SuSTAInAbILITy Strategic Goals for 2012 SySTEMS IMPROVEMEnTS  PROFITAbLE GROWTH  Financial Objectives In addition, by the end of 2013, all of the uncertified sources  that we work with must have undergone an independent  evaluation, and enter a third-party assessment program such  as MSC, GAA’s BAP program, or the ASC. Also, all sources  undergoing improvements will be required by us to report an  improvement work plan and milestones to be achieved. 2011 was year two of that plan and our focus was on  increasing the amount of raw material that comes from  certified sources, reducing energy and packaging, and  satisfying the demands of our key customers. Readers who are interested in learning more about  sustainability at High Liner are encouraged to visit our  sustainability website at http://www.highlinersustainability. com/en/index.htm, which does not form part of this MD&A. Our business is selling seafood to North Americans. Food  is a staple and, as such, demand for our products remains  relatively stable during good times and bad. We strive to  effectively manage our business and to continue to report  increased sales and earnings. Our recent success in acquiring  the former Icelandic USA operations was important, given  the competitive bidding process, and our focus now turns  toward the successful execution of our integration strategy  to realize any potential synergies going forward. With the  combination of efforts in many key areas across our business,  we hope to achieve 1  a number of corporate, operational, and  financial milestones over the next few years. Our Corporate Strategic Goals for 2012 1  are: We want to grow our business to achieve $100 million in  EBITDA by 2015. We will achieve this goal by: a) Completing the integration of Icelandic USA into our  U.S. operations in 2012. These assets earned pro forma  Adjusted EBITDA of approximately US$29 million in 2011,  after taking into account the full year of savings from the  investment in a new cold storage facility at the Newport  News, VA plant that opened in 2011. The integration  will allow us to realize expected significant near-term  synergies of US$12.1 million and total ongoing annual  synergies to be in the range of US$16-$18 million. Part of  the integration plan will involve the transition to operate  our entire business on one systems platform with a focus  to continually improve our efficiency and communication  as an organization. b) Organic growth. Our 2012 business plan anticipates sales  volume increases, excluding the Icelandic USA Acquisition.  Organic growth will be achieved by effective execution  of our business plan: we will use our scale to improve  procurement of seafood as well as other inputs; we will  continue launching successful products across all sales  channels and customers such as chain accounts, clubs, and  – Support the Russian Pollock Marine Stewardship Council  (MSC) certification process  – Take a leadership role in the Russian salmon MSC process  – Develop a plan for Russian Pacific cod MSC certification  – Support the certification of the balance of the Barents Sea  cod & haddock ingredients, including the recently launched equivalent  in Canada to  FireRoasters , known as  Flame Savours ; and we  also plan to develop and implement a leadership position  in new species. Continuation of our three-year plan to source all of our  seafood from certifiable or sustainable or responsible  fisheries and aquaculture farms by the end of 2013. In  particular, in 2012 we want to: Our focus in this area for the next few years will be on  upgrading our Product Lifecycle Management (PLM) systems.  In 2012, we will implement a new Global Specification  Management system acquired from Oracle to ensure that  we have the best systems available to keep track of our over  2,000 products. We recognize that we are a customer-centric  organization and that developing differentiated, innovative  products is our strength. We also know that our supply chain  is long, both in terms of time from when an order is placed  for goods to when the finished product is delivered to our  customer, and in terms of the distance that the product  travels. Therefore, our ability to track this information is very  important to us. Historically, we have done this very well, but  our processes can be more efficient. This advanced system  will allow us to improve food safety and traceability, and  will also provide a more efficient and productive approach  for us to maintain product data, making the administration  of current product codes more efficient and accurate, as  well as reducing our overall new product introduction costs.  Continuing investments in PLM systems in 2013 will also  help us identify and determine what product development  projects would be the best use of Company resources, as well  as improve our ability and efficiency in collecting, re-using,  and auditing product food safety data. Our strategy was designed with the expectation 1  to increase  shareholder value. To help us maintain a focus on meeting  investor expectations, we have chosen four key financial  measures to gauge our performance. We have set these  measures based on the performance achieved by comparable  food companies in North America.  18 HIGH LINER FOODS INCORPORATED