australis annual report 2012 · 2020. 9. 9. · mín s.a. with 99.99% of the corporate rights, and...

ANNUAL REPORTAUSTRALIS SEAFOOD S.A.

2012

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A U S T R A L I S S E A F O O D S

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Contents

Anticipating events, being visionary and combining the energy of a young company with the experience of those who are part of it, have been the strengths that distinguish us as a company.

ANTiciPATiON

In 2012 we stood out for be ing the f i rst Chi lean Company to secure the G lobal G .A .P. Cert i f icat ion . Th is recognizes our valuable know-how and passion for excel lence.

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Dear shareholders, I am addressing you

to present Australis Seafoods S.A.’s 2012

Balance Sheet and Annual Report.

In 2012 the Company faced a big challenge

as the aquaculture industry was hit by the

lowest prices seen in the last six years in

response to a close-to-96% increase in

production both in Chile and in Norway.

Our company was no stranger to this reality

which was duly reflected in this year’s result.

For the year ended December 31st, 2012, the

Company posted a loss of US$66.1 million,

which compares to a profit of US$27.4

million in 2011.

As for sales, these recorded a decrease

of 26% in relation to the previous year,

totaling US$121.8 million. This decrease is

explained by an almost 30% fall in prices,

partly compensated by higher sales volumes

that increased from 28.457 tons in 2011 to

32.026 tons in 2012. In turn, costs of sales

reached US$156.9 million, 38% above the

2011 level.

Almost two years ago, when our Company

started the process of going public, we

stressed the values that characterize us and

which are part of our business philosophy:

transparency, vision, anticipation and

agility. Well aware of the cyclical nature that

characterizes this industry, Australis Seafoods

was therefore well prepared, and continues

to be well prepared, to face contingencies

like those faced last year. We have a strong

business plan that focuses, among other

aspects, on cost optimization and on

taking advantage of the price improvement

experienced during the last weeks of 2012.

It was against the background of declining

prices that the Company’s Board of Directors

made the early and well-timed decision to

cut the initial production plan by adopting

a more conservative view in terms of growth

rates for the coming years. In light of market

developments observed towards the end of

last year, we are convinced that this was the

right decision.

Moreover, and despite possible price

fluctuations in the markets that are attractive

for Chilean salmon, we continue to be

optimistic about the fundamentals of our

industry. The world’s population increasingly

consumes proteins on a consistent basis and

demand for salmonids increases at an annual

compound growth rate of approximately

6%.

In addition, salmon has distinct features

among animal proteins: it is a natural source

of vitamins, proteins and other nutrients,

among which long chain polyunsaturated

fatty acids (omega 3) stand out. The market

recognizes these attributes and, despite the

much larger global production in 2012,

demanded 22% more Atlantic salmon

(Salar) than in 2011.

It was with this vision in mind that we

announced a capital increase of US$60

million last December, at the same time as

the majority shareholder announced the full

subscription of its proportion of the share

issue, which has been positively received by

the market. Part of this capital increase will

be used to resume the position that Australis

Seafoods achieved in 2011 as one of the

leaders in the production of salmonids in

the world.

We are therefore well aware of the unique

strengths of our Company. These will allow

us to recover lost ground quickly. We not

only have the necessary infrastructure and

well established know know-how from

the beginning of the productive cycle to

marketing in key international markets,

but also an expert professional team of the

highest caliber to continue developing the

Australis project, all of which has been duly

recognized by the market.

Fully consistent with this view, I am pleased

to report that in June 2012, Australis

Seafoods S.A. was recognized as the best

salmon producing company by the 2012

EVA Ranking prepared by Econsult. This

ranking considers the Economic Value

Added by industry sector and in aggregate

across sectors. At the aggregate level, we

were placed number 18 out of 132 local

companies. We are naturally very proud of

this recognition and remain committed to

work hard and reach new milestones for

our shareholders. We have also focused

on new commercial strategies to add new

markets and clients in the fastest growing

destinations, such as Brazil, China and India,

and to improve the logistics and processing

of our production. An important milestone

for Australis in this context has been the

negotiation and recent acquisition of our

first processing plant on March 28th, 2013.

The Fitz Roy plant will process initially up

to 40,000 tons and incorporate more than

230 employees, all of whom we welcome

warmly to the Australis team.

At the end of 2012 there were clear signs of

improvement in the price of our products

and we are certain that this upward trend will

continue in a scenario where the industry´s

players have come to appreciate the impact

of decisions that lead to oversupply.

In this new phase, the Company and its

management led by the Board, will have the

financing required to continue to implement

its growth strategy and to look for and

develop new business opportunities.

I would like to conclude not only by thanking

but also encouraging all and each of the

members of Australis Seafoods Group. The

reputation of our Company, the recognition

of its excellence by marketing agents, and

the Company´s appreciation by the market

in general are mainly the result of your hard

work, dedication and perseverance. I invite

you to work harder than ever in the effort of

promoting this project, one that has already

proven itself ready for big challenges. You

are a key part of this aspiration.

Federico Rodríguez MartyChairman of the Board of Directors

Australis Seafoods S.A.

Federico Rodríguez Marty

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WE ARE WELL AWARE OF THE UNiQUE STRENGTHS OF OUR cOMPANY. THESE WiLL ALLOW US TO REcOVER LOST GROUND QUicKLY.

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2012 Milestones

First Chilean company to obtain the Global G.A.P. CertificationIn March 2012, we obtained the Global

G.A.P. certification, recognized by the Glo-

bal Food Safety Initiative (GFSI), which

certifies our good practices in the elabora-

tion of our products and strict compliance

with international standards. This makes

us the first Chilean company to obtain this

certification for all its productive facilities,

and the local company with the largest vo-

lume of certified biomass in the three spe-

cies of salmon (Atlantic, Pacific and Trout).

Sound growth plan decisionWe anticipated the severe fall in prices in

2012 caused by excess production in Chi-

le and globally, announcing moderation in

the Company´s planting and harvesting

growth rates.

Capital increaseDue to the uncertainty in the industry and

in anticipation of lower prices and higher

production costs - and their impact on cash

flows - we announced a capital increase of

US$60 million for 2013. The controlling

shareholder confirmed the subscription of

its share of such amount, which has been

received positively by the market.

Rodrigo Arriagada Astrosa

New Chairman and CEOAt the beginning of 2013 Mr. Rodrigo

Arriagada Astrosa was appointed the new

CEO of the Company. He resigned as

chairman of the Company to make way for

Mr. Federico Rodríguez Marty. They both

contribute to our experienced team by

continuing the work of the previous ma-

nagement.

2012 EVA Ranking best salmon farmWe were recognized as the best salmon

farm in the 2012 version of EVA Ranking

prepared by Econsult. The ranking con-

siders the Economic Value Added by in-

dustry sector and at a general level. The

Company ranked number 18 out of 132

companies

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Total number of shareholders: 77

Main Shareholders: Asesorías e Inversiones Benjamín S.A.

Fondo de Inversión Privado Australis, represented by

Administradora de Inversiones Tamarindo S.A.

Ownership and control of the company

Basic InformationCorporate Name: Australis Seafoods S.A. (ASF)RUT*: 76003557-2Address: Cerro El Plomo 5680, Office 403 Las Condes, Santiago, Chile.Kind of company: Publicly Held Corporation

Incorporation Documents

Public deed City: SantiagoDate: October 31, 2007Notary Public: Iván Torrealba Acevedo

Legalization

Publication in the Official Gazette Date: November 21, 2007Registration before in the Commercial RecordPage: 48.775Number: 34.583Year: 2007Date: November 16, 2007

Contact InformationHeadquarters Cerro El Plomo 5680, Office 403, Las Condes, Santiago, ChilePhone (+56 2) 2299.58.00Fax (+56 2) 2798.96.52Email: [email protected]

company information

Name of Controlling Shareholder(s):Chilean RUT.Percentage of Direct PropertyPercentage of Indirect Property

Control

Main changes in ownership occurred

during 2012

Quiroga Moreno, Isidoro Ernesto6.397.675-K0%86,957%

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

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

12 mAIn shAReholDeRs As of DeCembeR 31, 2012

N° Name or Corporate Name RUT Shares %

1 Fondo de Inversión Privado Australis 76.123.347-5 1,101,077,936 78.48

2 Asesorías e Inversiones Benjamín S.A. 79.744.960-1 106,924,508 7.62

3 Fondo de Inversión Larraín Vial Beagle 96.955.500-k 54,950,856 3.92

4 Larraín Vial S.A. Corredora de Bolsa 80.537.000-9 43,331,873 3.09

5 AFP Hábitat S.A. for Fondo Pensión C 98.000.100 16,043,158 1.14

6 Compass Small Cap Chile Fondo de Inversión 96.804.330-7 11,491,470 0.82

7 MBI Corredores de Bolsa SA 96.921.130-0 10,473,656 0.75

8 AFP Hábitat S.A. Fondo Tipo B 98.000.100-8 10,414,253 0.74

9 AFP Hábitat S.A. Fondo Tipo A 98.000.100-8 8,969,575 0.64

10 Bolsa de Comercio de Santiago Bolsa de Valores 90.249.000-0 6,452,358 0.46

11 Negocios y Valores S.A. C de B 96.586.750-3 6,288,871 0.45

12 Bice Inversiones Corredores de Bolsa S.A. 79.532.990-0 4,549,006 0.32

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* RUT: National Identification Number

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We have a first class board of Directors and senior executive team with vast experience in the industry, whose vision to achieve continuous improvement inspires Australis seafoods’ philosophy of excellence.

OUR ViSiON

Our customer focused strategy which is based on three fundamental pillars: attraction, client loyalty and growth, has led us to develop reliable, sustainable and long term business relationships with all our clients.

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Description

Administration and Staff

Australis Seafoods S.A. is a company

that holds, through its subsidiaries,

interests in the aquaculture sector, par-

ticularly in the production of eggs and

smolts, the weight gaining of salmon

species and their export and marketing.

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

At present there are two principal com-

panies: one focused on production in

freshwater and one on the seawater

weight gaining business.

The summarized organizational structu-

re is shown below.

The Company’s Board of Directors in

made up of the following persons:

b) Board of Directors and Management

tage Developing company

Genetic development and production of eggs Landcatch Chile S.A.

Breeding and weight gaining in freshwater Landcatch Chile S.A.

Weight gaining in seawater Australis Mar S.A.

Marketing and exports Australis Mar S.A.

Name RUT OccupationIsidoro Quiroga Moreno 6.397.675-K Civil Engineer

Federico Rodríguez Marty (Chairman) 9.357.625-K Lawyer

Luis Felipe Correa González (Secretary) 11.947.424-8 Lawyer

Rafael Fernández Morandé 6.429.250-1 Civil Engineer

Martín Guiloff Salvador 12.661.579-5 Civil Engineer

Jorge Rodríguez Grossi 5.141.013-0 Economist

The relevance of this structure is that

it allows an adequate vertical integra-

tion of our businesses since within the

Group the production of salmon species

is managed from its genetic develop-

ment to its final marketing. Thus, it is

possible to add value in each stage of

the business, and within the company

involved, as indicated in the table be-

low:

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Australis Seafoods S.A.Rodrigo Arriagada AstrosaCEO

Civil Engineer Universidad Católica

RUT: 8.547.812-5

Luis Felipe Correa GonzálezLegal Manager

Lawyer, Universidad Diego Portales

Master in Business Law, Universidad de

Los Andes

RUT: 11.947.424-8

Ricardo Daniel Misraji VaizerCFO

Business Administration, Universidad

Católica de Chile

Master in Business Administration,

University of Cambridge, UK.

RUT: 8.967.131-0

Gabriel Guajardo GonzalezProduction Manager

Fishery Engineer, Universidad Católica

de Valparaíso

Master in Business Administration,,

Economics and Administration School

of Universidad Austral

RUT: [_*_]

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

executives.

RemunerationsDuring 2012, the Company’s

remuneration paid to Chairman Rodrigo

Arriagada Astrosa were ChP$28,000,000

to Director Isidoro Quiroga Moreno ChP

$22,000,000, to Director Luis Felipe

Correa González ChP $24,000,000,

to Director Federico Rodríguez Marty

ChP $22,000,000, to Director Rafael

Fernández Morandé ChP $26,000,000, to

Director Jorge Horacio Rodríguez Grossi

ChP$18,000,000, and to Director Martín

Guiloff Salvador ChP $16,000,000.

During the year, the Company did not

incur in any expenses for counseling from

the Board.

From January 1, 2012 until December 31,

2012, the Company paid remuneration

to the members of the Committee of

Directors as follows: to Director Rafael

Fernández Morandé, $3,000,000, to

Director Jorge Horacio Rodríguez Grossi,

$3,000,000, and to Director Martín

Guiloff Salvador, $3,000,000.

The total amount of gross compensation

paid to managers and executives during

2012 was US$3,527,000.

During 2012, compensation for years of

service paid to managers and/or senior

executives was US$673,186.

Company AMSA LACSA ASF Total

Executives 14 2 3 19

Professionals and technicians 115 36 2 153

Administrative Staff 26 8 1 35

Other Employees 4 148 - 152

Total 159 194 6 359

Our StaffThe following table shows a list of the Company’s staff at the end of 2012:

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Australis took its first steps in 2003 when its

current controlling shareholder, Isidoro Qui-

roga Moreno, acquired Australis S.A. (ASA),

a freshwater smolt producing company that

already had 10 years of experience. It was

only in 2007 when it expanded its business

to seawater growing salmon through its sub-

sidiary Australis Mar S.A. (AMSA). Thus, the

integrated operation of ASA and AMSA com-

bined the purchase of the eggs and/or smolts

- which were bred in freshwater ASA’s facili-

ties – with the weight gaining farms in AMSA

facilities, where the production cycle ended.

This business model allowed Australis to ex-

pand the operations within the value chain of

Atlantic salmon, Pacific salmon (Coho) and

Trout and to optimize the different processes

in each of the companies. That same year,

with the purpose of giving a corporate struc-

ture to its aquaculture activities, Australis

Seafoods S.A. was incorporated as a holding

company.

Historical Overview

Australis Seafoods S.A. purchases

Landcatch Chile S.A.

In October 2009, in order to integrate the

entire production line, Australis Seafo-

ods S.A. purchased Landcatch Chile S.A.

(LACSA), a company that has one of the

leading breeding programs in Chile. This

acquisition allowed Australis to procure

100% of the eggs it requires to meet its

production plans, thus restricting to a mi-

nimum the risk of transmission of disease

that may come from importing eggs from

third parties. Having its own genetic pro-

gram, Australis could also have fish families

to improve the quality of its own products,

and eggs to supply the Chilean market.

In addition to this acquisition, Austra-

lis signed a technical support agreement

with Landcatch Natural Selection Limited,

according to which it agreed to provide te-

chnical consulting to LACSA with regard to

genetic improvement in the reproduction of

salmonid species and breeding programs,

among others. This contract is effective until

December 2015 and is renewable for periods

of 3 years, as of that date.

In 2010, considering the growth that the

Australis Seafoods Group had experien-

ced, the acquisitions it had made and, abo-

ve all, the new challenges it would have to

face, the Company decided to implement

a corporate reorganization of its subsidia-

ries which included the assumption by

LACSA of all of ASA’s activities. As a result

of this process, the Group activities were

separated into two business areas: (i) fres-

hwater production of genetically improved

eggs, fry and smolts, exclusively through

LACSA, and (ii) the businesses of weight

gaining of salmonids, an the marketing

and export of meat to foreign markets

through AMSA.

Going public in the Santiago Stock Exchange

In June 2011, Australis Seafoods S.A. went

public in the Santiago Stock Exchange. As

was proposed to the new Company inves-

tors, the funds then raised have been desti-

ned to finance the Company’s growth plans.

Also, to secure a better distribution of its

products in one of the most important

markets, the U.S.A, that same year the

holding company acquired 50% of one the

major salmonid distributors in the U.S.,

True Salmon Pacific Holding.

Leader in the Chilean salmon industry

In its short years of existence, Australis has

come to occupy a leading position in the Chi-

lean salmon industry. This, thanks to the entre-

preneurial vision of the Company’s controlling

shareholder, a first class management team with

vast experience in the business and with a ca-

pacity to respond rapidly in decision making;

a team of collaborators that- with commitment

and dedication- strive every day to achieve the

goal of making Australis one of the main sal-

mon exporters worldwide.

Mission, Vision, Values

Mission• To offer products with world-class qua-

lity standards developed under a modern,

efficient and flexible management system

and through an environmentally friendly

production process, with consideration for

maximum sanitary safety parameters and

acting responsibly towards our employees.

Vision• To be acknowledged as a Company

that is innovative, efficient and respectful

towards the natural environment and the

communities in which we operate, there-

by achieving a leading position in cost and

profitability.

Values• Commitment to our workers

• Promoting integral development of our co-

llaborators in a safe, respectful and peaceful

work environment.

• Innovation and quality in harmony with

the environment

• Ongoing search for better solutions in our

production process in order to provide high

quality and fresh products with utmost pre-

caution and care for the environment and the

communities neighboring our operations.

• Compliance of principles that promote the

best corporate practices and compliance with

applicable rules and regulations in all activi-

ties undertaken by the directors, executives

and employees of Australis Seafoods Group,

ASF.

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In our few years of existence, we have come to occupy an important position in the Chilean salmon industry; today we are prepared for the challenge to diversify our markets and exports.

AGiLiTY

In the search for alternative markets to cushion the potential adverse impact of international crises and/or market downturns, the Company has implemented a dynamic and cutting edge ex-port model that enhances the competitive advantages of its products and develops new niches and markets

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Chart n°4Trout harvest per country (M Tons WFE)

The Salmon industry

Source: Kontali Analyse

Source: USDA

Lamb

Meat

Pork

Chicken

Salmon

282

276

263

215

142

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15

17

19

20

23

24

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15

6

Energy(Kcal)

Proteins(gr)

Fatty Acids (gr)

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5%

23%

65%

3%4%

Chart n°3Atlantic salmon harvest per country (M Tons WFE)

Source: The World Healthiest foods

Chart n°2 Salmon Nutritional Information (Base Portion: 4 Oz. or 113.4 Gr.)

Source: Bjorkl, J., Norwegian University and Life Sciences, Norway (2002)

Chart n°1Protein Retention

The ProductSalmon farming started experimentally in

the 60’s and became a productive industry

during the 80’s in Norway and in the 90’s in

Chile. Since those years the production of

Atlantic salmon has grown by over 600%.

The main sources of protein for humans

come from livestock, poultry, pork, fish

and seafood, but if the amount of protein

in the food sections of each animal is com-

pared with the amount of protein needed

to obtain it, salmon is the species delive-

ring the best conversion rates (Chart 1).

Despite these efficient conversion rates and

the fact that almost 70% of the planet’s sur-

face is water, only 6% of the protein in the

world comes from the sea.

In addition, salmon is a recognized natural

source of vitamins, proteins and antioxidants.

Its benefits and properties make it an ideal

food in all stages of human development,

from the period of gestation to adulthood.

Studies show that salmon is a food that re-

presents a vital source of nutrients, among

which are a large percentage of polyunsa-

turated fatty acids (long-chain Omega-3)

that help prevent cardiovascular disease

and contribute to the smooth functioning

of neurons, among other benefits. (Table

N°1 and Chart N°2)

SupplyThe main producers of farmed salmon and

trout are Norway and Chile. According to

2012 figures, they account for about 79%

of world salmon production and 88% of

trout world production. Both countries

have climatic and oceanographic condi-

tions favorable to the farming of these

products which explain the high concen-

tration on the supply side (Charts N°3 and

N°4).

Chile has about 1.300 Km. and Norway

about 2.240 Km. for farming salmon.

Authorities in all salmonid producing re-

gions have license granting regimes to ope-

rate piscicultures or weight gaining cen-

ters. This restricts the maximum capacity

of production in each country.

Moreover, the catch of wild salmon has

remained relatively stable in the last de-

cade. Currently it is estimated that the only

source of growth in the supply of salmon

Table n°1

Nutritional Comparison based on 100 Gr.

Kg

pro

tein

in

eat

able

par

ts /

kg

food

pro

tein

AtlanticSalmon

Pork Poultry Lamb

NorwayChileUnited KingdomCanada

NorwayChileFinlandDenmark

Faroe IslandIrelandOthers

Faroe Islands

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Gráfico n°8a2012 Chilean Salar Export Destination (M Tons WFE)

Gráfico n°8b2012 Chilean Trout Export Destination (M Tons WFE)

Gráfico n°8e2012 Chilean Trout Export Destination(M Tons WFE)

Gráfico n°8f2011 Chilean Coho Export Destination (M Tons WFE)

Gráfico n°8c2012 Chilean Coho Export Destination (M Tons WFE)

Gráfico n°8d2011 Chilean Salar Export Destination (M Tons WFE)

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Noruega Chile Otros0

200

400

600

800

1000

Producción 2012 Potencial

Chart n°6

Trout harvest per country (M Tons WFE)

1200

1400

Source: Kontali Analyse, Infotrade

Chart n°8

Chilean Salmonids Export Destiny

Source: Kontali Analyse Source: Kontali Analyse Source: Kontali Analyse

Source: Kontali Analyse Source: Kontali AnalyseSource: Kontali Analyse


Chart n°5World wild salmon and farmed salmon harvest (M Tons WFE)

Chart n°7

Chilean Salmonids Production(M Tons WFE)

would be possible through aquaculture.

During 2012 approximately 66% of the

global salmon production corresponded to

the cultivated species (Chart N°5).

Within the abovementioned salmon pro-

ducing countries, the only one with poten-

tial capacity to increase its production in

the short term is Chile (Chart N°6).

During the last 20 years, the accumulated

growth of Chile in the production of the

three species has been close to 10%, and it

is expected that this rate will be maintained

in the years to come (Chart N°7).

In Chile, the main export destinations of

Salar are: USA, Brazil and Japan; however,

during 2012 salmon shipments to Russia

have increased and part of the European

market has been recovered.

The main export destination of Trout and

Toho continues to be Japan; Russia has

however increased its demand of Trout

and it is expected to increase shipments

in order recover the market share lost

during the ISA crisis (Chart N°8).

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ton

. W

FE

Farmed SalmonWild Salmon

Coho Trout Salar

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Source: ABG Sundal Collier

Chart n°9Number of Salmonid Operating Companies per country

2010 2011 2012 2012/2011

European Union 737 782 916 17%

USA 257 288 343 37%

Japan 34 46 63 19%

Others 421 504 648 29%

Total 1.449 1.620 1.970 22%

Table n°2

World Atlantic salmon demand in the main markets (M tons WFE)


DemandThe main destinations for world exports

of salmon and trout are the markets in

the USA, Asia, the European Union, and

Russia and, since 2010, Latin America.

Of these markets, the Norwegian indus-

try mainly supplies the European Union,

Russia and Asia, while Chilean production

serves mostly markets in the USA, Asia and

Latin America (Table N°2).

For Chile, the USA continues to be one of

the main export markets of Atlantic sal-

mon, while Japan is the largest client of

Trout and Coho.

In 2012, Brazil was one of the main des-

tinations of Chilean production, after the

USA, and demand is expected to continue

to grow in that country in the future.

The CompetitionSalmon is a commodity and competition

is global, therefore it must be analyzed as

such. Historically the market has seen a

decline in the number of participants. In

Norway, the number of companies that

represent 80% of farmed salmon produc-

tion decreased from 70 to 22 between

1997 and 2012. In Chile, this trend was

only interrupted in 2009 due to the entry

of new players. However, in light of the

new regulations and production systems,

it is expected that the industry will tend to

consolidate in coming years. The number

of companies decreased from 35 in 1997

to 16 in 2012 (Chart N°9).

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Source: FISSource: Fishpool

Source: Urner Barry

Chart n°10

TRIM D 3-4 lb FOB MIAMI [US$/lb]

Chart n°12

FS 3-6 Kg FCA OSLO [NOK/kg]

Chart n°11

Trucha H&G Premium 4/6 lb [Yen/Kg]

Chart n°13

Coho H&G Premium 4/6 lb [Yen/Kg]

mAX/mIn 2006-2012 AVG 2006-2012 2011 2012 mAX/mIn 2006-2012 AVG 2006-2012 2011 2012

mAX/mIn 2006-2012 AVG 2006-2012 2011 2012 mAX/mIn 2006-2012 mAX 2006-2012 2011 2012

PricesIn terms of price performance, 2012 was

one of the worst for the industry in the

last 6 years. This was mainly due to the

oversupply of the three species. 96% of

the increase in production was caused by

Norway and Chile, where Norway contri-

buted 47% and Chile 49%.

Prices for the main product that is expor-

ted from Chile to the USA (that is, Trim D

3-4 lb steak) reached historical minimums

in 2012, with the biggest drop recorded in

October 2012.

The Norwegian market, in turn, expe-

rienced a less dramatic situation as prices

remained below the average for the past

six years but without reaching historical

minimums. (Charts No. 10, 11, 12, 13).

For Trout and Coho the situation was si-

milar, as inventories of both products were

increased mainly in Japan, which is their

primary target market

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

EXcELLENcE

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

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Our Business

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Australis Seafoods, one of the top 10

companies in the Chilean salmon indus-

try, went public in the Santiago Stock

Exchange in June 2011 and is managed

by a team of professionals with vast ex-

perience.

The Company integrates the complete

chain of production of salmon and trout

and has freshwater fish farms in 5 regions

of the country, facilities where it applies

strict and experienced genetic programs

for the production of high quality eggs,

fry and smolts. The smolts are transferred

to their weight gaining centers located in

the Chilean Patagonia, a place with uni-

que climatic and oceanographic condi-

tions for the production of Salmon, Trout

and Coho.

Australis processes finished product sub-

ject to the highest quality world standards

and markets them in the major internatio-

nal destinations, notably the US market,

which is covered through the Company´s

American marketing subsidiary, True Sal-

mon Pacific Holding Inc.

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Tons per specie (WFE) 2011 2012 Variation % 2011/2012

Table n°3

Atlantic Salmon 21,394 19,387 -9%

Coho Salmon 4,607 5,318 15%

Trout 4,081 10,496 157%

Total 30,082 35,201 17%

FreshwaterThe freshwater phase begins with the

production of eggs, obtained from sal-

mon broodstock (male and female) who

have spent their entire life in controlled

environments in freshwater piscicultures.

It continues with the incubation of the

eggs and subsequent breeding and weight

gaining of fry until they acquire the con-

dition of smolts, at which point they are

transferred to seawater.

The genetic program is based on perma-

nent and continuous improvement of

each generation of broodstock, enhancing

key attributes such as growth, meat color,

disease resistance, among others, so that

each new generation has a better perfor-

mance. Consequently, this genetic impro-

vement program responds to the need to

produce fish with high productive perfor-

mance, both for the freshwater and the

seawater weight gaining phases.

Although in Chile the eggs are usually

produced between the months of June

and October, thus replicating the natural

cycle of salmon, the facilities and techni-

ques developed by our Chilean experts

from Australis Seafoods also allow repro-

duction between the months of January

and March. This allows the replacement

of imported eggs and the supply of high-

quality eggs almost year-round, not only

to sustain the production plans of Austra-

lis Mar but also to supply third parties.

Freshwater breeding and weight gaining

consider the processes of incubation, fres-

hwater rearing and smoltification, that

is, the incubation of eggs until they grow

into fry (approx. 15 Gr.), and then bree-

ding and weight gaining until these are

smolts (approx. 100 Gr.).

The freshwater processes are carried out

in Landcatch S.A. piscicultures located in

Chile´s Metropolitan, Bío Bío, Araucanía,

Los Ríos and Los Lagos Regions. Australis

Seafoods Group does not have any lake

concessions or estuary for the smoltifica-

tion process, which takes place in inland

controlled piscicultures. All piscicultures

have sanitary security standards to deli-

ver high quality fish for their weight gai-

ning process.

Sea WaterThe seawater phase is the last farming

process where fish are bred and gain

weight until they reach their required

weight for their processing and subse-

quent marketing.

Depending on the species, seawater bree-

ding and weight gaining goes from the re-

ception of the smolts in the different cen-

ters until the harvesting of the fish when

these weigh between 3 Kg. and 5 Kg. This

process takes place at Australis facilities

or centers located in the Region of Aysén.

The production of Atlantic salmon, Coho

and Trout is detailed bellow

At the seawater centers the fish are moni-

tored permanently during the weight gai-

ning process which lasts about 10 to 18

months, depending on the species.

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29 %21 %

10 %

12 %28 %

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Tons per specie (WFE) 2011 2012 Variation % 2011/2012

Atlantic Salmon 20,569 18,063 -12%

Coho Salmon 4,203 5,438 29%

Trout 3,684 8,854 140%

Total 28,456 32,355 14%

Tabla n°4

Chart n° 14Australis Seafoods 2012 Export Destina-tions (USd FOB)The monitoring considers variables that

affect the development and weight gai-

ning of the fish, such as sanitary and

growth status, among others.

Once the fish have reached their harves-

ting weight or market size, they are trans-

ported to the processing plants located

in the areas of Chonchi and Quellón, in

Chiloe and in Puerto Montt, respectively.

These provide Australis the service of co-

llection, slaughtering and processing of

the live fish.

Australis uses well-boats to transport the

live fish from the breeding centers to the

processing plants.

The well-boat sucks the live salmon from

the cages in the breeding sites and places

them in vats of water within the boat. In

these vessels the fish are in optimal densi-

ty and oxygen levels, which ensure trans-

portation in excellent freshness and qua-

lity conditions, and results in obtaining a

final product of excellence.

The ProcessThe process follows strict standards of

food safety and animal welfare. The pro-

cessing plants receive the raw material

(whole salmon or trout) and by using

high end technology and qualified labor,

transform it into value-added products,

according to the requirements of custo-

mers in the target markets.

The products are inspected and undergo

rigorous quality controls and microbiolo-

gical laboratory analysis during all stages

of the production process.

Once the process in the plant is conclu-

ded, the products, both fresh and frozen,

are stored in cold-storage plants. From

there, the fresh products are shipped

daily -in refrigerated trucks- to the San-

tiago International Airport their shipment

to their final destination. Meanwhile, fro-

zen products are kept in the cold-storage

plants until they are loaded onto contai-

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

various ports of destination.

Marketing and ExportA variety of products is marketed accor-

ding to the requirements of customers in

different markets. For this purpose, the

marketing strategy considers:

Pre-sold production and medium &

long term sales agreements.

For Atlantic salmon and Trout, prices for

part of the production (fresh deliveries to

the USA) are set one week in advance.

For other markets, such as Latin America

and Japan, prices are fixed on a monthly

basis. For frozen products, conditions are

settled on a case by case basis as long-term

programs (3, 6 or more months). This po-

licy allows the Company to optimize prices

and reduce price fluctuations in the spot

market. For Coho, prices are agreed in ad-

vance for the whole growing season.

During 2012 Atlantic salmon exports had

the following final destinations:

Market DiversificationIn the search for alternative markets to

mitigate the potential negative impact of

international crises and/or market down-

turns, Australis Seafoods is open to the

challenge of diversifying its export mar-

kets.

Using the extensive network of trade

agreements signed by our country, Aus-

tralis Seafoods has implemented a dy-

namic and cutting edge export model,

thereby enhancing the competitive ad-

vantages of its products, developing new

niches and destinations and diversifying

its customer base. This has enabled the

Company not only to expand its export

market coverage, but also its presence in

international markets.

Developing clientsOne of the pillars of Australis Seafoods’

business strategy is its customer orien-

tation and focus. Attraction, growth and

client loyalty are the cornerstones favored

to conduct reliable, sustainable and long

term business relationships with all its

clients.

An example of this is True Salmon Pa-

cific Holding (TSPH), one of the largest

marketers of fish and seafood in USA by

sales volume, which is now 50% owned

by Australis Seafoods. Through this sub-

sidiary, Australis Seafoods can directly,

accurately and timely meet all its clients’

requirements in the American market.

insurance PolicyAustralis Seafoods Group’s policy is to

review its risk coverage and assets on a

constant and ongoing basis. As a result,

all its infrastructure and key assets, such

as piscicultures and seawater centers, are

adequately insured.

The table below shows the sales volume

in tons of Australis for different species

(Table N°4):

JapanUnited StatesBrazilChilesOthers

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Risk Factors

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The salmon industry inherently involves a

number of risk factors that affect the de-

velopment of the business. Some of these

factors are the following:

• Market risk: Salmon products fall into

the commodities category and are there-

fore subject to price fluctuations in the

international markets. Sale prices are thus

subject to seasonal fluctuations that can

lead to prices moving up or down.

• Operating risks: Given the biological

characteristic of these assets, salmon pro-

duction is potentially affected by a num-

ber of risks of this nature, including the

following:

• Diseases: Although disease is cu-

rrently controlled through vaccines,

antibiotics, good management practi-

ces and through the production of high

quality smolts, it is not possible to rule

out the development of new diseases or

pests that may affect production.

•NonCompliance : Non compliance

with applicable legislation, failure to

comply with rest periods and adjacent

farming production regulations in par-

ticular, could result in sanctions by the

relevant authorities and even result in

the revocation of aquaculture conces-

sions.

• Predators: The presence of natural

predators of salmon, such as sea lions,

may involve a loss of biomass and even

the destruction of net cages. Still, the

industry has implemented a series of

preventive measures to help mitigate

the adverse effects caused by this kind

of predators.

• Risk of nature: Salmon growth de-

pends, among other things, on climatic

and oceanographic conditions, such as

changes in luminosity of the environ-

ment or water temperature, which can

have a negative impact on fish growth

and food consumption.

• Exchange rate risk: Sales of Australis

Seafoods Group are in US dollars and,

therefore, there is an implicit risk involved

in this currency’s appreciation vis a vis the

Chilean peso. Both appreciations and the

depreciations of the local currency directly

affect the results of Australis Seafoods

Group because parts of its expenditures

are denominated in local currency.

• Interest Rate Risk: Over 75% of the debt

of the Company is subject to the LIBOR

rate plus a fixed spread and changes in

this rate will therefore directly affect the

Company´s results. To this date the Com-

pany has chosen not to implement mecha-

nisms to hedge the LIBOR rate risk.

• Cost of food: Food is the most significant

direct cost in the production of salmon

and trout in both the freshwater and the

weight gaining businesses. Changes in the

cost of food are caused by developments

beyond the control of the ASF Group, such

as the price or cost of fish meal which, in

turn, depends on the costs of the extractive

fishing industry.

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Comercializadora Australis SpA

Corporate Name Comercializadora Australis SpA

Type of legal entity Joint stock corporation

Subscribed and paid-in capital ThChP$ 1

Corporate purpose Import, export, distribution, representation and marke-ting of all kinds of merchandise, assets and products of any type and, particularly, all kinds of hydro-biological resources and salmonid species; investment in all kinds of property, personal or real estate, tangible or intangi-ble, such as shares, rights, bonds, debentures, negotiable instruments, shares or rights in any kind of companies.

Board of Directors Federico Rodríguez Marty


Luis Felipe Correa González

General Manager/CEO Rodrigo Arriagada Astrosa

% of holding company total share participation 100%

% of parent company assets represented by subsidiary 3%Landcatch Chile S.A.

Corporate Name Landcatch Chile S.A.

Type of legal entity Stock Corporation

Subscribed and paid-in capital ThUS$ 10,138

Corporate purpose Production, distribution and marketing of salmon and other varieties of fish in their different stages of their productive cycle, genetically enhanced, for freshwater al seawater






% of parent company assets represented by subsidiary 18%

Subsidiaries and Related company information and investments in other companies

Australis Mar S.A. Corporate Name Australis Mar S.A.

Type of legal entity Stock corporation

Subscribed and paid-in capital ThUS$ 5,066

Corporate purpose Breeding and the marketing of hydro-biological species, in particular salmonids







Piscicultura Río Maullín SpA Corporate Name Piscicultura Río Maullín SpA

Type of legal entity Joint stock corporation

Subscribed and paid-in capital ThChP$ 1

Corporate purpose Purchase, sale, breeding, farming, import, export and dis-

tribution of all kinds of hydro-biological resources and, in

particular, of salmonid species







During 2012, Australis Seafoods did not have business com-

mercial relationships with its subsidiaries and affiliates (other

than property relations). Likewise, no contracts were execu-

ted between Australis Seafoods and its subsidiaries and affilia-

tes that significantly influence Australis Seafoods’ operations

and results.

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

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Distributable ProfitDuring the period disclosed by this annual report, the Company

had losses equivalent to ThUS$66,096 which, after applying the

distributable income criteria, amount to ThUS$56,118. Thus, there

are no dividends to be distributed since there is no positive net

income.

Dividend Policy The Company will annually distribute a cash dividend to its

shareholders of, at least, 30% of the net income of each year,

provided that the balance between the accumulated loss and net

income is positive. This is notwithstanding the event in which the

dividend is reinvested in the Company by its shareholders. Indeed,

in this case, the amount of the dividends can be up to the total net

income of the year.

Share Transactions During 2012 there were no relevant share transactions.

information on Essential or Material EventsDuring 2012, the Company reported the following essential or ma-

terial events:

• On March 23, 2012, subsidiary Australis Mar S.A., incorpora-

ted the following subsidiaries: (i) Acuícola Cordillera Limitada, (ii)

Salmones Alpen Limitada, (iii) Salmones Wellington Limitada and

(iv) Salmones Islas del Sur Limitada, all of which are engaged in

aquaculture. The incorporation of these subsidiaries is a result of

the growth process of the operations of the Company.

• At the meeting held on March 27, 2012, the minutes of which

were signed on April 9, 2012, the Board of Directors of Australis

Seafoods S.A. agreed to summon an Ordinary and an Extraordinary

Shareholders’ Meetings, to be held on April 27, 2012.

• • At the Ordinary Shareholders Meeting held on April 27,

2012, Australis Seafoods S.A. adopted the following resolutions:

(i) Approval of the Annual Report, Balance Sheet, Financial State-

ments and the Report of the External Audit Firm for the year ended

December 31, 2011; (ii) Agreement to pay a definitive dividend of

$8,243,085 US Dollars from distributable net income obtained the

year ended December 31, 2011, equivalent to $0.005888 US Do-

llars per share, which corresponds to the minimum mandatory di-

vidend (30%); (iii) Agreement to establish that the dividend policy

of the Company shall be to pay 30% of the net distributable income

through a definitive dividend payable within 30 days following the

Meeting that approves it. This policy does not initially consider

payment of potential or provisory dividends, notwithstanding that

it may be advisable in certain circumstances; (iv) Approval of the

appointment of the following directors of Australis Seafoods S.A.

for a period of 3 years: Isidoro Moreno Quiroga, Rodrigo Arriagada

Astrosa, Federico Rodríguez Marty, Martín Guiloff Salvador, Luis

Felipe González Correa, Jorge Rodríguez Grossi and Rafael Fernán-

dez Morandé, the latter appointed as an Independent Director; (v)

Approval of the remuneration to be paid to the directors until the

next Annual Ordinary Shareholders Meeting; (vi) Approval of the

appointment of PricewaterhouseCoopers as the external audit firm

for 2012; and (vii) Approval of a fixed remuneration and the ex-

penditure budget for the Board of Directors for 2012.

• At the Australis Seafoods S.A. Extraordinary Shareholders Mee-

ting held on April 27, 2012, an agreement was reached to correct

the exchange rate of the currency in which the capital of the Com-

pany was established – as approved at the Extraordinary Sharehol-

ders held on October 20, 2011- in accordance with the observa-

tions made by the Superintendency of Securities and Insurance by

Oficio (Official Letter) N°33095 dated December 20, 2011. To that

purpose, Articles Fifth and Article First Provisional of the By-laws

of the Company were amended.

Considering the sustained fall in international prices of salmon cau-

sed to a large extent by the strong increase in Chilean production

and the pressure it has placed on the markets, in a Meeting who-

se minutes were signed on May 28, 2012, the Board of Directors

agreed to reduce the original 2012 farming plan of smolts from

17.5 million units to 12.4 million units. The breakdown by species

of the adjustment of the farming plan is as follows (values in units):

SPECIE INITIAL PLAN ADJUSTMENT CURRENT PLAN

ATLANTICO 12,000,000 4,000,000 8,000,000

TRUCHA 2,200,000 0 2,200,000

COHO 3,300,000 1,100,000 2,200,000

TOTAL 17,500,000 5,100,000 12,400,000

This adjustment in the farming plan will imply that the projected

harvest by species shall be as follows (values in thousands of tons):

SPECIES 2011 (real)

2012 (estimate)

2013 (estimate)

ATLANTICO 21.4 21.6 34

TRUCHA 4.1 11.5 5.9

COHO 4.6 7.6 5.1

TOTAL 30.1 40.7 45.0

As a result of the abovementioned adjustment plan, investments in

fixed assets will be reduced by approximately $9.5 million US Do-

llars, which corresponds to lower investments in seawater weight

gaining centers. This reduction does not involve any changes to the

financing plan of the Company.

• At a Meeting held on November 6, 2012, the Board of Directors

of Australis Seafoods S.A. agreed to summon the Shareholders to

an Extraordinary Meeting to be held on December 4, 2012, in or-

der to submit to their consideration the following matters: (i) The

approval of a capital increase by the Company of $60 million US

Dollars, through the issuance of new registered shares, without par

value, of a single series and of equal value, and the amendment of

Article Five and Article First Provisional of the Company Bylaws;

(ii) The approval of the modification of the monthly remunera-

tion of the Board and of the Audit Committee which would be

$2,000,000.- for members of the Board, and $600,000.- monthly

for members of the Committee, regardless of the number of ses-

sions they attend; and (iii) Adopt other necessary agreements to

carry out the above mentioned matters.

• On December 4, 2012, an Extraordinary Shareholders Meeting

of the Company was held, attended by shareholders representing

96.97% of the total shares with voting rights, and who agreed the

following: (i) approve a capital increase of US$60 million to be

carried out through the issuance of 500,000,000 new registered

shares, without par value, of a single series and of equal value.

The funds obtained from this capital increase will be used by the

Company to continue with the medium-term development plan

of the Company, investing part of the funds in assets that allow

the sustainable development of the Company in the coming years

and the maintenance of existing assets necessary for the operation.

Also, the funds will be used in activities inherent to the operation,

both in the breeding and weight gaining stages, and in the proces-

sing and commercialization in the markets it supplies. Finally, part

of the funds will be used to pay off financial obligations; and (ii)

modify the remuneration of Directors and of the Audit Committee,

maintaining the amounts currently paid but establishing that such

figures are monthly, regardless of the number of sessions that each

Director attends, either the Board or the Committee, as long as

they at least attend one session of the respective entity during the

corresponding calendar month. Also, it was informed that the con-

trolling shareholder of the Company, Mr. Isidoro Quiroga Moreno,

sent a letter to the Board by which he communicated his intention

to exercise, directly or indirectly, his right of first refusal to subs-

cribe all the shares to which he is entitled once the respective first

refusal period begins.

• On January 2, 2013, Mr. Andrés Saint Jean Hernández resig-

ned to his position as CEO of Australis Seafoods S.A. and was

substituted by Mr. Rodrigo Arriagada Astrosa, who until then had

been the Chairman of the Board of Directors of the Company. In

turn, Mr. Rodrigo Arriagada resigned his position as Director of

the Company and accepted his appointment as CEO. Additionally,

the Board of Directors appointed Mr. Federico Rodríguez Marty as

Chairman of the Board, Mr. Martín Salvador Guiloff as Vice Presi-

dent, and Mr. Luis Felipe Correa González as Secretary.

Summary of Shareholders’ comments and Statements During 2012 the Company did not receive comments or proposals

from shareholders holding or representing 10% or more of the is-

sued shares.

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Responsibility statement

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

Federico Rodríguez Marty

Chairman of the board of Directors

9.357.625-K

Isidoro Quiroga Moreno

Director

6.397.675-K

Jorge Rodríguez Grossi

Director

5.141.013-0


Director

11.947.424-8

Rafael Fernández Morandé

Director

6.429.250-1

Martín Guiloff Salvador

Director

12.661.579-5


General manager/Ceo

8.547.812-5

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Consolidated Financial Statements

AUsTRAlIs seAfooDs s.A. AnD sUbsIDIARIesDecember 31, 2012

contentsIndependent Auditors’ Report

Classified consolidated financial statement

Consolidated income statement by function

Consolidated statement of comprehensive income

Consolidated statement of changes in net equity

Consolidated statement of cash flows - indirect method

notes to the consolidated financial statements

Us$ - United states Dollar

ThUs$ - Thousands of United states Dollars

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INDEPENDENT AUDITOR’S REPORT Santiago, March 4, 2013

Messrs. Shareholders and DirectorsAustralis Seafoods S.A.

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

Administration’s Responsibility for the Consolidated Financial Statements

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

Auditor’s Responsibility

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

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

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

Opinion

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

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AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES

Classified Consolidated financial statementThe Notes attached to numbers 1 to 34 are part of these consolidated financial statements

ASSETS Note As of Dec, 31, 2012 ThUS$

As of Dec, 31, 2011 ThUS$

Current Assets

Cash and cash equivalents 6 15,527 51,480

Other non-financial assets, current 551 426

Trade and other accounts receivable, current 8 14,410 16,864

Accounts receivable from related entities, current 9 3,826 5,751

Inventories 10 14,849 11,506

Biological Assets, current 11 66,217 78,797

Tax assets 12 13,493 7,945

TotalCurrentAssets 128,873 172,769

Non-current Assets

Other non-financial assets, non-current 13 8,013 7,535

Investments accounted for using equity method 14 8,120 7,612

Intangible assets other than goodwill 15 17,505 14,456

Property, plant and equipment 16 75,340 60,373

Biological Assets, non-current 11 24,577 28,860

Deferred tax assets 17 3,952 2,476

Total Non-Current Assets 137,507 121,312

TotalAssets 266,380 294,081

EQUITY AND LIABILITIES As of Dec, 31, 2012 ThUS$

As of Dec, 31, 2011 ThUS$

Liabilities

CurrentLiabilities

Other financial liabilities, current 18 29,075 16,445

Trade and other accounts payable, current 19 64,481 51,330

Accounts payable to related entities, current 9 363 3,893

Provision Employee Benefits, current 20 656 2,604

Totalcurrentliabilities 94,575 74,272

Non-currentliabilities

Other financial liabilities, non-current 18 91,677 65,725

Deferred tax liabilities 17 - 7,353

Provision Employee benefits, non-current 20 - 1,507

Other accounts payable, non-current 19 1,000 -

Total non-current liabilities 92,677 74,585

Equity

Equityattributabletoownersofthecontroller 79,128 145,224

Non-controlling interests - -

Totalequity 79,128 145,224

Totalequityandliabilities 266,380 294,081

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Consolidated statement of Comprehensive Income

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


Consolidated Income statement, by function


For the year ended

NoteDec, 31, 2012

ThUS$Dec. 31, 2011

ThUS$IncomeStatementProfit(loss)Revenue on ordinary activities 24 121,749 163,664Cost of Sales (156,908) (113,315)GrossProfitpreFairValue (35,159) 50,349

(Debit) Credit to Fair Value Earnings of Biological Assets harvested and sold 11 (6,767) (23,479)(Debit) Credit to Fair Value Earnings for growth of Biological Assets 10-11 (19,643) 23,420 GrossProfit (61,569) 50,290

Other income, by function 25 2,094 450 Distribution costs 26 (4,889) (2,025)Administrative expenses 27 (7,745) (8,317)Other expenses, by function 25 (11,916) (1,700)Financial Income 1,430 1,921 Financial Costs 28 (3,428) (1,901)Share of profit (loss) of associates and joint ventures accounted for using equity method

14 508 87

Foreign exchange differences 29 4,313 (4,680)

Profit(loss),beforetaxes (81,202) 34,125Tax expense (income) 17 15,106 (6,696)

Profit (Loss) from continuing operations (66,096) 27,429 Profit (Loss) from discontinued operations

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

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

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

Earningspershare

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

Profit(loss)perbasicshare (0,047) 0,020

For the year endedDec. 31, 2012

ThUS$ Dec. 31, 2012

ThUS$

ComprehensiveIncome

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

Componentsofothercomprehensiveincome,beforetaxes

Currency translation differences

Profits (losses) on currency translation, before tax - -

OthercomprehensiveIncome,beforetaxes,currencytranslationdifferences - -

Othercomponentsofothercomprehensiveincome,beforetaxes - -

Other comprehensive income - -

Totalcomprehensiveincome (66,096) 27,429

Totalcomprehensiveincomeattributableto

Comprehensive income attributable to owners of the controller (66,096) 27,429

Comprehensive income attributable to non-controlling interests - -

Totalcomprehensiveincome (66,096) 27,429

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ThUS$01-01-1231-12-12

ThUS$01-01-1131-12-11

Cash Flows Statement

Cash Flows from (used in) operating activities

Profit (loss) (66,096) 27,429

Adjustments to reconcile Profit (loss)

Adjustments for income tax expense (15,106) 6,696

Adjustments for decrease (increase) in inventories (13,638) (42,300)

Adjustments for decrease (increase) in trade accounts receivable (2,354) (6,602)

Adjustments for decrease (increase) in other operating accounts receivable (2,822) (803)

Adjustments for increase (decrease) in trade accounts payable 21,394 6,837

Adjustments for increase (decrease) in other operating accounts payables (1,918) -

Adjustments for depreciation and amortization expense 3,785 2,771

Adjustments for provisions 924 2,767

Adjustments for unrealized foreign exchange losses (gains) (4,313) 4,680

Adjustments for fair value losses (gains) 26,410 59

Other adjustments for non-cash items 9,095 -

Adjustments for undistributed profits of associates (508) (87)

Totaladjustmentstoreconcileprofit(loss) 20,949 (25,982)

Dividends paid (8,243) (9,248)

Income taxes paid (refunded) 3,039

NetCashFlowsfrom(usedin)operatingactivities (50,351) (7,801)

Cash Flows from (used in) investing activities

Other cash payments to acquire interests in joint ventures (3,525) (4,000)

Proceeds from charges to related entities - 9,248

Proceeds from carrying amounts from sales of property, plant and equipment - 8,782

Purchase of property, plant and equipment (24,677) (32,877)

Purchase of intangible assets (1,187) (2,666)

Purchase of other assets (long-term) - -

Interest received 1,430 -

NetCashFlowsfrom(usedin)investingactivities (27,959) (21,513)

Cash Flows from (used in) financing activities

Proceeds from issuing shares - 69,477

Proceeds from long-term borrowings 21,100 5,292

Proceeds from short-term borrowings 19,800 9,248

Proceeds from loans to related entities - -

Payment of borrowings (5,335) (12,600)

Payment of liabilities of financial leases (1,518) (230)

Interest paid (1.870) (1,533)

Other cash inflows (outflows) from (used in) financing activities 10,180 (628)

Netcashflowsfrom(usedin)financingactivities 42,357 69,026

Netincrease(decrease)incashandcashequivalentsbeforeeffectofexchangesratechange (35,953) 39,712

Effects of variation in the exchange rate on cash and cash equivalents

Netincrease(decrease)incashandcashequivalents (35,953) 39,712

Cash and cash equivalents at the beginning of the year 51,480 11,768

Cashandcashequivalentsattheendoftheyear 15,527 51,480

Issued CapitalShare

Issuance premiums

Other Reserves

Retained Earnings (losses)

Equity attributable to owners of the

controllerNon-contro-

lling interests Total Equity

ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$

Equity as of 01/01/2012 123,081 - (2,020) 24,163 145,224 - 145,224

Increase (decrease) through changes in accounting policies - - - - - -

Increase (decrease) through error correction - - - - - -

RestatedEquityasof01/01/2012 123,081 - (2,020) 24,163 145,224 - 145,224

Changes in Equity

Comprehensive Income

Profit (losses) - - (66,096) (66,096) - (66,096)

ComprehensiveIncome - - (66,096) (66,096) - (66,096)

TotalChangesinEquity - - - (66,096) (66,096) - (66,096)

Equityasof12/31/2012 123,081 - (2,020) (41,933) 79,128 - 79,128

Issued CapitalShare

Issuance premiums

Other Reserves

Retained Earnings (losses)

Equity attributable to owners of the

controllerNon-contro-

lling interests Total Equity

ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$

Equity as of 01/01/2011 46,652 - (2,020) 11,929 56,561 56,561

Increase (decrease) through changes in accounting policies - - - - - - -

Increase (decrease) through error correction - - - - - - -

RestatedEquityasof01/01/2011 46,652 - (2,020) 11,929 56,561 - 56,561

Changes in Equity

Comprehensive Income

Profit (losses) - - - 27,429 27,429 - 27,429

ComprehensiveIncome - - - 27,429 27,429 - 27,429

Equity issuance 7,790 61,687 - - 69,477 - 69,477

Dividends - - - (8,243) (8,243) (8,243)

Increase (decrease) through other contributions by owners 6,952 - - (6,952) - - -

Capitalization Premiums 61,687 (61,687) - - - - -

TotalChangesinEquity 76,429 - - 12,234 88,663 - 88,663

ClosingBalanceasof12/31/2011 123,081 - (2,020) 24,163 145,224 - 145,224


The effects derived from the application of Official Memorandum No. 456 of the SVS, are recorded as part of the balance of Other Reserves account.


Consolidated statement Cash flows-Indirect method



Consolidated statement of net Changes in equityDecember 31, 2012 to December 31, 2011

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NOTE 1 - GENERAL INFORMATIONAustralis Seafoods S.A., Chilean Tax No. 76.003.557-2 (hereinafter “Australis Seafoods” or the “Company”) is a corporation created by

public deed dated October 31, 2007, granted before the Notary of Santiago of Mr. Iván Torrealba Acevedo according Notarial Record

No.11.568-07. An abstract of the public deed was registered in the Commercial Record of the Real Estate Conservator of Santiago, on page

48,775 No. 34,583,; and was published in the Official Gazette on November 21, 2007.

The Company is domiciled in Cerro el Plomo 5,680, office 403, Las Condes, notwithstanding the agencies, offices or branches established

both in the country and abroad. Its duration is indefinite.

On May 19, 2011, the Company was registered under number 1074 in the Securities Record kept by the Superintendencia de Valores y

Seguros (Superintendency of Securities and Insurance).

The capital of the Company is one hundred and eighty four million four hundred and seventy seven thousand (ThUS$184.477 (One) divided into

1,910,002,444 shares (one thousand nine hundred and ten million two thousand four hundred forty-four), that consist of the following:

ThUS$ N° of shares

Subscribed and paid-in capital 123,081 1,400,002,444

Subscribed Capital* 1,097 3,000,000

Unsubscribed Capital 60,299 507,000,000

TotalCapital 184,477 1,910,002,444

* Subscription value of 3,000,000 shares that has not been paid. Thus, the amount of ThUS$1,058 is part of the greater value obtained in the placement

of new shares, that was capitalized in the Extraordinary Shareholders Meeting held on October 28, 2011

Australis Seafoods is the holding company of a group of four subsidiaries: Landcatch Chile S.A., Australis Mar S.A., Piscicultura Río Maullín

SpA and Comercializadora Australis SpA. This structure was defined at the end of 2010, in order to focus and promote the different

businesses of the Group, that is, the freshwater business through Landcatch Chile S.A. and the seawater business through Australis Mar S.A.

This, bearing in mind that the previous structure of the group considered two subsidiaries for the freshwater business, one subsidiary for

seawater weight gaining business in addition to other subsidiaries, and which took away efficiency from the development of the business

of the Group.

Subsequently, in July 2011 Comercializadora Australis SpA was incorporated, whose main corporate purpose is the investment in personal

property assets. On December 9, 2011, this company acquired 50% of True Salmon Pacific Holding Co.; company that, in turn, owns 100%

of corporate rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, entities through which the Group develops its

business of marketing fish and seafood products in the USA and Canada.

AsdefinedinitsBy-Laws,thecorporatepurposeoftheCompanyis:a) The import, export, distribution, presentation and marketing of all kinds of merchandise, goods and products of any kind.

b) The purchase, sale, exchange, lease and transfer of all kinds of real and personal property, aquaculture concessions, fishing and

aquaculture authorizations, rights and other similar goods.

c) The provision of all kinds of services, on its own or on third parties’ behalf, and consultancy services in general including, among others,

those related to fishing and aquaculture.

notes to the Consolidated financial statementsas of december 31, 2012

d)The purchase, sale, breeding, cultivation, import, export, marketing and distribution of all kinds of hydro-biological resources, and

particularly salmonid species, and all businesses directly or indirectly related to the term of fishing and aquaculture activities.

e) To invest in all kinds of real or personal property, tangible or intangible, such as shares, bonds and debentures, negotiable instruments,

saving plans, shares or interests in all types of companies, whether commercial or civil, communities or associations and in all kinds of

titles or marketable securities and, in general, to perform all acts and enter into all contracts conducive to such purpose; and

f)To form, constitute, or integrate companies, firms, associations or corporations of any nature for the proper development of corporate

purposes.

These financial statements of Australis Seafoods S.A. and subsidiaries consist of the Classified Consolidated Financial Statement, the

Consolidated Statement of Income by Function, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Cash

Flows - Indirect Method, the Consolidated Statement of Net Changes in Equity and the Notes to the Consolidated Financial Statements.

The financial statements present an accurate image of the equity and financial situation as of December 31, 2012, and of the results of

operations, changes in equity and cash flows that have occurred in the Company during the year ended December 31, 2012.

The Classified Financial Statement and associated Notes are presented in a comparative manner with the balances of December 31, 2011,

the consolidated statement of comprehensive income by function and the Consolidated Statement of Cash Flows - Indirect Method are

presented by the cumulative years ended December 31, 2012 and 2011, and also the Consolidated Statement of Net Changes in Equity of

the year ended December 31, 2012 and 2011.

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 for the year ended December 31, 2012, were approved by

its Board of Directors at the Meeting held on March 4, 2013.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBelow are set forth the main accounting policies adopted for the elaboration of the consolidated financial statements, which will be applied

uniformly to all periods disclosed by these financial statements.

2.1PreparationThese consolidated financial statements of Australis Seafoods S.A. as of December 31, 2012, have been prepared in accordance with the

International Financial Reporting Standards (IFRS). The Company has adopted the International Financial Reporting Standards as of

January 1, 2011; therefore, the date of transition to these standards is January 1, 2010. The financial statements as of December 31, 2012,

have been prepared to comply with the requirements of the Superintendency of Securities and Insurance.

According to the provisions of IFRS 1, the transition date of Australis Seafoods S.A. and subsidiaries is January 1, 2010, and the date of

adoption is January 1, 2011.

The preparation of consolidated financial statements in accordance with IFRS requires the use of certain accounting estimates and criteria.

It also requires the Administration to exercise its judgment in the process of applying the Company’s accounting policies.

Note 4 sets forth the areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant

to the consolidated financial statements.

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

upon the possibility of the entity continuing to operate normally as a going concern company.

In order to facilitate comparison, there have been some minor reclassifications to the consolidated financial statements of previous years.

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2.2.Newissuedstandardsandinterpretations

a) The following standards, interpretations and amendments are mandatory for the first time and applicable to the financial period

beginning January 1, 2012:

Standards And Interpretation Mandatory For Periods Beginning On

Amendment- IAS 12 — “Income Taxes” January 1, 2012

IFRS 1 — “First-time Adoption of International Financial Reporting Standards” July 1, 2011

IFRS 7 — “Financial Instruments: Disclosures” July 1, 2011

The adoption of the abovementioned standards, amendments and interpretations does not have a significant impact on the consolidated

financial statements of the Company.

b) New issued standards, interpretations and amendments not effective for 2012, regarding which there has been no early adoption.

Standards And Interpretation Mandatory For Periods Beginning On

IAS 19 — Employee Benefits January 1, 2013

IAS 27 — Consolidated and Separate Financial Statements January 1, 2013

IFRS 9 — Financial Instruments January 1, 2015

IFRS 10 — Consolidated Financial Statements January 1, 2013

IFRS 11— Joint Arrangements January 1, 2013

IFRS 12— Disclosure of Interests in Other Entities January 1, 2013

IFRS 13 — Fair Value Measurement January 1, 2013

IFRIC 20 — Stripping Costs in the Production Phase of a Surface Mine January 1, 2013

Amendment to IAS 1 — Presentation of Financial Statements July 1, 2012

Amendment to IFRS 7 — Financial Instruments: Disclosures January 1, 2013

Amendment to IAS 32 — Financial Instruments: Presentation January 1, 2014

Amendment to IFRS 1— First-time Adoption of International Financial Reporting Standards January 1, 2013

Improvements to Amendments to IFRS in May 2012 – IRFS 1 – IAS 1- IAS 16 January 1, 2013

Amendment to IAS 27 - IFRS 10 and IFRS 12 January 1, 2014

Amendment to IAS 32 - IAS 34 January 1, 2013

Amendment to IFRS 10 , IFRS 11 and IFRS 12 January 1, 2013

The Administration of the Company considers that the adoption of standards, amendments and interpretations will not have a significant

impact on the consolidated financial statements of the Company in the period their initial application.

2.3Consolidation

a)SubsidiariesSubsidiaries are all entities over which Australis Seafoods S.A. and subsidiaries, have the power to control the financial and operating

policies, which are generally accompanied by a corporate interest of more than half of the voting rights. When assessing whether the group

of companies organized under Australis Seafoods S.A., hereinafter the “Group”, control another entity, the existence and effect of potential

voting rights that can currently be exercised or converted is taken into consideration. Subsidiaries are consolidated as from the date when

control is transferred, and are excluded from consolidation as of the date that control ceases to be held by the Company.

To record the acquisition of subsidiaries the acquisition-cost method is used. The cost of acquisition is the fair value of the assets delivered,

equity instruments issued and liabilities incurred or assumed as of the date of the exchange, plus costs directly attributable to the acquisition.

Identifiable acquired assets and identifiable liabilities and contingencies assumed in a combination of businesses are initially valued at fair

value at the date of acquisition, irrespective of the extent of the non-controlling interests. The excess cost of acquisition above the fair value

of the Company’s interest in the net identifiable acquired assets is recognized as lower value or goodwill. If the cost of acquisition is less than

the fair value of the net assets of the acquired subsidiary, the difference is recognized directly in the income statement.

Inter-company transactions, balances and unrealized profits of transactions between related entities are eliminated. Unrealized losses are

also eliminated, unless the transaction provides evidence of a loss caused by impairment of the transferred asset. Where it is necessary to

ensure the consistency with the policies adopted by Australis Seafoods S.A. and subsidiaries, accounting policies of the subsidiaries are

amended.

Below is a detail of the companies included in the consolidated financial statements:

Name of the company RUT CountryFunctional Currency

As of Dec. 31, 2012As of December. 31,

2011% Direct % Indirect

%Total %

Australis Mar S.A. 76.003.885-7 Chile USD 99.95 0.05 100.00 100.00

Pisc. Río Maullín Spa 76.082.694-4 Chile USD 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

Comercializadora Australis Spa 76.126.907-0 Chile USD 100.00 - 100.00 100.00

Chile Seafoods S.A. 96.943.600-0 Chile USD - 100.00 100.00 100.00

Inversiones Caiquenes Ltda. 76.043.420-5 Chile USD - 100.00 100.00 100.00

Salmones Gama Ltda. 76.065.730-1 Chile USD - 100.00 100.00 100.00

Procesadora de Alimentos

Australis SPA76.126.902-K Chile USD - 100.00 100.00 100.00

Salmones Galway Ltda. 76.266.620-0 Chile USD - 100.00 100.00 100.00

Salmones Mitahues Ltda. 76.266.600-6 Chile USD - 100.00 100.00 100.00

Salmones Islas del Sur Ltda. 76.787.110-4 Chile USD - 100.00 100.00 -

Acuícola Cordillera Ltda. 76.787.060-4 Chile USD - 100.00 100.00 -

Salmones Alpen Ltda. 76.005.426-7 Chile USD - 100.00 100.00 -

Salmones Wellington Ltda. 76.005.430-3 Chile USD - 100.00 100.00 -

Procesadora de Alimentos ASF SPA 76.230.946-7 Chile USD - 100.00 100.00 -

Inversiones Ovas del Pacífico Ltda. 76.088.812-5 Chile USD - 100.00 100.00 100.00

Piscicultura Río Salvaje S.A. 76.847.050-2 Chile USD - 100.00 100.00 100.00

At the end of 2010, Australis Seafoods S.A. (Holding Company) restructured the group of companies in order to simplify its operations,

separating the freshwater and the seawater weight gaining businesses. This restructure considered the sale of corporate interests within

in the Group, leaving a simpler organization that concentrated the freshwater business in Landcatch Chile S.A. (previously denominated

Piscicultura Río Calle Calle SpA) and the seawater weight gaining business in subsidiary Australis Mar S.A.

As a result of the restructuring, among others, the following transactions were performed: On December 16, 2010, Australis S.A. sold one

share of Landcatch Chile S.A. to Piscicultura Río Calle Calle SpA. Also, on December 20, 2010, at a General Extraordinary Shareholders

Meeting it was decided to increase the capital of Piscicultura Río Calle Calle SpA. in ThUS$10,723 -through the issuance of the corresponding

shares. Such capital increase was subscribed and paid in full by Australis Seafoods S.A. and paid with all the shares it held in Landcatch

Chile S.A. (Old) plus a promissory note payable on demand. Due to the latter, Piscicultura Río Calle Calle SpA became the owner of 100%

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of the shares of Landcatch Chile S.A. (Old), so Landcatch Chile S.A. (Old) was dissolved and Piscicultura Río Calle Calle SpA became its

legal successor. Additionally, in the same event, Río Calle Calle Piscicultura SpA, was transformed into a privately owned stock corporation

denominated “Landcatch Chile S.A.”

On December 31, 2010, a Special Shareholders’ Meeting approved the division of Australis Seafoods S.A. into two companies. A new

corporation denominated “Inversiones en Acuicultura S.A.” was created, while the legal continuator kept the corporate name and RUT.

In the same Meeting and valid as of January 1, 2010, it was agreed to pay the new company’s equity and the allocation of the assets and

liabilities of the divided company that would correspond to the new company. The new company’s equity and, therefore, the amount in

which the capital of Australis Seafoods S.A. was reduced was ThUS$9,714, which corresponds to the investment in Australis S.A. and its

corresponding negative goodwill. According to the latter, Australis Seafoods S.A. no longer was the owner of Australis S.A.

Subsequently, in July 2011, the Company acquired all the shares of Comercializadora Australis SpA, entity that -at that time- had no activity.

Through this company and on December 9, 2011, it was acquired 50% of True Salmon Pacific Holding Co. which –in turn- owns 100% of

the corporate rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, companies through which it is developed the

marketing of fish and seafood products in the United States and Canada.

On March 23, 2012, subsidiary of Australis Mar S.A., incorporated the following subsidiaries: (i) Acuícola Cordillera Limitada, (ii) Salmones

Alpen Limitada, (iii) Salmones Wellington Limitada and (iv) Salmones Islas del Sur Limitada, all of which corporate purpose is aquaculture.

The incorporation of these subsidiaries corresponds to the growth process of the operations of the Company.

b)Transactionsandnon-controllinginterestsWhen there are non-controlling interests they are presented in the Consolidated Statement of Net Changes in Equity. Profit or loss

attributable to a non-controlling interest is presented in the Consolidated Statement of Income by Function as part of the profit (loss) of

the financial year. The results of transactions between non-controlling shareholders and the shareholders of companies where ownership is

shared are recognized within equity and, therefore, shown in the Consolidated Statement of Net Changes in Equity.

c)JointventuresInvestments in joint ventures are integrated by using the equity-value method as described in IAS 30 paragraph 38.

2.4FinancialInformation,byoperatingsegmentIFRS 8 requires that entities adopt the “Administration’s approach” to disclose information of the results of its operating segments. In

general, this is the information that the Administration uses internally for assessing the performance of segments and deciding how to

allocate resources to the same.

Australis Seafoods S.A. and subsidiaries present information by segments (which correspond to the business areas) based on the financial

information made available to decision makers in relation to matters such as measuring profitability and allocation of investments, and

based on the differentiation of products as set forth in IFRS 8 - Operating Segments. This information is detailed in Note 5.

Segments to be disclosed by Australis Seafoods S.A. and subsidiaries are:

- Salmon in freshwater (freshwater).

- Salmon and trout in seawater (seawater).

2.5Foreigncurrencytransactionsa)PresentationandfunctionalcurrencyItems included in the financial statements of Australis Seafoods S.A. and subsidiaries are valued using the currency of the main economic

environment in which the entity operates (functional currency). The functional currency of Australis Seafoods S.A. and subsidiaries is the

US Dollar, which is also the currency of presentation of this consolidated financial statement.

b)TransactionsandbalancesForeign currency transactions are translated into the functional currency using the exchange rates applicable on the dates of the transactions.

Profits and losses resulting from the liquidation of such transactions and the translation to other exchange rates at the closing of monetary

assets and liabilities denominated in foreign currencies are recognized in the income statement.

c)ForeigncurrencyexchangerateAs of December 31, 2012, and December 31, 2011, the exchange rates of the main currencies used in the accounting processes of Australis

Seafoods S.A. and subsidiaries, in relation to the US Dollar, are the following:

As of December 31, 2012 As of December 31, 2011

Closing Accumulated Monthly Average Closing Accumulated Monthly Average

Chilean Peso 479.96 486.64 519.2 483.54

2.6Property,plantandequipment

Fixed assets of the Company consist of land, buildings, infrastructure, machinery, equipment and other fixed assets. The main fixed assets

of Australis Seafoods S.A. and subsidiaries are land, freshwater piscicultures, with their corresponding equipment and machinery and the

seawater weight gaining centers.

Buildings, plants, equipment and machinery are recognized initially and subsequently, at historical cost less their accumulated depreciation

and impairment loss, if any.

For purposes of transition to IFRS, as permitted by IFRS 1, the most important land and buildings of the Company’s freshwater subsidiary

were revalued as of January 1, 2010. Valuations were based on market value. Subsequent valuation of the same is made in accordance with

IAS 16, using the historical cost method. Seawater fixed assets are shown both initially and subsequently at the corresponding historical

cost, less any accumulated depreciation and impairment loss, if any.

Subsequent costs (replacement of parts, upgrades and extensions) are included in the value of the initial asset or are recognized as a separate

asset, only when it is probable that future economic benefits associated with the assets’ items will flow to the Group and the cost of the item

can be measured reliably. The value of the replaced part is written-off in the account. All other repairs and maintenance are a debited from

net income(loss) of the period in which they are incurred.

Costs derived from daily maintenance and common repairs are recognized as net income(loss), but not the replacement of components

of important or strategic spare parts, which are capitalized and depreciated over the remaining useful life of the asset, based on the

component’s approach.

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

life has been determined based on the expected natural impairment, technical or commercial obsolescence arising from changes and/or

improvements in production and changes in the market demand for the products obtained with such assets.

Land is not depreciated.

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The estimated technical useful life and residual values are:

Freshwater Seawater

Useful life Averageyears

Residual valueThUS$

Averageyears

Residual valueThUS$

Constructions 13 142 - -

Plant and equipment 7 234 10 661

Information Technology Equipment 3 3 - -

Fixed and accessory installations 4 3 10 20

The residual value and useful life of assets are reviewed and adjusted, if appropriate, at each closing of the financial statement in order to

obtain a remaining useful life adequate to the value of the assets.

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

application of impairment tests.

Profits or losses from the sale of property, plant and equipment are determined by comparing the proceeds from the sale with the book value

of the assets (net of depreciation) and are included in the income statement.

2.7BiologicalassetsSalmonid biological assets of the species Atlantic and Coho, as well as trout, in a seawater weight gaining stage are measured at fair value less

estimated point of sale costs, by applying weight considerations listed further on in this same section; except when the fair value cannot be

reliably determined in accordance with the definitions contained in IAS 41 and, for which, finding an active market for these assets should

be considered in the first place.

Likewise, biological assets associated with the freshwater stage, i.e. broodstock, eggs, fry, smolts and small fish in seawater, are valued at

cumulative cost up to the closing date.

Direct and indirect costs incurred in the production process are part of the biological asset’s value through activation. The accumulation of

such costs at the end of each period is compared to the fair value of the biological asset.

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

harvest date is less than 12 months, are classified as current assets.

The calculation of fair value is based on market prices for harvested fish and adjusted by distribution differences of size and quality or

normal harvest weight ranges, taking into account the weight considerations listed in the following table. This price is adjusted by harvest,

transportation to destination and processing costs in order to take it to its value and condition of bled fish at breeding stage). Thus, the

evaluation considers the life cycle stage, current weight and the expected distribution by size upon harvest of the fish. This estimate of fair

value is included in the income statement of the Company.

Below is a summary of the valuation criteria:

Stage Asset Valuation

Freshwater broodstock Direct and indirect accumulated cost

Freshwater eggs Direct and indirect accumulated cost

Freshwater fry and smolts Direct and indirect accumulated cost in its different stages

Seawater Fish Fair Value according to the following:

• Atlantic Salmon, as of 4.3 kilos in water (4.0 bled), time HON

average price.

• Coho Salmon, as of 2.5 kilos in water (2.3 bled), H&G average

price.

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

ValuationmodelThe evaluation is reviewed for each pisciculture and is based on the existing fish biomass at the end of each financial year (inventory). The

detail includes the total number of fish being bred, average weight and cost of the fish biomass. In the calculation, the value is estimated

considering the average weight of the biomass, which, in turn, is multiplied by the value per kilo reflected by the market price. Market price

is obtained from a range of prices from the latest sales of the month.

Moreover, biological assets associated with the freshwater stage, i.e. broodstock, eggs, fry and smolts, are valued at the cost accumulated

up to the closing date. Likewise, fish in the weight gaining stage of smaller size are valued at cost since there is no active market for them.

Notwithstanding the above, the Company performs an impairment test of the biomass in small breeding fish and, if there is impairment,

they are debited from the income statement.

At the end of the year the Company values the impairment that may exist in the biological assets that have not reached the required weight

for their fair value valuation through a projection of costs and prices. If the costs exceed the estimated realizable value, a provision for

impairment of biological assets is recorded.

Assumptionsusedtodeterminefairvalueoffishbeingbred.The estimation of fair value of fish biomass will always be based on uncertain assumptions, even if the Company has sufficient experience

in the consideration of such factors. Estimations are applied considering the following items: fish biomass volume (applying the average

mortality of the subsidiary), average weight of the biomass, weight distribution at harvest and market prices.

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

application of the mortality observed in the period, etc. The uncertainty of the volume of biomass is normally lower when there are no mass

mortality events during the cycle or if the fish for some reason have presented diseases.

Together with the above, it must be noted that this volume used for calculating the biological asset- contemplates fish with an average

weight higher than the cuts already defined for each type. This translates into a very close estimate of the final volume that will be harvested.

MarketPricesThe assumption of market prices is important for evaluation. In the case of subsidiary Australis Mar S.A. and for the years ended December

31, 2012 and December 31, 2011, the average prices of the latest sales made by the subsidiary were used.

2.8Intangibleassetsotherthangoodwilla)AquacultureconcessionsAquaculture concessions acquired from third parties are shown at historical cost. The useful life of such concessions is mostly indefinite,

since they have no expiration date or a predictable useful life, so they are not amortized.

Concessions obtained under the new Fishery Law, have a duration term of 25 years -and are renewable according to the compliance of

certain health and environmental conditions. They are amortized based on their useful life.

b)SoftwareAcquired software licenses are capitalized based of the costs incurred to acquire and bring the specific software into use. These costs are

amortized over an estimated useful life of 4 years.

Costs associated with developing or maintaining computer software programs are recognized as expenses when incurred.

Costs directly associated with the production of unique and identifiable software controlled by Australis Seafoods S.A. and subsidiaries,

and will likely generate economic benefits that will exceed the costs for more than one year, are recognized as intangible assets. Direct costs

include the costs of the staff that develop the software and any kind of expenses incurred in its development or maintenance.

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c)WaterRightsThese are water exploitation rights, associated with technical projects of the piscicultures that have an indefinite nature and therefore are

not amortized. Water rights acquired from third parties are shown at their historical cost.

d)ResearchanddevelopmentexpensesResearch expenses are recognized as an expense when incurred. Costs incurred in development projects (relating to the design and testing

of new or improved products) are recognized as intangible assets when the following criteria are met:

a) Technically, it is possible to complete the production of the intangible asset so it can be available for use or sale.

b) The Administration has the intention to complete the intangible asset to use or sell it.

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

d) It is possible to demonstrate the way in which the intangible asset will generate probable economic benefits in the future.

e) There is availability of the adequate technical, financial or other resources, to complete the development and to use or sell the intangible asset.

f) It is possible to valuate, in a reliable way, the expenditure attributable to the intangible asset during its development.

2.9InterestCostsIf applicable, interest costs incurred for the construction of any qualifying asset are capitalized during the period of time required to

complete and prepare the asset for its intended use. Other interest costs are shown in the income statement.

2.10Lossesforimpairmentofnon-financialassetsAssets that have an indefinite useful life are not subject to amortization and are annually tested for impairment losses.

Depreciable assets are tested for impairment losses whenever an event or changes in circumstances of the business indicate that the book

value of the assets may not be recoverable. An impairment loss is recognized when the book value is greater than its recoverable value.

The recoverable value of an asset is the greater between an asset’s fair value less costs of sale and its value while in use. For the purposes

of valuating losses caused by impairment of value, assets are grouped at the lowest level for which there is separate Cash Generating Unit

(CGU).

Non-financial assets that -other than acquired goodwill- suffered a loss for impairment are reviewed at each closing date of the financial

statement to verify if there has been any reversal of losses.

Losses caused by impairment of value can be reversed for accounting purposes only up to the amount of the losses recognized in previous

financial years, so the book value of these assets does not exceed the value that they would have had if such adjustments had not been made.

This reversal is shown in other income (loss).

2.11FinancialassetsAustralis Seafoods S.A. and subsidiaries classify their financial assets in the following categories: at fair value through profit or loss, loans and

accounts receivable, financial assets held to maturity and available for sale. The classification depends on the purpose for which the financial

assets were acquired. The Administration determines the classification of its financial assets upon their initial recognition.

Classificationoffinancialassets:a)FinancialassetsatfairvaluethroughprofitorlossFinancial assets at fair value through profit or loss are financial assets held for negotiation. Financial assets are classified in this category if

acquired mainly for the purpose of being sold in the short term. Assets in this category are classified as current assets.

b)LoansandaccountsreceivableLoans and accounts receivable are non-derivative financial assets with fixed or determinable payments not listed in an active market. Those

items with maturities of less than 12 months are classified as current assets. The items with maturities greater than 12 months are classified

as non-current assets.

Loans and accounts receivable are included in trade and other accounts receivable. Initially they must be recorded at fair market value,

acknowledging a financial result for the financial year between their recognition and subsequent valuation. In the specific case of trade

accounts, other trade and other accounts receivable, we chose to use the nominal value, taking into consideration the short collection

periods of the Company.

c)RecognitionandvaluationoffinancialassetsAcquisitions and transfers of financial assets are recognized on the date they are negotiated, that is, on the date Australis Seafoods S.A. and

subsidiaries, undertake to acquire or sell the asset.

i)InitialRecognitionFinancial assets not carried at fair value through profit or loss, are initially recognized at fair value plus the transaction costs. Financial assets

at fair value carried through profit or loss are initially recognized at fair value, and the transaction costs are shown in the results.

ii)SubsequentvaluationFinancial assets available for sale and financial assets carried at fair value through profit or loss are subsequently registered at fair value (with

a counter item in other comprehensive income and results, respectively). Loans and accounts receivable are recorded at amortized cost

according to the effective interest rate method.

Financial assets are written-off for accounting purposes when the rights to receive cash flows from the investments have expired or have been

transferred, and Australis Seafoods S.A. and subsidiaries have substantially transferred all risks and rewards derived from their ownership.

Australis Seafoods S.A. and subsidiaries evaluate on the date of each financial statement if there was objective evidence that a financial asset

or group of financial assets may have been impaired.

2.12InventoriesInventories are valued at cost of acquisition or net realizable value, whichever is lower.

Cost is determined by the weighted average price method (WAP).

The cost of finished goods and work in process goods includes costs of raw materials (value of harvested biological assets), direct labor costs,

other direct costs and general production costs (based on a normal operating capacity).

Net realizable value is the estimated price of sale in the ordinary course of business, less applicable variable costs of sale.

Obsolete or slow-moving products are recognized at their realization value.

2.13TradeandotheraccountsreceivableTrade accounts receivable are recognized at their nominal value, since the average maturity terms do not exceed 90 days. Income associated

with a longer payment term, if any, is recorded as deferred revenue in the current liabilities and the accrued portion is recorded as financial

income. As of December 31, accounts receivable held by the Company do not exceed 90 days.

Additionally, estimations are made for such accounts receivable of doubtful collection based on an objective review of all outstanding

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

statement in the period in which they occur. Commercial loans are included in current assets as Trade and other accounts receivable, to the

extent that their estimate collection term does not exceed 1 year, as from the date of the financial statement.

2.14CashandcashequivalentsAustralis Seafoods S.A. and subsidiaries consider as cash and cash equivalents the cash such balances held on hand, in bank current

accounts, in fixed-term deposits and other financial investments (highly liquid securities) with a maturity of less than 90 days, as from the

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date of the investment. Also included in this item are own cash management investments, such as repurchase and resale agreements whose

maturity is consistent with the definitions above.

The use of bank overdraft lines is included in Other financial liabilities.

2.15CapitalThe capital is represented by ordinary shares of a single series.

The statutory minimum dividend on ordinary shares is recognized as lower value on equity when they are earned.

2.16TradeandotheraccountspayablesTrade accounts payables are recognized initially at fair value and subsequently valued at their amortized cost using the effective interest rate

method when they have a payment term longer than 90 days. Shorter term payments they are registered at nominal value for not having

significant differences with their fair value.

2.17OtherfinancialliabilitiesObligations with banks and financial institutions are initially recognized at fair value, net of costs incurred in the transaction. Subsequently,

external resources are valued at amortized cost and any difference between the proceeds (net of costs to obtain them) and the redemption

value is recognized in the income statement over the term of the debt, according with the effective interest rate method. The effective

interest rate method consists of applying the relevant market rate for debt with similar characteristics to the value of the debt (net of costs

to obtain them).

It should be mentioned that if the difference between the nominal value and the fair value is not significant, the nominal value is used.

2.18IncometaxanddeferredtaxesThe expense for tax on income of the year includes Australis Seafoods S.A. and subsidiaries taxes, based on the taxable income of the period,

together with tax adjustments for 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 assets and liabilities

tax basis and their amounts registered in the Company books. However, if the deferred taxes arise from an initial recognition of an asset or

liability in a transaction other than a business combination that -at the time of the transaction- does not affect either the accounting result

nor the taxable profit or loss, then it is not registered.

Deferred tax is determined by using tax rates (and laws) enacted or almost to be enacted and highly likely to be enacted, in each country of

operation, on the date of financial statement and that are expected to be applied when the corresponding asset affected by the deferred tax

is realized or the deferred tax liability is settled.

Deferred tax assets are recognized when it is probable that the entities of the Group will have sufficient tax benefits to offset with other

differences in the future.

The Company does not record deferred taxes over temporary differences arising on investments in related companies since it controls the

date on which they will revert.

2.19Employeebenefitsa)EmployeeholidaysAustralis Seafoods S.A. and subsidiaries recognize the expense for employee holidays by the accrual method, which are recorded at nominal

value.

b)Post-employmentbenefitsSubsidiary Landcatch Chile S.A. keeps contracts with its corporate executives to whom it grants a compensation benefit for years of service

under all circumstance in the event of a voluntary resignation or termination, thus this liability is recognized in accordance with technical

standards. Considering that the actuarial value does not significantly differ from the cost, the latter has been maintained with periodic

evaluations in case some of the variables change.

Profits or losses due to changes in actuarial variables, if any, are recognized in the income statement of the period in which they arise.

Moreover, the Company recognizes a liability for bonuses granted to top executives, when it is contractually obliged or where past practice

has created an implicit obligation.

2.20ProvisionsAustralis Seafoods S.A. and subsidiaries recognize a provision when they are contractually obliged and when there is a past practice that

has created an assumed obligation.

Provisions for onerous contracts, litigation and other contingencies are recognized when:

(i) Australis Seafoods S.A. and subsidiaries have a present obligation, legal or implicit, as a result of past events;

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

(iii) The value has been reliably estimated.

Provisions are valued at present value of the expected expenditures required to settle the obligation, using the best estimate of Australis

Seafoods S.A. and subsidiaries. The discount rate used to determine present value reflects current market valuations as of the date of the

financial statements, as of the temporary value of money as well as the specific risks associated with the particular liability.

2.21Revenuerecognition Ordinary revenues include the fair value of the considerations received or receivable for the sale of goods and services in the ordinary

course of business of the Company. Ordinary revenues are presented net of sales tax, returns, rebates and discounts (if available) and after

eliminating the sales within the Group.

Australis Seafoods S.A. and subsidiaries recognize revenues when the amount can be reliably valued, it is probable that future economic

benefits will flow to the entity and specific conditions are met for each of the Group’s activities as described follows:

a) sale of goodsRevenues from sales of goods are recognized when an entity of the Group has transferred to the buyer the risks and benefits of the products

of such goods and does not retain the right to dispose of them, nor maintain effective control. Usually, this means that sales are registered

at the time of the transfer of risks and benefits to clients in accordance with terms agreed in the trade agreements.

b) Interest incomeInterest income is recognized using the effective interest rate method.

c) sale of servicesRevenues from sales of services are registered when the service has been rendered.

A service is considered rendered when it is received satisfactorily by the client.

2.22LeasesWhen a Group entity is the lessee– Financial Lease.

Australis Seafoods S.A. and subsidiaries lease certain fixed assets. Leases of fixed assets where the Company substantially has all the risks

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

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

Each lease payment is allocated between the liability and the financial charges to obtain a constant interest rate on the outstanding balance

of the debt.

The corresponding lease obligations, net of financial charges, are included in other financial liabilities. The financial cost interest is debited

from the income statement during the term of the lease so as to produce a constant periodic interest rate on the remaining balance of the

liability for each period.

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Assets acquired under financial leases are depreciated over their useful life or the term of the contract, the shorter of the two.

When executing sales with subsequent lease, the differentials generated according to the nature of the transaction are part of the value of

the asset, thus are included in the leased fixed assets and are amortized based on the useful life of the related leased assets.

When a Group entity is the lessee– Operating Lease.

Leases where the lessor retains substantial part of all the risks and benefits derived from the ownership of the asset, are classified as

operating leases. Payments made under operating leases (net of any incentives received from the lessor) are debited from the income

statement on a straight-line basis over the lease term.

2.23DividendPolicyAs provided by the Corporations Law, the Company is required to distribute a minimum dividend of 30% of the profits, unless the

shareholders unanimously agree on an amount of less than the indicated percentage.

Under IFRS, the recognition of an obligation in benefit of the shareholders must anticipate the closing date of the annual financial statements

with the corresponding reduction of equity.

According to information reported to Superintendency of Securities and Insurance, in relation to Circular No. 1945, for the purpose of

determining the distributable net income of the parent Company to be considered for the calculation of dividends with regards to 2012,

the following will be excluded from the income:

i) Unrealized profits and losses, linked to the record of fair value of biological assets provided for in the accounting standard “IAS 41”,

returning them to the net profits at the time of their realization. For this purposes, the portion of such increases of fair value of assets sold

or disposed of by some other means shall be understood to be realized.

ii) The effects of deferred taxes associated with the items indicated in i) will have the same fate of the item that generate them.

2.24EnvironmentExpenditures related to the improvement and/or investing in production processes that improve environmental conditions are recorded

as an expense in the period in which they are incurred. When such expenses are part of investment projects they are recorded as a greater

value of the property, plant and equipment item.

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

a) Costs associated with legal compliance of the activity. Some of these costs are: monitoring of pisciculture effluents, service of mortality

removal, maintenance of effluent treatment plants, etc.

b) Additional expenses of the activities oriented to improve production processes. Some of these expenses are: installation of UV disinfection

system, oceanographic data analysis, staff training on environmental issues, implementation of bio-security measures and control of

infectious vectors, etc.

NOTE 3- FINANCIAL RISK MANAGEMENTThe salmon business inherently involves a number of risk factors that, in one way or another, affect the development of the industry. Among

these factors, the following can be mentioned:

I.Creditriska) Cash surplus investment risks:The quality of the financial institutions with which Australis Seafoods S.A. and subsidiaries work, and the kind of financial products in

which such investments are materialized define a low-risk policy of for the Company.

b) sale operations Risk:Australis Seafoods S.A. and subsidiaries operate with clients through letters of credit, advanced payments or with clients having excellent

credit behavior, as is demonstrated by the payment history of such clients. Indeed, during the past three years, uncollectible amounts of

subsidiary Australis Mar S.A. have been ThUS$11.

During the year, subsidiary Landcatch S.A. registers an increased in provision of ThUS$176, due to a specific situation that is being resolved

legally.

II.LiquidityRiskLiquidity risk arises from the potential imbalance between the need for funds (for financial and operating expenses, capital expenditures,

debt maturities and dividend commitments) and the financing sources (revenues obtained from securities redemptions or financial

placements, collection of trade accounts receivable and financing from financial institutions). The Company has a prudential management

policy of liquidity risks to maintain sufficient cash and marketable securities and an adequate availability of Banks financing.

The following table details the committed contractual undiscounted flows of bank loans, financial leases and accounts payable, grouped by

their commitments as of December 31, 2012:

Between 1 and 3 months

Between 3 and 12 months

Between 1 and 5 years

More than 5 years

Total

ThUS$ THUS$ THUS$ THUS$ THUS$

Bank Loans 1,122 28,719 87,445 6,477 123,763

Trade and other accounts receivable 34,895 29,586 1,000 - 65,481

Accounts payable to related entities - 363 - - 363

III.MarketRisk

a) exchange rate risk:Since most sales of the Group companies are made in US Dollars, there is an implicit risk involved in the valuation of this currency in terms

of the Chilean peso. Thus, both valuations and depreciations of local currency will directly affect the results of the Company, since part of

its expenses are recorded in local currency.

There is sensitivity to the variation of the Yen due to sales made in the Asian market, which are covered by forward contracts to hedge the

exchange rate changes risk of yen/ US Dollar.

As of December 31, 2012, the consolidated balance sheet of the Company had a net liability in Chilean pesos of approx. ThUS$7 so

a variation of 5% increase of the exchange rate generates profits due to exchange rate of ThUS$0.3; and, in turn, a 5% decrease of the

exchange rate generates losses for the same amount.

b) Interest rate risk:Interest rates fluctuations modify future flows of assets and liabilities referenced to a variable interest rate.

Australis Seafoods S.A. and subsidiaries are exposed to interest rates risks, as the long-term financing is and amount to the 180-day LIBOR

plus an additional fixed spread for subsidiary Australis Mar S.A. For Landcatch Chile S.A., long-term debts have been acquired with fixed

rates. The Administration and the Board of Directors regularly follow-up on the conditions of these loans and evaluate the advisability of

taking certain interest rate insurance in order to reduce the impact of changes in the 180-days LIBOR rate.

As of December 31, 2012, the Group has a total bank debt with floating rates of ThUS$78,270. In a sensitivity analysis of the interest rates

on the capital of such bank debts, we can observe that a 1% increase or decrease per annum of the current rates would generate an effect

on income at the end of the year of ThUS$782 more or less interest expense, as applicable.

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c) market risk:Salmon products fall into the category of commodities which, by definition, are subject to the price fluctuations of the international market.

Given this, experience tells us that the sale prices of our products are subject to seasonal fluctuations that can generate a price increase or

decrease, having cyclical variations over time.

NOTE 4- ACCOUNTING ESTIMATES AND JUDGMENTSEstimates and criteria are constantly evaluated and based on historical experience and other factors, including the expectations of the

occurrence of future events that are considered reasonable under the circumstances.

Australis Seafoods S.A. and subsidiaries make estimates and assumptions concerning the future. The estimates and assumptions that have a

significant risk of causing a material adjustment to the balance of assets and liabilities within the next financial statement are shown below:

a) Useful life of plants and equipment:The Administration of Australis Seafoods S.A. and subsidiaries determines the estimated useful life and related depreciation charges for

its plants and equipments. Potential changes to estimations could occur as a result of technical innovations and competitor actions in

response to severe industry cycles. The Administration will increase the depreciation charge when the useful life shorter than the previously

estimated useful life or will amortize or remove assets technically obsolete or non-strategic abandoned or sold.

b) biological assets:The accounting principles and the valuation model applied to the valuation of biological assets are described in Note 2.7.

NOTE 5 – FINANCIAL INFORMATION, BY SEGMENTSThe Company reports its financial information segmented in accordance with the provisions of IFRS 8 - “Operating Segments”. This

regulation establishes standards for reporting information by segments in the financial statements as well as disclosures about products and

services, geographical areas and major clients. Operating segments are defined as components of an entity based on which separate financial

information is assessed regularly by the senior Administration for making decisions regarding the allocation of resources and assessment of

the results. The Group segments financial information by business, identifying the following lines:

a) freshwater salmon cultivation (freshwater).

b) salmon and trout in seawater cultivation (seawater).

The assets and liabilities by segment as of December 31, 2012, and December 31, 2011, are as follows:


Financial Statement Segmented

Freshwater Salmon ThUS$

Seawater Salmon ThUS$ Total ThUS$


Seawater Salmon ThUS$ Total ThUS$

Assets

Assets, Current 15,097 113,776 128,873 27,307 145,462 172,769

Assets, Non-current 34,137 103,370 137,507 30,631 90,681 121,312

TotalAssets 49,234 217,146 266,380 57.938 236,143 294,081

Net equity and total liabilities

Liabilities, current 12,201 82,374 94,575 18,795 55,477 74,272

Liabilities, non-current 27,064 65,613 92,677 25,330 49,255 74,585

Net Equity total 9,969 69,159 79,128 13,813 131,411 145,224

LiabilitiesandNetEquity 49,234 217,146 266,380 57,938 236,143 294,081

Geographical distribution of non-current assets as of December 31, 2012, and December 31, 2011 is as follows:


Geographical Distribution


Seawater Salmon ThUS$

Total ThUS$



Total ThUS$

Assets, non-current Chile 34,137 95,250 129,387 30,631 83,069 113,700

Assets, non-current USA - 8,120 8,120 7,612 7,612

Assets,non-current 34,137 103,370 137,507 30,631 90,681 121,312

Profit by segment as of December 31, 2012 and December 31, 2011, are as follows:




Consoli-dation ad-justments

ThUS$Total

ThUS$



Consoli-dation ad-justments

ThUS$Total

ThUS$

Revenue on ordinary operating activities 16,144 120,676 (15,071) 121,749 20,395 155,551 (12,282) 163,664

External Revenue

1,073 120,676 - 121,749 9,400 154,264 - 163,664

Internal Revenue 15,071 - (15,071) - 10,995 1,287 (12,282) -

Cost of sales (13,585) (154,804) 11,481 (156,908) (14,681) (109,772) 11,138 (113,315)

GrossProfitpreFairValue 2.559 (34,128) (3,590) (35,159) 5,714 45,779 (1,144) 50,349

(Debit) Credit to Fair Value Results of Biological Assets harvested and sold

- (6,767) - (6.767) (23,479) (23,479)

(Debit) Credit to Fair Value Results for increase of Biological Assets

(1,980) (17,663) - (19,643) 23,420 23,420

GrossProfit 579 (58,558) (3,590) (61,569) 5,714 45,720 (1,144) 50,290

Other income, by function 52 2,042 - 2,094 74 376 - 450

Distribution costs - (4,889) - (4,889) - (2,025) - (2,025)

Administrative expenses (2,688) (7,957) 2,900 (7,745) (2,868) (8,158) 2,709 (8,317)

Other expenses, by function (2,888) (9,028) - (11,916) (251) (1,449) - (1,700)

Financial Income 24 1,406 - 1,430 2 1,919 - 1,921

Financial Costs (967) (2,461) - (3,428) (246) (1,655) - (1,901)

Interest by asset method - 508 - 508 87 - 87

Exchange profit/(losses) (403) 4,716 - 4,313 586 (5,266) - (4,680)

Profit(loss),beforetaxes (6,291) (74,221) (690) (81,202) 3,011 29,549 1,565 34,125

Tax expense (income) 2,447 12,659 15,106 (419) (6,277) - (6,696)

Profit(Loss)fromcontinuingoperations (3,844) (61,562) (690) (66,096) 2,592 23,272 1,565 27,429

Profit (Loss) attributable to non-controlling interests - - - - - - - -

Profit(Loss)attributabletoownersofthecontroller (3,844) (61,562) (690) (66,096) 2,592 23,272 1,565 27,429

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The breakdown of profits obtained from ordinary activities classified by external clients and geographical location for the years ended

December 31, 2012 and 2011, is as follows:

As of December 31, 2012 As of Dec. 31, 2011



Total ThUS$



Total ThUS$

InternalClients

Chile 1,073 11,487 12,560 9,400 8,734 18,134

TotalInternalClients 1,073 11,487 12,560 9,400 8,734 18,134

ExternalClients

North America - 33,876 33,876 - 67,574 67,574

Asia - 49,382 49,382 - 35,914 35.914

Rest of America - 21,814 21,814 - 36,985 36,985

Europe - 4,117 4,117 - 5,057 5,057

Others - - - - - -

TotalExternalclients - 109,189 109,189 - 145,530 145,530

Total 1,073 120,676 121,749 9,400 154,264 163,664

At the end of 2012, the only client that represents an amount equal to 10% or more of the total revenue for ordinary activities is Nippon

Suisan Kaisha, with 23% of sales for the year.

NOTE 6- CASH AND CASH EQUIVALENTSCash and cash equivalents are cash balances kept in bank checking accounts, time deposits and other financial investments with a maturity

of less than 90 days. Also included in this item are those cash investments made by the Administration, such as overnight investments

which maturity is consistent with what is stated above, subject to the terms described in IAS 7.

Composition of Cash and cash equivalents as of December 31, 2012 and December 31, 2011, is as follows:

Cash and cash equivalents As of Dec. 31, 2012

ThUS$As of Dec. 31, 2011

ThUS$

Bank Balances 1,477 1,190

Time deposits 7,000 22,237

Mutual funds 7,050 27,880

Agreements - 173

Totalcashandcashequivalents 15,527 51,480

Balances by currency comprising cash and cash equivalents as of December 31, 2012, and December 31, 2011, are as follows:

CurrencyAs of Dec. 31, 2012


ThUS$

US Dollar 12,384 2,016

Chilean Peso 3,143 49,464

Total 15,527 51,480

Time depositsAs of Dec. 31, 2012


ThUS$

Banco BCI 7,000 -

Corpbanca - 9,630

Citibank - 1,051

Banco Santander - 11,556

Totaltimedeposits 7,000 22,237

Mutual fundsAs of Dec. 31, 2012


ThUS$

BCI 3,663 -

Larraín Vial 2,843 27,880

Citibank 544 -

Totalmutualfunds 7,050 27,880

AgreementsAs of Dec. 31, 2012


ThUS$

Corpbanca - 173

TotalAgreements - 173

Mutual fund shares are fixed income and are recorded at market value according to the value of the share at the end of each financial year.

Mutual fund investments are kept by the Group until operational obligations are fulfilled.

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

Assets As of Dec. 31, 2012 ThUS$

As of Dec. 31, 2011ThUS$

Cash and cash equivalents 15,527 51,480

Cash and cash equivalents reported in the cash flows statement 15,527 51,480

NOTE 7- FINANCIAL INSTRUMENTS

7.a)Financialinstrumentsbycategory

Loans and accounts receivable

ThUS$

Assets at Fair Value through profit and loss

ThUS$Total

ThUS$

As of Dec. 31, 2012

Cash and cash equivalents 8,477 7,050 15,527

Trade and other accounts receivable 14,410 - 14,410

Accounts receivable from related entities 3,826 - 3,826

Total 26,713 7,050 33,763

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Liabilities at Fair Value through profit and loss

ThUS$Other financial liabilities

ThUS$Total

ThUS$

As of Dec. 31, 2012

Trade and other accounts payable - 64,481 64,481

Accounts payable to related entities, current - 363 363

Other accounts payable, non current - 1,000 1,000

Other financial liabilities, current 29,075 - 29,075

Other financial liabilities, non current 91,677 - 91,677

Total 120,752 65,844 186,596

Loans and accounts receivable

THUS$

Assets at Fair Value through profit and loss

ThUS$Total

ThUS$

As of Dec. 31, 2011

Cash and cash equivalents 23,427 28,053 51,480

Trade and other accounts receivable 16,864 - 16,864

Accounts receivable from related entities 5,751 - 5,751

Total 46,042 28,053 74,095

Liabilities at Fair Value through profit and loss

ThUS$Other Financial liabilities

ThUS$Total

ThUS$

As of Dec. 31, 2011

Trade and other accounts payable - 51,330 51,330

Accounts payable to related entities, current - 3,893 3,893

Other accounts payable, current 16,445 - 16,445

Other financial liabilities, non current 65,725 - 65,725

Total 82,170 55,223 137,393

7.b)CreditqualityoffinancialassetsFinancial Assets held by the Company can be classified into two groups: i) Commercial Loans with Clients, which in order to measure their

degree of risk are classified by the seniority of the debt and provisions are made for non-collectible loans, and ii) financial investments made

by the Company in accordance with the criteria set out in Note 3.

Credit quality of financial assets Dec. 31, 2012ThUS$

Dec. 31, 2011ThUS$

Cash and cash equivalents

Mutual funds and fixed-term deposits AA+fm/M1 14,050 50,290

Bank current accounts AA and higher. 1,477 1,190

Total 15,527 51,480

Trade and other accounts receivable

1 to 15 days 10,496 4,901

16 to 30 days 3,811 3,610

More than 30 days 67 8,343

Without credit rating 36 10

Total 14,410 16,864

As shown above, the Company evaluates its credit risk by applying maturity terms to its accounts receivable.

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

7.c)EstimationofFairValueAs of December 31, 2012, the Company kept financial instruments than had to be recorded at fair value. These instruments include:

• Short-term mutual fund investments (cash equivalent).

The Company has classified the fair value measurements by using a hierarchy that reflects the level of information used in the valuation.

This hierarchy consists of three levels: (i) fair value based on active market quotations for a similar kind of asset or liability, (ii) fair value

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.

Fair value of financial instruments traded in active markets, such as investments acquired for their negotiation, are based on market prices

quoted using the current bid price at the closing of the financial statements.

The following table shows the classification of financial instruments at fair value as of December 31, 2012, according to the information

used in their valuation:

Fair value as of Dec. 31, 2012 Fair Value measurements using values considered as:

Assets ThUS$LevelIThUS$

LevelIIThUS$

levelIIIThUS$

Short-term mutual funds 7,050 7,050 - -

Short term Agreements 0 0 0 0

Total 7,050 7,050 - -

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

Assets THUS$LevelITHUS$

LevelIITHUS$

LevelIIITHUS$

Short-term mutual funds 27,880 27,880 - -

Short term Agreements 173 173 - -

Total 28,053 28,053 - -

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The balance of trade and other accounts receivable by segment is as follows:



Freshwater 13,719 7,709

Seawater 369 1,642

Total 14,088 9,351

Seniority of accounts receivable is as follows:

Up to 90 days



Trade accounts receivable 14,088 9,351

Total 14,088 9,351

The Company does not have trade and other accounts receivable individually impaired that have been renegotiated.

The Company makes provisions when there is evidence of impairment of trade accounts payables.

The criteria used to determine if there is objective evidence of impairment loss are the maturity of the portfolio, impairment facts (default)

and specific market signs.

MaturityImpairment

%

Accounts receivable– over 1 year 100

Judicial and pre-judicial collection Assets 100

The movement of the provision for impairment losses of Chilean trade accounts receivable between January 1, 2012 and December 31,

2012, is as follows:

As of Jan. 1, 2012ThUS$

(78)

Penalties -

Recovery if non-collectibles -

Increase in provisions (176)

BalanceasofDec.31,2012 (254)

After exhausting all prejudicial and judicial collection efforts, the assets are written-off against the corresponding provision.

The Company only uses this provision method and not the direct write-off for better control.

Historical and current renegotiations have little relevance and the policy is to analyze them on a case to case basis and then classify them

according to the existence of risk and determining if any reclassification is needed for the accounts receivable. If reclassification is needed,

a provision is created for the expired and to be expired.

The Holding Company and subsidiaries believe they are not exposed to a high risk of liquidity of these financial assets since the credit

quality is protected by high diversification of the Company’s client portfolio, which are economically and geographically dispersed and

come from countries with low sovereign risk.

There are no material guarantees for credit operations conducted with clients with a stable business relationship and excellent payment

behavior or early paying clients. However, there are contractual agreements to protect specific businesses.

Additionally, as of December 31, 2012, the Company has financial instruments that are registered at fair value. In order to comply with

the fair values disclosure requirements, the Company has valued these instruments as shown in the following table:


Book valueThUS$

Fair valueThUS$

Book valueThUS$

Fair valueThUS$

Cash and Cash equivalent

Cash on hand

Bank balance 1,477 1,477 1,190 1,190

Fixed-term deposits 7,000 7,000 22,237 22,237

Trade and other accounts receivable 14,410 14,410 16,864 16,864

Accounts receivable form related entities 3,826 3,826 5,751 5,751

Other financial liabilities 29,075 29,075 16,445 16,445

Other financial liabilities, non current 91,677 91,677 65,725 65,725

Trade and other accounts payables, current 64,481 64,481 51,330 51,330

Accounts payable to related entities 363 363 3,893 3,893

Other accounts payables, non current 1,000 1,000 - -

The registered value of accounts receivable and accounts payable is assumed to be approximated to their fair value due to their short-term

nature. Cash on hand, bank balances, time deposits and other non-current accounts payable, their fair value is approximated to their book

value.

NOTE 8 - TRADE AND OTHER ACCOUNTS RECEIVABLE

The following is the breakdown of trade and other accounts receivable:

As of Dec. 312012ThUS$


Trade accounts receivable National 3,662 1,697

Trade accounts receivable Foreign 10,680 7,732

Provision Non- collectible (254) (78)

Trade accounts receivable– Net 14,088 9,351

Other accounts receivable 322 7,127

Others - 386

Total 14,410 16,864

Fair value of trade and other accounts receivable does not significantly differ from their book value.

Balances by currency of non-current trade and other accounts receivable as of December 31, 2012 and December 31, 2011 are as follows:

CurrencyAs of Dec. 31, 2012


ThUS$

US Dollar 12,158 14,276

Chilean peso 2,252 2,588

Total 14,410 16,864

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The maximum exposure to credit risk to the date of presentation of this information is the fair value of each of the above mentioned

categories of accounts receivable.

As of December 31 2012 As of December 31, 2011

Gross exposure ThUS$

Gross ExposureImpaired

ThUS$

Net Concentrated Risk Exposure

ThUS$

Gross exposureThUS$

Gross ExposureImpaired

ThUS$

Net Concentrated Risk Exposure

ThUS$

Trade accounts 14,369 (254) 14,115 9,429 (78) 9,351

Other accounts receivable 295 - 295 7,513 - 7,513

Total 14,664 (254) 14,410 16,942 (78) 16,864

NOTE 9 - ACCOUNTS RECEIVABLE FROM/PAYABLE TO RELATED ENTITIES

Related entities include the following entities and individuals

a) Shareholders who may exercise control.

b) Subsidiaries and members of subsidiaries.

c) Parties with an interest in an entity that gives them significant influence over it.

d) Parties with joint control over the entity.

e) Associates.

f) Interests in joint ventures.

g) Key executives of the entity or its parent company.

h) Close relatives of the individuals described above.

i) An entity controlled by any of the individuals described above or jointly controlled or over which there is significant influence, where a

significant portion of the voting power lies directly or indirectly in any individual described above.

j) Accounts receivable from related entities.

In general, transactions with related entities have immediate receipt or payment and are not subject to special conditions. These transactions

are in accordance with the provisions of Articles 146 and following of Law 18,046, on Corporations.

Transfers of short-term funds to and from the Holding Company or between related entities, other than receipt or payment of services are

structured in the form commercial current account agreements.

a) Accounts receivable from related entitiesAccounts receivable from related entities as of December 31, 2012 and December 31, 2011, respectively, are as follows:

Current RUT Relationship Country of Origin

Currency As of Dec. 31, 2012 ThUS$

As of Dec. 31, 2011 ThUS$

Company

Asesorías e Inversiones Benjamín S.A. 79.744.690-1 Shareholder Chile Pesos 11 9

True Nature Seafoods Foreign Joint Venture USA US Dollars 3,198 5,108

South Pacific Specialities Foreign Joint Venture USA US Dollars 610 593

Piscicultura Los Navegantes 96.862.150-5 Common shareholder Chile Pesos 7 41

Total 3,826 5,751

b) Accounts payable to related entitiesAccounts payable to related entities as of December 31, 2012, and December 31, 2011, respectively, are as follows:

Current RUT Relationship Country of origin

Currency As of Dec. 31, 2012 ThUS$

As of Dec. 31 2011 ThUS$

Company

Inversiones Australis Ltda. (Ex Australis S.A.) 96.631.730-2 Common shareholders Chile Pesos 363 368

True Salmon Pacific Holding CO., LLC Foreign Joint venture USA US Dollars - 3,525

Total 363 3,893

c) Transactions with related entities and effects on net income These are the operations and their effects as informed on income statements of years ended December 31, 2012 and December 31, 2011.

As of Dec. 31, 2012 As of Dec. 31, 2011

Company RUT Relationship Country Type of currencyType of Income

Amount ThUS$

Effect on income ThUS$

Amount ThUS$

Effect on income ThUS$

True Nature Seafoods * Foreign Joint Venture USA Terminated product sale

US Dollar 30,706 (6,091) 2,949 298

South Pacific Specialities Inc. * Foreign Joint Venture USA Terminated product sale

US Dollar 2,952 (827) 543 -

Asesorías e Inversiones Benjamín S.A.

77.029.880-6 Shareholder Chile Service agreement

Pesos 49 (49) 50 (50)

Asesorías e Inversiones Benjamín S.A.

77.029.880-6 Shareholder Chile Paid Remittances Pesos - - 884 -

(*) As of December 9, 2011, Australis Seafoods through its subsidiary Comercilizadora Australis SpA, acquired 50% of the capital of True Salmon

Pacific Holding Co., owner of 100% of the social rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, companies through

which it develops its business of marketing fish and seafood products in the United States of America and Canada, companies to which Australis Mar

sells part of its production

Australis Seafoods S.A. and subsidiaries, have the policy to inform all transactions with related entities that exceed ThUS$10 carried out

during the year, except dividends paid and capital contributions received, which are not considered to be transactions.

d) Remunerations and fees paid to the board of Directors and the Audit Committee and Remunerations of key executivesThe amount reflected in expenditures for payments to Directors as of 31 December 2012, was ThUS$339..

Also, the total gross remuneration received by Australis Seafoods S.A. and subsidiaries’ executives was ThUS$3,526.- as of December 31,

2012. (ThUS$2,325 as of December 2011).

Moreover, it is noteworthy that the above mentioned amounts include incentive systems that consist of an annual bonus payable to key

executives and other positions that -according to the discretion of the Company- are eligible to participate and are provisioned year when

the associated goals are met.

This compensation system seeks to motivate, recognize and obtain loyalty from executives through a formal scheme that rewards good

individual performance as well as teamwork.

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Formulaforcalculatinginventorycost.Inventories of finished products are valued using the weighted average cost method, that is, the cost of each unit of product is determined

based on the weighted average of the recorded cost at the beginning of the financial period, and the cost of the goods acquired or produced

during the period.

Inventories of raw materials, containers and other materials are valued at weighted average cost.

Informationonfinishedproducts.At closing of this financial statement the Company made a provision for the impairment of finished products for ThUS$749. During the

financial year ending December 31, 2012, and as of December 31, 2011, no inventories have been pledged as security.

Inventories recognized in the sales cost at closing of each financial period are summarized as follows:

Inventory/Cost of Sale

Accumulated as of Dec. 31, 2012

ThUS$


ThUS$

Cost of Sales 156,908 113,315

Total 156,908 113,315

NOTE 11-BIOLOGICAL ASSETSThe biological assets of Australis Seafoods S.A. and subsidiaries consist of fish in the water, for subsidiary Australis Mar S.A. and broodstock,

eggs, fry and smolts for subsidiary Landcatch Chile S.A.

The Company does not have any restrictions regarding its biological assets nor have they been used to secure its financial obligations.

The biological assets that the Administration estimates will be harvested within one year are classified as current biological assets.

Current As of Dec. 31, 2012ThUS$


Freshwater salmon 10,111 16,155

Seawater salmon 56,106 62,642

Total 66,217 78,797

Non- current As of Dec. 31, 2012 ThUS$


Freshwater salmon 2,982 4,375

Seawater salmon 21,595 24,485

Total 24,577 28,860

Total 90,794 107,657

Key executives and managers are those individuals that have the authority and responsibility to plan, direct and control the activities of

the company, directly or indirectly, including any member of the Board of Directors (whether an executive or otherwise) or equivalent

governing body of the Company.

e) Issuance of shares.Pursuant to the powers granted to the Board of Directors by the Extraordinary Shareholders Meeting held on March 4, 2011, the Board

at the meeting held on March 8, 2011, offered to the directors of the Company 3,000,000 shares constituting a capital increase. Of these

individuals, only Mr. Rodrigo Arriagada Astrosa accepted the offer, for 2 million shares; and Mr. Federico Rodríguez Marty, accepted the

offer for 1 million shares. These shares were subscribed through private contracts dated March 14, 2011, and to this date they are still

pending payment. The price, which is determinable: (i) cannot be less than $20.224 per share, (ii) will be equal to the price at which all

180,000,000 shares placed among third parties on the Santiago Stock Exchange on December 9, 2011, that is, the amount of $185 per

share, (iii) must be paid within a maximum period of 3 years, as from March 4, 2011, and (iv) in the event that within that 3 year period all

or part of such shares are not placed in the stock market, the subscription price of such shares will be of $20.224 per share.

NOTE 10- INVENTORIESInventory composition at the end of each financial year is as follows:

Finished Product As of Dec. 31, 2012


ThUS$

Final product 19,102 8,006

Provision for net realization value (6,793) -

Provision for impaired products (749) -

Supplies - 350

Fish food 2,727 2,698

Packaging materials 273 172

Medicine and additives 73 280

Others 216 -

Total 14,849 11,506

As of December 31, 2012, the Company has recognized a provision for the net realization value of finished product of ThUS$6,793,

originated in the decrease of sale prices observed at closing of the financial statement. This amount is recorded in item (Debit) Credit to Fair

Value Results for growth of Biological Assets, net of the effects registered by this item as detailed in Note 11 of Biological Assets.

InventorypoliciesThe Group’s inventories are valued at cost or net realizable value, whichever is lower.

InventorymeasurementPolicy

The Group inventories are valued according to the following:

a) The production cost of manufactured inventories includes costs directly related to the units produced, such as labor, variables and fixed

costs included to convert materials into finished products. The production cost of raw and frozen salmon is determined based on the last

fair value of the biological asset at point of sale, plus direct and indirect productions costs.

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

costs attributable to the acquisition of the purchase and materials.

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b) seawater

Seawater As of Dec. 31, 2012Units

As of Dec. 31, 2011Units

Weight gaining fish 11,683,795 13,821,629

Total seawater 11,683,795 13,821,629

As of Dec. 31, 2012 As of Dec. 31, 2011

Seawater tons 22,679 20,444

BiologicalAssetsPolicies

Biological assets are valued at fair value less estimated costs at points of sale, in accordance with the definitions contained in IAS 41, and in

accordance with the provisions of Note 2.7.

At closing of the financial statements, the effect of the fish natural growth in the water, expressed at fair value less estimated costs at points

of sale, is recognized according to a valuation performed based on market prices adjusted by quality and size. The higher or lower value

result is recorded in the income statement as (Debit) Credit to Fair Value Results for growth of Biological Assets for the financial year. In

addition, the higher cost of the exploited and sold part resulting from this revaluation is also recorded as (Debit) Credit to Fair Value Results

of Biological Assets harvested and sold. According to the latter, the full net effect of the biological assets’ valuation (including impairments

and provisions) for the year ended December 31, 2012 was ThUS$22,054 (ThUS$59 in December 2011)

OperatingrisksSince salmon production is a biological asset it is potentially affected by a number of biological risks. To this regard, the following risks can

be mentioned:

a) Diseases: Although disease is currently controlled through vaccines, antibiotics, good management practices and through the

production of high quality smolts, it is not possible to rule out the development of new diseases or pests affecting production.

b) Failure to comply with applicable legislation and, in particular, failure to comply with resting breaks and district provisions, could

result in sanctions applicable by the authority that may even lead to the revocation of the concessions.

c) Predators: The presence of natural predators of salmon such as sea lions, may involve a loss of biomass and even the destruction

of cages. The industry has implemented a series of preventive measures to help mitigate the adverse effects caused by this kind of

predators.

d) Risk of nature: Salmon growth depends, among other things, on climatic and oceanographic conditions, such as changes in the

brightness of the environment or the temperature of water, which can have negative impacts on fish growth and food consumption.

e) Cost of food: Food is the most significant direct cost in the production of salmon and trout in both the freshwater business and the

seawater weight gaining business. Variations in the food prices are caused by variables beyond ASF Group, such as the price or cost of

fishmeal that, in turn, depends on the costs of the extractive fishing industry.

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

01/01/201231/12/2012

ThUS$

01/01/201131/12/2011

ThUS$

Initial Biological assets 107,657 73,994

Increase for weight gaining and production 153,345 140,808

Decrease for sales and harvests (141,486) (106,351)

Fair value adjustment for the year, increase/decrease of Fair Value* (5,705) 23,420

Decrease in Fair Value by harvests** (6,767) (23,479)

Decrease in Fair Value for harvests kept as finished product at closing of the year*** - (454)

Biological assets impairment (7,145) -

Productive Plan adjustment (9,105) (281)

Balanceatclosing 90,794 107,657

* Amounts recognized for growth of biological assets in the income statement, effect that is recognized separately in the income statement by function.** Fair value adjustment transferred to finished product because of harvests of the year. At end of the financial year, this amount was debited from the income statement due to the sale of finished product. This effect is shown separately in the income statement by function.

*** Fair value adjustment transferred to the finished product that remain inventory at the end of the year.

As of December 31, 2012, the Company recognized an impairment of its biological assets of ThUS$7,145, recorded in the income statement

as item (Debit) Credit to Fair Value Results for growth of Biological Assets, net of the increase in fair value of biological assets for the

financial year that was ThUS$5,705 (loss). Additionally, and as mentioned in Note 10, the effect of the adjustment to net realizable value

of inventories of finished goods has been included under the item (Debit) Credit to Fair Value Results for growth of Biological Assets for

the period for ThUS$6,793 (loss).

The adjustment of the production plan for ThUS$6,765 consists of reducing the original smolt-planting plan for 2012 from 17.5 million

units to 12.4 million units. This, considering that the sustained fall of international salmon prices caused largely by the strong increase

in Chilean production and the pressure it has placed on the markets. Consistent with the foregoing, subsidiary Landcatch decreased the

number of smolts to be produced, which had an effect on the results of ThUS$2,340. These effects are recognized as part of Other expenses,

by function in the income statement.

The quantitative summary of biological assets as of December 31, 2012 and December 31, 2011, is as follows:

a) freshwater

Freshwater As of Dec. 31, 2012 Units

As of Dec. 31, 2011Units

Eggs - 1,374,983

Broodstock 212,206 455,462

Fry 13,228,772 20,762,491

Smolts 1,657,275 4,287,868

Totalfreshwater 15,098,253 26,880,804

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NOTE 12 – INCOME TAXESIncome tax receivable – current, are as detailed below:

Income Tax receivable As of Dec. 31, 2012ThUS$


VAT Credit 4,986 3,997

Fixed assets 4% credit - 38

Estimated monthly payments for absorbed profits 6,423 9

Provisional Monthly Payments 2,082 3,724

SENCE credit credit (National Training and Employment Service) 2 45

Provision for Income tax - (5,827)

Austral Law* - 5,789

Other Tax credit - 170

TotalTaxreceivable 13,493 7,945

As of December 31, 2012, the Company registers Pagos Provisionales por Utilidades Absorbidas (Estimated monthly payments for absorbed

profits or PPUA) for ThUS$6,423, considering the current situation of tax loss and undistributed tax profits from previous years.

As of December 31, 2011 the Provision for First Class Income Tax of ThUS$5,827, does not constitute a cash flow for the Company because

of to the credit generated for the enforcement of the Austral Law, it will be compensated in the following payment date.

NOTE 13- OTHER NON-CURRENT ASSETS



Austral Law* 7,857 7,379

Other 156 156

Total 8,013 7,535

* Tax credit generated regarding assets incorporated to an investment project developed in the XI and XII Regions and in the Palena Province. Until

December 31, 2011, this credit is attributable to the First Category Income Tax, so it is considered an asset. The Company can use this credit until

December 31, 2031.

NOTE 14- INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

On December 9, 2011, Australis Seafoods S.A. through subsidiary Comercializadora Australis SpA, acquired 50% of True Salmon Pacific

Holding Co., which in turn, owns 100% of social rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, companies

through which it markets fish and seafood products in the United States and Canada.

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



True Salmon Pacific Holding Co. 8,120 7,612

TOTAL 8,120 7,612

This value includes the goodwill generated at the time of acquisition, which does not have impairment as of December 31, 2012 and 2011,:



True Salmon Pacific Holding Co. 6,523 6,523

TOTAL 6,523 6,523

The results accrued in joint ventures are as follows:



True Salmon Pacific Holding Co. 508 87

TOTAL 508 87

Investments movements in joint ventures as of December 31, 2012, and December 31, 2011, are as follows:



Initial balance 7,612 -

Investments in joint ventures - 7,525

Interest in joint ventures profit 508 87

TOTAL 8,120 7,612

The summarized financial information of True Salmon Pacific Holding Co. as of 31 December 2012, and 2011, is as follows:

As of Dec. 31, 2012 As of Dec. 31, 2011

Assets, current 23,343 17,529

Assets, non-current 819 457

Totalassetsofentitywithjointcontrol 24,162 17,986

Liabilities, current 20,960 15,800

Liabilities, non current - -

Equity 3,202 2,186

Totalliabilitiesandequityofentitywithjointcontrol 24,162 17,986

Income, current 156,092 * 12,774

Expenses, current (155.077) * (12,599)

NetProfit/(Loss) 1,015 *175

(*) For the period between January 1 and December 31, 2011.

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The movement of intangible assets as of December 31, 2011, is as follows:

Useful lifeIndefinite

ThUS$

Useful lifeFiniteThUS$

TotalThUS$

Balance as of January 1, 2011 4,904 5,518 10,422

Accumulated amortization and impairment - (32) (32)

Additions 2,005 2,061 4,066

BalanceasofDecember31,2011 6,909 7,547 14,456

The breakdown of the aquaculture concessions and water rights as of December 31, 2012, is as follows:

a) Aquacultureconcessions–Seawater• Own concessions

No. Name Type Region Area (Hectares) Being used at closing 2012

1 Humos 3 Salmonids XI 4.5 Yes

2 Burr 1 Salmonids XI 3.8 -

3 Rivero 1 Salmonids XI 3.9 Yes

4 Elefante 1 Salmonids XI 4.0 -

5 Rivero 2 Salmonids XI 8.1 -

6 Pulluche 1 Salmonids XI 15.0 Yes

7 I Rojas 2 Salmonids XI 4.0 Yes

8 Rivero 4 Salmonids XI 5.9 Yes

9 Salas 5 Salmonids XI 3.0 -



12 Humos 4 Salmonids XI 4.5 -


14 Matilde 1 Salmonids XI 3.0 Yes


16 Italia Salmonids XI 2.0 -



19 Luz 1 Salmonids XI 2.0 -

20 Matilde 2 Salmonids XI 3.0 -

21 Patranca 1 Salmonids XI 6.0 -



24 Pulluche 2 Salmonids XI 2.0 -


NOTE 15- INTANGIBLE ASSETS OTHER TAN GOODWILLA breakdown of the main types of intangible assets that were not generated internally is as follows:

UsefulLife

As ofDec. 31, 2012

ThUS$

As ofDec. 31, 2012

ThUS$

Aquaculture concessions Indefinite 5,644 3,945

Aquaculture concessions Finite 7,756 7,518

Water rights Indefinite 2,748 2,735

Trademarks Finite 105 61

Computer software licenses Finite 104 -

Water rights Finite 838 -

Other Indefinite 310 197

Total 17,505 14,456

a)AquacultureconcessionsandwaterrightsAquaculture concessions acquired from third parties are recognized at historical cost.

The useful life (term) of such concessions is mostly indefinite, since they have no expiration date or a predictable useful life, therefore they

are not amortized. Concessions obtained under the new Fishery Law have a 25-year term, which is renewable according the compliance

of certain health and environmental conditions, so they are amortized based on their useful life.

Water rights are exploitation rights associated with technical projects of piscicultures that have an indefinite nature and, therefore, are not

amortized. Water rights acquired from third parties are recognized at historical cost.

Australis Seafoods through its subsidiaries has applications for concessions that are currently in progress are currently in different stages of

the legal process and these require payments associated with the compliance of several procedures. These contingent liabilities according

to IAS 38 are not recorded, but in order to comply with the disclosure requirements, it is estimated that for 2013 they are likely to amount

up to UF37,500 and reach -during the following periods- a total of UF80,000. When the conditions are met to make this liability certain,

it is recorded against an increase in the value of the concessions.

b)IntangibleassetssubjecttoguaranteesorrestrictionsAt closing date of these financial statements, the Company and subsidiaries do not have any guarantees for purchases of intangibles.

The movement of intangible assets as of December 31, 2012, is as follows:

Useful life Indefinite ThUS$

Useful life Finite ThUS$

TotalThUS$

Balance as of January 1, 2012 6,909 7,547 14,456

Accumulated amortization and impairment (7) (53) (60)

Additions 1,490 1,619 3,109

BalanceasofDecember31,2012 8,392 9,113 17,505

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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 -



35 Dring 1 Salmonids XI 2.0 -

36 Luz 3 Salmonids XI 2.0 Yes

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 -

46 Guar Salmonids X 3.0 -

47 Rulo Salmonids X 5.4 -

48 Caicaen Salmonids X 1.0 -

49 Riveros 6 Salmonids XI 6.0 Yes


51 Isla Medio 1 Salmonids XI 1.5 -

52 Elena Salmonids XI 6.0 Yes


54 Casma Salmonids XI 3.0 -

55 Veneria Salmonids XI 3.0 -

56 Herrera Salmonids XI 6.0 -

57 Fitz Roy 3 Salmonids XI 6.0 -

58 Canalad Salmonids XI 10.80 -

59 Yalac Salmonids XI 4.00 -

60 Victoria Salmonids XI 6.00 -

• Own concessions – leased to third parties


1 Puluqui 1 Salmonids X 11.7 -

• Third party concessions – leased from third parties


1 Melchor 4 Salmonids XI 6 Yes

2 Traiguén 1 Salmonids XI 8 Yes

b) Water rights– Freshwater

• Water rights - owned by the Company

No. Name Type Region Being used at closing 2012

1 Río Negro 1 Freshwater X -



4 Estero Caren 1 Freshwater IX -

5 Estero Caren 2 Freshwater IX -

6 Est. Allipén Freshwater IX -

7 Curarrehue Freshwater IX -

• Water rights – subject to financial lease


1 Río Cululí Freshwater X Yes

2 Río Ignao Freshwater XIV Yes

3 Pozo Ignao Freshwater XIV Yes

4 Río Caliboro Freshwater VIII -

5 Vertiente SN Freshwater IX Yes

6 Rio Alllipen Freshwater IX -

7 Río Curacalco Freshwater IX Yes

8 Canal del Laja Freshwater VIII Yes

• Water rights – subject to operational lease


1 Estero del Diablo Freshwater IX Yes

2 Estero Matanza Freshwater IX Yes

3 Estero Sen Sen Freshwater IX Yes

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NOTE 16 - PROPERTY, PLANT AND EQUIPMENT

Detail of the different categories of property, plants and equipments and their movements as of December 31, 2012, and December 31,

2011 is as follows:

Net construc-tions

ThUS$Land

ThUS$Net buildings

ThUS$

Net Plant and Equipment

ThUS$

Net Information

Technologies Equipment

ThUS$

Net fixtures and fittings

ThUS$

Net Total Property, Plant and

EquipmentThUS$

InitialBalance 2,672 588 - 25,292 154 1,958 30,664

Additions 5,935 4,364 981 22,178 45 465 33,968

Additions to construction - - - 881 - - 881

Disposals - - - - - (122) (122)

Depreciation (348) - (10) (4,216) (38) (406) (5,018)

NetamountasofDecember31,2011 8,259 4,952 971 44,135 161 1,895 60,373

Additions 1,402 3,895 - 14,164 34 2,311 21,806

Additions to constructions in progress 863 - - - - - 863

Other increases

(decreases) (292) (167) - 311 (9) (13) (170)

Disposals (109) - - (329) (3) - (441)

Depreciation (530) - (114) (5,939) (42) (466) (7,091)

NetamountasofDecember31,2012 9,593 8,680 857 52,342 141 3,727 75,340

As of December 31, 2012, the breakdown of property, plant and equipment is as follows:

Gross ValueThUS$

Accumulated Depreciation ThUS$

Net valueThUS$

Construction and works in progress 10,702 (1,109) 9,593

Land 8.680 - 8,680

Buildings 981 (124) 857

Plant and equipment 66,880 (14,538) 52,342

Information technology equipment 225 (84) 141

Fixtures and fittings 5,665 (1,938) 3,727

Totalproperty,plantsandequipment 93,133 (17,793) 75,340

As of December 31, 2011, the breakdown of property, plant and equipment is as follows:

Gross ValueThUS$

Accumulated Depreciation

ThUS$

Net valueThUS$

Construction and works in progress 9,274 (1,015) 8,259

Land 4,952 - 4,952

Buildings 981 (10) 971

Plant and equipment 54,778 (10,643) 44,135

Information technology equipment 206 (45) 161

Fixtures and fittings 3,071 (1,176) 1,895

Totalproperty,equipment 73,262 (12,889) 60,373

As of December 31, 2012, the Company recognized a depreciation of ThUS$3,725 (ThUS$2,771 in 2011) in the income statement for the

financial year.

a) Valuation and updatesThe Administration has chosen the cost-model accounting policy that applies to all items containing some kind of property, plant and

equipment.

New property, plant and equipment are recognized at cost of acquisition.

Acquisitions agreed in a currency other than the functional currency are translated at the exchange rate valid as of the date of the acquisition.

For the valuation of the main fixed assets and relevant land acquired before the date of transition to IFRS the fair value for subsidiary

Landcatch Chile S.A. was determined based on valuations performed by expert, independent and external professionals. For other fixed

assets, especially those associated with subsidiary Australis Mar S.A., the historical cost model was used.

Daily maintenance and common repairs costs are recognized as net income(loss), but the replacement of important parts or pieces and

strategic spare parts that considered improvements are capitalized and depreciated over the remaining useful life of the assets based on a

component’s approach.

Gains or losses from sales of property, plant and equipment are calculated by comparing the proceeds obtained from the sale of the asset

and the book value of the asset and are included in the income statement.

b) Depreciation methodDepreciation of assets is calculated in a straight line over the respective useful life. This useful life is determined based on the expected

natural deterioration, technical or commercial obsolescence arising from changes and/or improvements in production and changes in the

market demand of products obtained using these assets.

c) estimated useful life or depreciation ratesThe estimated useful life by type of asset is as follows:

Freshwateruseful lifeAverage

Seawater useful lifeAverage

Buildings 13 -

Plans and equipment 7 10

Information technology equipment 3 -

Fixtures and fittings 4 10

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The residual value and useful life of assets are reviewed and adjusted, if necessary, at each closing of the financial statements.

d) Property, plant and equipment subject to guarantees or restrictionsGuarantees associated with property, plant and equipment are detailed in Note 30.

As of December 31, 2012, the Company has no legal or contractual obligation to dismantle, remove or rehabilitate sites where it performs

it operations therefore, they do not include costs associated with such requirements.

e) InsuranceThe Group has insurance policies to cover the risks of personal property, equipment, plant and machinery. Australis Seafoods S.A. and

subsidiaries consider that coverage of these policies is appropriate for the risks inherent to its operation.

The insurance policies maintained by Australis Seafoods S.A. and subsidiaries are the following:

Type of asset Risks Covered

Equipment and installations Basic coverage: risks of nature.

Additional coverage: theft, collision, fire.

f) financial leasesThe breakdown of the classification of assets acquired under financial leases is as follows:

Property, plant and equipment subject to financial leasing, Net As of Dec. 31, 2012ThUS$


Constructions subject to financial leasing 4,516 5,036

Land subject to financial leasing 2,044 2,280

Buildings subject to financial leasing 857 971

Plant and equipment subject to financial leasing 7,592 7,861

TOTAL 15,009 16,148

Water rights subject to financial leasing As of Dec. 31, 2012ThUS$


Water rights subject to financial leasing * 2,071 1,604

TOTAL 2,071 1,604

* Included in item Intangible assets, other than goodwill.

On May 11, 2012, subsidiary Landcatch Chile S.A. executed with Banco Santander-Chile a leaseback agreement regarding the Curacalco

pisciculture located in the Araucanía Region, for a total value of ThUS$3,231, a term of 7 years and an interest rate of 4.95% per annum.

Curacalco pisciculture had a book value of ThUS$2,184 when it was transferred to Banco Santander Chile for an amount of ThUS$3,231,

and then it was leased back for this same amount. The transaction generated a differential of ThUS$1,047 that- due to the nature of

the transaction- is part of asset and the amount is included in the leased fixed assets and is amortized according to the useful life of the

associated leased fixed asset.

On June 30, 2011, subsidiary Landcatch Chile S.A. executed two leaseback agreements with Banco Santander-Chile regarding the amount

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

the following piscicultures:

a) Ignao pisciculture, located in the Region of los Ríos, municipality of lago Ranco.b) Vertientes pisciculture, located in the region of Araucanía, Cunco.Ignao and Vertientes piscicultures had a total book value of ThUS$10,150 when they were transferred to Banco Santander for ThUS$8,681

and then they were leased back in this same amount. This generated a differential of ThUS$1,469. that due to the nature of the transaction-

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

On November 21, 2011 subsidiary Landcatch Chile S.A. executed a leaseback agreement with Banco Bilbao Vizcaya Argentaria, Chile, over

the Ketrún Rayén pisciculture located in the commune of Los Ángeles, Region of Bío Bío. The asset was transferred for ThUS$5,788, with

a term of 8 years and a 6-month grace period, and with an interest rate of 3.94% per annum. (This operation did not generate significant

differences between the book value of the asset and the sale price paid by Bank).

On November 3, 2011, Australis Seafoods S.A. executed a leasing agreement with Banco Bice for ThUS$981, for a term of 8 years and with

an interest rate of 4.7%. The property acquired through this operation is the corporate office of the Company.

Additionally, subsidiary Landcatch Chile S.A. has Cululi pisciculture under a financial leasing since 2008.

The value of the minimum lease payments related to this financial lease agreement is set forth in Note 18.b)

g) fixed Assets fully depreciated or obsoleteAs of December 31, 2012, the Company does not have fixed assets that are temporarily out of service or completely depreciated, other than

the assets that need to have resting breaks required by health regulations.

NOTE 17- INCOME TAXES and DEFERRED TAXESDeferred taxes are the amounts of income tax that Australis Seafoods S.A. and subsidiaries will have to pay (liabilities) or recover (assets) in

the future years, related to temporary differences generated between the tax base and the accounting value of certain assets and liabilities

The main deferred tax asset is the tax losses of the parent Company and subsidiaries, to be recovered in future years. The main deferred

tax liability payable in the future is the temporary differences generated by costs of manufacture, revaluation of biological assets and the

revaluation of property, plant and equipment as of the date of transition to IFRS and the application, for the tax purposes, of accelerated

depreciation.

A breakdown of the assets and deferred tax liabilities are as follows:

As of Dec. 31, 2012 As of Dec. 31, 2011

Deferred tax asset

ThUS$

Deferred tax liability

ThUS$

Deferred tax asset

ThUS$

Deferred tax liability

ThUS$

Indirect costs activated in stock - 8,219 - 7,049

Valuation of Biological assets 1,373 - - 1,121

Prepaid income - - 278 -

Concessions - 206 - 48

Tax Losses 7,145 - 2,282 -

Provisions 80 - 425 -

Employee Provision 131 - 637 -

Non-collectible accounts receivable provision 50 - 2 -

Intangible - 7 - 440

Property, plant and equipment 511 123 - 119

Biological impairment provision 1,429 - - -

Stock 1,509 - - 100

Other 309 30 376 -

Subtotal 12,537 8,585 4,000 8,877

Deferred Tax, net (8,585) (8,585) (1,524) (1,524)

TOTAL 3,952 - 2,476 7,353

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No deferred taxes have been recognized for temporary differences between the tax value and the accounting value generated by investments

in related companies. Therefore, no deferred tax is recognized for Conversion Adjustments and Associated Adjustments recorded directly

in Net Equity.

Regarding the statutory limitation of tax losses likely to be attributable to future income, those generated by companies incorporated in

Chile have no limitations.

Movement of deferred tax assets are as follows:



Initial balance 4,000 1,593

Stock 1,509 (101)

Valuation of Biological assets 1,373 -

Property, plant and equipment 511 (193)

Prepaid income (278) 278

Tax losses 4,863 1,788

Provisions 626 767

Intangible - (211)

Other (67) 79

Finalbalance 12,537 4,000

Movements of deferred tax liabilities are as follows:




Production Costs 1,170 3,209

Stock (100) (92)

Intangible (433) 440

Biological assets (1,121) (132)

Concessions 158 1

Property, plant and equipment 4 (96)

Other 30 (70)

Finalbalance 8,585 8,877

On 27 September 2012, Law No. 824, on Income Tax was amended regarding the applicable rates of the First Category Tax, effective as of

2012, and changed from a transitory rate of 18.5% to a permanent rate of 20%. Due to the latter, the Company decided to base the deferred

tax balances of 2012 on the rate that shall be effective when the temporary differences are reversed (20%).

The expense for income tax has the following composition:

Accumulated As of Dec. 31, 2012

ThUS$

AccumulatedAs of Dec. 31, 2011

ThUS$

Current tax expense - (5,827)

Deferred tax effect 8,829 (853)

Provisional payment for absorbed profits 6,423 -

Others (146) (16)

Total 15,106 (6,696)

The following is a detailed reconciliation of the income tax expense, using the statutory rate with the tax expense using the effective rate:

Accumulated as of DEC. 31, 2012

ThUS$

Accumulated as of DEC. 31, 2011ThUS$

Income tax expenditure using statutory rate 16,240 (6,825)

Tax effect of rates in other jurisdictions - -

Other increases (decreases) of legal tax (1,134) 129

Total 15,106 (6,696)

NOTA 18 - OTHER FINANCIAL LIABILITIES

As of December 31, 2012, Australis Seafoods S.A. and subsidiaries have financial loans. These loans accrue interest at an effective rate,

which does not vary significantly from its nominal rate.

Interest bearing loans-Current As of Dec. 31, 2012ThUS$


Bank loans 26,930 15,307

Financial leases 2,145 1,138

Totalotherfinancialliabilitieswithexpirationbefore12months 29,075 16,445

Interest bearing loans- Non current As of Dec. 31, 2012ThUS$


Bank loans 75,459 51,041

Financial leases 16,218 14,684

Totalotherfinancialliabilitieswithexpirationbefore12months 91,677 65,725

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Additionalinformationonfinancialliabilities

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

Debtor RUT Debtor Company Debtor Country Creditor Name Creditor RUT Creditor CountryCreditor Currency Amortization Effective rate Nominal rate Guarantees

Total current as of Dec. 31, 2012 ThUS$

Maturity 1 to 2 years ThUS$

Maturity 2 to 3 years Thus$



Noncurrent 5 or more years

ThUS$

Total noncurrent as of Dec. 31, 2012 ThUS$

76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 2.46% 2.46% Yes 2,467 2,200 - 13,400 - - 15,600

76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 4.24% 4.24% Yes 987 880 5,360 - - - 6,240

76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 4.37% 4.37% Yes 725 650 650 650 2,400 - 4,350

76.003.885-7 Australis Mar S.A. Chile Banco Corpbanca 97.023.000-9 Chile USD Biannual 2.61% 2.61% Yes 2,215 2,200 2,200 13,400 - - 17,800

76.003.885-7 Australis Mar S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile USD Biannual 2.46% 2.46% Yes 0 1,683 1,650 10,050 - - 13,383

76.003.885-7 Australis Mar S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile USD Biannual 2.45% 2.45% Yes 13,000 - - - - - 0

76.003.885-7 Australis Mar S.A. Chile Banco BICE 97.080.000-K Chile USD Biannual 3.69% 3.69% Yes 0 1,863 1,714 1,714 858 - 6,149

76.003.885-7 Australis Mar S.A. Chile Banco BICE 97.080.000-K Chile USD Biannual 3.55% 3.55% Yes 0 173 314 314 315 - 1,116

76.003.885-7 Australis Mar S.A. Chile Banco Santander Chile 97.036.000-K Chile USD Biannual 4.20% 4.20% Yes 0 2,628 2,571 2,571 1,287 - 9,057

76.003.885-7 Australis Mar S.A. Chile Banco Santander Chile 97.036.000-K Chile USD Biannual 2.71% 2.71% Yes 6,843 - - - - - 0

76.090.483-k Landcatch S.A. Chile Banco de Chile 97.004.000-5 Chile USD Monthly 2.64% 2.64% No 367 - - - - - 0

76.090.483-k Landcatch S.A. Chile Banco Santander Chile 97.036.000-K Chile USD Monthly 4.68% 4.68% No 326 324 324 324 324 468 1,764

Totalbankloans 26,930 12,601 14,783 42,423 5,184 468 75,459

Totalrefinance - - - - - - -

Total 26,930 12,601 14,783 42,423 5,184 468 75,459

Debtor RUT Debtor Company Debtor Country Creditor Name Creditor RUT Creditor CountryCreditor Currency Amortization Effective rate Nominal rate Guarantees

Total current as of Dec. 31, 2011 ThUS$

Maturity 1 to 2 years ThUS$




Noncurrent 5 or more years

ThUS$

Total noncurrent as of Dec. 31, 2011 ThUS$

76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 2.35% 2.35% Yes 8,332 - - - - - -

76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 2.35% 2.35% Yes 1,958 1,958 1,958 13,884 - - 17,800

76.003.885-7 Australis Mar S.A. Chile Banco Corpbanca 97.023.000-9 Chile USD Biannual 2.90% 2.90% Yes 2,218 2,200 2,200 13,400 - - 17,800

76.003.885-7 Australis Mar S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile USD Biannual 2.75% 2.75% Yes 1,662 1,650 1,650 10,050 - - 13,350

76.090.483-k Landcatch S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile Pesos Monthly 2.90% 2.90% No 434 - - - - - -

76.090.483-k Landcatch S.A. Chile Banco de Chile 97.004.000-5 Chile Pesos Monthly 2.90% 2.90% No 147 - - - - - -

76.090.483-k Landcatch S.A. Chile Banco de Chile 97.004.000-5 Chile USD Bimonthly 1.37% 1.37% No 366 - - - - - -

76.090.483-k Landcatch S.A. Chile Banco Santander 97.036.000-K Chile USD Monthly 4.68% 4.68% No 190 326 326 326 326 787 2,091

Totalbankloans 15,307 6,134 6,134 37,660 326 787 51,041

Totalrefinance - - - - - - -

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

*Guarantees and restrictions associated with bank loans are detailed in Note 30.

As of 31.12.2012 and 31.12.2011, Bank liabilities have no associated covenants.

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b) Detail of financial lease obligations held by Australis Seafoods S.A. and subsidiaries, as of December 31, 2012, and December 31, 2011,

is as follows:

As of December 31, 2012 ThUS$ As of December 31, 2011 ThUS$

Finance lease minimum payments Gross ValueThUS$

Interest ThUS$

Present Value ThUS$

Gross Value ThUS$

Interest ThUS$

Present Value ThUS$

Not later than one year 2,913 768 2,145 1,500 362 1,138

Later than one year but not later than five years 12,454 1,980 10,474 12,781 2,508 10,273

Later than five years 6,009 265 5,744 4,593 182 4,411

TOTAL 21,376 3,013 18,363 18,874 3,052 15,822

Financial lease liabilities correspond to the following Lease Agreements:

Type Institution Contract Date Amount ThUS$

Number of quotas

Annual interest

Option to purchase

ThUS$

Pisciculture Cululi Banco BCI Jan, 31,08 818 60 4.60% 17

Pisciculture Huacamalal Banco Santander - Chile Jun. 30,11 3,330 96 4.62% 48

Pisciculture Las Vertientes Banco Santander - Chile Jun. 30,11 5,351 96 4.62% 77

Australis Seafoods S.A.

Corporate office

Banco BICE Nov. 03,11 981 96 4.70% 12

Pisciculture Ketrún Rayén Banco BBVA Nov. 21, 11 5,788 96 3.94% 75

Pisciculture Curacalco Banco Santander - Chile May 11, 12 3,231 84 4.95% 47

NOTE 19 - TRADE AND OTHER ACCOUNTS PAYABLES

The composition of trade and other accounts payable is as follows:

Current As of Dec. 31, 2012ThUS$


Suppliers 62,161 41,880

Employee retentions 311 243

Dividends payable - 8,243

Other 594 697

Accounts payable 1,415 91

Trade creditors - 176

Total 64,481 51,330

Non- Current As of Dec. 31, 2012ThUS$


Accounts payable 1,000 -

Total 1,000 -

NOTE 20 - PROVISIONS FOR EMPLOYEE BENEFITS, CURRENT AND NON-CURRENT

Provision for bonusesThe Company contemplates a provision for bonus payments to its employees when it is contractually bound to do so or when it contemplates

paying them, considering the compliance and performance of conditions by the employees at the end of the year.

Provision for Vacation

The Company recognizes an expense for employee holidays by the accrual method, according to the work performed by each individual.

Provision for compensation for years of serviceSubsidiary Landcatch Chile S.A. keeps contracts with its corporate executives to whom it grants the compensation benefit for years

of service, in the event of a voluntary resignation or termination. This liability is recognized in accordance with technical standards.

Considering that the actuarial value does not significantly differ from the cost, the latter has been maintained with periodic assessments in

case some of the variables change.

Profits or losses generated by changes in actuarial variables, if any, are recognized as net income(loss) of the period in which they arise.

Considering the foregoing, there are:

a) Current service periods costs

b) Interest costs

c) Contributions made by plan participants

d) Actuarial profits and losses

e) Expected returns on plan assets

f) Contributions made by the employer

Provisions for other benefitsThe Company recognizes a liability for other long-term benefits granted to its executives, mainly associated with permanence and company

results. Breakdown of each at the end of the year is as follows:

Detail of each at the end of the year is:



Provision for bonuses - 2,,043

Provision for holidays 656 561

Totalprovisionsforemployeebenefits,current 656 2,604

Provision for compensation for years of service - 450

Provision for other benefits - 1,057

Totalprovisionsforemployeebenefits,noncurrent - 1,507

Movement of these provisions from one year to another is as follows:

Provision for bonuses As of Dec. 31, 2012ThUS$


Initial balance 2., 43 1,466

Increase(decrease) in existing provision - 2,043

Provision used (2,043) (1,466)

TOTAL - 2,043

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Provision for holidays As of Dec. 31, 2012ThUS$


Initial balance 560 434

Increase(decrease) in existing provision 96 429

Provision used - (302)

TOTAL 656 561

Provision for compensation for years of service As of Dec. 31, 2012ThUS$


Initial balance 449 360

Increase(decrease) in existing provision 24 90

Provision used (473)

TOTAL - 450

Provision for other benefits As of Dec. 31, 2012ThUS$


Initial balance 1,057 -

Increase(decrease) in existing provision (1,057) 1,057

Provision used - -

TOTAL - 1,057

NOTE 21- EQUITY

The capital of the Company is one hundred and eighty four million four hundred and seventy seven thousand US Dollars (ThUS$184,477)

and is divided in 1,910,002,444 (one thousand nine hundred and ten million two thousand four hundred forty-four) shares, and is

composed as follows:

ThUS$ N° Shares

Capital subscribed and paid-in 123,081 1,400,002,444

Capital subscribed* 1,097 3,000,000

Capital Unsubscribed ** 60,299 507,000,000

TotalCapital 184,477 1,910,002,444

* Subscribed capital: corresponds to the subscription value of 3,000,000 shares that has not been paid. Of this amount, ThUS$1,058 is part of the greater value

obtained in the placement of new shares that was capitalized by the extraordinary shareholders meeting held on October 28, 2011.

** Unsubscribed Capital: 500,000,000 shares that correspond to the capital increase of December 4, 2012, are in the process of being registered in the

Superintendency of Securities and Insurance, a prerequisite for placing them. The remaining 7,000,000 shares were approved by the shareholder in 2011, for

the implementation of executive stock options, which have not been issued.

To this date, the subscribed and paid-in capital of the Company is one hundred and twenty three million eighty-one thousand US Dollars

(ThUS$123,081) divided in one thousand four hundred million two thousand four hundred forty-four shares (1,400,002,444).

a) subscribed capital The subscribed capital of the Company consists of the following:

As of Dec. 31, 2012

Series Subscribed capital No. Shares

Paid-in CapitalN° Shares

Single 1,403,002,444 1,400,002,444

Ordinary shares No. of shares

Ordinary shares

Total

As of Jan. 1, 2012 1,403,002,444 1,403,002,444 1,403,002,444

Exchange of shares - - -

Capital increase - - -

BalanceasofDec.31,2012 1,403,002,444 1,403,002,444 1,403,002,444

Ordinary shares No. of shares

Ordinary shares

Total

As of Jan. 1, 2011 1,403,002,444 1,403,002,444 1,403,002,444

Exchange of shares 1,220,002,444 1,220,002,444 1,220,002,444

Capital increase 183,000,000 183,000,000 183,000,000

BalanceasofDec.31,2011 1,403,002,444 1,403,002,444 1,403,002,444

During 2012, the main equity transactions were the following:

a) On April 27, 2012, an Australis Seafoods S.A. Extraordinary Shareholders Meeting was held, and which was agreed to correct the

exchange rate approved by the Extraordinary Shareholders’ Meeting held on October 20, 2011, by rectifying the exchange rate used.

Consequently, the statutory capital was US$124,477,247, divided in 1,410,002,444 registered shares, ordinary and with no par value.

b) On April 27, 2012, it was agreed to pay a definitive dividend of 30% of the distributable profits of the Company as of December 31,

2011, for US$8,243,085, equivalent to US$0.00588 per share subscribed and paid. The dividend was paid on May 22, 2012.

c) On December 4, 2012, an Extraordinary Shareholders meeting of the Company was held, where it was agreed to approve a capital

increase from the amount of US$124,477,247 divided into 1,1410,002,444 registered shares, with no par value, of a single series and

equal value, to the amount of US$184,477,247 divided into 1,910,002,444 registered shares, with no par value, of a single series and equal

value. The capital increase of US$60 million will be materialized through the issuance of 500,000,000 new registered shares, without par

value, of a single series and equal value. The shares corresponding to the said capital increase are in the process of being registered in the

Superintendency of Securities and Insurance, which is a prerequisite for placing them.

The main equity transactions during 2011 were:

1. On March 4, 2011, an Australis Seafoods S.A. Extraordinary Shareholders Meeting was held -minutes of which were granted as a public

deed on that same date before notary public Mr. Iván Torrealba Acevedo. The meeting agreed – among other decisions- the following:

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

the Company retained earnings, after absorbing the losses, from the account “Other Reserves”, so the amount of the earnings actually

capitalized were $2,839,839,925.

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b) To increase the number of shares in which the capital of the Company was divided, from 20,507 registered shares, with no par value,

of a single series and equal value, to 1,220,002,444 registered shares, with no par value, of a single series and of equal value, without

increasing the statutory capital. For these purposes, the exchange of shares was performed in the manner determined by the Shareholders

and pursuant to which each shareholder of the Company received 59.492 new shares for each share already issued.

c) To request the registration of the Company and its shares in the Superintendency of Securities and Insurance with which -and once

registered, the Company would be subject to the rules governing publicly traded corporations and thus subject to the supervision of the

Superintendency, obliged to comply with the provisions of Article 2 of the Corporations Law, Articles 5 and 7 of Law 18,045 on Market

Securities (hereinafter, the “Securities Act”) and Article 2 of the Regulations of the Corporations Law Companies. the latter, in order that the

Company shares may be publicly offered and traded in the stock exchanges of emerging company’s markets, in accordance with Article 8

paragraph two of the Securities Law and General Rule No. 118 issued by the Superintendency as amended.

d) Increase the capital of the Company from $24,673,419,797 -including the revaluation of capital reported in the Annual General

Shareholders Meeting held on March 4, 2011 -which is divided into 1,220,002,444 registered shares, without par value, of a single series

and of equal value- to the amount of $28,515,993,870.- divided into 1,410,002,444 registered shares, with no par value, of a single series

and of equal value, which implies a capital increase of $3,842,574,074. This was performed through the issuance of 190,000,000 new

registered shares, without par value, of a single series and of equal value. The Meeting established a minimum placement value and agreed

to allocate $141,568,519 of the capital increase to a compensation plan for employees of the Company and subsidiaries, according to the

terms of Article 24 of the Corporations Law.

2. - On March 14, 2011, Director Mr. Rodrigo Arriagada Astrosa subscribed 2,000,000 shares of the Company. The price per share is equal

to the price at which they are offered in the IPO, which is $185. The total amount of the transaction was $370,000,000 which payment

term is still pending.

3. - On March 14, 2011, Director Mr. Federico Rodriguez Marty subscribed 1,000,000 shares of the Company. The price per share was

equal to the price at which they are offered in the IPO that is $185. The total amount of the transaction was $185,000,000 and its payment

terms are still pending.

4. - On June 8, 2011, the Board of Directors declared successful the Initial Public Offering of 180,000,000 shares, representing 12.77%

of the capital shares of the Company . The Offering took place on December 9, 2011, was performed by Larrain Vial S.A. Corredora de

Bolsa acting as placement agent and was executed in Santiago Stock Exchange by using the “Subasta de un Libro de Órdenes” (Order Book

Auction Method). The placement price of the shares offered by the Company was fixed at $185 per share, so the total amount of the shares

placed totaled $33.3 billion.

5. - An Extraordinary Shareholders Meeting was held on October 20, 2011, with an attendance of shareholders representing 97.274% of

the total shares with voting rights, agreed, among other issues, the following:

a) The modification of the currency from Chilean pesos to US Dollars, according to which the accounting records of the Company, will be

kept and the capital shall be expressed:

a. 1. The capitalization of the highest value obtained in the in the placement of shares dated June 9, 2011, net of issuance and placement

expenses, in compliance with the requirements of the paragraph 2 of Article 26 of the Corporations Law.

- Dividend Policy

For purposes of determining the distributable net income of the Company considered for calculating dividends, the following income of

the year shall be excluded:

1) The unrealized profit or loss related to biological assets registered at fair value regulated by accounting standard “IAS 41”, reinstating

them to the net income at the time of their realization. For this purpose, the portion of fair value increases of assets sold or disposed of shall

be considered realized.

2) Unrealized profit or loss generated by the acquisition of other entities and, in general, unrealized income generated by the application of

paragraphs 34, 42, 39 and 58 of Accounting Standard “IAS 3 “, as revised, referring to combined business operations. These results will be

reinstated to net profit s upon their realization.

For this purpose, the portion of such the fair value increases of assets sold or disposed of shall be considered realized.

3) The effect of deferred taxes associated with the items indicated in 1) and 2) has the same treatment as the item that generates them.

- Provision for DividendsAs of December 31, 2012, the Company has no provisions for dividends since there is no distributable net income.

As of December 31, 2011, the Company had a provision of dividends of 30% of distributable net income determined as of that date.

b) Distribution of shareholdersThe principal shareholders of Australis Seafoods S.A. are:

Name or corporate name No. of shares % capital share

FONDO DE INVERSIÓN PRIVADO AUSTRALIS 1,101,077,936 78.48%

ASESORÍAS E INV. BENJAMIN S.A. 106,924,508 7.62%

FONDO DE INVERSIÓN LARRAÍN VIAL BEAGLE 54,950,856 3.92%

LARRAÍN VIAL S.A. CORREDORA DE BOLSA 43,331,873 3.09%

AFP HÁBITAT S.A. PARA FDO. PENSIÓN C 16,043,158 1.14%

COMPASS SMALL CAP CHILE FONDO DE INVERSIÓN 11,491,470 0.82%

MBI CORREDORES DE BOLSA S.A. 10473,656 0.75%

AFP HÁBITAT S.A. FONDO TIPO B 10,414,253 0.74%

AFP HABITAT S.A. FONDO TIPO A 8,969,575 0.64%

BOLSA DE COMERCIO DE SANTIAGO BOLSA DE VALORES 6,452,358 0.46%

NEGOCIOS Y VALORES S.A. C DE B 6,288,871 0.45%

BICE INVERSIONES CORREDORES DE BOLSA S.A. 4,549,006 0.32%

NOTE 22 - GAINS (LOSSES) ACCUMULATED

The composition of the accumulated income item is as follows:




Comprehensive income (losses) (66,096) 27,429

Other Equity variations - (6,952)

Interim Dividends - (8,243)

Total (41,933) 24,163

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As required by Circular No. 1.945 dated September 29, 2009, issued by the Superintendency of Securities and Insurance, adjustments

made due to the first application of IFRS are recorded as credits with a credit to Accumulated Profit (Loss) pending realization.

Items Amount realized In 2012ThUS$

Unrealized balance as of Dec. 31, 2012

ThUS$

Amount realized In 2011ThUS$

Unrealized balance as of Dec. 31, 2011

ThUS$

Functional currency - (1,539) - (1,539)

Property, plant and equipment - (563) - (563)

Deferred Taxes - 233 - 233

Stock - -

Intangibles 214 214

Goodwill - -

Others - 185 - 185

TOTAL - (1,470) - (1,470)

NOTE 23- EARNINGS PER SHARE AND NET DISTRIBUTABLE INCOME

23.1.EarningspershareBreakdown of earnings per share is as follows:

As of Dec. 31, 2012US$/n° shares

As of Dec. 31, 2011US$/n° shares

Earnings per share (0.047) 0.020

The calculation of earnings (losses) per basic share has been made by dividing the amounts of profit attributable to shareholders by the

number of shares of the same and single series. The Company has not issued convertible debt or other equity-linked securities.

Consequently, there are no potential diluting effects on the earnings per share of the Company.

23.2.DistributablenetincomeThe dividend policy for 2012 and 2011 consists of distributing a dividend of at least 30% of the net income of the year ending December

31, 2012, by distributing of a definitive dividend agreed by the Shareholders in an Ordinary Meeting, and payable on the date established

by that Meeting.

According to provisions of Circular No. 1945 dated December 29, 2009, issued by the Superintendency, it was agreed as general policy,

that for purposes of payment of the minimum mandatory dividend of 30% set forth in Article 79 of Law 18,046, net income shall be

determined based on the income net of relevant variations of fair value of unrealized assets and liabilities, both which must be reinstated

for the calculation of net income of the period in which such variations are realized.

Additional dividends will be determined based on the above-mentioned criteria, as agreed by the Shareholders’ Meeting.

Accordingly, it was agreed that, for purposes of determining the distributable net income of the Company, that is, the net income to be

considered for the calculation of the minimum mandatory dividend for 2012 and 2011, the following items will be excluded from the

income (loss) for the period for:

i) Unrealized profit or loss connected to the record of biological assets at fair value covered by accounting standard “IAS 41”, reinstating

them to net income at the time of their realization. For this purpose, the portion of such fair value increases of assets sold or disposed of

shall be considered realized.

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

The determination of net income for the year ended December 31, 2012, is a follows:


Earnings attributable to controlling company’s

equity holders (66,096)

Variation of Fair value of biological assets 12,472

Deferred taxes related to Fair value of biological assets (2,494)

Distributablenetearnings (56,118)

Applicationofdividendpolicy(30%) -

As of December 31, 2012, the Company does not show interim dividends since there is no distributable net income.

NOTE 24- INCOME FROM ORDINARY ACTIVITIES

The composition of the Group’s ordinary revenue is as follows:


ThUS$

Accumulated as of Dec. 31, 2011ThUS$

Freshwater sales 1,073 9,400

Seawater sales 120,676 154,264

Total 121,749 163,664

The Group’s ordinary revenue consists primarily of the sale of products derived from the harvest of biological assets.

NOTE 25- OTHER INCOME /OTHER LOSSES, BY FUNCTIONOther income by functions as follows:

Other income, by function Accumulated as of Dec. 31, 2012ThUS$


Leases - 92

Transfer of rights 158 -

Reimbursement under Law 18.708 108 51

Reversal of Employee Provisions* 1,057 -

Other 771 307

Total 2,094 450

* Reverse of the accounting provision for employee benefits related to the compliance of certain performance goals, which was recalculated based on

the results of the Company as of December 31, 2012.

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NOTE 28- FINANCIAL COSTS (NET)Financial costs have following breakdown in the financial statements:



Bank loan interest (3,350) (1,785)

Loan commission - (65)

Notarial expenses (39) (18)

Bank expenses (39) (33)

Total (3,428) (1,901)

NOTE 29 – FOREIGN CURRENCY AND EXCHANGE RATE DIFFERENCES

a) Recognized exchange rates differencesExchange rate differences generated as of December 31, 2012 and 2011, for the balance of assets and liabilities in foreign currencies, other

than the functional currency, were credited(debited) from income(loss) for the period as follows:



Assets in foreign currency 6,029 (5,910)

Liabilities in foreign currency (1,716) 1,230

Total exchange rate difference 4,313 (4,680)

b) Assets and liabilities in foreign currency:

Current assets Currency As of Dec. 31, 2012ThUS$


Cash and cash equivalents Pesos Not- indexed 3,143 49,371

Cash and cash equivalents US Dollars 12,384 2,109

SubtotalCashandcashequivalents 15,527 51,480

Other current non-financial assets Pesos Not- indexed 156 174

Other current non-financial assets US Dollars 395 252

SubtotalOthercurrentnon-financialassets 551 426

Trade and other current accounts receivable Pesos Not- indexed 2,252 2,586

Trade and other current accounts receivable US Dollars 12,158 14,278

SubtotalTradeandothercurrentaccountsreceivable 14,410 16.864

Current accounts receivable from related entities US Dollars 3,808 5,701

Current accounts receivable from related entities Pesos indexed 18 50

SubtotalCurrentaccountsreceivablefromrelatedentities 3,826 5,751

Inventories US Dollars 14,849 11,506

Subtotal Inventories 14,849 11,506

Biological assets, current US Dollars 66,217 78,797

SubtotalBiologicalassets,current 66,217 78,797

Current tax assets Pesos Not- indexed 2 196

Current tax assets Pesos indexed 13,491 7,749

SubtotalCurrenttaxassets 13,493 7,945

Other losses, by function Accumulated as of Dec. 31, 2012ThUS$


Reduction of Productive plan* (9,095) -

Fixed assets reduction and write-off (550) (27)

Provision for impaired assets (749) -

Resting break centers (1,298) (1,305)

Other (224) (368)

Total (11,916) (1,700)

* Effect generated by the reduction of the original 2012 smolt farming plan, from 17.5 million units to 12.4 million units, in consideration to the sustained fall

of international prices of salmon, caused -at large- by the strong increase of Chilean production and the pressure it has exerted in the markets.

NOTE 26- COSTS OF DISTRIBUTIONDistribution costs are as follows:



Land transportation (998) (582)

Third-party cold storage (1,997) (262)

Sale expenses (110) (215)

General shipping expenses (475) (367)

Employee Remuneration (477) (451)

Commissions (196) (75)

Other sale expenses (636) (73)

Total (4,889) (2,025)

NOTE 27- ADMINISTRATION EXPENSESBelow are the main Administration expenses of the Company as of closing of the financial statements:



Leases (306) (238)

Employee expenses (4,128) (4,971)

Depreciation and amortization (170) (47)

Third-party services (1,875) (1,896)

Other (1,266) (1,165)

Total (7,745) (8,317)

employee expensesEmployee expenses are as follows:

Employee expenses Accumulated as of Dec. 31, 2012ThUS$


Remuneration (3,659) (2,814)

Benefits (157) (2,085)

Other (312) (72)

Total (4,128) (4,971)

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Non-current assets Currency As of Dec. 31, 2012ThUS$


Other Non-current financial assets Pesos Not- indexed 7,857 7,379

Other Non-current financial assets US Dollars 156 156

SubtotalOtherNon-currentfinancialassets 8,013 7,535

Investment recorded using the participation method US Dollars 8,120 7,612

SubtotalInvestmentrecordedusingtheparticipationmethod 8,120 7,612

Intangible assets other than Goodwill US Dollars 17,505 14,456

SubtotalIntangibleassetsotherthanGoodwill 17,505 14,456

Property, plant and equipment US Dollars 75,340 60,373

SubtotalProperty,plantandequipment 75,340 60,373

Biological assets, non current US Dollars 24,577 28,860

SubtotalBiologicalassets,noncurrent 24,577 28,860

Deferred tax assets US Dollars 3,952 2,476

SubtotalDeferredtaxassets 3,952 2,476

Non-current assets Currency As of Dec. 31, 2012ThUS$


Other financial liabilities, non-current Pesos Not- indexed - 581

Other financial liabilities, non-current Dollars 29,039 15,682

Other financial liabilities, non-current Pesos Not- indexed 36 182

SubtotalOtherfinancialliabilities,non-current 29,075 16,445

Trade and other accounts payable, current Pesos Not- indexed 33,215 17,713

Trade and other accounts payable, current US Dollars 31,266 33,617

SubtotalTradeandotheraccountspayable,current 64,481 51,330

Current accounts payable to related entities, current Pesos Not- indexed 363 368

Current accounts payable to related entities, current US Dollars 3,525

SubtotalCurrentaccountspayabletorelatedentities,current 363 3,893

Provisions for employee benefits, current Pesos Not- indexed 656 2,604

Provisions for employee benefits, current US Dollars

SubtotalProvisionsforemployeebenefits,current. 656 2,604

Non-current liabilities Currency As of Dec. 31, 2012ThUS$


Other financial liabilities, non -current US Dollars 91,677 65,680

Other financial liabilities, non -current Pesos Not- indexed - 45

SubtotalOtherfinancialliabilities,non–current 91,677 65,725

Deferred taxes US Dollars - 7,353

SubtotalDeferredtaxes - 7,353

Provisions for employee benefits, non-current Pesos Not- indexed - 450

Provisions for employee benefits, non-current US Dollars - 1,057

SubtotalProvisionsforemployeebenefits,non-current - 1,507

Other accounts payable, Non-current US Dollars 1,000 -

Subtotalotheraccountspayable,Non-current 1,000 -

NOTE 30 – CONTINGENCIES, COMMITMENTS AND GUARANTEES.

a) Pledged shares1. According to the financing contracts of subsidiary Australis Mar S.A., Australis Seafoods S.A.’s controlling shareholders assumed the

obligation to pledge 50.1% of its shares in favor of the banks financing this subsidiary: Banco Chile, CorpBanca and Banco de Crédito e

Inversiones.

2. By public deed dated December 11, 2012, the controlling shareholder of the Company, Fondo de Inversión Privado Australis, pledged

171,771,450 shares issued by Australis Seafoods S.A. to secure the credit granted to subsidiary Australis Mar S.A. by Banco de Crédito e

Inversiones for thirteen million US Dollars.

b) Direct guaranteesOn the date of issuance of these financial statements, the Company has no direct guarantees of any kind.

c) Indirect GuaranteesAustralis Seafoods S.A. granted the following guarantees in benefit of its subsidiaries:

Debtor Assets

Creditor guarantee Name Relationship Type of guarantee Type

Accounting value ThUS$

Corpbanca Australis Mar S.A. Subsidiary Bill of exchange Not applicable -

Banco Chile Australis Mar S.A. Subsidiary Bill of exchange Not applicable -

Banco Crédito e Inversiones Australis Mar S.A. Subsidiary Bill of exchange Not applicable -

BBVA Chile Landcatch Chile S.A. Subsidiary Bond Not applicable -

Banco Santander-Chile Australis Mar S.A. Subsidiary Bill of exchange Not applicable -

Banco Santander-Chile Landcatch Chile S.A. Subsidiary Bond Not applicable -

Banco Bice Australis Mar S.A. Subsidiary Bill of exchange Not applicable -

d) Third party Guarantees In accordance with the provisions of bank financing contracts entered by Australis Mar S.A. (Subsidiary), this company’s debts with Banco

de Chile, Banco de Crédito e Inversiones and Corpbanca were endorsed by Mr. Isidoro Ernesto Quiroga Moreno, Asesorías e Inversiones

Benjamín S.A., Australis Seafoods S.A. and Landcatch Chile S.A. Australis Mar S.A. debts with Banco Santander-Chile and Banco Bice

were guaranteed (Bill of exchange) and secured (Bond) by Australis Seafoods S.A. In addition, the credit granted by Banco de Crédito e

Inversiones to subsidiary Australis Mar S.A. for thirteen million US Dollars was endorsed by Mr. Isidoro Ernesto Quiroga Moreno. The

granting and maintenance of these securities and bonds, does not accrue any charges to the Company or its subsidiaries.

e) Guarantees granted by subsidiariesSubsidiary Comercializadora Australis SpA granted a personal guarantee to Sun Trust Bank, in order to secure the fulfillment of 50% of

the obligations undertaken by True Nature Seafood, LLC, a company which social rights belong True Salmon Pacific Holding, LLC that -in

turn- is 50% owned by Comercializadora Australis SpA

Australis Mar S.A.’s debts with Banco Bice are secured by mortgages and pledges granted by the food-processing subsidiary Procesadora de

Alimentos Australis SpA that pledged and mortgaged Puerto Chacabuco plant (valued at ThUS$2,427).

Australis Mar S.A. granted a naval mortgage on pontoons of its property to guarantee its debts held with Banco Santander-Chile and Banco

Bice (15 pontoons valued at ThUS$10,358, and 4 pontoons valued at ThUS$4,679, respectively).

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Subsidiary Procesadora de Alimentos ASF SpA pledged and mortgaged assets of its property to secure payment of the balance of the

purchase price thereof, to non-related company Asesorías e Inversiones La Cumbre Limitada. The current creditor of this debt is the non-

related company Asinver S.A., since the credit was assigned by the original creditor.

e) Restrictions

According with Australis Mar S.A.’s (subsidiary) bank financing contracts, this company is subject to the following restrictions that are

applicable until 2015, unless the company prepaid the debt balances.

a) Do not encumber or bond or become a co-debtor or directly or indirectly compromise its equity for third-party obligations that,

individually or collectively, have an amount equal or superior to five hundred thousand US Dollars.

b) Australis Mar S.A. may not grant pledges or mortgages on its personal or real property, except those authorized in the financing contracts.

c) Australis Mar S.A. may not transfer, sell or assign a any title assets that are part of the debtor’s fixed asset, unless such transfers do not

imply a significant decrease of its equity.

d) Australis Mar S.A. may not distribute profits or pay dividends above thirty percent of the profits of the corresponding financial year,

for the entire term of the credit, unless that, in excess, they are capitalized in the debtor or reinvested in Australis Seafoods S.A. or in any

company controlled by it.

e) The ThUS$10,686 debt that Australis Mar S.A. has with Australis Seafoods S.A. (parent company) must be subordinated in favor of the

creditor banks.

NOTE 31– THE ENVIRONMENT

As part of their business strategy Australis Seafoods S.A. and subsidiaries defined that the care and respect for the environment is a priority,

for which a series of actions have been adopted to make its operations more efficient and considerably reduce environmental impacts

through the following types of expenditures:

a) Disbursements or expenses related to the improvement and/or investment in production processes that result in a reduction of the impact

of their activity on the environment and/or improve environmental conditions such as: effluent monitoring of piscicultures, naval artifacts

and processing plants, implementation of fish silage mortality systems in seawater breeding centers and piscicultures, environmental

reports and initial characterizations breeding centers, etc.

b) Disbursements or expenses related to the verification and control of regulations and laws related to industrial processes and facilities

such as: the filing of environmental impact assessments for the evaluation of silage mortality, management and final disposal of hazardous

and non-hazardous waste, monitoring phytoplankton; monitoring sediment and water columns in piscicultures, monitoring of sludge from

piscicultures, environmental consulting, contracting sampling services and laboratory analysis, etc.

In the future, Australis Seafoods and subsidiaries reiterate their commitment to care for the environment by making new investments,

constantly training their employees and signing new agreements that will allow to progress towards sustainable development to achieve

harmony between its operations and the environment.

The breakdown of expenditures in environmental protection projects that the Group has made during 2012 is as follows:

As of Dec. 31, 2012 As of Dec. 31, 2011

Company making the expenditure Project Concept

ExpenditureThUS$

InvestmentThUS$ Description

Amount committed for future periods

ThUS$

Date of reimbursement

(Certain or estimated)

Date of conclusion of

the project (Estimated)

ExpenseThUS$

InvestmentThUS$

Australis Mar S.A. Implementation of oxygen monitoring systems

Implementation of oxygen monitoring systems

- 48 Oxygen equipment

48 Dec. 31, 2013 Dec. 31, 2013

- 40

Australis Mar S.A. Elaboration of preliminary environmental impact studies of concessions

Elaboration of preliminary environmental impact studies of concessions

36 - Third party services

35 Dec. 31, 2013 Dec. 31, 2013

30 -

Australis Mar S.A. Implementation of bio-security measures and vectors

Implementation of bio-security measures and vectors


35 Dec. 31, 2013 Dec. 31, 2013

30 -

Australis Mar S.A. Environmental analysis

Environmental analysis of sites through land testing


48 Dec. 31, 2013 Dec. 31, 2013

40 -

Landcatch S.A. UV system for disinfection of incubation effluents

UV system for disinfection of incubation effluents / Riles Monitoring

- 257 Riles Monitoring / UV System

- - Concluded 120 401

Environmental disbursements of subsidiary Australis Mar S.A. are related to the setting up of new piscicultures and -even if they have an estimated date of

termination-, these projects will continue in the future as long as new piscicultures are established.

NOTE 32 – SUBSEQUENT EVENTS

a) The consolidated financial statements of the Company for the financial year ended December 31, 2012, were approved by the Board of

Directors at the meeting held on March 4, 2013.

b) On January 2, 2013, Mr. Andrés Saint Jean Hernández resigned to his position as CEO of Australis Seafoods S.A. and was substituted by

Mr. Rodrigo Arriagada Astrosa who -until then- was the Chairman of the Company. In turn, Mr. Rodrigo Arriagada resigned his position as

Director of the Company to accept his appointment as CEO. Additionally, the Board appointed Mr. Federico Rodríguez Marty as Chairman,

Mr. Martín Salvador Guiloff as Vice President, and Mr. Luis Felipe Correa González as Secretary of the Company.

c) Except as set forth above, after December 31, 2011 and until the date of issuance of these financial statements, the Company has no

knowledge of any other subsequent financial or other events that may significantly affect the these statements or their interpretation.

NOTA 33 - OTHER INFORMATION

Australis Seafoods S.A. number of employees and subsidiaries, by category is as follows:

As of Dec. 31, 2012 As of Dec. 31, 2011

Indefinite term contracts 340 312

Fixed term contracts 19 35

Total contracts 359 347

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NOTE 34 - PRO-FORMA CASH FLOWS STATEMENTSAs required by Circular No. 2058 issued by the Superintendency of Securities and Insurance, the following is the Cash Flow Statement as

of December 31, 2012, according to the Pro-Forma direct method. As from the financial statements of March 31, 2013, the Company shall

submit its Cash Flow Statements using this method.

Statement of cash flows 01-01-201231-12-2012

ThUS$

Cash flows from (used in) operating activities

Classesofcashreceipts

Receipts from sales of goods and rendering of services 124,667

Other cash receipts from operating activities 33,048

Classesofcashpayments

Payments to suppliers for goods and services (187,648)

Payments to and on behalf of employees (11,544)

Other cash payments from operating activities (3,670)

Cash flows from (used in) operations (45,147)

Dividends paid (8,243)

Income taxes paid (refund) 3,039

Cash flows from (used in) operating activities (50,351)

Cash flows from (used in) investing activities

Cash flows used in obtaining control of subsidiaries or other businesses (3,525)

Proceeds from sales of property, plant and equipment, classified as investing activities (24,677)

Purchase of intangible assets (1,187)

Interest received 1,430

Cash flows from (used in) investing activities (27,959)

Cash flows from (used in) financing activities

Proceeds from long-term loans 21,100

Proceeds from short-term loans 19,800

Loans paid (5,335)

Payments of finance lease liabilities (1,518)

Interest paid, classified as investing activities (1,870)

Proceeds from sales of property, plant and equipment 10,180

Cash flows from (used in) financing activities 42,357

Increase (decrease) in cash and cash equivalents before effect of exchange rate changes (35,953)

Effect of exchange rate changes on cash and cash equivalents

Increase (decrease) net in cash and cash equivalents (35,953)

Initial Cash and cash equivalents 51,480

Balance Cash and cash equivalents 15,527

Affiliates summarized financial statements

BALANCE SHEET Australis Mar S.A. Landcatch Chile S.A. Piscicultura Rio Maullín SPA

Comercializadora Australis SP

2012 2011 2012 2011 2012 2011 2012 2011

Assets, current 123,278 107,954 15,097 27,307 - - - -

Assets, non current 94,289 80,263 32,742 30,631 139 149 8,120 7,612

Totalassets 217,567 188,217 47,839 57,938 139 149 8,120 7,612

Liabilities, current 131,563 57,730 12,201 18,795 144 122 7,533 3,525

Liabilities, non current 85,387 66,470 25,669 25,330 - - - 4,005

Equity 617 64,017 9,969 13,813 (5) 27 587 82

TotalLiabilitiesandEquity 217,567 188,217 47,839 57,938 139 149 8,120 7,612

INCOME STATEMENT Australis Mar S.A. Landcatch Chile S.A. Piscicultura Rio Maullín SPA

Comercializadora Australis SP

2012 2011 2012 2011 2012 2011 2012 2011

Profit (Gross) (58,558) 45,720 579 5,714 0 0 0 0

Other revenues (loss) (18,388) (7,989) (6,870) (2,703) (32) 20 505 82

Profit (loss) before taxes (76,946) 37,731 (6,291) 3,011 (32) 20 505 82

Income tax 13,625 (7,667) 2,447 (419)

PROFIT(LOSS) (63,321) 30,064 (3,844) 2,592 (32) 20 505 82

CASH FLOW STATEMENT ThUS$ Australis Mar S.A. Landcatch Chile S.A.

2012 2011 2012 2011

Net Cash Flows from (used in) operating activities (39,528) 8,919 1,228 (11)

Net Cash Flows from (used in) investing activities (20,589) (16,686) (4,939) (8,962)

Net Cash Flows from (used in) financing activities 72,439 (646) 3,224 9,158

Net increase (decrease) on cash and cash equivalents 12,322 (8,413) (487) 185

Initial Cash and cash equivalents 3,030 11,443 509 324

Balance cash and cash equivalent 15,352 3,030 22 509

CASH FLOW STATEMENT ThUS$ Piscicultura Rio Maullín SPA

Comercializadora Australis SPA

2012 2011 2012 2011

Net Cash Flows from (used in) operating activities (22) - (3) (5)

Net Cash Flows from (used in) investing activities - 3 (4,000)

Net Cash Flows from (used in) financing activities 22 - - 4,005

Net increase (decrease) on cash and cash equivalents - - - -

Initial Cash and cash equivalents - - - -

Balance cash and cash equivalent - - - -

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STATEMENT OF CHANGES IN EQUITYAUSTRALIS MAR S.A. THUS$

Capital Accumulated earnings

Other reserves

Equity attribu-table to owners

of parent

Non-controlling interests

Equity

Initial balance as of 01/01/2012 5,066 58,854 - 63,920 97 64.017

Profit - (63,321) - (63,321) - (63.321)

Other movements - - - - (79) (79)

Total changes in equity 5,066 (4,467) - 599 18 617

Total balance as of 31/12/2012 5,066 (4,467) - 599 18 617

STATEMENT OF CHANGES IN EQUITYLANDCATCH CHILE S.A. THUS$


Other reserves


of parent


Equity

Initial balance as of 01/01/2012 10,825 4,166 (1,178) 13,813 - 13,813

Profit - (3,844) - (3,844) - (3,844)

Other movements - - - - - -

Total changes in equity 10,825 322 (1,178) 9,969 - 9,969

Total balance as of 31/12/2012 10,825 322 (1,178) 9,969 - 9,969

STATEMENT OF CHANGES IN EQUITYPISCICULTURA RIO MAULLIN SPA THUS$


Other reserves


of parent


Equity

Initial balance as of 01/01/2012 - 20 7 27 - 27

Profit - (32) - (32) - (32)


Total changes in equity - (12) 7 (5) - (5)

Total balance as of 31/12/2012 - (12) 7 (5) - (5)

STATEMENT OF CHANGES IN EQUITYCOMERCIALIZADORA AUSTRALIS SPA THUS$


Other reserves


of parent


Equity

Initial balance as of 01/01/2012 - 82 - 82 - 82

Profit - 505 - 505 - 505


Total changes in equity - 587 - 587 - 587

Total balance as of 31/12/2012 - 587 - 587 - 587

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

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DESiGN

100% Diseño

PHOTOGRAPHY

Morten Andersen

PORTRAiTS

cristina Alemparte

PRiNTiNG

Fyrma Gráfica

www.austra l is-seafoods.com