2. STRATEGIC MEASURES 2.1 OUR BRANDS MARkET SHARE  Interest-bearing debt to trailing 12-month EbITDA is calculated as follows: Inventory turns is calculated as follows: DISTRIbuTIOn  20 HIGH LINER FOODS INCORPORATED In Canada, we use ACNielsen ®  to track market share and  ACV of our retail brands in grocery, mass merchandising,  general merchandising, club stores, and distributors. In the  U.S., we use Information Resources Inc. (“IRI”) to track market  share and ACV of our retail brands, where it tracks sales in  traditional grocery stores and Wal-Mart supercentres, but  excludes club stores and other mass merchandisers. Since we  are well represented in these channels in the U.S., we believe  our actual ACV is higher than that as presented by IRI.  An important measure for retail distribution is “all  commodity volume” (ACV). This is a measure of the volume  of the traditional grocery stores as a percentage of total  stores in a market (Canada or the United States) in which  our products are sold. An increase in ACV means that our  products are in more stores and, therefore, available to more  consumers in more markets, which should translate into  increased sales. In Canada, our ACV approaches 100% as High Liner  products can be found in virtually all grocery  stores. In the U.S., our brands, which include  Fisher Boy, High Liner  and  Sea Cuisine,  have a smaller share of the total  frozen seafood category than  High Liner  in Canada. ACV for all  High Liner  umbrella branded products was nearing 61% at the  end of 2011 compared to 57% at the end of last year. In some  regions in the U.S., this is substantially higher. In Mexico,  although we do not track ACV, we are confident in our  position as a leading seafood supplier in the major centres. Our inventory turns in 2011 were 3.7 times. Our target in  2010 was 5.0 times. As many of our products come from  various parts of the world, the resulting lead-time is long and,  given our commitment to ensuring that we meet customer  service requirements, this results in an inventory level that  is higher than ideal. Given this dynamic, we changed the  benchmark target in 2011 to 4.2 times to reflect what we  think is achievable in our current business environment. This  is a more realistic target for inventory turns due to the long  supply chain and seasonality for our products. Average inventory available for sale or use as of the end of each  month of the year It includes raw material, finished goods, packaging  and ingredients, but excludes maintenance parts and inventory in  transit and in inspection  Cost of sales for the year  Divided by: We track retail market share information by purchasing  syndicated data. We measure share on a rolling four-week,  twelve- or thirteen-week, and fifty-two week basis, and have  good insight as to whether consumers are responding to our  new product ideas and promotions. In Canada, we are the  leader in the retail channel, with a market share more than  twice the size of our nearest competitor. In the United States,  our  Fisher Boy  brand has a strong presence in certain regions  and  Sea Cuisine  has a growing importance in the prepared  seafood category. The market shares of our retail brands speak volumes.  Food service market shares are hard to measure, as there  is no independent source that tracks food service sales in a  manner comparable to the retail channel. However, based  on our information and knowledge of the market, we are  clearly the market leader in Canada and are now the largest  frozen value-added seafood supplier in the USA after the  acquisitions in 2010 and 2011.  Interest-bearing debt to trailing 12-month Adjusted EBITDA  is 4.4 times on a pro forma basis to include the income of  the Icelandic USA Acquisition, based on the interest-bearing  debt at the end of fiscal 2011. This is higher than last year as  debt increased in December 2011 due to the Icelandic USA  Acquisition. On a pro forma basis, including the historical  EBITDA and near term synergies expected from the Icelandic  USA Acquisition, the ratio is 3.7 times. Our intent is to bring  the interest-bearing debt to 12-month EBITDA ratio to our  target of 3.0 times as soon as possible. Interest-bearing debt, being bank loans, plus current and long-term  portions of long-term debt and capital lease obligations Divided by: Adjusted EBITDA, which is defined on page 37  Our performance against key metrics will tell us whether we  are achieving our strategic objectives. We made considerable  progress in 2011 by focusing on these metrics.