial assets, current non-index linked pesos 174 355 5

other non-financial assets, current Dollars 252 22 30

Subtotal other non-financial assets, current 426 377 35

trade debtors and other receivables, current non-index linked pesos 2,586 - -

trade debtors and other receivables, current Dollars 14,278 10,175 11,133

Subtotal trade debtors and other receivables, current 16,864 10,175 11,133

accounts receivable to related entities, current non-index linked pesos - 9,462 -

accounts receivable to related entities, current Dollars 5,701 - 1,523

accounts receivable to related entities, current Index-linked pesos 50 - -

Subtotal accounts receivable to related entities, current 5,751 9,462 1,523

Inventories Dollars 11,506 2,617 3,494

Subtotal Inventories 11,506 2,617 3,494

Biological assets, current non-index linked pesos - - -

Biological assets, current Dollars 78,797 57,651 29,523

Biological assets, current Index-linked pesos - - -

Subtotal Biological assets, current 78,797 57,651 29,523

assets for taxes, current non-index linked pesos 196 1,874 344

assets for taxes, current Dollars - - -

assets for taxes, current Index-linked pesos 7,749 3,874 867

Subtotal assets for taxes, current 7,945 5,748 1,211


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note 31 - Contingenciesa) pledged shares

according to the financing contracts of the subsidiary australis Mar S.a., controlling shareholders of australis Seafoods S.a. assu-

med the obligation to pledge over 50.1% of their shares in favor of the financing banks of the aforementioned subsidiary, which are

Banco Chile, Corpbanca and Banco de Crédito e Inversiones.

b)Direct guarantees

at the closing date of these financial statements, the company had no direct guarantees of any kind.

c)Indirect guarantees

Debtor Committed Assets

Guarantee creditor Name RelationType of

guarantee Type

AssetAccountable

TUSD$Corpbanca australis Mar S.a. Subsidiary Guarantor Does not apply -Banco Chile australis Mar S.a. Subsidiary Guarantor Does not apply -Banco Crédito e Inversiones australis Mar S.a. Subsidiary Guarantor Does not apply -BBVa Chile landcatch Chile S.a. Subsidiary Surety Does not apply -

d) Guarantees from third parties

In accordance with the bank financing contracts of australis Mar S.a. (subsidiary), this company’s debts with Banco de Chile, Banco

de Crédito e Inversiones and Corpbanca are secured by Mr. Isidoro ernesto Quiroga Moreno, asesorías e Inversiones Benjamín S.a.

australis Seafoods S.a. and landcatch Chile S.a. awarding and maintenance of these guarantors does not accrue any charge for

the Company or its subsidiaries.

e) Guarantees

In order to guarantee the obligations of subsidiary Comercializadora australis Spa according to the contracts awarded on the pur-

chase of fifty percent of the social rights of true Salmon pacific Holding Co. llC (hereinafter “tSp”), this subsidiary served as a pled-

ge in favor of the salerepresentatives for their social rights in tSp. It was agreed that this pledge would be lifted on January 26, 2012.

e) restrictions

In accordance with the bank financing contracts of australis Mar S.a. (subsidiary), this company is subject to the following restric-

tions until 2015 unless the company has prepaid the debt balances.

a) not being a guarantor and/or surety and co-debtor, or to compromise its patrimony directly or indirectly, of obligations of third

parties that make up an amount greater than or equal to five hundred thousand dollars, individually or collectively.

b) australis Mar S.a. may not constitute or award pledges or mortgages on its movable or immovable property, except for those

authorized in the financing contracts.

c) australis Mar S.a. may not sell, transfer or sign away in any way assets that are part of the debtor’s fixed asset, unless such a

disposal does not imply a significant decrease in equity.

d) australis Mar S.a. may not distribute profits or dividend payments over thirty percent of the profit of the respective financial year,

for the entire term of the credit, unless, in excess, they are capitalized in the debtor or designated for reinvestment in australis

Seafoods S.a. or any company controlled by it.

e) the tuSD$ 10,686 debt that australis Mar S.a. has to australis Seafoods S.a. (parent company) must be subordinated in favor of

the creditor banks.

Classes of non-current assets CurrencyAt Dec. 31, 2011



TUSD$other non-financial assets, non-current non-index linked pesos 7,379 8,694 5,550other non-financial assets, non-current Dollars 156 235 3Subtotal other non-financial assets, non-current 7,535 8,929 5,553Investments recorded using accounting method participation 7,612

Subtotal Investments recorded using the participation method 7,612Intangible assets other than goodwill non-index linked pesos - - -

Intangible assets other than goodwill Dollars 14,456 10,422 6,775Intangible assets other than goodwill Index-linked pesos - - -Subtotal Intangible assets other than goodwill 14,456 10,422 6,775properties, plant and equipment Dollars 60,373 30,664 20,888Subtotal properties, plant and equipment 60,373 30,664 20,888Biological assets, non-current Dollars 28,860 16,343 9,445Subtotal Biological assets, non-current 28,860 16,343 9,445assets for deferred taxes Dollars 4,000 1,593 1,283Subtotal assets for deferred taxes 4,000 1,593 1,283

Classes of current liabilities CurrencyAt Dec. 31, 2011



TUSD$

other current financial liabilities non-index linked pesos 581 2,497 2,064

other current financial liabilities Dollars 15,682 9,938 38,126

other current financial liabilities Index-linked pesos 182 195 175

Subtotal other current financial liabilities 16,445 12,630 40,365

trade accounts and other receivables, current non-index linked pesos 17,713 15,500 10,119

trade accounts and other receivables, current Dollars 33,617 19,744 4,164

Subtotal trade accounts and other receivables, current 51,330 35,244 14,283

Current accounts payable to related entities non-index linked pesos 368 557 2,990

Current accounts payable to related entities Dollars 3,525 - -

Subtotal Current accounts payable to related entities 3,893 557 2,990

provisions for employee benefits, current non-index linked pesos 2,604 1,900 465

provisions for employee benefits, current Dollars

Subtotal provisions for employee benefits, current 2,604 1,900 465

Classes of non-current liabilities CurrencyAt Dec. 31, 2011



TUSD$

other non-current financial liabilities Dollars 65,680 52,025 -

other non-current financial liabilities Index-linked pesos 45 227 379

Subtotal other non-current financial liabilities 65,725 52,252 379

other non-current, payable accounts Dollars - 0 5,259

other non-current, payable accounts Index-linked pesos - - -

Subtotal other non-current, payable accounts - - 5,259

non-current accounts payable to related entities non-index linked pesos - 628 11,395

Subtotal accounts payable to related entities related, non-current 628 11,395

liability for deferred taxes non-index linked pesos 8,877 5,617 3,791

liability for deferred taxes Dollars

Subtotal liability for deferred taxes 8,877 5,617 3,791

other non-financial liabilities, non-current non-index linked pesos - - 10

other non-financial liabilities, non-current Dollars - - -

Subtotal other non-financial liabilities, non-current 0 0 10

provisions for employee benefits, non-current non-index linked pesos 450 360

provisions for employee benefits, non-current Dollars 1,057

Subtotal provisions for benefits to

employees, non-current. 1507 360 -


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note 32 - environmentaustralis Seafoods S.a. and subsidiaries, as part of their business strategy, have defined care and respect for the environment as a

priority. For this reason, a number of actions have been taken that make operations more efficient and considerably reduce environ-

mental impact, basically with the following types of expenditures:

a) expenditures or costs related to improvement of and/or investment in production processes that reduce environmental impact

and/or improve environmental conditions such as: monitoring effluents from fish farms, marine devices and processing plants;

fish mortality silage system implementations in the sea rearing centers and fish farms; environmental reports and initial as-

sessments of rearing centers; etc.

b) expenditures or costs related to verifying and monitoring ordinances and laws regarding industrial processes and facilities such

as: filing environmental impacts declarations to evaluate mortality silage; managing and final disposal of hazardous and non-

hazardous wastes, phytoplankton monitoring; monitoring sediments and the water column in rearing centers; monitoring mud

from fish farms; environmental consulting; hiring sampling and laboratory analysis services; etc.

For the future, australis Seafoods and subsidiaries reaffirm their commitment to caring for the environment by means of new inves-

tments, continual training of employees and signing of new agreements that allow for progress towards sustainable development, in

order to achieve harmony between operations and the environment.

the breakdown of expenditures for environmental protection projects undertaken by the Group in 2011 is as follows:

Company that incurred the Expense Project name

Reason for the expen-diture

At December 31, 2011 At December 31, 2010

CostTUSD$

Inves-tmentTUSD$

Description of the asset or cost item

TUSD$

Amount designated for future periods

Exact or estimated

date on which future expenditu-res will be

made

Estimated date

of project end

CostsTUSD$

Inves-tmentTUSD$

australis Mar S.a. Implementation of oxygen monitoring systems

Implementation of oxy-gen monitoring systems

40 o x y g e n equipment

48 09/30/2012 12/31/2011 40

australis Mar S.a. preparation of pre-liminary environ-mental studies of the concessions

preparation of prelimi-nary environmental stu-dies of the concessions

30 third-party services

36 09/30/2012 12/31/2011 23

australis Mar S.a. Implementation of biosecurity and vector measures

Implementation of biose-curity and vector mea-sures


36 09/30/201 12/31/2011 25

australis Mar S.a. e n v i ro n m e n ta l analysis

environmental analysis of the sites by means of on-site testing


48 09/30/2012 12/31/2011 41

landcatch S.a. effluent incuba-tion uV disinfec-tion system

effluent incubation uV di-sinfection system / liquid waste monitorin

120 401 liquid waste monitoring / uV System

250 09/30/2012 12/31/2011 126 -

australis Mar S.a. e n v i ro n m e n ta l analysis

environmental analysis of the sites by means of on-site testing


48 09/30/2012 12/31/2011 41

landcatch S.a. effluent incuba-tion uV disinfec-tion system

effluent incubation uV di-sinfection system / liquid waste monitoring

120 401 liquid waste monitoring / uV System

250 09/30/2012 12/31/2011 126 -

environmental expenditures of the subsidiary australis Mar S.a. have to do with enabling new rearing centers, and while these have

an estimated completion date, these projects will continue in the future as long as there are new rearing centers.

note 33 - events after the Balance Sheet Datea) on January 26, 2012, the pledge was lifted for obligations assumed by the subsidiary Comercializadora australis Spa based on

contracts awarded at the time of purchase of fifty percent of the social rights of true Salmon pacific Holding Co., llC (hereinafter

“tSp”).

b) the consolidated financial statements of the Company for the financial year ending on December 31, 2011 were approved by the

Board in session on March 14, 2012.

c) Between December 31, 2011 and the issue date of these consolidated financial statements, there were no financial or other events

that significantly affects the interpretation of these statements.

note 34 - other Informationthe number of employees of australis Seafoods and subsidiaries, by category, is as follows:

At Dec. 31, 2011 At Dec. 31, 2010

Indefinite contracts 312 246

Fixed term contracts 35 38

total contracts 347 284


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GENERAL BALANCETUSD$

Australis Mar S.A.

LandcatchChile S.A.

PisciculturaRio Maullin SPA

ComercializadoraAustralis SPA

2011 2010 2011 2010 2011 2010 2011 2010

Current assets 107,954 83,990 27,307 10,817 - - - -

non-current assets 80,263 47,946 32,155 18,807 149 104 7,612 -

Total Assets 188,217 131,936 59,462 29,624 149 104 7,612 -

Current liabilities 57,730 30,231 18,795 8,788 122 97 3,525 -

non-current liabilities 66,470 67,757 26,854 9,615 - - 4,005 -

equity 64,017 33,948 13,813 11,221 27 7 82 -

Total Liabilities and Assets 188.217 131,936 59,462 29,624 149 104 7,612 -

Condensed Financial Statements of Subsidiary Companies

INCOME STATEMENTTUSD$

Australis Mar S.A.

LandcatchChile S.A.

Fish Farm Rio Maullin SPA


2011 2010 2011 2010 2011 2010 2011 2010

Gross profit 45,270 23,842 5,714 907 - - - -

other income (losses) -7,539 -4,041 -2,703 -36 20 - 82 -

profit (loss) before taxes 37,731 19,801 3,011 871 20 - 82 -

Income tax -7,667 -3,947 -419 1,461

InCoMe (loSS) 30,064 15,854 2,592 2,332 20 - 82 -

CASH FLOWTUSD$

Australis Mar S.A.

LandcatchChile S.A.

2011 2010 2011 2010

net cash flows from / (used in) operating activities 8,919 1,451 -11 -88

net cash flows from / (used in) investment activities -16,686 -14,110 -8,962 -41

net cash flows from / (used in) financing activities -646 21,023 9,158 -138

net increase in cash and equivalent in cash -8,413 8,364 185 -267

Cash and cash equivalents at the start of the period 11,443 3,079 324 591

Cash and cash equivalents at the end of the period 3,030 11,443 509 324

CASH FLOWTUSD$

Fish Farm Rio Maullin SPA


2011 2010 2011 2010

net cash flows from / (used in) operating activities - - -5 -

net cash flows from / (used in) investment activities - - -4,000 -

net cash flows from / (used in) financing activities - - 4,005 -

net increase in cash and cash equivalents - - - -

Cash and cash equivalents at the start of the period - - - -

Cash and cash equivalents at the end of the period - - - -

STATEMENT OF CHANGES IN EQUITYAUSTRALIS MAR S.A. TUSD$

Capital

Accumulated Earnings

Other reserves

Equity attributable to owners

of the holding company

Non-controlling Interests

Assets total

opening balance previous period 01/01/2011 5,066 28,791 - 33,857 91 33,948

earnings - 30,063 - 30,063 1 30,064

other movements - - - 0 5 5

total changes in equity 5,066 58,854 - 63,920 97 64,017

Final balance current period 12/31/2011 5,066 58,854 - 63,920 97 64,017

STATEMENT OF CHANGES IN EQUITYLANDCATCH CHILE S.A. TUSD$

Capital


Other reserves




Assets total

opening balance previous period 01/01/2011 10,825 1,574 -1,178 11,221 - 11,221

earnings - 2,592 - 2,592 - 2,592

other movements - - - - - -

total changes in equity 10,825 4,166 -1,178 13,813 - 13,813

Final balance current period 12/31/2011 10,825 4,166 -1,178 13,813 - 13,813

STATEMENT OF CHANGES IN EQUITYFISH FARM RIO MAULLIN SPA TUSD$

Capital


Other reserves




Assets total

opening balance previous period 01/01/2011 - - 7 7 - 7

earnings - 20 - 20 - 20


total changes in equity - 20 7 27 - 27

Final balance current period 12/31/2011 - 20 7 27 - 27

STATEMENT OF CHANGES IN EQUITYCOMERCIALIZADORA AUSTRALIS SPA TUSD$

Capital


Other reserves




Assets total

opening balance previous period 01/01/2011 - - - - - -

earnings - 82 - 82 - 82


total changes in equity - 82 - 82 - 82

Final balance current period 12/31/2011 - 82 - 82 - 82

the accounting policies applied to each subsidiary are those described in the consolidated financial statements of australis Seafoods S.a. the complete financial statements of the subsidiaries presented are at the disposition of the public in the offices of australis Seafoods S.a. and the Superintendency of Securities and Insurance.

118 australis seafoods australis seafoods 119

www.austral is-seafoods.cl

120 australis seafoods australis seafoods 121

DeSIGn

100% Diseño

MeMory teXt eDItInG

Comsulting

pHotoGrapHy

Morten andersen

portraItS

Cristina alemparte

prIntInG

Fyrma Gráfica

Documents

2011 · 2020. 9. 9. · Benjamín S.a., with 99.99% of the social rights, and Inversiones el aromo limitada, with 0.01%. on June 9th, 2011, there was an initial placement of shares