Company Overview 1. Vision, Core Businesses and Strategy Adjusted Diluted EPS Adjusted EBITDA Adjusted EBIT Standardized Free Cash Flow Adjusted Standardized Free Cash Flow Forward-Looking Statements 1.1 Vision ANNUAL REPORT 2013 13 At High Liner Foods, our reputation for delivering outstanding  seafood products is an advantage in the competitive North  American market. Our vision sets our overall direction and is: During the past several years, we were first focused on our vision,  “ to be the the leader in value-added frozen seafood in North America ”  To be the leading supplier of frozen seafood in North America. This MD&A includes statements that are forward looking. Our actual  results may be substantially different because of the risks and  uncertainties associated with our business and the general economic  environment. We discuss the principal risks of our business in Section 8 of this MD&A entitled “Risk Factors and Risk Management”. We cannot  provide any assurance that forecasted financial or operational performance  will actually be achieved. If it is achieved, we cannot provide assurance  that it will result in an increase in our share price. See Section 9 entitled  “Forward-Looking Information”. Adjusted Standardized Free Cash Flow is Standardized Free Cash Flow,  adjusted to exclude the estimated value of the accounts receivable of  American Pride Seafoods’ (“American Pride”) on the date High Liner Foods  acquired their net assets, excluding their accounts receivable balance,  which was estimated to be $15.5 million. See Section 5.1 “The American Pride  Acquisition” for more details on this transaction. Due to the exclusion of  accounts receivable from the net assets acquired, the increase in High Liner  Foods’ accounts receivables of $17.4 million as at December 28, 2013,  compared to December 29, 2012, primarily reflects accounts receivable  related to American Pride’s sales. This increase is being reported in the  Company’s Statement of Cash Flows as an increase in Fiscal 2013’s non-cash  working capital requirements and has the effect of decreasing the net cash  flows from operating activities compared to if we had acquired the American  Pride’s accounts receivables as part of the acquisition, in which case  approximately $15.5 million of this increase in accounts receivables would be  reflected in the Statement of Cash Flows as cash used in investing activities. Standardized Free Cash Flow follows the October 2008 “General Principles  and Guidance for Reporting EBITDA and Free Cash Flow” issued by the  Canadian Institute of Chartered Accountants and is cash flow from  operating activities less purchase of property, plant and equipment (net of investment tax credits) as reported on the Consolidated Statement of  Cash Flows. The purchase of property, plant and equipment as part of the  acquisition of a business is not deducted from free cash flow. Adjusted EBIT is Adjusted EBITDA less depreciation and amortization  expenses. Corporate incentives and management analysis of the business  are based on Adjusted EBIT. High Liner Foods’ retail branded products are sold throughout the  U.S., Canada and Mexico under the  High Liner ,  Fisher Boy ,  Mirabel and  Sea Cuisine  labels, and are available in most grocery and club  stores. The Company also sells branded products to restaurants  and institutions under the  High Liner ,  Icelandic Seafood ,  FPI ,  Viking ,  Mirabel ,  Samband of Iceland  and effective October 1,  2013,  American Pride Seafood  label, and is the major supplier of  private label value-added seafood products to North American food  retailers and food service distributors. Although our roots are in the Atlantic Canadian fishery, we  purchase all our seafood raw material and some finished goods  from around the world. From our headquarters in Lunenburg, Nova  Scotia, we have transformed our long and proud heritage into  worldwide seafood expertise. We deliver on the expectations of the  consumer by selling seafood products that respond to their  demands for sustainable, convenient, tasty, and nutritional  seafood at good value. Management believes that Adjusted EBITDA is a useful performance  measure as it approximates cash generated from operations, before capital  expenditures and changes in working capital and excludes non-operating  items associated with acquisitions and synergy attainment, as well as  market-based compensation related to stock price. Adjusted EBITDA also  assists comparison among companies as it eliminates the differences in  earnings due to how a company is financed. Adjusted EBITDA does not  have a standardized meaning prescribed by generally accepted accounting  principles and therefore may not be comparable to similar measures  presented by others. Adjusted EBITDA follows the October 2008 “General Principles and  Guidance for Reporting EBITDA and Free Cash Flow” issued by the  Canadian Institute of Chartered Accountants and is earnings before  interest, taxes, depreciation and amortization, excluding: business  acquisition, integration and other expenses; impairment of property, plant  and equipment related to plant closures; increased cost of goods sold  relating to purchase price allocation to inventory acquired over its book  value; gains or losses on disposal of assets; and stock compensation  expense. For purposes of the leverage tests calculated under the  Company’s debt covenants, “EBITDA” is based on Adjusted EBITDA. Adjusted Diluted EPS is Adjusted Net Income, as defined above, divided by the average diluted number of shares. High Liner Foods through its predecessor companies, has been in  business since 1899. Its name has been a fixture in the Canadian  seafood industry for more than eighty years and  Captain High  Liner  is one of the most highly recognized consumer brand icons in  Canada. Today, High Liner Foods is the leading North American  processor and marketer of value-added frozen seafood. In recent years, High Liner Foods has made a number of strategic  acquisitions (“the Acquisitions”), including: • In December 2007, we acquired the North American  manufacturing and marketing business of FPI Limited, including  FPI’s prominent food service business headquartered in Danvers,  Massachusetts (“MA”). • In December 2010, we acquired the business of Viking Seafoods,  Inc. (the “Viking Acquisition” or “Viking”), a value-added  business serving the U.S. food service seafood market from  Malden, MA. • In December 2011, we acquired the U.S. subsidiary and Asian  procurement operations of Icelandic Group h.f., (the “Icelandic  USA Acquisition” or “Icelandic USA”), one of the largest suppliers  of value-added seafood to the U.S. food service market, serving  the market from Newport News, Virginia. • In October 2013, we purchased the American Pride Seafoods  business from American Seafoods Group LLC, a value-added  frozen seafood and scallop processing business serving the U.S.  food service seafood market from New Bedford, MA. This  acquisition (the “American Pride Acquisition”) is described in  detail in Section 5.1 of this MD&A.