Financial Statements FECU 1Q2018

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES Consolidated interim financial statements March 31, 2018

CONTENTS Consolidated interim statements of financial position Consolidated interim income statements by function Consolidated interim statements of comprehensive income Consolidated interim statements of changes in equity Consolidated interim statements of cash flows, direct method Notes to the consolidated interim financial statements Ch$ US$ ThUS$ Thâ‚Ź UF CR JPY UTM

-

Chilean pesos United States dollars Thousands of United States dollars Thousands of Euros Unidades de fomento (a Chilean inflation-indexed unit of account) Costa Rican colons Japanese yen Monthly tax unit (an official inflation–indexed unit of account used in taxation)

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Notes Consolidated interim financial statements Consolidated interim classified statements of financial position Consolidated interim income statements by function Consolidated interim statements of comprehensive income Consolidated interim statements of changes in equity Consolidated interim statements of cash flows, direct method

1 2

General information Summary of significant accounting policies 2.1 Basis of preparation 2.2 New standards and interpretations 2.3 Basis of consolidation 2.4 Segment reporting 2.5 Foreign currency transactions 2.6 Property, plant and equipment 2.7 Biological assets 2.8 Intangible assets other than goodwill 2.9 Goodwill 2.10 Interest costs 2.11 Impairment of non-financial assets 2.12 Financial assets 2.13 Inventories 2.14 Trade and other receivables 2.15 Cash and cash equivalents 2.16 Share capital 2.17 Trade and other payables 2.18 Other financial liabilities 2.19 Current and deferred income tax 2.20 Employee benefits 2.21 Provisions 2.22 Revenue recognition 2.23 Leases 2.24 Dividend policy 2.25 Environment

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1 3 3 4 7 9 9 12 13 15 16 17 17 17 18 19 19 19 19 19 20 20 21 21 22 22 23

Notes 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Financial risk management Significant accounting estimates and assumptions Segment reporting Cash and cash equivalents Financial instruments Other non-financial assets, current Trade and other receivables Inventories Biological assets Current tax assets and liabilities Other financial assets, non-current Intangible assets other than goodwill Goodwill Property, plant and equipment Current and deferred income taxes Other current and non-current financial liabilities Trade and other payables Share capital Retained earnings (cumulative losses) and revaluation surplus Non-controlling interests Earnings per share Revenue Other income and expenses by function Administration expenses and distribution costs Financial income and expenses Exchange differentials in assets and liabilities in foreign currencies Contingencies Balances and transactions with related parties Environment Other information Insurance Subsequent events

Page 23 26 28 38 40 42 43 47 48 54 54 55 64 65 67 72 81 84 87 88 88 89 89 90 92 93 98 102 105 112 112 113

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM CLASSIFIED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2018 AND DECEMBER 31, 2017

Note

Assets Current assets Cash and cash equivalents Other non-financial assets, current Trade and other receivables, current Related-party receivables, current Inventories, current Biological assets, current Tax assets, current Total current assets Non-current assets Other financial assets, non-current Trade and other receivables, non-current Related-party receivables, non-current Intangible assets other than goodwill Goodwill Property, plant and equipment Biological assets, non-current Deferred tax assets Total non-current assets Total assets

3/31/2018 ThUS$ Unaudited

12/31/2017 ThUS$ Audited

6 8 9 30 10 11 12

65,888 2,193 68,952 9,473 62,919 211,608 13,027 434,060

40,772 1,935 76,125 10,239 68,976 188,147 12,735 398,929

13 9 30 14 15 16 11 17

10 288 1,050 43,040 63,224 195,382 30,461 57,031 390,486

10 288 1,050 42,968 63,224 191,448 31,132 65,841 395,961

824,546

794,890

The accompanying notes 1 to 34 form an integral part of these consolidated interim financial statements.

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM CLASSIFIED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2018 AND DECEMBER 31, 2017

Note

Equity and Liabilities Liabilities Current liabilities Other financial liabilities, current Trade and other payables, current Related-party payables, current Tax liabilities, current Employee benefit provisions, current Other non-financial liabilities, current Total current liabilities Non-current liabilities Other financial liabilities, non-current Trade and other payables, non-current Related-party payables, non-current Deferred tax liabilities Other non-financial liabilities, non-current Total non-current liabilities

18 19 30 12 20

18 19 30 17

Total liabilities Equity Issued shares Retained Earnings Other reserves Revaluation surplus Equity attributable to owners of the controller Non-controlling interests Total equity Total equity and liabilities

20 21 21 21 22

3/31/2018 ThUS$ Unaudited

12/31/2017 ThUS$ Audited

27,883 131,747 13,859 11,437 348 6,137 191,411

25,348 124,136 18,139 11,349 133 179,105

193,046 7,181 18,618 3,729 227 222,801

193,383 7,868 19,044 3,738 227 224,260

414,212

403,365

371,603 18,674 (4,404) 17,933 403,806 6,528 410,334

514,463 (142,860) (4,404) 17,933 385,132 6,393 391,525

824,546

794,890

The accompanying notes 1 to 34 form an integral part of these consolidated interim financial statements.

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM INCOME STATEMENT BY FUNCTION FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017

Note Revenue Cost of sales Gross margin before fair value adjustments Fair value of harvested and sold biological assets1 Fair value of biological assets for the period2 Gross earnings Other income by function Distribution costs Administrative expenses Other expenses by function Financial income Financial costs Exchange differentials Profit (loss) before tax Income tax expense Profit (loss) from continuing operations Profit (loss) from discontinued operations Profit (loss) Income attributable to Owners of the parent company Non-controlling interests Profit (loss) Earnings per share Basic earnings per share Basic earnings (loss) per share from continuing operations Basic earnings (loss) per share from discontinued operations Basic earnings (loss) per share

24 26 11 11 25 26 26 25 27 27 28 17

22

23

3/31/2018 3/31/2017 ThUS$ ThUS$ Unaudited 183,982 196,776 (145,002) (148,453) 38,980 48,323 (23,742) (28,676) 29,936 18,454 45,174 38,101 485 620 (4,581) (3,889) (3,507) (2,871) (466) (2,105) 362 196 (3,552) (4,696) (72) 413 33,843 25,769 (8,897) (7,578) 24,946 18,191 24,946 18,191

24,811 135 24,946

18,322 (131) 18,191

0.0216 0.0000 0.0216

0.0157 0.0000 0.0157

The accompanying notes 1 to 34 form an integral part of these consolidated interim financial statements.

1

The change in the value of inventories as a result of the fair value of the biomass harvested and subsequently sold as finished product. If applicable, any negative adjustment to the net realizable value of inventories of finished products is added to this amount (See Note 11 - Biological Assets).

2 The change in the fair value of the biomass for the period, plus any biomass impairment that may be determined in the period, measured at cost for the period (See Note 11 - Biological Assets).

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017

Earnings (loss) Other comprehensive income before taxes, earnings (losses) from revaluation Income tax on investments in equity instruments within other comprehensive income Other comprehensive income

3/31/2018 3/31/2017 ThUS$ ThUS$ Unaudited 24,946 18,191 -

-

-

-

-

-

Total comprehensive income

24,946

18,191

Comprehensive income attributable to Owners of the controller Non-controlling interests Total comprehensive income

24,811 135 24,946

18,322 (131) 18,191

The accompanying notes 1 to 34 form an integral part of these consolidated interim financial statements.

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN NET EQUITY FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017

Issued Shares ThUS$ Opening balance as of 1/1/2018 Increase (decrease) due to error correction Restated opening balance Changes in equity Comprehensive income Earnings (loss) Other comprehensive income Comprehensive income Capital Stock Dividends Increases (decreases) due to transfers and other changes Total changes in equity Closing balance as of 3/31/2018 (unaudited) Opening balance as of 1/1/2017 Increase (decrease) due to error correction Restated opening balance Changes in equity Comprehensive income Profit (loss) Other comprehensive income Comprehensive income Capital Stock Dividends Increases (decreases) due to transfers and other changes Total changes in equity Closing balance as of 3/31/2017 (unaudited)

Issue Premium ThUS$

Revaluation Surplus ThUS$

Other Miscellaneous Reserves ThUS$

Cumulative Losses ThUS$

Equity attributable to owners of the controller ThUS$

Noncontrolling interests ThUS$

Total equity ThUS$

514,463 514,463

-

17,933 17,933

(4,404) (4,404)

(142,861) (142,861)

385,132 385,132

6,393 6,393

391,525 391,525

-

-

-

-

24,811 24,811

24,811 24,811

135 135

24,946 24,946

(142,860) (142,860) 371,603

-

17,933

(4,404)

(6,137) 142,860 161,534 18,674

(6,137) 18,674 403,806

135 6,528

(6,137) 18,809 410,334

514,463 514,463

-

17,933 17,933

(6,344) (6,344)

(202,365) (202,365)

323,687 323,687

4,893 4,893

328,580 328,580

-

-

-

-

18,322 18,322

18,322 18,322

(131) (131)

18,191 18,191

514,463

-

17,933

1,256 1,256 (5,088)

18,322 (184,043)

(1,256) 19,578 343,265

(2,093) (1,962) 6,855

3,349 21,540 350,120

The accompanying notes 1 to 34 form an integral part of these consolidated interim financial statements.

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS, DIRECT METHOD FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017

Note

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Cash flows from (used in) operating activities Receipts from operating activities Receipts from sales of goods and services Receipts from other operating activities Payments to suppliers for goods and services Payments to and on behalf of employees

173,345

232,046

1,439

690

(141,199)

(156,129)

(16,109)

(14,303)

(600)

(405)

Payments for premiums and claims, annuities and other policy obligations Interest received

211

137

(356)

(932)

19,151

16,641

35,882

77,745

30

-

(3,599)

Receipts from the sale of property, plant and equipment

16

46

332

Purchases of property, plant and equipment

16

(9,152)

(1,497)

(9,106)

(4,764)

2,430

1,433

Income taxes refunded (paid) Other cash receipts (payments)

6.b

Net cash flows from (used in) operating activities Cash flows from (used in) investing activities Payments to obtain control of subsidiaries or other businesses

Net cash flows from (used in) investing activities Cash flows from (used in) financing activities Proceeds from short-term loans

18

Loans from related parties

30

-

100

Loan repayments

18

(2,624)

(16,632)

Interest paid

(356)

(2,470)

(1,303)

(2,850)

(1,853)

(20,419)

24,923

52,562

193

398

Net increase (decrease) in cash and cash equivalents

25,116

52,960

Cash and cash equivalents at the start of the year

40,772

36,993

65,888

89,953

Other cash receipts (payments) Net cash flows from (used in) financing activities Net increase (decrease) in cash & cash equivalents before the effect of changes in exchange rates Effect of changes in exchange rates on cash and cash equivalents Effect of changes in exchange rates on cash and cash equivalents

Cash and cash equivalents at the end of the year

6

The accompanying notes 1 to 34 form an integral part of these consolidated interim financial statements.

EMPRESAS AQUACHILE S.A. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2018 AND 2017

NOTE 1 - GENERAL INFORMATION Empresas AquaChile S.A. (hereinafter the “Parent Company” or the “Company”) and subsidiaries, make up the AquaChile Group (hereinafter “AquaChile” or the “Company” or the “Group”).

Empresas AquaChile S.A., Chilean Tax ID Number 86.247.400-7, was originally established as a closed corporation under the name of Fischer Hermanos Limitada by public deed executed before Notary Patricio Olate Melo, and registered in Coyhaique on July 20, 1979. An abstract of this public deed was recorded in the Commercial Registry of the Coyhaique Real Estate Registrar on page 38, number 34, and published in the Official Gazette on August 3, 1979.

Empresas AquaChile S.A. is currently an open corporation. By resolution of an Extraordinary Shareholders Meeting held December 17, 2010, it is subject to the rules governing open corporations and is overseen by the Financial Market Commission (CMF using its acronym in Spanish).

Empresas AquaChile S.A. was registered under No. 1,069 on April 12, 2011 in the Securities Registry of the Financial Market Commission.

The registered offices of Empresas AquaChile S.A. are at Cardonal, Lot B, Puerto Montt, Lake Region, notwithstanding the agencies, offices or branches established now or in the future both in Chile and abroad. The Company is managed from Puerto Montt. The Company’s duration is indefinite.

The Company’s subscribed and paid-in capital totals three hundred seventy-one million six hundred three thousand sixty-eight U.S. dollars and twenty sevencents (US$371,603,068.27), divided into one thousand one hundred and fifty-seven million shares (1,157,000,000).

There was no controlling interest in the Company as of March 31, 2018, and there are no joint action agreements among Shareholders. Shareholder relations are still regulated by the Company’s bylaws.

The Group’s business purpose is to import, export, produce, breed, fatten, process, transform, modify and market hydro-biological species in Chile and abroad, in particular salmon and tilapia.

Empresas AquaChile S.A. is mainly dedicated to producing and marketing farmed salmon, and it is involved in every step of the production cycle.

Since 2005, the Group has engaged in the tilapia farming and marketing business through its subsidiary, Grupo ACI S.A., in Costa Rica.

2

Since 2006, Empresas AquaChile S.A. has engaged in the Salmon and Trout feed business through a 50% interest in Alitec Pargua S.A. Since 2011, the Company holds, through its subsidiary Grupo ACI S.A., a 50% interest in the Tilapia feed producer Biomar Aquacorporation Products.

The Company was created during a period when the Chilean salmon industry was consolidated, from the merger of two companies dedicated to complementary stages of salmon production: AquaChile S.A. that focused on the fresh water stage, and Salmones Pacífico Sur S.A. that focused on the ocean stage.

On December 1, 2016, Aquainnovo S.A., a related entity, was divided into two closed corporations: tAquainnovo S.A., which is the legal successor, and Centro de Innovación Aquainnovo-Biomar S.A. On January 26, 2017, Biomar S.A. subscribed and paid for 5,431 shares in Centro de Innovación Aquainnovo-Biomar S.A., which represented a 30% interest.

On February 14, 2017, the Group acquired 80.30% of Salmones Chaicas S.A. from Inversiones La Montaña S.A., Fondo de Inversión Privado Patagonia Dos and Holding Salmones S.A., giving it whole ownership of this company.

In 2004, with the acquisition of Antarfish S.A., owner of Aguas Claras S.A., Empresas AquaChile S.A. became the leading Chilean salmon producer. This status was leveraged even further by the acquisition of Salmones Australes S.A., Salmones Chiloé S.A. (now Aguas Claras S.A.) and Robinson Crusoe (now Salmones Maullín S.A.). The Group’s leadership is based on being a vertically integrated company that controls the entire production process, exploits the competitive advantages of Chile in the salmon farming industry, and focuses on achieving lower production costs.

The Group is currently a major global salmon producer, an important producer of tilapia in America, and a significant exporter of fresh tilapia to the USA. These consolidated interim financial statements of Empresas AquaChile S.A. and subsidiaries comprise the consolidated statements of financial position, consolidated statements of income by function, consolidated statements of comprehensive income, consolidated statements of cash flow, direct method, consolidated statements of changes in equity, and the notes that contain the disclosures regarding these consolidated interim financial statements These financial statements provide a true and fair view of the Group’s equity and financial position as of March 31, 2018 and December 31, 2017, and the results of its operations, changes in equity and cash flows for the periods ended on those dates.

For comparison purposes, the consolidated statement of financial position and the related explanatory notes are compared to the position as of December 31, 2017. The consolidated statements of income by function, the consolidated statements of comprehensive income, the consolidated statements of cash flow, direct method and the consolidated statements of changes in equity are presented for the periods ended March 31, 2018 and 2017.

3

The consolidated interim financial statements of Empresas AquaChile S.A. and subsidiaries have been prepared on a going-concern basis.

The consolidated interim financial statements of Empresas AquaChile S.A. and subsidiaries as of March 31, 2018 and 2017 are presented in thousands of U.S. dollars and have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (hereinafter “IASB”). They were approved at a Board meeting held on May 16, 2018.

There have been some minor reclassifications in the previous period’s financial statements in order to facilitate comparison.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following section describes the main accounting policies used to prepare these consolidated interim financial statements, which have been uniformly applied to all the periods presented in these consolidated financial statements.

2.1

Basis of preparation

These consolidated interim financial statements of Empresas AquaChile S.A. and subsidiaries as of March 31, 2018 have been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board (IASB).

The preparation of these consolidated interim financial statements in accordance with IFRS requires the use of certain accounting estimates and assumptions. It also requires Management to exercise its judgment when implementing the Group's accounting policies.

Note 4 discusses the areas involving a higher degree of judgment or complexity and areas where assumptions and estimates are significant to the consolidated interim financial statements.

There are no significant uncertainties regarding events or conditions as of the reporting date that may cast doubt on the Company’s ability to continue functioning normally as a going concern.

The general Group accounting policy for appraising its assets and liabilities is on a cost basis, except for financial hedging instruments, certain financial assets and liabilities, land and biological assets recorded at fair value.

4

2.2

New standards and interpretations

a) Standards, interpretations and amendments that are mandatory for the first time for fiscal years beginning January 1, 2018.

Standards and interpretations IFRS 9 “Financial Instruments” – issued in July 2014. The IASB has released the full version of IFRS 9, which replaces the IAS 39 application guide. This final version includes the requirements for classification and measurement of financial assets and liabilities and an expected loss impairment model that replaces the current one. The part on hedge accounting in this final version of IFRS 9 had already been published in November 2013.

IFRS 15 “Revenue from Contracts with Customers” – issued in May 2014. It sets down the principles to be applied by entities in presenting information useful to the users of financial statements applicable to information disclosures in financial statements in relation to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The basic principle is that an entity recognize revenue that represents the transfer of goods or services promised to customers matching the consideration that the entity expects to receive in exchange for those goods or services. It supersedes IAS 11 Construction Contracts; IAS 18 Revenue; IFRIC 13 Customer Loyalty Programs; IFRIC 15 Agreements for the Construction of Real Estate; IFRIC 18 Transfers of Assets from Customers; and SIC31 Revenue – Barter Transactions Involving Advertising Services.

IFRIC 22 “Transactions in Foreign Currency and Advance Consideration” – issued in December 2016.

This interpretation applies to a foreign currency transaction (or part of it) when an entity recognizes a non-financial asset or liability arising from the payment or collection of an advance consideration before the entity recognizes the related asset, expense or income (or corresponding part). The interpretation provides a guide for when a single payment/receipt is made, as well as for situations involving multiple payments/receipts. Its purpose is to reduce diversity in practice.

Amendments and improvements Amendment to IFRS 2 “Share-Based Payments” – issued in June 2016. The amendment clarifies the measurement of cash-settled share-based payments and the accounting of changes from cash-settled share-based payments to equity-settled share-based payments. It also introduces an exception to the principles of IFRS 2 that will require accounting for premiums as if they were equity-settled when the employer is obliged to withhold tax on share-based payments.

Amendment to IFRS 15 “Revenue from Contracts with Customers” – issued in April 2016. The amendment introduces clarifications to the guide that identifies performance obligations in contracts with customers, accounting for intellectual property licenses and the evaluation of principal versus agent (gross versus net income presentation). It includes new and amended illustrative examples as a guide, as well as practical examples of the transition to the new revenue standard.

Amendment to IFRS 4 “Insurance Contracts,” with regard to applying IFRS 9 "Financial Instruments".

Issued in September 2016. The amendment introduces two approaches: (1) Overlay approach, which gives all companies that emit insurance contracts the option to recognize in other comprehensive income, instead of gains and losses, the volatility that could arise when IFRS 9 is applied under the new insurance contract standard; and (2) a temporary waiver of IFRS 9 that allows companies whose business is predominantly related to insurance to choose to waive IFRS 9 until 2021, and continue applying IAS 39 until then.

5

Amendment to IAS 40 “Investments Property,” relating to the transfer of investment property – issued in December 2016. The amendment clarifies that there must be a change in use to transfer an investment property. An assessment must be made (evidence-based) of whether the property falls within the definition in order to conclude whether the use of a property has changed.

Amendment to IFRS 1 "First-time adoption of IFRS,” regarding suspending short-term exceptions for first time adopters with respect to the IFRS 7, IAS 19 and IFRS 10- issued in December 2016.

Amendment to IAS 28 “Investments in Associates and Joint Ventures,” relating to measuring the associate or joint venture at fair value - issued in December 2016.

The adoption of the standards, amendments and interpretations described above do not have a significant impact on the Company’s consolidated financial statements. b) Standards, interpretations and amendments issued, but not yet mandatory and which have not been adopted early.

Standards and Interpretations

Mandatory for annual periods beginning

IFRS 16 "Leases" - issued in January 2016. Establishes the standards to recognize, measure, present and disclose leases. IFRS 16 replaces IAS 17 and introduces a unique lessee accounting model that requires a lessee to recognize the assets and liabilities of all rental contracts with a term of over 12 months, unless the underlying asset is of low value. IFRS 16 is effective for annual periods beginning on or after January 1, 2019, and early application is permitted for entities that apply IFRS 15 or before the date that IFRS 16 is initially applied.

01/01/2019

IFRS 17 “Insurance Contracts" - issued in May 2017, replaces the current IFRS 4. IFRS 17 will change the accounting for all entities that issue insurance contracts and investment contracts with discretionary participation features. The standard applies to annual periods beginning on or after 1 January 2021, and early application is permitted for entities that apply IFRS 15, "Revenue from contracts with customers" and IFRS 9, "Financial Instruments".

01/01/2021

IFRIC 23 "Uncertainty over Income Tax Treatments" - issued in June 2016. This interpretation clarifies how to apply the recognition and measurement requirements of IAS 12 when there is uncertainty regarding income tax treatment.

01/01/2019

Amendment to IFRS 9 "Financial Instruments," published in October 2017. The amendment allows more assets to be measured at the amortized cost than in the previous version of IFRS 9, in particular some prepayable financial assets with a negative compensation. Qualifying assets include some loans and debt securities that would otherwise be measured at the fair value through profit or loss (FVTPL). To qualify for measurement at the amortized cost, the negative compensation must be “reasonable for early termination of the contract.”

01/01/2019

6

Amendment to IAS 28 “Investments in associates and joint ventures,” published in October 2017. This amendment clarifies that companies must apply IFRS 9 to long-term interests in an associate or joint venture to which the equity method is not applied. The Board has published an example that shows how companies must apply the IFRS 9 and IAS 28 requirements to long-term interests in an associate or joint venture.

01/01/2018

Amendment to IFRS 3 “Business Combinations” - issued in December 2017. The amendment clarifies that gaining control of a joint operation company is a business combination that is achieved in stages. The acquirer should revalue its previous interest in the joint operation at fair value on the acquisition date.

01/01/2019

Amendment to IFRS 11 “Joint Arrangements” - issued in December 2017. The amendment clarifies that the entity that gains joint control of a joint operation company must not revalue its previous interest in the joint operation.

01/01/2019

Amendment to IAS 12 “Income Taxes” - issued in December 2017. The amendment clarifies that the income tax consequences of dividends on financial instruments classified as equity must be recognized according to where the transactions or past events that generated those distributable profits were recognized.

01/01/2019

Amendment to IAS 23 “Borrowing Costs” - issued in December 2017. The amendment clarifies that if a specific loan remains outstanding after the qualifying asset is ready for its intended use or sale, that loan becomes part of general loans.

01/01/2019

Amendment to IAS 19 “Employee Benefits” – issued in February 2018. The amendment requires that entities use updated assumptions to determine the actual cost of employment and the net interest for the period remaining after a change, reduction or liquidation of the plan; and to recognize in income, as part of the past service, any gain or loss on the liquidation, any reduction in a surplus—even if the surplus was not previously recognized because it did not exceed the upper limit of the asset.

1/1/2019

Amendment to IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" - issued in September 2014. This amendment addresses an inconsistency between the requirements of IFRS 10 and IAS 28 in the treatment of the sale or provision of goods between an investor and its associate or joint venture. The main consequence of these amendments is that they recognize a full gain or a loss when the transaction involves a business (whether or not in a subsidiary) and a partial gain or loss when the transaction involves assets that do not constitute a business, even if these assets are in a subsidiary.

Undetermined

Management believes that adopting these standards, amendments and interpretations will have no significant impact on the Group’s consolidated interim financial statements when they are first applied.

However, it is analyzing and quantifying in particular the effects of implementing IFRS 9 and 16.

7

2.3

Basis of consolidation

a) Subsidiaries Subsidiaries are all entities (including special purpose entities) over which Empresas AquaChile S.A. and its subsidiaries has the authority to direct its financial and operating policies, which is generally the result of holding the majority of shares with voting rights. When evaluating whether the Group controls another entity, all its currently exercisable or convertible voting rights and their effects are considered.

Subsidiaries are consolidated from the date on which control is transferred and are excluded from consolidation from the date that control ceases.

The Company used to consolidate the subsidiary Alitec Pargua S.A. until 2011, as it exercised control by appointing the majority of the Board. Since 2011, the Company has held a 50% interest in the subsidiary Biomar Aquacorporation Products S.A., through its subsidiary Grupo ACI, which was recorded using the equity method.

As of December 2012, the Group modified its shareholders agreement with Biomar S.A. governing Alitec Pargua S.A. by matching the number of directors. This gave both shareholders equal control of this company, and generated a joint agreement, where the Group as a joint operator recognizes the proportionality of its assets and liabilities, including its interest in joint assets and liabilities, its income from the sale of its interest in the joint operation, its interest in the revenue on product sales by the joint operation and its expenses, including its interest of jointly incurred expenses.

As of December 2013, the subsidiary Grupo ACI amended its shareholders agreement with Biomar Aquaculture Corporation governing Biomar Aquacorporation Products, by matching the number of directors. This gave both shareholders equal control of this company, and generated a joint agreement, where the company as a joint operator recognizes the proportionality of its assets and liabilities, including its interest in joint assets and liabilities, its income from the sale of its interest in the joint operation, its interest in the revenue on product sales by the joint operation and its expenses, including its interest of jointly incurred expenses.

On February 14, 2017, Empresas AquaChile S.A. acquired 80.30% of Salmones Chaicas S.A. from Inversiones La Montaña S.A., Fondo de Inversión Privado Patagonia Dos and Holding Salmones S.A., bringing its total shareholding in that company to 100%.

The purchase method is used to account for acquisitions of subsidiaries. Acquisition cost is the fair value of the company’s assets, equity instruments and liabilities at the date of exchange. Identifiable assets, liabilities and contingencies acquired in a business combination are initially valued at their fair value on the acquisition date, regardless of the extent of minority interests. The excess of acquisition cost over the book value of the Company’s share of identifiable net assets is recorded as purchased goodwill. If the acquisition cost is less than the book value of the net assets of the acquired subsidiary, the difference is recognized directly in income.

8

Intercompany transactions, balances and unrealized gains on transactions between related entities are eliminated. Unrealized losses are also eliminated, unless that transaction provides evidence that the transferred asset is impaired. The accounting policies at subsidiaries are amended as necessary, to ensure that the policies of Empresas AquaChile S.A. and its subsidiaries have been consistently adopted.

The Company consolidates the following subsidiaries in these consolidated interim financial statements: % Ownership As of March 31, 2018 Company Aguas Claras S.A. Procesadora Hueñocoihue SpA. Aquainnovo S.A. Piscicultura Aquasan S.A. AquaChile S.A. AquaChile Inc. Antarfish S.A. Antarfood S.A. Procesadora Aguas Claras Ltda.

Servicios Aguas Claras S.A. Salmones Australes S.A. Salmones Cailín S.A. Salmones Maullín S.A. Grupo ACI S.A. Alitec Pargua S.A. Cultivos Acuícolas El Volcán Ltda.

Salmones Maullín Ltda.

Inversiones Antarfish Ltda.

Inversiones Salmones Australes Ltda.

Laboratorio Antares S.A. Centro de Innovación AquainnovoBiomar S.A.ˡ Salmones Chaicas S.A.²

USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD

Direct % 0.0000 0.0000 0.0000 0.0000 0.0000 100.0000 0.0000 0.0000 0.0000 0.0000 0.0000 41.6179 0.0000 79.9586 50.0000 0.0700 0.0536 0.1249 99.9999 0.0000

Indirect % 100.0000 100.0000 100.0000 100.0000 99.9994 0.0000 100.0000 100.0000 100.0000 100.0000 100.0000 58.3821 100.0000 0.0000 0.0000 99.9300 99.9464 99.8751 0.0000 100.0000

Total % 100.0000 100.0000 100.0000 100.0000 99.9994 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 79.9586 50.0000 100.0000 100.0000 100.0000 99.9999 100.0000

As of December 31, 2017 Total % 100.0000 100.0000 100.0000 100.0000 99.9994 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 79.9586 50.0000 100.0000 100.0000 100.0000 99.9999 100.0000

Chile

USD

0.0000

70.0000

70.0000

70.0000

Chile

USD

99.99999

0.00001

100.0000

100.0000

Chilean ID number

Country

Functional currency

96.509.550-0 78.512.930-K 76.794.910-3 99.595.500-8 79.800.600-2 Foreign 96.519.280-8 88.274.600-3 87.782.700-3 76.495.180-8 96.775.710-1 84.449.400-9 96.786.950-3 Foreign 76.591.150-8 84.925.700-5 79.728.530-7 76.127.952-1 76.127.961-0 76.300.265-9

Chile Chile Chile Chile Chile USA Chile Chile Chile Chile Chile Chile Chile Costa Rica Chile Chile Chile Chile Chile Chile

76.452.811-5 76.125.666-1

ˡ On December 1, 2016, the related company Aquainnovo S.A. was divided into two privately held companies: Aquainnovo S.A., which is the legal successor, and Centro de Innovación AquainnovoBiomar S.A. On January 26, 2017, Biomar S.A. subscribed for 5,431 shares of Centro de Innovación AquainnovoBiomar S.A., which represented a 30% interest. ² On February 14, 2017, Empresas AquaChile S.A. acquired 80.30% of Salmones Chaicas S.A. from Inversiones La Montaña S.A., Fondo de Inversión Privado Patagonia Dos and Holding Salmones S.A., bringing its total shareholding in that company to 100%. b) Transactions and non-controlling interests Any non-controlling interests are shown in equity in the consolidated statement of financial position. The net income attributable to non-controlling interests is presented in the consolidated income statement by function as a component of income (loss) for the period. Transactions between non-controlling shareholders and controlling shareholders of the companies where equity ownership is shared are recorded within equity and are therefore shown in the consolidated statement of changes in equity.c) Associates

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Associates are all those companies over which Empresas AquaChile S.A. and its subsidiaries have significant influence, but do not control their financial and operational policies. Investments in associates are accounted when created or acquired at cost and are subsequently valued using the equity method. The investment of Empresas AquaChile S.A. and its subsidiaries in associates includes any goodwill identified on acquisition, net of any accumulated impairment losses.

The interest of Empresas AquaChile S.A. and its subsidiaries in the income and losses of associates after acquisition is recognized in the income statement and its interest in subsequent equity movements is recognized in the corresponding reserve within equity. When the interest of Empresas AquaChile S.A. and its subsidiaries in the losses of an associate is equal to or higher than its investment in the associate, including any other unsecured receivable, Empresas AquaChile S.A. and its subsidiaries will not record additional losses, unless it has entered into obligations or made payments on behalf of the associate. d) Presentation adjustments If required, the Group makes minor presentation adjustments and reclassifications within the consolidated interim financial statements, in order to improve the presentation of its obligations and commitments.

2.4

Segment Reporting

IFRS 8 requires entities to adopt "Management's approach" when disclosing information about the outcome of their operating segments. In general, this is the information that Management uses internally to evaluate segment performance and to allocate resources to segments.

Empresas AquaChile S.A. and its subsidiaries present segment information regarding its business divisions based on the financial information available to senior decision makers for assessing performance and allocating resources to its differentiated products, in accordance with IFRS 8, Segment Reporting.

This information is presented in Note 5.

The business segments used by Empresas AquaChile S.A. and its subsidiaries are: 2.5

Salmon and trout farming Tilapia farming Fish feed production Others Foreign currency transactions

a) Presentation currency.

The items included in the financial statements for each Group entity are valued using the currency of the principal economic environment in which the entity operates (functional currency), which is also the presentation currency for the consolidated statements of financial position.

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b) Functional currency Based on the instructions and definitions provided in IAS 21, functional currency is “the currency of the primary economic environment in which the entity operates”.

Therefore, Empresas AquaChile S.A. and its subsidiaries believe that the conditions that support its functional currency are as follows.

Factors

Currency

The currency that primarily influences the selling prices of goods and services; normally the price used to describe and pay for them.

US dollar1

The currency that principally affects the costs of labor, materials and other costs to produce goods or provide services, normally the price used to describe and pay for such costs.

US dollar and Chilean peso2

The currency used to collect receipts for billed operational activities.

US dollar

The following aspects were also considered when selecting the Company’s functional currency.

1 2

-

The currency used by the Group’s financing activities, such as bank obligations and equity, is the US dollar.

-

The currency primarily used to invest the receipts from the Group’s billed operational activities is the US dollar.

US dollar Chilean peso

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Therefore, under the current circumstances, the functional currency of each Group entity is as follows.

Company Empresas AquaChile S.A. Procesadora Hueñocoihue SpA. Aquainnovo S.A. Piscicultura Aquasan S.A. AquaChile S.A. AquaChile Inc. Antarfish S.A. Aguas Claras S.A. Antarfood S.A. Procesadora Aguas Claras Ltda.

Servicios Aguas Claras S.A. Salmones Australes S.A. Salmones Cailín S.A. Salmones Maullín S.A. Grupo ACI S.A. Alitec Pargua S.A. Cultivos Acuícolas El Volcán Ltda.

Salmones Maullín Ltda.

Inversiones Antarfish Ltda.

Inversiones Salmones Australes Ltda.

Laboratorio Antares S.A. Centro de Innovación Aquainnovo-Biomar S.A. Salmones Chaicas S.A.

Functional currency US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar

c) Transactions and balances Transactions in foreign currency are converted to the functional currency using the exchange rate in force as of the date of the transaction. Gains and losses on foreign currencies resulting from settling these transactions, and the conversion of monetary assets and liabilities denominated in foreign currencies at closing rates, are recognized in the income statement.

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d) Exchange rates The exchange rates to the US dollar of the main currencies used in the accounting procedures of Empresas AquaChile S.A. and its subsidiaries as of December 31, 2017 and 2016 are as follows: 3/31/2018

12/31/2017

Cumulative Currency

3/31/2017

Cumulative

Cumulative

Closing

average

Closing

average

Closing

average

603.39

602.08

614.75

649.33

663.97

655.58

Chilean peso

CLP

Euro

EUR

0.81

0.81

0.83

0.89

0.94

0.94

Yen

JPY

106.40

108.43

112.59

112.15

111.43

113.62

Costa Rican colon

CR

562.40

568.78

566.42

565.64

559.90

556.18

2.6

Property, plant and equipment

The Group’s property, plant and equipment is land, buildings, infrastructure, machinery, equipment and other fixed assets.

Buildings, plant, equipment and machinery are recorded initially and subsequently at historical cost less their corresponding depreciation and any accumulated impairment.

As permitted by IFRS 1, the Group’s most significant land was revalued on January 1, 2010, for the transition to IFRS. The revaluations were based on market value. They were subsequently valued using the cost method, and where applicable the attributable cost, until 2012, in accordance with IAS 16.

The Group changed its valuation policy for the land included in property, plant and equipment in 2013. It was changed from the cost model to the revaluation model, in accordance with IAS 16. External experts were used to perform these revaluations, who determined the fair value of this land, using level II input data, in accordance with the definitions in IFRS 13.

The Board and Management believe that the change in this accounting policy appropriately measures the changes in the fair value of the Group's land, since the date that IFRS were adopted. They believe that, considering the characteristics of these assets, these changes will occur whit certain level of periodicity.

Since 2013, there have been no revaluations of land, as Management believes that there has been no significant changes in the market values of these assets.

Costs arising from daily maintenance and routine repairs are recorded in income for the period, as opposed to replaced important and strategic spare parts, which are capitalized and depreciated over the remaining useful life of the assets, based on these components.

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Depreciation is calculated using the straight-line method, and systematically distributed throughout the useful life of the fixed asset. This useful life is based on natural expected deterioration and technical or commercial obsolescence, due to changes or improvements in production and changes in market demand for the products produced by these assets. Land is not depreciated.

Estimated useful lives and residual values are as follows:

Buildings Plant and equipment Fixtures and fittings Motor vehicles Other property, plant and equipment IT equipment

Average useful life 12 years 10 years 10 years 7 years 7 years 5 years

Residual value No residual value No residual value No residual value No residual value No residual value No residual value

Facilities that are inactive continue to be depreciated using the straight-line method.

Residual values and useful lives are reviewed and adjusted if necessary as of each reporting date, to ensure that remaining useful lives match the status of assets.

When an asset's value is greater than its estimated recoverable amount, its value is reduced immediately to its recoverable amount by applying impairment testing.

Losses and gains on the sale of property, plant and equipment are calculated by comparing proceeds obtained with the net book value and are included in the income statement.

2.7

Biological assets

Biological assets - salmon and trout Biological assets are salmon and trout, and cover spawning fish, eggs, fry, smolt and small fish being fattened. They are measured at their fair value less the estimated costs to sell them, except when the fair value cannot be measured reliably in accordance with the definitions in IAS 41. Therefore, in the first instance a market for these assets is sought.

As there is no active market for live fish at these stages, they are valued at cumulative cost as of the reporting date. However, if conditions warrant, the Group performs impairment testing on its growing biomass, whose net cumulative effect is expensed against income for the period.

Biological assets (salmon and trout) that are being bred and are heavier in weight are measured at their fair value less estimated processing and selling costs.

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Direct and indirect costs incurred in the productive process form part of the value of biological assets.

Accumulated costs at each reporting date are compared and adjusted to the fair value of the biological asset.

Changes in the fair value of these biological assets are recorded in the income statement for the period.

The estimated fair value is based on market prices for harvested fish, and adjusted according to their distribution in size and quality or range of normal weights at harvest. This price is adjusted for expected harvesting, processing and freight costs to destination, to value its condition as fully grown bled fish (WFE 1 ). Thus, the biomass valuation considers the life cycle stage, its current weight and expected distribution by size at harvest. This estimate of fair value is recognized in the Group’s income statement.

A summary of the valuation criteria is as follows: Stage Fresh water Fresh water Fresh water Marine

Asset Spawning fish Eggs Fry and smolts Fish in the sea

Valuation Direct and indirect cumulative cost Direct and indirect cumulative cost Direct and indirect cumulative cost Fair value, according to the following: · Atlantic salmon, above 4.0 kg WFE; · Pacific or Coho salmon, above 2.5 kg WFE; · Trout, above 2.5 kg WFE; and · Smaller fish are valued at cumulative cost as of the reporting date, net of impairment, if appropriate.

Valuation model The valuation is reviewed for each fish farm and is based on the fish biomass at the close of each month.

The detail includes the total number of fish being fattened, their estimated average weight and the cost of fish biomass. The estimated value is based on the average weight of the biomass, which is multiplied by the value per kg reflected in the market price. The market price is obtained from an index of international prices or from sales as of the reporting date. These are level III input data, according to the definitions in IFRS 13.

Assumptions used to calculate the fair value of fish at the marine grow out stage The estimated fair value of the fish biomass will be always based on assumptions, even if the Group has sufficient experience when considering these factors. These estimates take into account the following components: volume of fish biomass, average biomass weights, distribution of fish weights and market prices.

1

WFE (Whole Fish Equivalent): is a standard measure within the industry, which refers to the weight of whole bled salmon, also internationally known as round weight (RW).

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Volume of fish biomass The volume of fish biomass is an estimate based on the number of smolts in the sea, an estimate of their growth, and an estimate of their mortality for the period, among other factors. Uncertainty with respect to the biomass volume is normally lower in the absence of mortality events or widespread illnesses during the cycle.

Distribution of harvest weights Fish grow at various rates and even though average weights can be accurately estimated, there is always a wide variation in the quality and size of the fish. The distribution of fish quality and size is important, as these attract a variety of prices on the market. When estimating the value of the fish biomass, a normal distribution for quality is assumed, if not, the most recent quality distribution observed during processing at the Group’s processing plants.

Market prices Market price assumptions are important for valuations, particularly when minor changes in market prices can result in significant changes in valuations.

Biological assets - spawning tilapia and growing-out tilapia Spawning tilapia are initially recorded at cost and are valued at cumulative cost as of the reporting date, net of impairment, if appropriate.

Growing-out tilapia are recorded at cost, since market prices are not available in Costa Rica, and alternative fair value estimates are considered unreliable. Cost includes all raw materials, indirect and labor costs during the tilapia grow-out phase.

The following method is used for tilapia.

Stage Fresh water

2.8

Asset Tilapia

Valuation Direct and indirect cumulative cost, net of impairment, if appropriate.

Intangible assets other than goodwill

a) Aquaculture concessions Aquaculture concessions acquired from third parties are presented at historical cost. The useful life of concessions acquired before April 2010 was indefinite, so they are not amortized because they have no expiry date or a foreseeable useful life. Since April 2010, after the new General Fishing and Aquaculture Law was passed, the new concessions acquired have a useful life of 25 years and they are amortized over that period of time. These assets undergo impairment testing on a yearly basis.

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b) Software Licenses for purchased software are capitalized on the basis of the costs incurred to purchase and prepare them for use. These costs are amortized over estimated useful lives of 5 years, using the straight-line method.

Any software maintenance costs are expensed when they are incurred. Costs directly related to creating unique, identifiable software controlled by Empresas AquaChile S.A. and its subsidiaries that is likely to generate financial benefits in excess of its costs for more than one year are recognized as intangible assets.

Direct costs include expenses for personnel that develop the software and any expense incurred in its development and maintenance.

Capitalized software development costs are amortized over estimated useful lives of 5 years. c) Research and development expenses Research expenditure is expensed as it arises. The costs incurred in development projects (related to the design and testing of new or improved products) are recognized as an intangible asset when the following requirements are met.

-

d)

It is technically feasible to fully produce the intangible asset, to the point where it can be used or sold.

Management intends to complete the intangible asset, and to use or sell it.

-

The Company can use or sell it.

The Company can demonstrate how the intangible asset is likely to generate financial benefits in the future.

-

The Company has sufficient technical, financial or other resources, to complete development and to use or sell it.

-

The expenditure attributable to developing it can be reliably measured.

Rights

Water rights and rights to liquid industrial waste are shown here, which are recorded at the historic cost and have an indefinite useful life. These rights are not amortized because they are perpetual and do not require renewal. However, they are subject to annual impairment testing.

2.9

Goodwill

Goodwill is the excess of the acquisition cost over the fair value of the Company's interest in the net identifiable assets of the acquired subsidiary on the acquisition date.

Goodwill arising on acquiring subsidiaries is subject to annual impairment testing, and any accumulated impairment losses are recognized, if required. Gains and losses on the sale of an entity include the book value of goodwill related to the entity sold.

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Goodwill is assigned to Cash Generating Units (CGUs) in order to test for impairment losses. Goodwill is allocated to those CGUs that are expected to benefit from the business combination in which the goodwill arose.

Negative goodwill from the acquisition of an investment or business combination is credited directly to the income statement, in accordance with IFRS 3.

2.10

Interest costs

Interest costs incurred during the construction of any qualified asset are capitalized over the period of time needed to complete and prepare the asset for its intended use. Other interest costs are expensed.

2.11

Impairment of non-financial assets

Assets with indefinite useful lives are not amortized and are tested annually for impairment losses.

Depreciated property, plant and equipment is tested for impairment whenever any event or change in circumstances indicates that the book value of these assets may not be recoverable. An impairment loss is recognized if the book value of an asset exceeds its recoverable amount.

The recoverable amount of an asset is the greater of its value in use and its fair value less selling costs.

Impairment is assessed by grouping assets at the lowest levels at which they generate separately identifiable cash flows (cash-generating units).

Non-financial assets other than goodwill that have been impaired are reviewed every year to identify whether any impairment reversals have occurred.

Impairment losses can be reversed, but are limited to losses recognized in previous periods, in such a manner that the book value becomes the same as if these impairment adjustments had never been made.

Any such reversal is recorded in “Other gains (losses)”.

2.12

Financial assets

Empresas AquaChile S.A. and its subsidiaries classify its financial assets using the following categories: “Assets valued at fair value through profit and loss,” and “Loans and receivables”. The Group does not have any financial instruments held to maturity nor held for sale. The classification depends on why the financial assets were acquired. Management determines how financial assets are classified upon initial recognition.

Classification of financial assets a) Financial assets at fair value through profit and loss Financial assets at fair value through profit and loss are financial assets held for trading. A financial asset is classified in this category if acquired principally to sell in the short term. Assets in this category are classified as current assets.

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b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. Those assets that will mature in less than 12 months are classified as current assets. Those assets that will mature in greater than 12 months are classified as non-current assets.

Loans and receivables are included in “Trade and other receivables�. They are initially recognized at fair value. The difference between their initial recognition value and any subsequent valuation is expensed.

Trade and other receivables are valued at their nominal value, as the Group collects these over a short period of time.

Empresas AquaChile S.A. and its subsidiaries evaluate whether there is objective evidence that a financial instrument or group of financial instruments may have been impaired as of each reporting date. c) Recognition and valuation of financial assets Purchases and sales of financial assets are recognized on the transaction date, i.e. the date when Empresas AquaChile S.A. and its subsidiaries commits to purchase or sell the asset. i)

Initial recognition

All financial assets not carried at fair value through profit and loss are initially recognized at fair value plus transaction costs.

Financial assets at fair value through profit and loss are initially recorded at fair value, and the transaction costs are expensed. ii) Subsequent valuation Financial assets at fair value through profit and loss are subsequently recorded at fair value and any changes are recorded in the income statement. The fair value of loans and receivables are their nominal value.

Financial assets are derecognized when the rights to receive cash flows from these investments have expired or have been transferred and Empresas AquaChile S.A. and its subsidiaries have transferred substantially all the risks and rewards inherent to ownership.

Empresas AquaChile S.A. and its subsidiaries evaluate whether there is objective evidence that a financial asset or group of financial assets may have been impaired as of each reporting date.

2.13

Inventories

Inventories are valued at the lower value between acquisition cost and net realizable value. Cost is determined using the weighted average price method.

The cost of finished products and work-in-process includes the costs of raw materials with the biomass fair value adjustment, direct labor, other direct costs and general manufacturing expenses, based on normal operating capacity, but excluding interest costs.

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Net realizable value is the estimated sales price during the normal course of business, less any selling costs.

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

2.14

Trade and other receivables

Trade and other receivables are recorded at their nominal value, since their average payment terms do not exceed 90 days. Any income related to longer payment terms is recorded as deferred income in current liabilities and the accrued portion is recorded in operating revenue.

In addition, impairment provisions are estimated based on an objective review of all amounts pending as of the reporting date. Impairment losses relating to doubtful receivables are recorded in the statement of comprehensive income for the year they arise. Trade receivables are included under current assets within trade and other receivables, provided that they expect to be collected within 12 months of the reporting date.

2.15

Cash and cash equivalents

Empresas AquaChile S.A. and its subsidiaries classify as cash and cash equivalents its cash balances held on hand and in bank current accounts, time deposits and other low risk financial investments (marketable securities with quick settlement) that mature within 90 days of the investment date. They also include cash management investments, such as covenants with repurchase and resale agreements that mature before the same deadline, and whose funds are freely available.

Any bank overdrafts are included in “Other financial liabilities�.

2.16

Share capital

Share capital consists of single class, ordinary shares.

Legal minimum dividends on ordinary shares are recognized as a reduction in equity when they are accrued.

2.17

Trade and other payables

Trade payables are recognized at nominal value, as the difference to their fair value is not significant.

2.18

Other financial liabilities

Obligations to banks and financial institutions are initially recognized at fair value, net of transaction costs. Subsequently, they are valued at amortized cost and any difference between the funds received (net of transaction costs) and their repayment value is recognized in the income statement over the life of the loan using the effective interest rate method. The effective interest rate method applies the reference market rate for loans with similar characteristics to the loan value. However, Management believes that loans can be borrowed under terms and conditions similar to those that apply to the outstanding debt.

Therefore, it believes that the fair value of outstanding debt is the same as the book value.

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2.19

Current and deferred income tax

The income tax expense for the period includes the taxes incurred by Empresas AquaChile S.A. and its subsidiaries, based on taxable income for the period, along with taxation adjustments for previous periods and changes in deferred taxes.

Deferred taxes are calculated using the liability method on temporary differences that arise between the tax value of assets and liabilities and their book values. However, if deferred taxes arise from the initial recognition of a liability or an asset in a transaction other than a business combination, which at the time of the transaction neither affected the accounting result nor the tax gain or loss, it is not accounted for.

Deferred tax is calculated using current tax rates and laws, or those about to be approved in each country at the reporting date, and that are expected to apply when the corresponding deferred tax asset is collected or deferred tax liability is settled.

Law 20,780 was published in the Official Gazette on September 29, 2014. This law introduced several amendments to the current income tax system and other taxes. The main amendments include a progressive increase in corporate income tax rates for fiscal years 2014, 2015, 2016, 2017 and from 2018 forward from 20% to 21%, 22.5%, 24%, 25.5% and 27%, respectively, Deferred tax assets are recorded when it is probable that Group entities will have sufficient future taxable income to absorb the accumulated tax losses and unused tax credits, or when there are sufficient deferred tax liabilities to absorb them.

The Group does not recognize deferred taxes on temporary differences arising from investments in related companies, since it controls the date these will be reversed.

2.20

Employee benefits

a) Staff vacations Empresas AquaChile S.A. and its subsidiaries recognizes an expense for employee vacations at its nominal value using the accrual method. The staff vacation benefit does not represent a significant amount in the statement of comprehensive income. b) Post-employment benefits Empresas AquaChile S.A. and its subsidiaries do not have any significant voluntary or contractual obligations on the severance of employment contracts. Such provisions only cover any legal obligations in this respect. There are no other post-employment benefits for employees at the parent company and its subsidiaries.

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2.21

Provisions

Empresas AquaChile S.A. and its subsidiaries recognize a provision when contractually obliged to, or when previous practice has generated an implied obligation. Liabilities for onerous contracts, litigation and general provisions are recognized when: (i)

Empresas AquaChile S.A. and its subsidiaries have a current legal or implicit obligation as a result of past events.

(ii) It is probably that a payment will be necessary to settle the obligation. (iii) The payment value can be reliably estimated.

Provisions are valued at the best estimate by Empresas AquaChile S.A. and its subsidiaries of the present value of the payments required to settle the obligation. The discount rate used to calculate this present value reflects current market assessments of the time value of money at the reporting date, as well as any specific risks related to the particular liability.

2.22

Revenue recognition

Operating revenue includes the fair value of considerations received or receivable for the sale of goods and services in the ordinary course of the Group’s business. Revenue is presented net of any VAT, refunds, reductions and discounts, and after eliminating inter-company sales within the Group.

Empresas AquaChile S.A. and its subsidiaries recognize revenue when it can be reliably valued, it is probable that future financial benefits will flow to the entity, and the specific conditions for each Group business is met, as described below. a) Sale of goods Revenue from the sale of goods is recognized when the risks and benefits associated with the sale have been transferred to the buyer, and the entity has no right to dispose of them, nor to effectively control them, in accordance with the terms in its commercial agreements. b) Interest income Interest income is recognized at its nominal value. c) Sales of services Revenue from the sale of services is recorded when the service has been provided. A service is considered as provided when the customer confirms satisfactory completion. d) Dividend income Dividend income is recorded when the right to receive payment is established.

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2.23

Leases

a) When a Group entity is the lessee – Operating lease Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments for operating leases, net of any incentive received from the lessor, are charged to the income statement on a straight-line basis over the lease term. b) When a Group entity is the lessor – Operating lease Assets leased to third parties under operating lease contracts are included in property, plant and equipment or investment property, as appropriate.

Income from operating leases is recognized in the statement of income on a straight-line basis over the lease term. c) When a Group entity is the lessee – Finance lease When companies lease property, plant and equipment to the Group and it receives substantially all the risks and rewards of ownership, these are classified as finance leases. Finance leases are capitalized at the beginning of the lease, at the lower of fair value of the leased property and the present value of minimum lease payments.

Each lease payment is divided between financial liabilities and expenses to obtain a constant interest rate over the outstanding balance. The respective lease obligations, net of financial costs, are included in “Other financial liabilities”. The interest element of the finance cost is charged to the income statement over the lease term, to obtain a constant interest rate over the outstanding balance at each reporting date.

Assets acquired under finance leases are depreciated over their useful life and are recorded in property, plant and equipment.

2.24

Dividend policy

The Company is obliged to distribute a mandatory minimum dividend equivalent to 30% of net distributable income for the year, in accordance with Corporate Law, unless unanimously agreed otherwise by the shareholders.

Under IFRS, this minimum dividend obligation to shareholders must be recognized before the closing date of the annual financial statements with the resulting decrease in equity.

As instructed by the Financial Market Commission in Circular 1,945, the dividend calculation should be based on net distributable income for the Parent Company for the periods ended March 31, 2018, which excludes the following items from income for the year: i)

Unrealized income relating to recognizing increases in the fair value of biological assets regulated by the accounting standard “IAS 41”. This income will be recognized as net distributable income when such assets have been realized. For these purposes, realized means the portion of those increases in fair value corresponding to assets sold or disposed of by any other means.

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ii) Unrealized income from the acquisition of other entities and unrealized income arising from applying paragraphs 24, 39, 42 and 58 of the revised IFRS 3, which refers to business combinations. This income will be included in net distributable income when realized. For these purposes, realized means when the acquired entities generate profits after their acquisition, or when those entities are sold. iii) The effects of deferred taxes associated with the items indicated in ii) will be recognized in the same manner as the item that originated them.

2.25

Environment

Disbursements relating to improvements or investments in productive processes that improve environmental conditions are expensed in the period they are incurred. When these disbursements form part of investment projects, they are recognized as an increase in the value of property, plant and equipment.

The Group has established the following disbursements for environmental protection projects that have been expensed. a) Disbursements or expenses related to improving or investing in productive processes that result in decreased environmental impact or improvements to environmental conditions, such as monitoring effluents from hatcheries, marine crafts and processing plants; implementing silage systems for dead fish at marine fish farms and hatcheries; and environmental reports and studies of fish-farms; among others. b) Disbursements or expenses related to verifying and monitoring regulations and laws governing industrial processes and facilities, such as submitting environmental impact statements that evaluate mortality silage systems; handling and final disposal of hazardous and non-hazardous waste; monitoring phytoplankton; monitoring sediment and the water column at fish-farms; monitoring sludge from hatcheries; environmental consultancy; and sampling and laboratory analysis services; among others.

NOTE 3 - FINANCIAL RISK MANAGEMENT The businesses of Empresas AquaChile S.A. and its subsidiaries are exposed to various financial risks: credit, liquidity and market.

I

Credit risk

a) Surplus cash investment risk The quality of the financial institutions used by Empresas AquaChile S.A. and its subsidiaries and the financial investment products it selects reflect the low risk policy adopted by the Group. Cash surpluses are invested in first class national and foreign financial institutions. b) Sales risk Empresas AquaChile S.A. and its subsidiaries sell its products and services using letters of credit, advance payments, or to customers with excellent credit ratings. In some cases, insurance policies are used to cover the collection of sales, both in Chile and abroad (see Note 7 b).

24

II Liquidity risk Liquidity risk arises if a mismatch is produced between financing needs (operating and financial expenses, investments, loan repayments and dividend commitments) and sources of finance (proceeds from redeeming marketable securities or financial placements, collecting customer receivables and finance from financial institutions). The Group has a prudent liquidity risk management policy. It always has sufficient cash and marketable securities, and aims to have sufficient financing available with banks.

The Group has signed credit contracts with its financial creditors, which establish repayment terms, interest rates, minimum financial ratios, and guarantees. They require that the Group complies with various other obligations. They also contain various mechanisms and quorums for the creditors to approve any exceptions to these conditions. Failure to pay any of the installments of capital and interest on the due date, or failure to comply with the Group’s obligations for more than 90 days, may result in the financial creditors immediately calling in all the capital and interest due on these loans. Any delay or failure by the banks to approve the sale or replacement of specific assets pledged in guarantee, may negatively affect the Group’s businesses and its development.

The following table details the outstanding capital plus accrued interest as of March 31, 2018, segregated by due date.

Financial liabilities

Bank loans Trade and other payables Related party payables Total

Between 1 and 3 months ThUS$

Between 3 and 12 months ThUS$

Between 1 and 5 years ThUS$

Over 5 years

Total

ThUS$

ThUS$

17,143

10,740

185,908

7,138

220,929

114,118

17,629

7,181

-

138,928

13,859

-

18,618

-

32,477

145,120

28,369

211,707

7,138

392,334

Cash flows on the dates that financing or commercial liabilities fall due, as presented below, were calculated including interest at the rates as of the reporting date.

Financial liabilities

Bank loans Trade and other payables Related party payables Total

Between 1 and 3 months ThUS$

Between 3 and 12 months ThUS$

Between 1 and 5 years ThUS$

Over 5 years

Total

ThUS$

ThUS$

20,535

14,606

213,624

8,538

257,303

114,118

17,629

7,181

-

138,928

13,859

-

18,618

-

32,477

148,512

32,235

239,423

8,538

428,708

25

III

Market risk

a) Exchange rate risk Empresas AquaChile S.A. is a global company, so fluctuations in exchange rates can affect its performance, since some of its costs such as direct labor and transportation services are indexed to the Chilean peso, while their sales are denominated in foreign currencies, such as the US dollar, the euro and the yen. The Group’s presentation currency is US dollars, so changes in the exchange rate between the US dollar and the other functional currencies used by the Group may negatively or positively affect its financial performance. In general, the policy is to keep financial liabilities matched to sales revenue in US dollars.

As of March 31, 2018, the Group's consolidated classified interim statement of financial position has a net liability in Chilean pesos of ThUS$11,050, a net liability in Costa Rican colons of ThUS$4,407, and a net asset in Euros of ThUS$388. Therefore, a 5% increase in the exchange rate for these currencies would result in an exchange differences gain (loss) in Chilean pesos of ThUS$553, in Costa Rican colons of ThUS$220, and in Euros of ThUS$(19). Similarly, a 5% decrease in these exchange rates would result in the opposite effect of the same magnitude.

The net exposure by currency is as follows.

Net asset exposure by currency

As of 3/31/2018 ThUS$

US dollar (net assets)

426,157

Chilean pesos (net liabilities)

(11,050)

Costa Rican colons, (net liabilities) Euros, (net assets)

(4,407) 388

If exchange rates increase by 5%, net assets will change as follows: Effect on net asset exposure by currency

As of 3/31/2018 ThUS$

Chilean pesos

553

Costa Rican colons

220

Euros

(19)

b) Interest rate risk Movements in interest rates modify the expected cash flows from assets and liabilities that are subject to variable interest rates.

Empresas AquaChile S.A. and its subsidiaries are exposed to interest rate risk, since its main loan is at a rate that varies according to the LIBOR rate for 180 days. These loan conditions are regularly monitored, which includes evaluating hedging against changes in these interest rates.

26

The Group has ThUS$220,929 in bank liabilities in U.S. dollars as of March 31, 2018, which includes ThUS$83 for mark to market1 in an interest rate Swap contract, ThUS$2,681 for accrued and unpaid interest, and ThUS$(2,335) in refinancing costs.

If interest rates change by 10%, the annual interest on the current loans in U.S. dollars will change by 0.50%, which will change financial expenses by ThUS$1,096.

Currency

USD

Rate

4.96%

Outstanding capital balance in original currency (thousands)

Interest in original currency

1% change in original currency rate

(thousands)

(thousands)

220,929

10,961

1,096

NOTE 4 - SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS Accounting estimates and assumptions are continually evaluated, and are based on historical experience and other factors, including expectations of future events that are considered reasonable in the circumstances. Empresas AquaChile S.A. and its subsidiaries prepare estimates and assumptions regarding the future.

Estimates and assumptions with a significant risk of causing a material adjustment to assets and liabilities next period are as follows. a) Asset impairment The Group annually evaluates asset impairment based on each cash generating unit (CGU). In accordance with IAS 36 "Impairment of Assets,� the Group should evaluate indications of impairment as of each reporting date, which imply that all or part of the book value of fixed assets, intangible assets, goodwill, among others, may not be recoverable. If any indication of impairment is found for assets with a finite useful life, an impairment calculation is required. This calculation must be performed at least once a year on assets with an infinite useful life, regardless of any impairment indications.

The impairment calculation uses the concept of recoverable value, which is defined in IAS 36 as the greater of "value in use" and "fair value less selling costs�.

If the recoverable value is less than the book value, then this difference must be expensed.

The standard defines "value in use" as the present value of estimated future cash flows expected from an asset or cash-generating unit (CGU). It defines "fair value" as the price for selling an asset or to transfer a liability in an orderly transaction between market participants on the valuation date.

According to IAS 36, Management is responsible for continually evaluating signs of impairment as of each reporting date, calculating any impairment losses, and preparing the respective documentation.

CGUs are identified for impairment testing in IAS 36 as "the smallest identifiable group of assets that generates receipts for the Company, which are largely independent of the receipts generated by other assets or groups of assets."

1

Fair value of the interest rate swap contract.

27

Therefore, given the Company as a whole, the characteristics of its assets and its productive and marketing processes, the Group has defined that the CGU value to compare with future cash flows generated by using its assets, shall be based on all the consolidated non-current assets at the reporting date (in the consolidated interim financial statements reported to the Financial Market Commission), less all those assets that are not property, plant and equipment; goodwill; intangible assets other than goodwill; and any investment properties valued at cost.

Therefore, as there is no active market to calculate the fair value of these assets, the Group uses the value in use method to evaluate evidence of impairment.

Allocation of CGUs in order to calculate impairment losses.

The Group has the following CGUs in accordance with the Group's business and cash flow.

-

Salmon and Trout (Chile) Tilapia (Costa Rica and Panama)

The Group has used a cash flow forecasting model to calculate the value in use of its assets, based on the following assumptions.

1. Ten-year evaluation horizon. Investments in the industry are long-term, as are the cycles and risks that affect the biomass. Therefore, a horizon of less than 10 years does not reflect the Company’s long-term situation.

2. Forecast cash flows. Cash flows are based on budget data, best estimates and reasonable and substantiated assumptions that represent Management’s best forecasts regarding the prevailing economic conditions during the remaining useful life of the assets. The most important assumptions are: 2.1. Sales and production forecast for the next 10 years.

2.2. Forecast cash flows do not include any residual asset value at the end of the sixth year.

3. Cash flow forecasts are brought to present value using a discount rate that reflects the time value of money and the risks specific to the asset. The WACC rate is used.

As a result of this evaluation, no evidence was found of impairment of the assets included in the CGU (property, plant and equipment, intangible assets and goodwill). b) Biological assets The accounting policies and valuation model applied to biological assets are as follows.

The estimated fair value of the fish biomass will be always based on assumptions, even if the Group has sufficient experience when considering these factors. The estimates take into account the following components: volume of fish biomass, average biomass weights, distribution of fish weights and market prices.

28

The estimated volume of fish biomass is based on the number of smolts in the sea, their estimated growth and their mortality during the period, etc. Uncertainty with respect to the volume of biomass is normally lower in the absence of mortality events or widespread illnesses.

Fish grow at various rates and even though average weights can be accurately estimated, there is always a wide variation in the quality and size of the fish. The distribution of fish quality and size is important, as these attract a variety of prices on the market. When estimating the value of the fish biomass, a normal distribution for quality is assumed, if not, the most recent quality distribution observed during processing at the Group’s processing plants.

The assumptions regarding market prices are important for the valuation. Furthermore, minor changes in market prices can produce significant changes in the evaluation. If we assume that there were 13,294 tons WFE as of March 31, 2018, then an increase in the net price of US$1/kg would increase the fair value of biological assets by ThUS$9,923. Similarly, a decrease in the net price of US$1/kg would cause an equivalent loss. Minor changes in the biomass volume can result in significant changes in the evaluation.

If we assume that there were 13,294 tons WFE as of March 31, 2018, then a 10% increase in the biomass volume at the evaluated fish farms would increase the fair value of biological assets by ThUS$6,393.

Similarly, a 10% decrease in the biomass volume would cause an equivalent decrease.

NOTE 5 – SEGMENT REPORTING The Group reports financial information by segments, in accordance with IFRS 8 "Operating Segments".

It includes standards for reporting segment information in the financial statements and disclosure requirements for products and services, geographic areas and principal customers. An operating segment is defined as the component of an entity’s business that produces separate financial information, which is reviewed regularly by senior management and used to make decisions regarding the allocation of resources and performance evaluation.

The Group segments its financial information by business unit, and has identified the following segments. a) Business unit - salmon and trout farming Empresas AquaChile S.A. and its subsidiaries has fully integrated the entire salmon production chain, from egg production to marketing and distributing salmon and trout in its various formats. This structure enhances control over strategic resources, particularly during the fresh water phase, and enables more value to be created at each stage of salmon production.

29

a.1) Fresh water production a.1.1) Eggs Empresas AquaChile S.A. and its subsidiaries produce salmon and trout eggs, spawning fish, and develop the Group’s genetic program.

The incubation facilities are located between the La Araucanía Region and the Aysen Region in Chile.

These facilities produce eggs for Atlantic salmon, Pacific or Coho salmon, and trout.

The Group has launched a genetic development program through its subsidiaries AquaChile S.A. and Aquainnovo S.A. to improve the quality of its eggs for Atlantic salmon, Pacific or Coho salmon and trout.

It selects spawning fish based on criteria such as growth rate, time to maturity, disease resistance, mortality, skin color and other factors. The hatcheries are used for spawning, fertilization and incubation. a.1.2) Smolts The Group produces salmon fry and smolts to supply other Group companies. The Group has hatcheries and freshwater and estuarine facilities in the La Araucanía Region, the Los Lagos Region and the Aysen Region in Chile. a.2) Salt water production The Group has marine concessions located in the Lake Region, the Aysen Region and the Magellan Region in Chile. The Group uses its various companies to develop clusters1 in order to achieve logistical efficiencies and diversify the health risks.

The Group has implemented a low-density production policy, to reduce its exposure to disease risks, which reduces the total theoretical capacity of each site. The Group has sufficient aquaculture concessions to sustain its growth in the medium and long term. a.3) Processing plants Empresas AquaChile S.A. and its subsidiaries currently has four processing plants located in Puerto Montt, Calbuco and Chiloe Island. These plants have a specific salmon processing role, which include processing H/G products (Headed and Gutted fish), fresh fillets, frozen portions and high value-added products. These plants are equipped with advanced technology to process salmon. a.4) Sales Empresas AquaChile S.A. and its subsidiaries sells its production to various export markets. It’s most important markets are the USA, Japan, Russia and Brazil. It also exports to other countries in Europe, Asia, the Middle East and Latin America. Empresas AquaChile S.A. and its subsidiaries have operated their own distribution company for the North American market since 2003, called AquaChile Inc. The Group has used this subsidiary to supply its principal customers. It has worked closely with them to develop new products and introduce new species, such as tilapia.

1

Clusters: A set of suppliers-customers in the same industry that are geographically located in the same area.

30

Salmon products are generally selected to meet market requirements. Exports to the North American market are dominated by Atlantic salmon. Exports to Japan are mainly whole salmon, H/G trout, and H/G Coho salmon, while exports to Europe are mainly frozen fillets of Atlantic salmon, and exports to Latin America are mainly fresh Atlantic salmon H/ON. b) Business unit - tilapia farming and marketing At the end of 2005, Empresas AquaChile S.A. acquired a controlling interest in the Grupo AquaCorporación Internacional S.A. (“Grupo ACI S.A.”). It is operated from Costa Rica, and has participated in the tilapia industry for over 30 years. The Group’s commercial strategy is focused on supplying fresh tilapia to large supermarket chains, distributors, and restaurant chains in the United States.

It had achieved a market share of over 21% by 2017.

The Group operates in Cañas, Guanacaste, Costa Rica. This area has optimal conditions for growing-out, and has access to large volumes of water and a favorable climate for production. It also has a strategic logistical location for the distribution of fresh product to the USA. The Group is integrated into a substantial part of the value chain, as follows. b.1) Genetics and reproduction Grupo ACI S.A. has been running a genetic improvement program since 2006, which is managed by Aquainnovo, a subsidiary of Empresas AquaChile S.A. that specializes in biotechnology and molecular genetics. b.2) Hatchery, pre-growing-out and growing-out The entire tilapia production process uses over 360 hectares in Cañas, Costa Rica. Each cycle lasts for approximately 240 days, terminating with the fish reaching an ideal harvest weight of 950 grams. b.3) Processing plants AquaCorporación Internacional operates the Terrapez processing plant in Cañas. These facilities receive the live harvest from the farming ponds and produce fresh and frozen high value-added products, prepared using state of the art technology. b.4) Marketing The principal market for ACI Group is the USA, where it had achieved over a 21% share of the total fresh tilapia market by 2017.

31

b.5) Management systems The "Terrapez" processing plant is located in a tax-free zone, and together with the fish-farms, are operated in compliance with strict international standards covering quality, the environment and occupational health and safety. The companies have achieved certified compliance with ASC, BAP (3 Stars), FSSC22000, Marine Stewardship Council MSC, and BASC (Business Alliance for Secure Commerce). Therefore, Grupo ACI S.A. is assured of acceptance by its target market with a first-class final product. b.6) Business unit - tilapia feed production Grupo ACI S.A. signed a strategic alliance with Biomar Aquaculture Corporation in 2011. This is the Costa Rican subsidiary of the Biomar Group, which is a world leader in animal nutrition. This gave both parties equal shareholdings in Biomar AquaCorporation Products S.A., whose principal asset is a fish feed production plant located in CaĂąas, Guanacaste. b.6.1) Productive process The Biomar AquaCorporation Products S.A. processing plant can produce 50,000 tons/year of feed for freshwater fish in sizes between 4 to 10 millimeters. b.6.2) Productive plants Biomar AquaCorporation Products S.A. has a processing plant in CaĂąas, Guanacaste. This facility has a current production capacity of 50,000 tons/year of feed. b.6.3) Management system The company has achieved certified compliance with ISO 9001: 2008, Global Gap and is processing BAP. b.6.4) Sales and marketing The main purpose of the company is to produce and market tilapia feed for Grupo ACI and Biomar AquaCulture Corporation S.A., which is intended for the aquaculture industry in Central America. c) Business unit - fish feed production Empresas AquaChile S.A. signed a strategic alliance with Alitec S.A. in July 2006. This is a local subsidiary of Provimi, a world leader in animal nutrition, which has subsequently been acquired by Biomar. This gave both parties equal shareholdings in Alitec Pargua S.A., whose principal asset is a fish feed production plant located in Pargua, Los Lagos Region.

32

c.1) Productive process The Alitec Pargua S.A. processing plant can produce 22 tons/hour of feed for marine fish in sizes between 4 to 17 millimeters.

The fish feed industry in Chile is highly concentrated, with five producers controlling approximately 85% of total production by volume (Skretting, Ewos, Salmofood, Alitec and Biomar). The cost of this consumable depends on the cost of its main ingredients, which are fish meal, vegetable oils and fish oil.

Peru, Chile, Argentina and the USA are the largest worldwide producers of these ingredients. c.2) Productive plants Alitec Pargua S.A. has a processing plant in Pargua, Los Lagos Region in Chile. This facility has a current production capacity of 126,000 tons/year of feed for marine fish. c.3) Management system The company has achieved certified compliance with ISO 9001:2000, ISO 22,000, OHSAS 18,001, Global GAAP and BAP. c.4) Sales and marketing The main purpose of the company is to produce and market fish feed to the Empresas AquaChile S.A. and Biomar Chile S.A. groups, which is intended for the Chilean salmon industry, and to a lesser extent for the export market through Biomar Chile S.A.

33

Assets and liabilities by segment as of March 31, 2018 and December 31, 2017 are as follows:

Total Consolidated statements of financial position

ThUS$

Adjustments /eliminations ThUS$

3/31/2018 Salmon and Tilapia Trout ThUS$ ThUS$ Unaudited

Feed

Others

Total

ThUS$

ThUS$

ThUS$

Adjustments /eliminations ThUS$

12/31/2017 Salmon Tilapia and Trout ThUS$ ThUS$ Audited

Feed

Others

ThUS$

ThUS$

1,486

Assets Current assets Cash and cash equivalents Other non-financial assets, current Trade and other receivables, current Related party receivables, current Inventories Biological assets, current Tax assets, current Total current assets

65,888

-

60,199

1,561

3,368

760

40,772

-

32,256

3,417

3,613

2,193

(161)

1,950

132

-

272

1,935

(201)

1,552

182

-

402

68,952

-

60,559

5,943

237

2,213

76,125

-

69,326

5,033

164

1,602

9,473

(322,525)

313,790

1,758

11,819

4,631

10,239

(300,376)

289,029

1,577

15,649

4,360

62,919

(4,015)

58,238

4,125

4,362

209

68,976

(5,273)

67,091

3,444

3,538

176

211,608

-

203,762

7,846

-

-

188,147

-

180,058

8,089

-

-

13,027

-

12,725

-

103

199

12,735

-

12,468

-

94

173

434,060

(326,701)

711,223

21,365

19,889

8,284

398,929

(305,850)

651,780

21,742

23,058

8,199

Non-current assets Other financial assets, non-current Trade and other receivables, non-current Related party receivables, non-current Equity method investments Intangible assets other than goodwill Goodwill

10

-

10

-

-

-

10

-

10

-

-

-

288

-

288

-

-

-

288

-

288

-

-

-

1,050

(13,878)

14,928

-

-

-

1,050

(13,850)

14,900

-

-

-

-

(219,610)

219,610

-

-

-

-

(218,589)

218,589

-

-

-

43,040

-

39,264

3,709

-

67

42,968

-

39,164

3,735

-

69

63,224

-

58,977

4,247

-

-

63,224

-

58,977

4,247

-

-

Property, plant and equipment

195,382

-

144,913

34,945

9,193

6,331

191,448

-

140,098

35,600

9,347

6,403

Biological assets, non-current

30,461

-

30,238

223

-

-

31,132

-

30,863

269

-

-

Deferred tax assets

57,031

(7,718)

63,175

-

-

1,574

65,841

(7,988)

72,389

-

-

1,440

Total non-current assets

390,486

(241,206)

571,403

43,124

9,193

7,972

395,961

(240,427)

575,278

43,851

9,347

7,912

Total assets

824,546

(567,907)

1,282,626

64,489

29,082

16,256

794,890

(546,277)

1,227,058

65,593

32,405

16,111

34

Assets and liabilities by segment as of March 31, 2018 and December 31, 2017 are as follows: 12/31/2017

Consolidated statements of financial position

Total ThUS$

Adjustments /eliminations ThUS$

Salmon and Trout ThUS$

Tilapia ThUS$

Feed ThUS$

Others ThUS$

Total ThUS$

Adjustments /eliminations ThUS$

Unaudited

Salmon and Trout ThUS$

Tilapia ThUS$

Feed ThUS$

Others ThUS$

Audited

Liabilities and equity Liabilities Current liabilities Other financial liabilities, current

27,883

-

17,139

5,720

5,024

-

25,348

-

14,570

5,756

5,022

-

Trade and other payables, current

131,747

(4,271)

117,371

3,253

14,831

563

124,136

(5,569)

107,600

2,900

18,122

1,083

Related party payables, current

13,859

(322,505)

313,526

15,571

-

7,267

18,139

(300,355)

294,749

17,308

-

6,437

Tax liabilities, current

11,437

-

11,138

82

-

217

11,349

-

11,132

81

-

136

347

-

336

-

5

6

133

-

133

-

-

-

6,138

-

6,138

-

-

-

-

-

-

-

-

-

191,411

(326,776)

465,648

24,626

19,860

8,053

179,105

(305,924)

428,184

26,045

23,144

7,656

193,046

-

179,812

13,234

-

-

193,383

-

179,881

13,502

-

-

7,181

-

6,749

-

-

432

7,868

-

7,444

-

-

424

Related party payables, non-current

18,618

(13,878)

30,396

2,100

-

-

19,044

(13,850)

30,794

2,100

-

-

Deferred tax liabilities, non-current

3,729

(7,718)

7,652

3,035

695

65

3,738

(7,988)

7,892

3,060

678

96

Employee benefits provision Other non-financial liabilities Total current liabilities

Non-current liabilities Other financial liabilities, non-current Other payables, non-current

Other non-financial liabilities, non-current Total non-current liabilities

227

-

227

-

-

-

227

-

227

-

-

-

222,801

(21,596)

224,836

18,369

695

497

224,260

(21,838)

226,238

18,662

678

520

371,603

(219,722)

564,826

10,964

4,968

10,567

514,463

(219,722)

707,686

10,964

4,968

10,567

18,674

49,854

(25,876)

(2,548)

105

(2,861)

(142,860)

51,231

(188,464)

(3,156)

161

(2,632)

Equity Share capital Retained earnings (losses) Share premium

-

(332)

(3,029)

-

3,361

-

-

(332)

(3,029)

-

3,361

-

Other reserves

(4,404)

(35,251)

26,175

4,902

(230)

-

(4,404)

(35,473)

26,397

4,902

(230)

-

Revaluation surplus

17,933

(20,612)

30,046

8,176

323

-

17,933

(20,612)

30,046

8,176

323

-

403,806

(226,063)

592,142

21,494

8,527

7,706

385,132

(224,908)

572,636

20,886

8,583

7,935

Equity attributable to owners of the parent company Non-controlling interests

6,528

6,528

-

-

-

-

6,393

6,393

-

-

-

-

Total equity

410,334

(219,535)

592,142

21,494

8,527

7,706

391,525

(218,515)

572,636

20,886

8,583

7,935

Total liabilities

824,546

(567,907)

1,282,626

64,489

29,082

16,256

794,890

(546,277)

1,227,058

65,593

32,405

16,111

35

Non-current assets by geographic area other than financial instruments and deferred tax assets as of March 31, 2018 and December 31, 2017 are as follows.

Description by geographic area

3/31/2018 %

12/31/2017

ThUS$

%

Unaudited Non-current assets in Chile Non-current assets in the USA Non-current assets in Costa Rica Total

87.00%

ThUS$ Audited

288,945

86.65%

284,880

0.01%

39

0.01%

41

12.99%

43,124

13.34%

43,851

100.00%

332,108

100.00%

328,772

36

Income by segment for the periods ended March 31, 2018 and 2017 is as follows: 3/31/2018 Total

Salmon and Trout

Tilapia

Feed

Others

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Income for the year

Total

Adjustments /eliminations

Salmon and Trout

Tilapia

Feed

Others

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Unaudited

Operating revenue

Unaudited

183,982

(94,164)

248,805

15,789

12,223

1,329

196,776

(82,071)

245,977

16,364

15,145

1,361

(145,002)

96,810

(214,821)

(13,401)

(11,986)

(1,604)

(148,453)

79,962

(197,071)

(15,382)

(14,488)

(1,474)

38,980

2,646

33,984

2,388

237

(275)

48,323

(2,109)

48,906

982

657

(113)

(23,742)

-

(23,742)

-

-

-

(28,676)

-

(28,676)

-

-

-

29,936

-

29,936

-

-

-

18,454

-

18,454

-

-

-

45,174

2,646

40,178

2,388

237

(275)

38,101

(2,109)

38,684

982

657

(113)

485

-

307

42

-

136

620

1,160

(596)

47

4

5

Distribution costs

(4,581)

(159)

(3,725)

(697)

-

-

(3,889)

(110)

(3,086)

(664)

-

(29)

Administrative expenses

(3,507)

64

(2,597)

(604)

(234)

(136)

(2,871)

59

(1,979)

(598)

(231)

(122)

(466)

-

(413)

(10)

(6)

(37)

(2,105)

(1,244)

(813)

(41)

-

(7)

362

(332)

686

2

3

3

196

(261)

454

2

-

1

(3,552)

332

(3,284)

(553)

(47)

-

(4,696)

261

(4,399)

(516)

(41)

(1)

-

(3,533)

3,533

-

-

-

-

(49,167)

49,167

-

-

-

Cost of sales Gross margin before fair value adjustments Fair value of harvested and sold biological assets1 Fair value of biological assets for the period

2

Gross margin Other income, by function

Other expenses, by function Financial income Financial costs Share of income (losses) of equity method associates and joint ventures Exchange differences

(72)

-

(81)

4

8

(3)

413

-

352

55

3

3

Income (loss) before tax

33,843

(982)

34,604

572

(39)

(312)

25,769

(51,411)

77,784

(733)

392

(263)

Income tax expense

(8,897)

-

(9,000)

35

(17)

85

(7,578)

-

(7,599)

35

(71)

57

Income from continuing operations

24,946

(982)

25,604

607

(56)

(227)

18,191

(51,411)

70,185

(698)

321

(206)

-

-

-

-

-

-

-

-

-

-

-

-

24,946

(982)

25,604

607

(56)

(227)

18,191

(51,411)

70,185

(698)

321

(206)

Income (loss) from discontinued operations Income for the year

1

3/31/2017

Adjustments /eliminations

The change in the value of inventories as a result of the fair value of the biomass harvested and subsequently sold as finished product. If applicable, any negative adjustment in the net realizable value of inventories for finished products is added to this value. (See Note 11 - Biological assets).

2 The change in the fair value of the biomass for the period, plus any biomass impairment valued at cost for the period. (See Note 11 - Biological assets).

37

Revenue as of March 31, 2018 and 2017 is distributed across the following geographical areas: 3/31/2018 Operating revenue by geographical area

Total ThUS$

Adjustments /eliminations ThUS$

Salmon and trout ThUS$

3/31/2017 Tilapia

Feed

Others

Total

ThUS$

ThUS$

ThUS$

ThUS$

Adjustments /eliminations ThUS$

Salmon and trout ThUS$

Unaudited

Tilapia

Feed

Others

ThUS$

ThUS$

ThUS$

Unaudited

Chile

20,757

(37,561)

44,790

-

12,223

1,305

24,012

(37,363)

44,906

-

15,145

1,324

Chilean operations

20,757

(37,561)

44,790

-

12,223

1,305

24,012

(37,363)

44,906

-

15,145

1,324

163,225

(56,603)

204,015

15,789

-

24

172,764

(44,708)

201,071

16,364

-

37

US market

71,397

(56,579)

118,516

9,460

-

-

65,005

(44,680)

97,950

11,735

-

-

European market

20,584

-

20,482

102

-

-

31,086

-

30,977

109

-

-

Asian market

47,007

-

46,903

104

-

-

52,469

-

52,432

37

-

-

Latin American market

22,947

(24)

16,824

6,123

-

24

23,071

(28)

18,579

4,483

-

37

1,290

-

1,290

-

-

-

1,133

-

1,133

-

-

-

183,982

(94,164)

248,805

15,789

12,223

1,329

196,776

(82,071)

245,977

16,364

15,145

1,361

External customers

Eastern market Total

Cash flow by segment for the periods ended March 31, 2018 and 2017 is as follows: 3/31/2018 Cash flow statement, direct method by segment

Total

Adjustments /eliminations

ThUS$

ThUS$

3/31/2017

Salmon and Trout

Tilapia

Feed

Others

ThUS$

ThUS$

ThUS$

ThUS$

Total

Adjustments /eliminations

Salmon and Trout

Tilapia

Feed

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Unaudited

Others ThUS$ Unaudited

Cash flows from (used in) operating activities

35,882

2,180

29,080

3,329

2,912

(1,619)

77,745

3,750

76,321

516

401

(3,243)

Cash flows from (used in) investing activities

(9,106)

-

(8,017)

(69)

(544)

(476)

(4,764)

-

(4,395)

(69)

(217)

(83)

Cash flows from (used in) financing activities

(1,853)

(2,180)

(1,182)

(1,728)

(113)

3,350

(20,419)

(3,750)

(19,970)

(12)

(37)

3,350

24,923

-

19,881

1,532

2,255

1,255

52,562

-

51,956

435

147

24

193

-

188

-

(1)

6

398

-

393

-

(1)

6

Net increase (decrease) in cash and cash equivalents

25,116

-

20,069

1,532

2,254

1,261

52,960

-

52,349

435

146

30

Cash and cash equivalents at the start of the period

40,772

-

37,303

1,885

1,359

225

36,993

-

33,524

1,885

1,359

225

Cash and cash equivalents at the end of the period

65,888

-

57,372

3,417

3,613

1,486

89,953

-

85,873

2,320

1,505

255

Net increase in cash & cash equivalents before effect of changes in exchange rates Effect of changes in exchange rates on cash and cash equivalents

38

NOTE 6– CASH AND CASH EQUIVALENTS a) Cash and cash equivalents Cash and cash equivalents includes balances held in bank checking accounts, time deposits and other low risk financial investments that mature in under 90 days. They also include cash management investments, such as overnight deposits and others that mature in under 90 days, in accordance with IAS 7.

Cash and cash equivalents as of March 31, 2018 and December 31, 2017 are as follows.

Cash & cash equivalents

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

236

226

Bank balances

7,940

12,389

Time deposits

30,008

16,702

Mutual and investment funds

27,704

11,455

Total

65,888

40,772

Cash balances

Balances by currency that make up cash and cash equivalents as of March 31, 2018 and December 31, 2017 are as follows.

By currency

Currency

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

Cash and cash equivalents in

US dollars

53,304

30,018

Cash and cash equivalents in

Chilean pesos

10,616

6,686

Cash and cash equivalents in

Euros

407

651

Cash and cash equivalents in

Costa Rican colons

1,561

3,417

65,888

40,772

Total

Investments in time deposits as of March 31, 2018 and December 31, 2017 are as follows.

Investments in time deposits

Banco Santander Banco BBVA

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

13,003

5,001

5,002

3,200

Banco BCI

12,003

8,501

Total

30,008

16,702

39

Investments in mutual funds as of March 31, 2018 and December 31, 2017 are as follows.

Investments in mutual funds

3/31/2018 ThUS$ Unaudited

12/31/2017 ThUS$ Audited

17

2,768

27,687

5,939

Banco Santander - Mutual Funds Management BCI - Mutual Funds Management Banco Estado S.A. - Mutual Funds Management Total

-

2,748

27,704

11,455

These are liquid mutual funds that are recognized at unit market value as of the reporting date.

Mutual funds are held by the Group until it has to meet its operating obligations.

Cash and cash equivalents presented in the statement of cash flows are as follows.

Type of Asset

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

Cash and cash equivalents

65,888

40,772

Cash and cash equivalents presented in the statement of cash flows

65,888

40,772

3/31/2018

12/31/2017

b) Other cash receipts (payments) Other cash receipts (payments)

ThUS$

ThUS$

Unaudited

Audited

VAT refund for exporters

19,217

68,027

Refund of laborer’s bonus

11

143

(74)

(254)

Bank charges Others Total

(3)

(811)

19,151

67,105

40

NOTE 7 – FINANCIAL INSTRUMENTS a) Financial instruments by category

March 31, 2018 Assets (Unaudited) Cash and cash equivalents Trade and other receivables, current Related party receivables, current Trade and other receivables, non-current Related party receivables, non-current Total

March 31, 2018 Liabilities (Unaudited) Other financial liabilities, current Trade and other payables, current and non-current Related party payables, current and non-current Other payables, non-current Other non-financial liabilities, current Other financial liabilities, non-current Total

December 31, 2017 Assets (Audited) Cash and cash equivalents Trade and other receivables, current Related party receivables, current Trade and other receivables, non-current Related party receivables, non-current Total

December 31, 2017 Liabilities (Audited) Other financial liabilities, current Trade and other payables, current and non-current Related party payables, current Other accounts payable, non-current Other financial liabilities, non-current Total

Loans and receivables ThUS$ 68,952 9,473 288 1,050 79,763

Financial assets at fair value through profit and loss ThUS$ 57,712 57,712

Total assets ThUS$ 57,712 68,952 9,473 288 1,050 137,475

Liabilities at fair value through profit and loss ThUS$ 27,883 193,046 220,929

Other financial liabilities ThUS$ 138,928 32,477 7,181 6,137 184,723

Total liabilities ThUS$ 27,883 138,928 32,477 7,181 6,137 193,046 405,652

Loans and receivables ThUS$ 76,125 10,239 288 1,050 87,702

Financial assets at fair value through profit and loss ThUS$ 28,157 28,157

Total assets ThUS$ 28,157 76,125 10,239 288 1,050 115,859

Liabilities at fair value through profit and loss ThUS$ 25,348 193,383 218,731

Other financial liabilities ThUS$ 132,004 37,183 7,868 177,055

Total liabilities ThUS$ 25,348 132,004 37,183 7,868 193,383 395,786

41

b) Credit quality of financial assets The Group’s financial assets can be classified into two large segments: i) Trade receivables from customers. Their risk is evaluated using aged debt analysis and this information is used to record impairment provisions. ii) Financial investments in accordance with the assumptions disclosed in Note 2.12.

Current assets

3/31/2018

12/31/2017

ThUS$

ThUS$

Cash and cash equivalents

Unaudited

Audited

Mutual Funds (AA+fm/M1 or higher) and time deposits (AA or higher)

57,712

28,157

Subtotal

57,712

28,157

Trade and other receivables, current

68,952

76,125

Subtotal

68,952

76,125

126,664

104,282

Trade and other receivables

Total

The Group sells to customers using letters of credit, advance payments or by granting credit to customers with an excellent credit rating.

None of these unexpired financial assets have been renegotiated during the period. c) Fair value estimates The Group held financial instruments as of March 31, 2018 that should be recorded at fair value.

Investments in short-term mutual funds (cash equivalents).

The Group has classified fair value measurement using a hierarchy that reflects the level of information used in this valuation. The hierarchy has 3 levels, (i) fair value based on quoted prices in active markets for similar assets or liabilities, (ii) fair value based on valuation techniques that use information about market prices or derived from market prices of similar financial instruments, and (iii) fair value based on valuation models that do not use market data.

The fair value of financial instruments traded in active markets, such as investments acquired for trading, is based on quoted prices at the reporting date using the current bid price.

42

The classification of financial instruments at fair value according to the data used to value them as of March 31, 2018 and December 31, 2017 are as follows:

Assets As of 3/31/2018 (Unaudited) Short-term mutual funds Total

Total ThUS$ 27,704 27,704

Fair values using this hierarchy Level I Level II ThUS$ ThUS$ 27,704 27,704 -

Assets As of 12/31/2017 (Audited) Short-term mutual funds Total

Total ThUS$ 11,455 11,455

Fair values using this hierarchy Level I Level II ThUS$ ThUS$ 11,455 11,455 -

Level III ThUS$ -

Level III ThUS$ -

Additionally, as of March 31, 2018 and December 31, 2017, the Group had financial instruments that don’t require to be recorded at fair value. The Group has valued these instruments as follows, in order to meet fair value disclosure requirements:

Financial instruments that are not recorded at fair value

Cash and cash equivalents Time deposits Other assets and liabilities Trade and other receivables Related party receivables Other financial liabilities Trade and other payables Related party payables

3/31/2018 Book value ThUS$ Unaudited

12/31/2017 Book value ThUS$ Audited

30,008

16,702

69,240 10,523 220,929 138,928 32,477

76,413 11,289 218,731 132,004 37,183

The book value of receivables and payables is assumed to be approximately their fair value, due to their short-term nature. The fair value of cash, bank balances, time deposits and other non-current payables is approximately their book value.

NOTE 8 - OTHER NON-FINANCIAL ASSETS, CURRENT Other non-financial assets, current are as follows.

Other non-financial assets, current

Current guarantees Municipal business permits Insurance Others Total

3/31/2018 ThUS$ Unaudited 602 206 205 1,180 2,193

12/31/2017 ThUS$ Audited 639 22 299 975 1,935

43

NOTE 9 - TRADE AND OTHER RECEIVABLES Trade and other receivables are as follows.

3/31/2018 Trade and other receivables

12/31/2017

Current

Non-current

Current

Non-current

ThUS$

ThUS$

ThUS$

ThUS$

Unaudited

Audited

Trade receivables National

1,848

-

3,949

-

Foreign

50,937

-

59,408

-

(882)

-

(937)

-

51,903

-

62,420

-

Impairment provision Trade receivables, net Notes receivable, net Other receivables, net * Others Impairment provision Other receivables, net Total

-

-

-

-

*17,179

**288

*13,902

**288

211

-

142

-

(341)

-

(339)

-

17,049

288

13,705

288

68,952

288

76,125

288

* The current portion includes a net VAT receivable of ThUS$12,295 (ThUS$11,082 as of December 31, 2017). ** ThUS$288 are advances to suppliers on account for expenses related to processing new aquaculture concessions as of March 31, 2018.

The fair values of trade and other receivables does not significantly differ from their book values.

The impairment of trade and other receivables is as follows.

3/31/2018 ThUS$ Unaudited (882) (341) (1,223)

Impairment of trade and other receivables

Trade receivables Miscellaneous receivables Total

12/31/2017 ThUS$ Audited (937) (339) (1,276)

Trade and other receivables, current and non-current, by currency as of March 31, 2018 and December 31, 2017 are as follows.

Classification by currency

US dollars Chilean pesos Total

3/31/2018 Current Non-current ThUS$ ThUS$ Unaudited 51,075 288 17,877 68,952 288

12/31/2017 Current Non-current ThUS$ ThUS$ Audited 62,298 288 13,827 76,125 288

44

Trade and other receivables, current, by product are as follows.

Classified by product

Salmon Tilapia Feed Others Total

3/31/2018 ThUS$ Unaudited 60,559 5,943 237 2,213 68,952

12/31/2017 ThUS$ Audited 69,326 5,033 164 1,602 76,125

3/31/2018 ThUS$ Unaudited (937) 55 (882)

12/31/2017 ThUS$ Audited (886) (51) (937)

(339) (2) (341) (1,223)

(202) (137) (339) (1,276)

Movements in impairment provisions for receivables are as follows.

Impairment provisions for receivables Trade receivables Opening balance Provision adjustments Closing balance Other receivables Opening balance Provision adjustments Closing balance Total

After completing preliminary and judicial collection procedures, assets are written-off against this provision. Empresas AquaChile S.A. and subsidiaries only use the provision method and not the direct write-off method in order to better control these accounts.

Historical and current renegotiations are largely irrelevant and the policy is to analyze impairment on a case by case basis, classify each one by its risk, and evaluate whether it should be reclassified to preliminary collection. If reclassification is appropriate, a provision is recognized for all the customer’s overdue and not yet due receivables.

The maximum exposure to credit risk as of the reporting date is the fair value of each category of receivables, as follows.

Fair value

Gross exposure ThUS$

3/31/2018 Gross impaired exposure ThUS$

Net risk exposure ThUS$

Gross exposure ThUS$

Unaudited Trade receivables Notes receivable

12/31/2017 Gross impaired exposure ThUS$

Net risk exposure ThUS$

Audited

52,785

(882)

51,903

63,357

(937)

62,420

-

-

-

-

-

-

Other receivables

17,390

(341)

17,049

14,044

(339)

13,705

Total

70,175

(1,223)

68,952

77,401

(1,276)

76,125

45

Trade and other receivables, current and non-current as of March 31, 2018 and December 31, 2017 are as follows: 3/31/2018 Assets before provisions ThUS$

Items

12/31/2017

Provisions ThUS$

Net total ThUS$

Assets before provisions ThUS$

Unaudited

Provisions ThUS$

Net total ThUS$

Audited

Trade and other receivables, national

18,734

(858)

17,876

14,737

(910)

13,827

Trade and other receivables, foreign

51,441

(365)

51,076

62,664

(366)

62,298

Total current

70,175

(1,223)

68,952

77,401

(1,276)

76,125

Receivables

288

-

288

288

-

288

Total non-current

288

-

288

288

-

288

70,463

(1,223)

69,240

77,689

(1,276)

76,413

Total

Stratified portfolios, provisions and write-offs a) The secured and unsecured portfolios are as follows.

3/31/2018 (Unaudited) UNSECURED PORTFOLIO

Overdue ranges

Not yet due * 1 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days 121 to 150 days 151 to 180 days 181 to 210 days 211 to 250 days > 250 days Total

Number of customers in nonrenegotiated portfolio No.

Net value of nonrenegotiated portfolio ThUS$

Number of customers in renegotiated portfolio No.

373 152 68 36 16 11 14 9 11 71 761

58,846 8,010 1,001 819 9 3 91 66 57 48 68,952

-

SECURED PORTFOLIO Net value of renegotiated portfolio ThUS$

Number of customers in nonrenegotiated portfolio No.

Net value of nonrenegotiated portfolio ThUS$

Number of customers in renegotiated portfolio No.

Net value of renegotiate d portfolio ThUS$

-

-

-

-

-

* Includes tax credits and other recoverable taxes.

Note: The impairment provision for doubtful debts of ThUS$1,223, consists of receivables within various overdue ranges presented in this table.

46

12/31/2017 (Audited) UNSECURED PORTFOLIO

Overdue ranges

Number of customers in nonrenegotiated portfolio No.

Net value of nonrenegotiated portfolio ThUS$

Number of customers in renegotiated portfolio No.

Not yet due * 1 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days 121 to 150 days 151 to 180 days 181 to 210 days 211 to 250 days > 250 days Total

422 110 30 13 10 7 6 4 61 663

71,149 4,068 805 32 30 4 10 1 26 76,125

-

SECURED PORTFOLIO Net value of renegotiated portfolio ThUS$

Number of customers in nonrenegotiated portfolio No.

Net value of nonrenegotiated portfolio ThUS$

Number of customers in renegotiated portfolio No.

Net value of renegotiated portfolio ThUS$

-

-

-

-

-

* Includes tax credits and other recoverable taxes.

Note: The impairment provision for doubtful debts of ThUS$1,276, consists of receivables within various overdue ranges presented in this table. b) The Group had no protested receivables as of March 31, 2018 or December 31, 2017. c) Provisions and write-offs as of March 31, 2018 and December 31, 2017.

As of 3/31/2018 (Unaudited) Non-renegotiated portfolio ThUS$ (1,223)

As of 12/31/2017 (Audited)

Write-offs ThUS$

Recoveries ThUS$

-

73

Non-renegotiated portfolio ThUS$ (1,276)

Write-offs ThUS$

Recoveries ThUS$

-

122

Empresas AquaChile S.A. and subsidiaries set up provisions when there is evidence of trade receivables being impaired. The criteria used to determine whether there is objective evidence of impairment are the portfolio age, specific impairment events (default) and specific market indications.

Maturity

Impairment

Receivables overdue for more than 1 year d) The Group had not factored any receivables as of March 31, 2018 or December 31, 2017.

100%

47

NOTE 10 – INVENTORIES Inventories as of each reporting date are as follows: Inventories

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

34,673

39,759

4,672

7,627

Consumables

16,576

15,159

Spare parts and supplies

10,163

11,613

(70)

(562)

(2,964)

(4,477)

(135)

(147)

Finished goods * Fair value of biological assets harvested, but not sold as finished goods *

Net realizable value provisions on finished products * Unrealized gains on finished goods * Decrease in provisions Others

4

4

Total

62,919

68,976

Total net finished product inventories *

36,311

42,347

* Total finished product inventories, net of provisions covering net realizable values, fair values and unrealized gains.

Movements in net finished product inventories

3/31/2018 ThUS$ Unaudited 42,347 7,842 110,379 (131,375) 29,348 (24,115) 373 1,512 36,311

Opening balance Increases for production costs Increases for biological asset harvests Decreases for sales Fair value of harvested biological assets Fair value of harvested and sold biological assets (inventory sales) Net realizable value provision Unrealized gains (losses) Closing balance

12/31/2017 ThUS$ Audited 37,156 80,790 369,180 (449,680) 89,170 (81,100) (562) (2,607) 42,347

Inventories of finished products recognized in cost of sales for the period ended March 31, 2018 were ThUS$131,375 (ThUS$449,680 for the year ended December 31, 2017).

3/31/2018 Fresh Net finished product inventories

Net tons

ThUS$

Atlantic salmon

12/31/2017

Frozen Net tons ThUS$ Unaudited

Fresh Total ThUS$

Net tons

ThUS$

Frozen Net tons ThUS$ Audited

Total ThUS$

100

496

3,373

26,737

27,233

64

263

3,814

26,626

Trout

-

-

771

6,649

6,649

-

-

349

2,874

26,889 2,874

Pacific or Coho salmon

-

-

251

1,270

1,270

-

-

1,842

11,858

11,858

Tilapia

-

-

264

1,159

1,159

-

-

270

726

726

Total

100

496

4,659

35,815

36,311

64

263

6,275

42,084

42,347

48

Inventory policy Group inventories are valued at the lower of cost and net realizable value.

Inventory valuation policy The Group values its inventories as follows. a) The production cost of manufactured inventories comprises those that directly relate to the units produced, such as labor and fixed and variable costs incurred to transform raw materials into finished products.

The production cost of fresh and frozen salmon is based on the last fair value of the biological asset when harvested, which represents the raw material cost for the processing plant, plus direct and indirect production costs. b) The acquisition cost of purchased inventory includes its purchase cost, customs fees, transport, storage and other costs attributable to its acquisition.

Inventory cost calculation formula Inventories of finished products are valued using the weighted average cost method, which is the cost of each product unit based on the weighted average cost at the beginning of the period and the cost of articles bought or produced during the period.

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

Information on finished products No inventories have been pledged in guarantee as of December 31, 2017 and 2016.

As of March 31, 2018, the company carried insurance under which claims are being made (see Note 33.a).

NOTE 11 - BIOLOGICAL ASSETS Biological assets are salmon and trout, and cover spawning fish, eggs, fry, smolt and growing-out fish.

They are measured at their fair value less the estimated costs to sell them, except when the fair value cannot be measured reliably in accordance with the definitions in IAS 41 (see Note 2.7).

The Group has not granted biological assets in guarantee in favor of financial institutions or other suppliers.

The biological assets owned by Empresas AquaChile S.A. and its subsidiaries are salmonids and tilapia.

The biological assets that Management deems will be harvested according to their productive cycle are classified as current biological assets.

49

Biological assets, current and non-current, are as follows.

Current Detail

Salmon and trout * Tilapia Total

3/31/2018

Non-current 12/31/2017

3/31/2018

12/31/2017

ThUS$

ThUS$

ThUS$

ThUS$

Unaudited

Audited

Unaudited

Audited

203,762

180,058

30,238

30,863

7,846

8,089

223

269

211,608

188,147

30,461

31,132

* The salmon and trout biological assets had a negative net effect of ThUS$5,821 on the Group’s income statement as of March 31, 2018, due to biomass valuations at fair value. These valuations resulted in a credit to the income statement of ThUS$29,936, and a charge to the income statement of ThUS$24,115 for the fair value of harvested biomass that was subsequently sold as finished product, which increased the cost of sales for that year.

They had a negative net effect of ThUS$3,048 as of December 31, 2017, due to biomass valuations that resulted in a credit to the income statement of ThUS$78,052, and an increase of ThUS$(81,100) in costs of sales for the fair value of biomass harvested and sold in the year.

Movements in biological assets, current and non-current, as of March 31, 2018 and December 31, 2017 are as follows.

Movements

Opening biological assets Increases from acquired interests *

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

219,279

192,786

-

9,451

Increases from growing-out and production

131,581

403,097

Decreases from harvests (measured at cost)

(110,379)

(369,180)

(29,348)

(89,170)

Fair value of harvested biological assets, transferred to inventories Biomass adjustments for growing-out fish, measured at fair value in the period

29,936

78,052

Unrealized gains (losses)

1,000

(5,757)

Closing biological assets

242,069

219,279

Biological assets include an increase of ThUS$23,817 as of March 31, 2018 in fair value adjustments for growing-out fish (an increase of ThUS$15,160 as of December 31, 2017). * Includes ThUS$9,451 of biological assets at fair value on the acquisition of Salmones Chaicas S.A. Biological asset policies Biological assets are valued at fair value less the estimated costs to sell them, in accordance with the definitions in IAS 41 and as established in Note 2.7.

50

The effect of natural fish growth is expressed as their fair value less the estimated costs to sell them, and this is recognized at market prices adjusted by their quality and size at the reporting date. The resulting change in value is recognized in the income statement under "Fair value of biological assets for the period." This was a gain of ThUS$29,936 for the period ended March 31, 2018 (a gain of ThUS$78,052 under "Fair value of biological assets for the period� as of December 31, 2017). The income statement by function contains the line "Fair value of biological assets harvested and sold." This is the release for the cost of inventories sold during the year, created by the positive fair value of biomass at harvest. This adjustment arose mainly in 2017 and affected the income statement for 2018 by ThUS$(24,115) (the cost of positive fair value inventories affected the income statement for 2017 by ThUS$81,100). Also recorded in this income line, if relevant, are charges and credits for provisions on the net realizable value of inventories, which was a gain of ThUS$373 as of March 31, 2018 due to the reversal of a provision (and a loss of ThUS$(562) as of December 31, 2017).

The biomass as of March 31, 2018 and December 31, 2017 is as follows.

Detail

Quantity

3/31/2018

12/31/2017

Biomass

Biomass

Tons (WFE) 1

ThUS$

Quantity

Unaudited

Tons (WFE)1

ThUS$

Audited

Marine (growing-out) Salmon and Trout

25,892,727

42,313

203,762

23,584,182

44,632

180,058

Salmon and Trout

40,660,943

1,774

30,238

57,569,225

1,333

30,863

Tilapia

14,399,052

4,514

8,069

14,134,069

4,888

8,358

Total

80,952,722

48,600

242,069

95,287,476

50,853

219,279

Fresh Water

Risk management policy Operational business risks a) Environmental risks Empresas AquaChile S.A. and its subsidiaries have geographically diversified its production facilities in Chile. Nevertheless, the salmon industry is exposed to natural risks, such as variations in sea temperatures, weather phenomena, seismic movements, harmful algal blooms², natural predators and other factors that may affect its production facilities. These circumstances can all affect the Group’s growth, negatively impact the quality of its products and even increase mortality rates, which would result in lower production volumes, sales and financial performance. b) Phytosanitary risks Diseases, parasites and pollutants are a recurring problem in the aquaculture industry, and may reduce the quality of its products, increase mortality and reduce production.

1

WFE (Whole Fish Equivalent): is a standard measure within the industry, which refers to the weight of bled salmon, also internationally known as round weight (RW).

51

Empresas AquaChile S.A. and its subsidiaries have invested significant resources in areas such as research, genetic improvements, mass vaccination programs, independent area management systems, fish health monitoring programs, reduced population densities in fish cages, and sanitary barriers that help to control and reduce these risks. However, new diseases or pests may emerge that affect salmon, trout and tilapia production.

Product quality and traceability risks The products that Empresas AquaChile S.A. and its subsidiaries grow, produce and market are for human consumption, and a contamination risk arises from negligence during production or inadequate handling during the distribution process or delivery to the final consumer, by customers, consumers or third parties, which could affect the Group’s sales and financial performance. The Group has developed and implemented comprehensive controls to classify food quality and safety, in order to mitigate these risks.

These are being constantly monitored internally and also externally by the sectorial authority.

The Group has introduced complete fish traceability, to monitor food safety, and the law requires that fish are analyzed prior to harvest to rule out any trace of waste. The processing plants are also sampled to safeguard raw material and processing safety. Therefore, the authorities and customers can check product safety at Empresas AquaChile S.A. and its subsidiaries.

As fish are growing in an open marine environment, they are exposed to diseases that can impact their health. Empresas AquaChile S.A. and its subsidiaries has a health department composed of veterinarians, to control these impacts. They have established a preventative policy and monitor the health of the fish population. If any diseases appear, they establish the appropriate treatment to combat them. Failure to do this would expose the fish population to risks that could impact the Group’s financial performance. c) Consumable price risks A significant portion of the salmon production costs is linked to the supply of fishmeal and fish oil. Even though Empresas AquaChile S.A. and its subsidiaries have diversified their sources of fish feed to include new alternatives, and have invested in two feed plants to supply a proportion of its requirements, they may still be affected positively and negatively by changes in the prices of consumables, due to circumstances beyond their control. d) International price trends The supply of salmon and trout largely depends on the productive strategies of each company in the industry, as well as by unexpected biological or climatic events. Therefore, forecasting and estimating an equilibrium price for its products over the medium and long term is complex. Fortunately, the growth in demand for farmed salmon has been strong and sustained in recent years. Although, imbalances between supply and demand for salmon products could lead to price volatility, which could positively or negatively affect the Group’s financial performance. However, the salmon industry has been subject to dynamic global and local consolidation and regulatory changes, which suggests that estimated future growth should tend to be more balanced. Also, species and target market diversification mitigates the negative effect of price changes.

52

Changes in consumption within target markets Historical trends indicate that sustained increases in global fish consumption and of other aquatic products can be estimated over the next few years. However, the Group cannot assume that this trend and intensity will continue over time. A change or reversal of this trend could significantly affect the Group’s operating performance. e) Economic changes in target markets Currently, the Group's exports are sold mainly into markets in the USA, Japan, Brazil and Russia.

Nevertheless, an economic crisis, depression or stagnation or the emergence of trade barriers cannot be ruled out. Any of these would lead to a reduction in demand, which if verified could negatively affect the Group’s business and operating performance. Then again, increases in personal income within emerging economies could open up new markets and increase the demand for salmon and Group sales.

Financial risks f) Concentration of financial liabilities The Group has signed credit contracts with its financial creditors, which establish repayment terms, interest rates, minimum financial ratios, and guarantees. They require that the Group complies with various other obligations. They also contain various mechanisms for the creditors to approve any exceptions to these obligations. Failure to pay any of the installments of capital and interest on the due dates, or failure to comply with the Group’s obligations for more than 90 days, may result in the financial creditors immediately calling in all the capital and interest due on these loans, which could negatively impact the Group’s financial position and performance. g) Foreign exchange risks As the Group is global, fluctuations in exchange rates can positively or negatively affect its performance, as some of its costs, such as labor and transportation services among others, are indexed to the Chilean peso. While its sales are affected by the relative value of the foreign currencies used by its target markets, such as the US dollar, the Euro, the Yen, the Rouble and the Real. The Group’s presentation currency is US dollars, so changes in the exchange rate between the US dollar and the other functional currencies used by the Group may negatively or positively affect its financial performance.

Regulatory and environmental risks h) Changes in environmental and other legislation Caring for the environment is an essential component of Company business policy. However, productive processes that result in natural resources becoming contaminated have resulted in a growing awareness and concern among consumers, intermediary groups and authorities in the field, who require productive systems that care for the environment and guarantee that natural resources are protected over the long term. These requirements have resulted in rigorous standards and procedures to secure environmental sustainability, but that lead to increased production costs and introduce restrictions on the Group’s productive processes.

53

i)

Changes in aquaculture and concession legislation

The Group has implemented processes and constant monitoring, in order to correctly manage its fish farms, and it has a technical and legal department that ensures that aquaculture concessions are properly used and managed. However, issues such as failure to comply with changes in aquaculture and concession legislation and standards, failure to adequately manage aquaculture concessions, failure to comply with relevant sustainability standards and carefully operate the system as a whole, and unjustifiable or unauthorized failure to use concessions, could lead to sanctions or restrictions that could negatively affect the Group’s business and operating performance. These measures could even include authorities revoking aquaculture concessions, where such legislation permits.

Other risks j)

Asset risks

Fixed assets such as buildings and facilities, finished products and civil liability risks are covered by insurance policies with terms and conditions that are usual for the market. The Group has an insurance policy that partially covers any damage to its biological assets caused by diseases, theft and natural risks, such as storms, hurricanes, storm surges, tsunamis, earthquakes, volcanic eruptions, floods, avalanches, landslides, underwater currents and harmful algal blooms. Consequently, significant damage or loss to such assets could still have an adverse effect on the Group’s business and financial position. Nevertheless, the geographical diversity of its facilities on land and at sea at least mitigates the risk of such events, although it will not eliminate that risk. k) Subsidiaries and associates Empresas AquaChile S.A. is the parent company and associate of several companies. A significant proportion of the Group’s business is performed by these companies and its operating performance and financial position substantially depends on them. Any significant deterioration in the business and performance of its subsidiaries and associated companies may have an adverse effect on its business and operational performance.

As of March 31, 2018, the company carried insurance under which claims are being made (see Note 33.a).

54

NOTE 12 – CURRENT TAX ASSETS AND LIABILITIES Current tax assets

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

Recoverable tax on profits absorbed by tax losses

8,176

8,176

Monthly provisional tax payments

3,858

3,596

Credits for training expenses

632

608

Other recoverable taxes

361

355

13,027

12,735

3/31/2018

12/31/2017

Total Current tax liabilities

Income taxes payable Unique tax at 35%

ThUS$

ThUS$

Unaudited

Audited

11,296

11,213

141

136

11,437

11,349

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

Sociedad Periodística El Líbero S.A.*

10

10

Total

10

10

Total

NOTE 13 - OTHER FINANCIAL ASSETS, NON-CURRENT Other financial assets, non-current are as follows.

Other financial assets, non-current

* This is a 0.53% interest in Sociedad Periodística El Líbero S.A. acquired in August 2015 by the subsidiary Procesadora Hueñocoihue SpA.

55

NOTE 14 - INTANGIBLE ASSETS OTHER THAN GOODWILL Non-internally created intangible assets are as follows.

Intangible assets other than goodwill

Useful Life

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

240

243

Aquaculture concessions

Finite

Aquaculture concessions

Indefinite

31,941

31,936

Water rights

Indefinite

2,434

2,434

Trademark rights

Finite

391

393

Trademark rights

Indefinite

5,299

5,299

Property rights

Finite

1,044

1,070

Effluent disposal rights

Indefinite

Others

Finite

Total

406

406

1,285

1,187

43,040

42,968

a) Aquaculture concessions Aquaculture concessions acquired from third parties are presented at historical cost. The useful life of the concessions acquired prior to April 2010 is indefinite because they have no expiry date nor a foreseeable useful life, so they are not amortized. Since April 2010, after the new General Fishing and Aquaculture Law was passed, the new concessions acquired have a useful life of 25 years and they are amortized over that period of time. These assets undergo impairment testing on a yearly basis. b) Trademark rights Acquired trademarks are valued at historical cost less impairment. Trademarks with an indefinite useful life are not amortized, and those with a finite useful life are amortized over the term of the trademark. c) Property rights Property rights arise from an intangible asset received as a shareholder contribution (El Pelรณn de la Bajura S.A.) to the subsidiary Grupo ACI S.A. in Costa Rica, and is amortized using the straight-line method over a 20-year term. d) Software licenses Intangible assets with a finite useful life are mainly software, which have all been acquired from third parties. The Group has defined that their useful life ranges from 3 to 5 years. e) Rights Water rights and rights to liquid industrial waste are shown here, which are recorded at the historic cost and have an indefinite useful life. These rights are not amortized because they are perpetual and do not require renewal. However, they are subject to annual impairment testing.

56

Movements in intangible assets as of March 31, 2018 are as follows:

Items (Unaudited) Opening balance as of 01/01/2018 Accumulated amortization and impairment Additions during the period Closing balance as of 3/31/2018

Aquaculture concessions ThUS$

Effluent Water Trademark Property disposal rights rights rights rights ThUS$ ThUS$ ThUS$ ThUS$

Others ThUS$

Total ThUS$

32,179

2,434

5,692

1,070

406

1,187

42,968

(3)

-

(2)

(26)

-

(45)

(76)

5

-

-

-

-

143

148

32,181

2,434

5,690

1,044

406

1,285

43,040

Effluent Water Trademark Property disposal rights rights rights rights ThUS$ ThUS$ ThUS$ ThUS$

Others ThUS$

Total ThUS$

Movements in intangible assets as of December 31, 2017 are as follows:

Items (Audited) Opening balance as of 01/01/2017 Accumulated amortization and impairment Increase due to the acquisition of interests Additions during the year Closing balance as of 12/31/2017

Aquaculture concessions ThUS$ 32,176

1,361

5,550

1,175

406

751

41,419

(1)

(111)

(8)

(105)

-

(169)

(394)

4

99

-

-

-

-

103

-

1,085

150

-

-

605

1,840

32,179

2,434

5,692

1,070

406

1,187

42,968

The aquaculture concessions and water rights are as follows. a) Owned water rights: The Company has 122 water rights with a total volume of 66,672.99 liters per second (l/s). Note: Five of these rights are for variable flows, depending on the dry season month, in which case the flow rates were calculated as the geometric mean.

57

Water rights (unaudited): N째 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

N째 DGA 63 240 443 205 235 261 219 281 345 427 492 559 354 397 514 309 506 575 682 117 678 883 547 211 231 993 1152 121 426 532 5 6 129 195 242 16

Year 1988 1988 1988 1989 1989 1989 1990 1990 1990 1990 1990 1990 1991 1991 1991 1993 1995 1995 1995 1996 1996 1996 1997 1998 1998 1998 1998 1998 1999 1999 2000 2000 2000 2000 2000 2001

Region MR MR MR X X X X X X X X X IX IX IX X X MR X X X X IX XI XI X X IX IX IX XI XI X X X X

N째 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72

N째 DGA 26 188 292 323 443 1022 117 118 278 81 82 85 147 155 192 193 194 223 364 466 467 90 118 122 125 201 383 384 385 290 293 7 13 470 51 199

Year 2001 2001 2002 2002 2002 2002 2003 2003 2003 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2006 2006 2006 2007 2007

Region X X X X X IX X X IX X X X X IX X X X X X X X X XI XI XI XI X X X X X XI XI X IX XI

58

N째 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96

N째 DGA 232 10 11 12 26 32 62 168 223 479 67 72 73 91 116 117 147 217 279 81 82 98 107 149

Year 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010

Region XI XI XI XI XI IX X X X IX X XI XI X X X XIV IX X X X X XIV X

N째 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122

N째 DGA 153 163 186 209 244 251 265 292 393 467 538 48 49 182 315 317 56 424 425 426 427 246 507 47 71 140

* Registration number at the General Water Department Summary of water rights Region

Quantity

MR

4

IX

14

X

77

XI

23

XIV

4

Total

122

Year 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2012 2015 2015 2015 2015 2016 2016 2017 2017 2017

Region XI X XI X X X X X X X X XIV XIV X X X X X X X X X X XI XI XI

59

The Company has 166 aquaculture concessions, comprising 154 marine, 1 river and 12 lake concessions, covering a total area of 1,670.17 hectares, comprising 1,588.39 marine hectares, 22.33 river hectares and 59.45 lake hectares.

River and marine aquaculture concessions

Morro Chilco Pocoihuén Pta. Serapio (Cochamó) Pta. Zenteno (Canutillar) Sotomó Caicura Capera Chaicas Ensenada Quetén Herradura Huelmo Huenquillahue Isla Guar Isla Queullín La Arena Puqueldón Chidhuapi Estero Machildad Quinched Abtao Huapi Paso Quenu Quilque Sur Chauques Quetalco Quiquel I Quiquel II Teguel, Sector I Teguel, Sector II Teguel, Sector III Teguel, Sector IV La Estancia Pangue Tauco Yutuy Detif Ichuac Liucura (Cahueldao) Paildad Lille 1

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-1 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-3 X-4 X-4

1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 3a 3a 3a 3b 3b 3b 3b 8 9a 9a 9a 9a 9a 9a 9a 10a 10a 10a 10a 10b 10b 10b 11 12a

Cochamo Cochamo Cochamo Cochamo Cochamo Hualaihue Pto Montt Pto Montt Hualaihue Pto Montt Pto Montt Pto Montt Calbuco Calbuco Pto Montt Pto Montt Calbuco Calbuco Calbuco Calbuco Calbuco Calbuco Calbuco Quemchi Dalcahue Dalcahue Dalcahue Dalcahue Dalcahue Dalcahue Dalcahue Castro Castro Chonchi Castro Puqueldón Puqueldón Puqueldón Queilen Quellón

Marine Marine Marine Marine Marine Marine Marine Marine Marine Marine Marine Marine Marine Marine Marine Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater

4.29 0.24 24.57 6.81 8.92 3.95 18.00 4.29 62.50 22.50 62.51 61.58 40.00 58.25 1.00 18.00 5.84 2.78 2.47 10.15 5.00 12.65 9.00 65.96 21.16 6.42 4.20 3.24 3.24 3.24 3.24 10.12 9.00 7.95 5.21 16.80 17.43 27.63 7.14 12.00

Other **

Concession *

Sanitary fallow period

Municipality

Operating

Concession district

Surface area (ha)

101941 104065 101272 101581 101768 102882 101295 101975 102039 101296 100123 100124 100974 101989 101498 101294 100219 100221 100220 100182 102049 101292 102255 101987 100411 100222 100223 102007 102008 102009 102010 100981 100208 100416 100674 100679 100245 100680 101604 102072

Name

Macro zone

SIEP Code

Region

Status as of 3/31/2018 (Unaudited)

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

60

Mauchil Piedra Blanca Punta Lille 2 Punta Paula Punta Pelú Punta White Quellón Viejo Yaldad Yelcho Guamblad San Pedro Yatac Ayacara Buill Ica Betecoi Caleta Momia Cuervo Cuervo Norte El Pino Fresia Sur Fresia Weste Guaitecas II Lagreze Norte LagrezeWeste Laguna Cuervo Repollal Isla Chaffers Canal Avellano 1 Canal Avellano 2 Canal Pérez Norte Estero Fino, sector 2 Norte Isla Valverde Ab del Krim Albo Benjamín Brieva Caleta Madina Canal Temuan Carabelas Isla Sierra Jesús 1 Jesús 2 Jesús 3 Jesús Sur 1

X X X X X X X X X X X X X X X XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI

X-4 X-4 X-4 X-4 X-4 X-4 X-4 X-4 X-4 X-4 X-4 X-4 X-5 X-5 X-5 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1

12a 12a 12a 12a 12a 12a 12a 12a 12a 12b 12b 12b 16 16 16 18a 18a 18a 18a 18a 18a 18a 18a 18a 18a 18a 18a 18c 18c 18c 18c 18c 18c 21b 21b 21b 21b 21b 21b 21b 21b 21b 21b 21b 21b

Quellón Quellón Quellón Quellón Quellón Quellón Quellón Quellón Quellón Quellón Quellón Quellón Chaitén Chaitén Chaitén Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Guaitecas Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes

Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater

10.00 18.00 7.42 12.00 8.26 10.00 3.48 7.15 7.03 7.21 8.03 8.44 3.47 2.36 0.67 9.99 3.04 6.08 3.03 6.00 7.28 2.02 5.00 9.91 6.08 4.35 10.09 4.00 3.00 6.00 10.00 4.00 56.00 6.00 4.00 4.55 3.75 4.00 4.50 4.12 4.50 4.50 4.50 4.50 4.50

Other **

Concession *

Sanitary fallow period

Municipality

Operating

Concession district

Surface area (ha)

102391 102064 102159 102071 102096 102073 102385 102085 102154 102063 102062 101045 103312 102906 102907 110190 110489 110405 110610 110191 110377 110580 110704 110189 110490 110263 110264 110502 110705 110710 110523 110447 110397 110252 110609 110491 110496 110539 110497 110498 110408 110465 110468 110467 110460

Name

Macro zone

SIEP Code

Region

Status as of 3/31/2018 (Unaudited)

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

61

110136 110149 110584 110126 110127 110209 110204 110205 110234 110916 110849 110206 110111 110110 110414 110221 110223 110243

Jesús Sur 2 Jesús Sur 3 Lalanca Mauricio Puerto Español Teresa 1 Teresa 2 Teresa 3 Teresa Norte Teresa Sur 1 Teresa Sur 2 Transito 1 Transito 2 James 1 James 2 James 3 Melchor 4 Kent 1 Kent 2 Melchor 5 Melchor 7 Isla Chaculay Chacabuco Ensenada Pérez Estero Frío Fontaine Luma Punta Yelcho - Caleta Bluff Canal Luchín Las Huichas Pangal 1 Pangal 2 Pangal 3 Pangal 4 Canalad 1 Canalad 2 Canalad 3 Canalad 4 E. Magdalena Punta Aguada Punta Bennett Ayacucho Demhart Gala medio / Estero del medio Gala Sur / Estero Sur

4.50 6.00 6.00 4.50 4.50 3.82 4.50 4.47 4.50 6.00 6.00 4.50 4.50 6.77 9.50 2.37 6.77 6.74 4.04 13.55 13.75 5.25 1.34 10.00 3.22 3.04 1.00

Other **

Concession *

Sanitary fallow period

Municipality

Operating

Concession district

Surface area (ha)

110536 110249 110406 110661 110540 110505 110503 110449 110538 110245 110247 110504 110537 110439 110435 110443 110433 110446 110445 110437 110434 110619 110005 110208 110242 110039 110138

Name

Macro zone

SIEP Code

Region

Status as of 3/31/2018 (Unaudited)

XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI

XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 XI-1 Corridor Corridor Corridor XI-2 XI-2 XI-2 XI-2 XI-2 Corridor Corridor Corridor Corridor Corridor Corridor

21b 21b 21b 21b 21b 21b 21b 21b 21b 21b 21b 21b 21b 21c 21c 21c 21c 22a 22a 22b 22b 28a 28b 28b 28b 28b 28b

Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén Aysén

Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater

X X

XI

Corridor

28b

Aysén

Seawater

2.00

X

XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI

XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3

30a 30b 31a 31a 31a 31a 31b 31b 31b 31b 31b 32 32 33 33

Aysén Aysén Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes

Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater

27.00 5.00 50.60 50.60 12.14 12.50 12.50 13.23 24.85 8.75 12.50 1.00 1.00 2.50 6.00

X X

XI

XI-3

33

Cisnes

Seawater

8.00

XI

XI-3

33

Cisnes

Seawater

4.00

X X X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X

110421 110423 110411 110273 110241 110422 110222 110271 110220 110270 110216 110217 110219 110218 110214 110213 110215 110402 110407 110412 120193 120180 120184 103426

Isla Chita Isla Gala Sur Isla Harry Isla Suarez Isla Warney Porvenir II Punta González Punta Porvenir Seno Gato Canal Refugio Cascada El Avellano Estero Mena Isla Ubaldo La Leona Laguna Pedregoso Marchant Coca 2 Coca 3 Punta Guala Ensenada Moreno Nororeste de Isla Torres Punta Oriental Halcones Chico

XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XI XII XII XII XIV

XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 XI-3 Undefined Undefined Undefined N/A

33 33 33 33 33 33 33 33 33 34 34 34 34 34 34 34 34 35 35 35 49a 50b 50b N/A

Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Cisnes Río Verde Río Verde Río Verde Corral

Concession *

Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater Seawater River

2.50 7.50 7.50 13.63 12.50 7.50 6.00 12.50 8.00 12.50 12.35 11.35 8.00 8.00 12.50 12.50 12.50 2.00 1.92 4.00 5.25 5.25 5.25 22.33

Other **

Municipality

Sanitary fallow period

Concession district

Operating

Status as of 3/31/2018 (Unaudited)

Surface area (ha)

Name

Macro zone

SIEP Code

Region

62

X X X X X X X X X X X X X X X X X X X X X X X X

* According to the concession classification indicated in General Fisheries and Aquaculture Law 18,892 Article 67. ** The "Others" classification contains fish farms with no biomass as of March 31, 2018.

Note: The farming standard commonly used by the Group in the salmon and trout harvest considers 2 modules with 10 growing-out cages in each. These 20 cages are typically 30m x 30m with a depth of 15m, which implies an approximate area of use of 1.8 hectares per concession.

63

Aquaculture concessions in lakes Aquaculture concessions in lakes total 59.45 hectares as of the reporting date, as follows:

100390 100394 101291 100678 100370 100369 100545 100522 110048 110037 110038 110075

Region

Bahía El Volcán Chapo Desagüe 1 Chapo Desagüe 2 Colulí Ensenada Bahía 1 Ensenada Bahía 2 Puerto Octay Rupanco Lago Riesco 1 Lago Riesco 2 Lago Riesco 3 Laguna Los Palos TOTAL

X X X X X X X X XI XI XI XI

Municipality

Puerto Varas Puerto Montt Puerto Montt Puerto Montt Puerto Octay Puerto Octay Puerto Octay Puerto Octay Aysén Aysén Aysén Aysén

Approved hectares

Aquaculture Concession *

1.70 0.07 5.99 2.90 0.38 0.94 1.00 12.50 3.21 10.00 19.76 1.00 59.45

Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake

Others ***

Name

Sanitary fallow period

SIEP Code **

Operating

Status as of 3/31/2018 (Unaudited)

X X X X X X X X X X X X

* According to the concession classification indicated in General Fisheries and Aquaculture Law 18,892 Article 67. ** SIEP: Sistema de Información de Estadísticas Pesqueras del Servicio Nacional de Pesca (Fisheries Statistical Information System from the National Fishing Service (Sernapesca)). *** The "Others" classification contains fish farms with no biomass as of March 31, 2018.

Summary of aquaculture concessions

Region X

Marine and river Total surface Quantity area (hectares) 55 782.8

XI

95

789.84

In use as of 3/31/2018 23

Lakes Total surface Quantity area (hectares) 8 25.48

In use as of 3/31/2018 1

15

4

33.97

2

XII

3

15.75

-

-

-

-

XIV

1

22.33

1

-

-

-

Total

154

1,610.72

39

12

59.45

3

The Group is using 39 marine and river aquaculture concessions, and 3 lake aquaculture concessions as of March 31, 2018.

64

b)

Leased assets

The Group has not leased any water rights or marine concessions.

The Group has leased two 42.5-hectare lake concessions, as follows.

Owner

Lessee

Location

Hectares

Víctor Hugo Puchi Acuña

AquaChile S.A.

Puerto Fonck

1.0

Australis Mar S.A.

Empresas AquaChile S.A.

Patranca

6.0

Salmoconcesiones XI Region S.A.

Empresas AquaChile S.A.

Canalad SW

16.0

Salmoconcesiones XI Region S.A.

Empresas AquaChile S.A.

Pilcomayo

19.5

Total

42.5

NOTE 15 – GOODWILL Goodwill is the excess acquisition cost over the fair value of the Company's share of the net identifiable assets at the acquired company on the acquisition date.

Acquired goodwill as of the reporting date is as follows.

3/31/2018 Investor

Issuer

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

1,981

1,981

Antarfood S.A.

Aguas Claras S.A.

AquaChile S.A.

Pesquera Antares S.A.*

985

985

AquaChile S.A.

Salmones Australes S.A.

122

122

AquaChile S.A.

Salmones Cailín S.A.

1,471

1,471

AquaChile S.A.

Pesquera Palacios S.A.*

445

445

Aguas Claras S.A.

Salmones Australes S.A.

1,282

1,282

Empresas AquaChile S.A.

Salmones Chiloé S.A. **

18,398

18,398

Empresas AquaChile S.A.

Salmones Maullín S.A.

18,686

18,686

Empresas AquaChile S.A.

Alitec Pargua S.A.

3,819

3,819

Empresas AquaChile S.A.

Salmones Maullín Ltda.

12

12

Empresas AquaChile S.A.

Salmones Chaicas S.A.***

9,977

9,977

Salmones Chiloé S.A.

Procesadora Hueñocoihue SpA

1,799

1,799

Grupo ACI

Aquacorporacion Internacional S.A.

4,247

4,247

63,224

63,224

Total

* Merged with AquaChile S.A. ** Merged with Aguas Claras S.A. *** Goodwill arising on the acquisition of the remaining 80.30% interest in Salmones Chaicas S.A. Management has not observed any evidence of impairment with respect to goodwill.

65

Movements in acquired goodwill as of March 31, 2018 are as follows.

3/31/2018 Movements in goodwill (unaudited)

ThUS$

Opening balance as of 1/01/2018

63,244

Increases from acquiring interests *

-

Closing balance as of 3/31/2018

63,224

Movements in acquired goodwill as of December 31, 2017 are as follows.

12/31/2017 Movements in goodwill (audited)

ThUS$

Opening balance as of 01/01/2017

53,247

Decreases for disposals

9,977

Closing balance as of 12/31/2017

63,224

* Goodwill arising on the acquisition of the remaining 80.30% interest in Salmones Chaicas S.A. NOTE 16 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of March 31, 2018 is as follows: Property, plant and equipment (unaudited) Land Buildings and construction Plant and equipment IT equipment Fixtures and fittings Motor vehicles Total

Gross value ThUS$ 40,921 186,465 258,959 4,126 13,524 3,954 507,949

Accumulated depreciation ThUS$ (105,941) (197,717) (2,599) (2,947) (3,363) (312,567)

Net value ThUS$ 40,921 80,524 61,242 1,527 10,577 591 195,382

Property, plant and equipment as of December 31, 2017 is as follows: Property, plant and equipment (audited) Land Buildings and construction Plant and equipment IT equipment Fixtures and fittings Motor vehicles Total

Gross value ThUS$ 40,921 185,300 252,337 4,005 10,429 4,014 497,006

Accumulated depreciation ThUS$ (105,489) (191,361) (2,518) (2,857) (3,333) (305,558)

Net value ThUS$ 40,921 79,811 60,976 1,487 7,572 681 191,448

66

Movements in property, plant and equipment as of March 31, 2018 were as follows.

Movements in property, plant and equipment, net

Opening balance as of 01/01/2018

Additions **

Disposals ***

Depreciation expense

Transfers

Other increases (decreases)

Closing balance as of 03/31/2018

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Land

40,921

-

-

-

-

-

40,921

Buildings and construction, net

79,811

360

(1,370)

(2,783)

4,504

-

80,524

Plant and equipment, net

60,976

5,773

(19)

(4,579)

(909)

-

61,242

IT equipment, net

1,487

130

(4)

(87)

1

-

1,527

Fixtures and fittings, net

7,572

6,658

(7)

(50)

(3,596)

-

10,577

681 191,448

12,923

(1,400)

(90) (7,589)

-

-

591 195,382

Motor vehicles, net Total

Movements in property, plant and equipment as of December 31, 2017 were as follows: Opening balance as of 01/01/2017

Increases from acquiring interests *

Additions **

Disposals ***

Depreciation expense

Transfers

Other increases (decreases)

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Land

41,008

660

114

(861)

-

-

-

40,921

Buildings and construction, net

75,760

15,654

1,582

(829)

(12,400)

44

-

79,811

Plant and equipment, net

Movements in property, plant and equipment, net

Closing balance as of 12/31/2017

56,704

3,021

13,893

(578)

(16,614)

4,550

-

60,976

IT equipment, net

1,272

26

584

-

(339)

(56)

-

1,487

Fixtures and fittings, net

3,564

67

9,258

(588)

(191)

(4,538)

-

7,572

1,105 179,413

7 19,435

4 25,435

(149) (3,005)

(286) (29,830)

-

-

681 191,448

Motor vehicles, net Total

* When Salmones Chaicas S.A. was acquired. ** Additions to property plant and equipment were ThUS$9,152 (ThUS$1,497 as of March 31, 2017). *** Includes positive cash flow of ThUS$46 on the sales of property, plant and equipment to third parties (ThUS$332 as of March 31, 2017).

67

Estimated useful lives or depreciation rates Estimated useful lives by asset are as follows.

Buildings Plant and equipment Fixtures and fittings Motor vehicles Other property, plant and equipment IT equipment

Minimum life or rate Years 10 3 3 7 3 3

Maximum life or rate Years 50 15 20 7 10 6

Residual values and useful lives are reviewed and adjusted at each reporting date, if necessary. a) Financial leases Assets acquired under finance leases are classified as “Other property, plant and equipment”. b) Subsequent costs (replaced components, improvements, expansion, etc.) are included in the asset’s initial value or are recognized as separate assets only when it is probable that future financial benefits associated with the fixed asset will be received by the Group and the cost of the fixed asset can be reliably measured. The value of the component replaced is expensed. Any remaining repairs and maintenance are expensed in the period they are incurred.

As of March 31, 2018, the company carried insurance under which claims are being made (see Note 33.a).

NOTE 17 - CURRENT AND DEFERRED INCOME TAXES Deferred taxes are the income taxes that Empresas AquaChile S.A. and its subsidiaries will have to pay (liabilities) or receive (assets) in future periods, related to temporary differences between the tax value and the accounting value of certain assets and liabilities.

The Group’s main deferred tax assets is the accumulated losses of some of its subsidiaries, which will be recoverable in future periods. The main deferred tax liability payable in future periods comes from temporary differences in manufacturing costs, revaluing biological assets and revaluing property, plant and equipment as of the transition date to IFRS, in 2013 for land, and the application of accelerated depreciation for tax purposes.

68

Deferred tax assets as of March 31, 2018 and December 31, 2017 are as follows: 3/31/2018 Description

12/31/2017

Deferred tax assets

Deferred tax liabilities

Deferred tax assets

Deferred tax liabilities

ThUS$

ThUS$

ThUS$

ThUS$

Unaudited

Audited

Manufacturing costs

-

22,080

-

19,273

Accelerated depreciation

-

9,203

-

9,474

Fair value of biological assets

-

7,844

-

6,272

Concessions

674

997

674

997

Tax losses

93,445

-

97,918

-

Provisions

1,888

48

2,270

-

91

8,269

100

8,313

Inventory revaluation

5

-

5

-

Intangible assets

-

755

-

755

Intangible assets

-

-

-

31

Property, plant and equipment

Others

-

844

-

874

Prepaid income

5,112

-

5,397

189

CIF sales adjustment

1,195

-

521

-

Turnover costs

-

105

-

161

Bank charges

-

630

-

681

Capitalized CORFO costs

-

65

-

65

Net realizable value provisions on finished products

171

-

271

-

Tax goodwill

761

-

823

-

Unrealized gains on finished products Total Net Total

800

-

1,209

-

104,142

50,840

109,188

47,085

57,031

3,729

65,841

3,738

69

Deferred tax assets and liabilities are presented net for each company in the financial statements as of March 31, 2018 and December 31, 2017 as follows:

Company

Deferred tax assets ThUS$

3/31/2018 Deferred tax liabilities ThUS$

12/31/2017 Deferred tax Deferred tax Net value assets liabilities ThUS$

ThUS$

Unaudited

ThUS$

Net value ThUS$

Audited

Aguas Claras S.A.

287

1,135

(848)

287

1,162

(875)

Antarfish S.A.

164

-

164

140

1

139

Antarfood S.A.

2,894

234

2,660

2,912

234

2,678

Piscicultura Aquasan S.A.

3,271

1,894

1,377

3,545

1,664

1,881

Procesadora Aguas Claras Ltda.

922

1,443

(521)

1,064

1,461

(397)

Procesadora Hueñocoihue SpA.

2,938

-

2,938

2,850

-

2,850

Servicios Aguas Claras S.A.

7,880

-

7,880

7,424

-

7,424

Laboratorio Antares S.A.

11

-

11

8

-

8

AquaChile S.A.

3,127

1,127

2,000

3,423

1,530

1,893

Aquainnovo S.A.

1,558

65

1,493

1,419

65

1,354

4

-

4

13

31

(18)

51

55

(4)

51

55

(4)

Centro de Innovación Aquainnovo-Biomar S.A.ˡ Salmones Australes S.A. Salmones Cailín S.A. Salmones Maullín Ltda.

Salmones Maullín S.A. Inversiones Salmones Australes Ltda.

Empresas Aquachile S.A. Salmones Chaicas S.A.²

347

234

113

287

234

53

6,596

-

6,596

6,643

-

6,643

62

-

62

59

-

59

1

-

1

1

-

1

60,133

27,380

32,753

68,134

26,024

42,110

352

352

352

42

-

42

90,598

33,567

57,031

98,302

32,461

65,841

Alitec Pargua S.A.

-

694

(694)

-

678

(678)

Grupo ACI S.A.

-

3,035

(3,035)

-

3,060

(3,060)

Net asset value

Net liability value

(3,729)

(3,738)

70

Deferred tax assets from tax losses were ThUS$93,445 as of March 31, 2018 (ThUS$97,918 as of December 31, 2017). These losses can be offset against taxable income for the companies that meet this condition in the future, as follows.

Deferred tax from tax losses in:

Deferred taxes for tax losses 3/31/2018 12/31/2017 Subsidiaries AquaChile S.A.

Change with effect on income 3/31/2018

Deferred taxes for tax losses 12/31/2017 12/31/2016

Change with effect on income and equity 12/31/2017

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Unaudited

Audited

Unaudited

Audited

Audited

Audited

3,942

3,861

81

3,861

3,419

442

Empresas AquaChile S.A.

63,027

68,636

(5,609)

68,636

86,925

(18,289)

Antarfish S.A.

15,322

15,102

220

15,102

17,371

(2,269)

8,082

8,146

(64)

8,146

8,725

(579)

257

257

-

257

401

(144)

Salmones MaullĂ­n S.A. Alitec Pargua S.A. Salmones Chaicas S.A. Total

2,815

1,916

2,815

1,916

-

1,916

93,445

97,918

(2,557)

97,918

116,841

(18,923)

There is no limitation period for tax losses to be offset against future earnings for companies incorporated in Chile. However, tax losses for companies incorporated in Costa Rica are subject to a limitation period of 3 years.

71

Movements in deferred tax assets and liabilities are as follows:

Deferred tax movements

Opening balance Provisions Prepaid income Manufacturing costs Accelerated depreciation Fair value of biological assets Tax losses Increases from acquiring interests * Property, plant and equipment Net realizable value provisions on finished products Insurance receivable Others CIF sales adjustment Turnover costs Bank charges Capitalized CORFO costs Tax goodwill Unrealized gains on finished products Closing balance

3/31/2018 Deferred tax Deferred tax assets liabilities ThUS$ ThUS$ Unaudited 109,188 47,085 (319) 48 (285) (1) 2,777 (275) 1,572 (4,534) (10) (43) (101) (31) (195) 674 (56) (42) (62) (408) 104,142 50,840

Net Total

57,031

12/31/2017 Deferred tax Deferred tax assets liabilities ThUS$ ThUS$ Audited 127,072 43,000 (42) (9) 210 189 5,227 (2,000) (429) (21,139) 2,242 1,102 (39) (83) 158 31 41 (363) 140 (124) (61) (59) 1,209 109,188 47,085

3,729

65,841

3,738

* Added because of the acquisition of Salmones Chaicas S.A. on February 14, 2017.

Income taxes are as follows.

Income taxes for national and foreign companies are as follows:

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

(96)

(7,463)

Effect of deferred taxes

(8,801)

(115)

Total current taxes

(8,897)

(7,578)

Deferred taxes Current tax expense

72

A reconciliation between the income tax expense using the statutory rate and the effective rate is as follows.

Reconciliation of the income tax expense

3/31/2018

Income tax expense using the statutory rate Tax effect of rates in other jurisdictions Effect of permanent differences

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

(8,630)

(6,571)

21

(128)

-

(183)

Other statutory tax expenses

(288)

(696)

Total

8,897

(7,578)

NOTE 18 - OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Empresas AquaChile S.A. and its subsidiaries had loans with financial institutions as of March 31, 2018 and December 31, 2017 as follows:

Interest bearing loans, current

Currency

Maturing in less than twelve months Bank interest payable Swap Refinancing costs Total

US dollar US dollar US dollar US dollar

Interest bearing loans, non-current

Currency

Maturing in more than twelve months Leasing obligations Total

US dollar US dollar

3/31/2018 ThUS$ Unaudited 27,454 2,681 83 (2,335) 27,883

12/31/2017 ThUS$ Audited 27,501 297 41 (2,491) 25,348

3/31/2018 ThUS$ Unaudited 192,520 526 193,046

12/31/2017 ThUS$ Audited 192,788 595 193,383

The Group recorded ThUS$2,624 in loan repayments as of March 31, 2018 (ThUS$72,180 as of December 31, 2017), ThUS$356 in interest payments (ThUS$15,273 as of December 31, 2017), and ThUS$2,430 for loans received (ThUS$7,371 as of December 31, 2017).

On December 22, 2016, Empresas AquaChile S.A. signed an agreement with a group of creditor banks, comprising Rabobank, DNB, BBVA, BCI, Santander, Banco de Credito del PerĂş (which later assigned its interest to Rabobank), Banco de Chile and Banco Estado. The terms and conditions contained rescheduled financing and liabilities with a final 5 year term.

73

A summary of the principal refinancing agreements are as follows. a.- The rescheduled loan is up to ThUS$251,000 and comprises two tranches: one repayable for ThUS$150,000 and a revolving line of credit for ThUS$101,000. Both tranches with a final 60 month term. The repayable tranche has minimum capital repayments over time, which could be increased if permitted by the Group’s cash flow. b.- The interest rate is 180-day LIBOR plus a variable margin, which will be defined for each period based on capital levels (measured using the Equity Ratio1) and debt coverage (measured as Adjusted NIBD / Adjusted EBITDA2) for the previous period. For the first period, the margin over LIBOR was 4.50%pa, while for the second six-month period, that began on June 22, 2017, the margin fell to 4.25%pa.

According to indicators as of June 30 and December 31, 2017, the variable margin applicable is 3% for the 6-month period that began December 22, 2017 and for the one that will begin June 22, 2018. c.- Additionally, specific financial ratios must be met.

These obligations include compliance with specific financial ratios (covenants) calculated on the consolidated interim financial statements of Empresas AquaChile S.A. as of March 31, 2018 and as of March 31, June 30, September 30 and December 31, of successive years. These ratios are the Equity Ratio, Net Adjusted Financial Debt/Adjusted EBITDA, Current Liquidity, and Borrowing Limits.

Financial Covenants * Equity Ratio1 Adjusted NIBD / Adjusted EBITDA2 Current Liquidity3 Borrowing Limit (US$ millions)4

≥ ≤ ≥ ≤

2017-2021 42.50% 4.50x 1.20x 280

(1) Equity Ratio: Ratio between "Total equity" and "Total assets” in the consolidated statements of financial position.

(2) Adjusted NIBD / Adjusted EBITDA: The sum of the following accounts in the consolidated financial statements: /a/ Other financial liabilities, current; plus /b/ Other financial liabilities, non-current; plus /c/ Supplier’s liabilities payable in over one hundred and twenty days; less /d/ Cash and cash equivalents. Excluding any current and noncurrent financial liability, supplier’s liability payable in over one hundred and twenty days and cash and cash equivalents at Grupo ACI, Alitec Pargua S.A. and Salmones Chaicas S.A. Divided by the Adjusted EBITDA for the last twelve months defined as follows. /a/ Operating revenue; less /b/ Costs of sales; less /c/ Administrative expenses; less /d/ Distribution costs; plus /e/ Depreciation and amortization expenses, excluding these amounts under /a/, /b/, /c/, /d/ and /e/ for Grupo ACI S.A., Alitec Pargua S.A. and Salmones Chaicas S.A. (3) Current Liquidity: Total current assets divided by total current liabilities, though excluding from the latter all the restructured obligations, as the fish biomass excluded from harvesting plans for the next twelve months will be excluded from current assets.

(4) Borrowing Limit: The sum of the following accounts in the consolidated financial statements: /a/ Other financial liabilities, current, and /b/ Other financial liabilities, non-current.

74

Financial indicators as of March 31, 2018 are as follows.

Equity Ratio: Total equity / Total assets > or equal 42.5% a) Total equity b) Total assets Equity Ratio ( a / b )

3/31/2018 ThUS$ Unaudited 410,334 824,546 49.8%

The limit for this covenant is 42.5% and therefore it is fulfilled Net Adjusted Financial Debt / Adjusted EBITDA for the last twelve months < or equal to 4.5x

3/31/2018 ThUS$

i) Net Adjusted Financial Debt: a) Other financial liabilities, current b) Other financial liabilities, non-current c) Suppliers liabilities payable in over 120 days d) Less: Cash and cash equivalents

Unaudited 13,778 178,026 3,605 (60,841)

Total Net Adjusted Financial Debt (a + b + c - d) ii) Adjusted EBITDA (for the last 12 months): a) Operating revenue b) Cost of sales Less: c) Administration expenses d) Distribution costs Plus: e) Depreciation and amortization expense Total EBITDA for the last twelve months (a - b - c - d + e) Net Adjusted Financial Debt / Adjusted EBITDA

134,568

498,563 (378,100) (10,235) (13,434) 26,977 123,770 1.09

The limit for this covenant is 4.50x and therefore it is fulfilled Current Liquidity > or equal to 1.20x a) Total current assets i) Less: Biological assets harvested in over 12 months b) Current liabilities * ii) Less: Restructured obligations * Current Liquidity (a - i) / (b - ii)

3/31/2018 ThUS$ Unaudited 434,060 (25,555) 191,410 (13,691) 2.30

The limit for this covenant is 1.20x and therefore it is fulfilled * These are the obligations restructured on December 22, 2016 and presented within current liabilities Borrowing Limit < or equal to US$280 million a) Other financial liabilities, current b) Other financial liabilities, non-current Borrowings (a + b) The limit for this covenant is US$280 million and therefore it is fulfilled

3/31/2018 ThUS$ Unaudited 27,883 193,046 220,929

75

d.- The contract includes mandatory and early voluntary repayments, specific information obligations, and other restrictions that are standard for such agreements. e.- 151 maritime aquaculture concessions have been pledged with a book value of ThUS$21,880 as of March 31, 2018, which belong to Empresas Aqua Chile S.A., Aguas Claras S.A., Salmones Maullín Ltda., AquaChile S.A. and Salmones Cailin S.A. Five facilities have also been given in guarantee with a book value of ThUS$30,190 as of March 31, 2018. The Group has established additional guarantees in favor of the creditor banks with a commercial value of ThUS$35,000. f.- Aguas Claras S.A., Salmones Maullín Ltda. and AquaChile S.A. are joint and several guarantors in favor of the Banks, to guarantee fulfillment of the obligations assumed by the borrowers, under the terms, conditions and limitations defined in the contract. g.- Shares in AquaChile S.A., Salmones Maullín S.A., Aguas Claras S.A., and Antarfish S.A. have been pledged in favor of the creditors, to guarantee compliance with all their obligations. h.- On December 29, 2011, a financing contract was signed between Salmones Chaicas S.A. and Rabobank Chile S.A. for ThUS$12,500, with repayments beginning on April 30, 2013 at six-monthly installments of ThUS$893.

On October 27, 2016, the installment due on October 30, 2016 was divided into two equal installments of ThUS$446 each, one due on October 30, 2017 and the other on April 30, 2018.

The interest payable on this contract is based on 6 Month Libor plus 5.09%pa, which includes an insurance premium for a policy with EKF. On February 10, 2015, a loan of ThUS$2,000 was agreed from Rabobank that matures on January 30, 2017 with six-monthly interest payments. It covers the renewal of ThUS$1,000 which matured in January 2016, plus an additional ThUS$1,000.

On January 25, 2017, the payment date for the Promissory Note of ThUS$2,000 that was due on January 30, 2017, was extended and modified into four equal semi-annual installments of ThUS$500 plus interest, due on June 30, 2017, December 30, 2017, June 30, 2018 and December 30, 2018.

76

The loans held by Empresas AquaChile S.A. and its subsidiaries as of March 31, 2018 and December 31, 2017 are as follows. a) Current loans 3/31/2018 (Unaudited)

Country

Creditor Name

Currency

Repayments

Effective Rate

Nominal Rate

Guarantees

Total current as of 3/31/2018

Current due date Up to 1 1 to 3 3 to 12 month months months ThUS$

ThUS$

ThUS$

ThUS$

Holland

Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.

US$

Semi-annual

4.81%

4.81%

Secured

-

2,268

2,204

4,472

Norway

DNB Bank ASA

US$

Semi-annual

4.81%

4.81%

Secured

-

1,638

1,592

3,230

Chile

Banco BBVA

US$

Semi-annual

4.81%

4.81%

Secured

-

1,260

1,225

2,485

Chile

Banco de Créditos e Inversiones

US$

Semi-annual

4.81%

4.81%

Secured

-

970

943

1,913

Chile

Banco Santander

US$

Semi-annual

4.81%

4.81%

Secured

-

504

490

994

Chile

Banco Chile

US$

Semi-annual

4.81%

4.81%

Secured

-

164

159

323

Chile

Banco Estado

US$

Semi-annual

4.81%

4.81%

Secured

-

139

135

274

Norway

DNB Bank ASA

US$

Quarterly

3.83%

3.83%

Secured

-

5,024

-

5,024

Chile

RaboFinance Chile S.A.

US$

Semi-annual

6.39%

6.39%

Secured

-

516

500

1,016

Chile

RaboFinance Chile S.A.

US$

Semi-annual

6.67%

6.67%

Secured

-

1,452

893

2,345

Costa Rica

BCT (loan facility)

US$

Monthly

7.75%

7.75%

Secured

1,471

1,029

-

2,500

Costa Rica

BCR$ (portion in circulation) BCR

US$

Monthly

6.25%

6.25%

Secured

62

126

587

775

Costa Rica

BCR (loan facility)

US$

Monthly

6.00%

6.00%

Secured

1

325

1,674

2,000

Costa Rica

BCT- portion in lease

US$

Monthly

9.00%

9.00%

Unsecured

3

9

25

37

Costa Rica

BNCR$ (portion in circulation) BCT

US$

Monthly

6.25%

6.25%

Secured

33

66

311

410

Chile

Forum Servicios Financieros S.A.

US$

Monthly

0.99%

0.99%

Unsecured

-

-

2

2

Chile

IM TRUST

US$

Monthly

N/A

N/A

N/A

-

83

-

83

1,570

15,573

10,740

27,883

Total

77

12/31/2017 (Audited)

Country

Creditor Name

Currency

Repayments

Effective Rate

Nominal Rate

Guarantees

Total current as of 12/31/2017

Current due date Up to 1 1 to 3 3 to 12 month months months ThUS$

ThUS$

ThUS$

ThUS$

Holland

Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.

US$

Semi-annual

4.81%

4.81%

Secured

-

-

3,672

3,672

Norway

DNB Bank ASA

US$

Semi-annual

4.81%

4.81%

Secured

-

-

2,652

2,652

Chile

Banco BBVA

US$

Semi-annual

4.81%

4.81%

Secured

-

-

2,040

2,040

Chile

Banco de Crédito e Inversiones

US$

Semi-annual

4.81%

4.81%

Secured

-

-

1,570

1,570

Chile

Banco Santander

US$

Semi-annual

4.81%

4.81%

Secured

-

-

816

816

Chile

Banco Chile

US$

Semi-annual

4.81%

4.81%

Secured

-

-

265

265

Chile

Banco Estado

US$

Semi-annual

4.81%

4.81%

Secured

-

-

224

224

Norway

DNB Bank ASA

US$

Quarterly

3.04%

3.04%

Secured

-

5,022

-

5,022

Chile

RaboFinance Chile S.A.

US$

Semi-annual

6.00%

6.00%

Secured

-

-

1,000

1,000

Chile

RaboFinance Chile S.A.

US$

Semi-annual

6.67%

6.67%

Secured

-

-

2,278

2,278

Costa Rica

BCT (line of credit)

US$

Monthly

5.50%

5.50%

Secured

-

1,029

1,471

2,500

Costa Rica

BCR$ (Circulating portion) BCR

US$

Monthly

4.75%

4.75%

Secured

65

137

615

817

Costa Rica

BCR (line of credit)

US$

Monthly

4.75%

4.75%

Secured

1,323

674

-

1,997

Costa Rica

BCT - leasing portion

US$

Monthly

9.00%

9.00%

Unsecured

3

6

27

36

Costa Rica

BNCR$ (Circulating portion) BCT

US$

Monthly

5.31%

5.31%

Secured

33

66

307

406

Chile

Forum Servicios Financieros S.A.

US$

Monthly

0.99%

0.99%

Unsecured

-

-

12

12

Chile

IM TRUST

US$

Monthly

N/A

N/A

N/A

-

-

41

41

1,424

6,934

16,990

25,348

Total

78

b) Non-current loans 31/03/2018 (Unaudited) Non-current due date

Country

Creditor Name

Currency

Repayments

Effective Rate

Nominal Rate

Guarantees

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Over 5 years

Total noncurrent as of 3/31/2018

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Holland

Coöperatieve Centrale RaiffeisenBoerenleenbank B.A.

US$

Semi-annual

4.81%

4.81%

Secured

9,637

4,410

43,938

-

-

57,985

Netherlands Antilles

DNB Bank ASA

US$

Semi-annual

4.81%

4.81%

Secured

6,960

3,185

31,734

-

-

41,879

Chile

Banco BBVA

US$

Semi-annual

4.81%

4.81%

Secured

5,354

2,450

24,410

-

-

32,214

Chile

Banco de Créditos e Inversiones

US$

Semi-annual

4.81%

4.81%

Secured

4,122

1,887

18,797

-

-

24,806

Chile

Banco Santander

US$

Semi-annual

4.81%

4.81%

Secured

2,142

980

9,764

-

-

12,886

Chile

Banco Chile

US$

Semi-annual

4.81%

4.81%

Secured

696

318

3,173

-

-

4,187

Chile

Banco Estado

US$

Semi-annual

4.81%

4.81%

Secured

589

270

2,684

-

-

3,543

Chile

Forum Servicios Financieros S.A.

US$

Monthly

0.99%

0.99%

Secured

526

-

-

-

-

526

Chile

RaboFinance Chile S.A.

US$

Semi-annual

6.67%

6.67%

Secured

1,786

-

-

-

-

1,786

Costa Rica

(Leasing)

US$

Monthly

9.00%

9.00%

Secured

21

-

-

-

-

21

Costa Rica

BCR-BCT

US$

Monthly

6.25%

6.25%

Secured

Total

1,272

2,869

936

998

7,138

13,213

33,105

16,369

135,436

998

7,138

193,046

79

12/31/2017 (audited) Non-current due date

Country

Creditor Name

Currency

Repayments

Effective Rate

Nominal Rate

Guarantees

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Over 5 years

Total noncurrent as of 12/31/2017

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

Holland

Coöperatieve Centrale RaiffeisenBoerenleenbank B.A.

US$

Semi-annual

4.81%

4.81%

Secured

9,637

4,410

43,938

-

-

57,985

Netherlands Antilles

DNB Bank ASA

US$

Semi-annual

4.81%

4.81%

Secured

6,960

3,185

31,734

-

-

41,879

Chile

Banco BBVA

US$

Semi-annual

4.81%

4.81%

Secured

5,354

2,450

24,410

-

-

32,214

Chile

Banco de Crédito e Inversiones

US$

Semi-annual

4.81%

4.81%

Secured

4,122

1,887

18,797

-

-

24,806

Chile

Banco Santander

US$

Semi-annual

4.81%

4.81%

Secured

2,142

980

9,764

-

-

12,886

Chile

Banco Chile

US$

Semi-annual

4.81%

4.81%

Secured

696

318

3,173

-

-

4,187

Chile

Banco Estado

US$

Semi-annual

4.81%

4.81%

Secured

589

270

2,684

-

-

3,543

Chile

Forum Servicios Financieros S.A.

US$

Monthly

0.99%

0.99%

Unsecured

595

-

-

-

-

595

Chile

RaboFinance Chile S.A.

US$

Semi-annual

6.67%

6.67%

Secured

1,786

-

-

-

-

1,786

Costa Rica

(Leasing)

US$

Monthly

9.00%

9.00%

Secured

31

-

-

-

-

31

Costa Rica

BCR-BCT

US$

Monthly

5.25%

5.25%

Secured

Total

1,308

2,999

957

1,009

7,198

13,471

33,220

16,499

135,457

1,009

7,198

193,383

80

c)

Bank reconciliation Opening balance as of 01/01/2018

Other financial liabilities Current Bank loans Interest on bank loans Swap obligations Leasing obligations payable Prepaid leasing interest Refinancing costs Total other financial liabilities, current Non-Current Bank loans Interest on bank loans Leasing obligations payable Prepaid leasing interest Total other financial liabilities, non-current Total other financial liabilities

ThUS$ Audited

Accrued Acquisitions ThUS$ ThUS$ Unaudited

Other changes

Closing balance as of 3/31/2018

ThUS$

ThUS$

27,423 295 41 61 18 (2,490) 25,348

(2,244) (9) (2,253)

(153) (1) (17) (171)

2,430 2,430

2,512 (124) 1 6 155 2,550

(186) 165 (21)

27,423 2,654 82 52 7 (2,335) 27,883

193,586 (798) 604 (9) 193,383 218,731

(301) (70) (371) (2,624)

(186) 1 (185) (356)

2,430

253 253 2,803

(34) (34) (55)

193,285 (765) 534 (8) 193,046 220,929

Accrued

Other changes

Closing balance as of 12/31/2017

ThUS$

ThUS$

ThUS$

Opening balance as of 01/01/2017 ThUS$ Other financial liabilities Current Bank loans Interest on bank loans Swap obligations Leasing obligations payable Prepaid leasing interest Refinancing costs Total other financial liabilities, current Non-Current Bank loans Interest on bank loans Leasing obligations payable Prepaid leasing interest Total other financial liabilities, non-current Total other financial liabilities

Cash Flows Payments Principal Interest ThUS$ ThUS$

Incorporation of Salmones Chaicas ThUS$

Cash Flows Payments Principal Interest Acquisitions ThUS$ ThUS$ ThUS$ Audited

36,236 339 267 107 (3,123) 33,826

3,232 113 (2) 3,343

(71,377) (34) (71,411)

(309) (14,065) (6) 2 (14,378)

7,371 7,371

345 13,908 (2,235) 6 25 633 12,682

51,925 2,009 (12) (7) 53,915

27,423 295 41 61 18 (2,490) 25,348

241,573 (798) 54 (7) 240,822 274,648

5,018 5,018 8,361

(769) (769) (72,180)

(3,953) (3,953) (18,331)

7,371

217 843 17 1,077 13,759

(48,500) (293) (19) (48,812) 5,103

193,586 (798) 604 (9) 193,383 218,731

81

NOTE 19 - TRADE AND OTHER PAYABLES Trade and other payables are as follows: 3/31/2018

Trade and other payables, current

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

113,550

102,975

Employee retentions

1,864

2,154

Vacation provisions

2,911

3,439

Employee remuneration

1,328

2,489

Miscellaneous payables

9,324

9,899

Others

2,770

3,180

131,747

124,136

3/31/2018

12/31/2017

Suppliers

Total

Other payables, non-current

ThUS$

ThUS$

Unaudited

Audited

432

424

Pesquera Pacific Star S.A.*

6,749

7,444

Total

7,181

7,868

Innova Chile

*Cash advances for future deliveries of organic waste.

Trade and other payables, current, as of March 31, 2018 and December 31, 2017 are as follows.

-

Suppliers and other creditors with payments not overdue as of March 31, 2018.

Up to 30 ThUS$ 43,911

31-60 ThUS$ 33,789

61-90 ThUS$ 18,617

91-120 ThUS$ 12,842

121-365 ThUS$ 1,157

Over 365 ThUS$ -

Total ThUS$ 110,316

Miscellaneous payables

8,065

713

-

-

-

-

8,778

Other payables

8,873

-

-

-

-

-

8,873

60,849

34,502

18,617

12,842

1,157

-

127,967

Classification / Days Trade payables

Total not overdue

-

Suppliers and other creditors with payments overdue as of March 31, 2018,

Classification / Days Trade payables Miscellaneous payables Total overdue

Total

Up to 30 ThUS$ 2,326

31-60 ThUS$ 454

61-90 ThUS$ 116

91-120 ThUS$ 19

121-180 ThUS$ 72

Over 180 ThUS$ 247

Total ThUS$ 3,234

18

16

6

6

4

496

546

2,344

470

122

25

76

743

3,780

131,747

82

-

Suppliers and other creditors with payments not overdue as of December 31, 2017

Classification (audited) / Days Trade payables

Up to 30 ThUS$ 42,955

31-60 ThUS$ 29,796

61-90 ThUS$ 15,148

91-120 ThUS$ 9,482

Miscellaneous payables

121-365 Over 365 ThUS$ ThUS$ -

Value ThUS$ 97,381

8,765

1,090

-

-

-

-

9,855

Other payables

11,262

-

-

-

-

-

11,262

Total not overdue

62,982

30,886

15,148

9,482

-

-

118,498

121-180 Over 180 ThUS$ ThUS$ 5 156

Value ThUS$ 5,594

-

Suppliers and other creditors with payments overdue as of December 31, 2017

Classification (audited) / Days Trade payables

Up to 30 ThUS$ 4,190

31-60 ThUS$ 733

61-90 ThUS$ 448

91-120 ThUS$ 62

-

-

-

-

-

44

44

4,190

733

448

62

5

200

5,638

Miscellaneous payables Total overdue

Total

124,136

Trade payables by type of supply as of March 31, 2018 and December 31, 2017 -

Trade payables (not overdue) *: March 31, 2018 Amounts by payment terms

Supply Products

Up to 30 ThUS$ 17,900

31-60 ThUS$ 20,284

Services

26,011

13,505

1,187

Total

43,911

33,789

18,617

-

61-90 ThUS$ 17,430

Total ThUS$ 69,613

Average payment period (days) * 76

-

40,703

42

-

110,316

63

121-365 ThUS$ 1,157

Over 365 ThUS$ -

-

-

12,842

1,157

91-120 ThUS$ 12,842

Trade payables (overdue)**: March 31, 2018 Amounts by payment terms 61-90 91-120 121-180 THUS$ THUS$ THUS$ 116 17 5

Products

Up to 30 THUS$ 1,142

31-60 THUS$ 370

Services

1,184

84

-

2

Total

2,326

454

116

19

Supply

Total

Over 180 THUS$ 38

Total THUS$ 1,688

67

209

1,546

72

247

3,234 113,550

83

-

Trade payables (not overdue) *: December 31, 2017 Amounts by payment terms

Products

Up to 30 ThUS$ 18,590

31-60 ThUS$ 19,395

Services

24,365

10,401

978

1

-

-

35,745

40

Total

42,955

29,796

15,148

9,482

-

-

97,381

57

Supplier

-

61-90 ThUS$ 14,170

91-120 ThUS$ 9,481

121-365 Over 365 Total ThUS$ ThUS$ ThUS$ - 61,636

Average payment period (days) * 67

Trade payables (overdue) **:

Supplier Products

December 31, 2017 Amounts by payment terms Up to 30 31-60 61-90 91-120 121-180 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ 2,684 523 438 52 3

Over 180 Total ThUS$ ThUS$ 45 3,745

Services

1,506

210

10

10

2

111

1,849

Total

4,190

733

448

62

5

156

5,594

Total trade payables

102,975

(*) The average payment period was calculated as follows. ¡

Items are classified in the ranges defined in the "suppliers not overdue" table, comprising the period from March 31, 2018 and December 31, 2017 to their due date.

¡

The average payment period is calculated by multiplying the total by supplier by a weighted average of the payment period, considering the maximum period for each range, according to the ranges defined in the "suppliers not overdue" table.

(**) Overdue payables are calculated on the basis of the purchase order or service order and/or the trade agreement.

Any confirming transactions are recorded under "Trade and other payables" in the statement of financial position, and in the statement of cash flows, direct method, they are recorded as "Payments to suppliers for goods and services".

The Group had no confirming transactions as of March 31, 2018 or December 31, 2017.

84

NOTE 20 – SHARE CAPITAL The capital management objectives of Empresas AquaChile S.A. and its subsidiaries are to safeguard its ability to continue as a going concern, to generate returns for its shareholders, to generate benefits for other stakeholders, and to establish an optimal structure that reduces its cost of capital.

Empresas AquaChile S.A. and its subsidiaries monitors its capital using its leverage ratio, which is consistent within the industry. This ratio is calculated by dividing net borrowing by total capital. Net borrowing is total current and non-current indebtedness, less cash and cash equivalents. Total capital is equity, as presented in the consolidated statement of financial position.

Empresas AquaChile S.A. and its subsidiaries has combined various financing sources, such as operational surpluses and bank loans, among others.

On February 26, 2013, an Extraordinary Shareholders' Meeting approved a share capital increase of US$286,481,801.81. Those were the proceeds from a share placement following a capital increase agreed at an Extraordinary Shareholders Meeting held on March 11, 2011, less the corresponding share placement and issue costs, in accordance with Circular 1370 issued by the Financial Market Commission.

On March 22, 2018, the Extraordinary Shareholders Meeting approved a nominal decrease in the capital from US$514,462,949.81, divided into 1,157,000,000 common registered shares with no par value, all fully subscribed and paid in on that date, to US$371,603,068.27, divided into the same number of shares.

This decrease was to be made by capitalizing all losses shown in the “retained earnings (cumulative losses)” account in the Company’s balance sheet as of December 31, 2017.

That same Shareholders Meeting then approved a capital increase from US$371,603,068.27, divided into 1,157,000,000 common registered shares with no par value, to US$571,603,068.27, divided into 1,481,483,871 common registered shares with no par value. 324,483,870 new common registered shares were to be issued, each with no par value, that will be offered in one or several stages or dates at the Board’s discretion in the period of 3 years as from the date of approval.

Part of the new cash shares issued in the above capital increase will be placed for trading on the Oslo Stock Exchange in Norway (OSE) and on other foreign markets by means of Norwegian Depositary Receipts (NDRs) or certificates of foreign deposits.

The Company’s subscribed and paid share capital is three hundred seventy-one million six hundred and three thousand sixty-eight U.S. dollars and twenty-seven cents (US$371,603,068.27), which is divided into one billion one hundred and fifty-seven million shares (1,157,000,000).

85

a) Capital The Companyâ&#x20AC;&#x2122;s issued, subscribed and paid share capital is as follows.

Changes

Subscribed Capital Paid-In Capital ThUS$

Starting balance at 1/1/2018 Capital decrease Ending balance at 3/31/2018

Capital decrease Ending balance at 3/31/2018

514,463

514,463

(142,860)

(142,860)

371,603

371,603

Number of Shares 1,157,000,000

Subscribed and Paid-Up Common Shares 1,157,000,000

Total 1,157,000,000

-

-

-

1,157,000,000

1,157,000,000

1,157,000,000

Changes Starting balance at 1/1/2018

ThUS$

b) Net distributable income The Companyâ&#x20AC;&#x2122;s net distributable income to be consider for the calculation of the dividends related to 2018 will exclude the following items: 1) Unrealized income related to recognizing increases in the fair value of biological assets regulated by the accounting standard IAS 41. This income will be recognized as net distributable income when such assets have been realized. For these purposes, realized means the portion of those increases in fair value corresponding to assets sold or disposed of by any other means.

2) Unrealized income from the acquisition of other entities and unrealized income arising from applying paragraphs 34, 42, 39 and 58 of the revised IFRS 3, which refers to business combinations. This income will be included in net distributable income when realized. For these purposes, realized means when the acquired entities generate profits after their acquisition, or when those entities are sold.

3) The effects of deferred taxes associated with income indicated in 1) and 2) will be treated in the same manner as the item generating them.

4) Dividend provision As of March 31, 2018, the Company has recorded interim dividends equal to 30% of the periodâ&#x20AC;&#x2122;s profits, taking into consideration points 1), 2) and 3).

86

The interim dividend was calculated as follows: Distributable net profit

3/31/2018 ThUS$

Earnings (losses) attributable to owners of the controller

24,811

Adjustments Biological Assets Unrealized Realized Deferred taxes Distributable Net Profit Application of dividend policy (30%) Dividend per Share (US$/Share in circulation)

(29,936) 23,972 1,610 20,457 6,137 0.0053

* The 30% minimum dividend payable on account of distributable net profits as of March 31, 2018 was shown under Other non-financial liabilities, current in the consolidated interim classified statement of financial position. c) Dividend policy The dividend policy for 2018 is to distribute a final dividend of 30% of income for the period ended March 31, 2018, which must be approved by the Ordinary Shareholderâ&#x20AC;&#x2122;s Meeting, and be paid on the date agreed at that meeting.

The obligatory 30% minimum dividend established by Article 79 of Law 18,046 may be calculated on the basis of reclassified income following relevant adjustments in the fair value of unrealized assets and liabilities, as described in Circular 1945 issued by the SVS on September 29, 2009. These unrealized assets and liabilities will be included in the calculation of income for the period when they have been realized.

Additional dividends will be based on these criteria, and approved by the respective Shareholderâ&#x20AC;&#x2122;s Meeting.

For the period ending March 31, 2017, the Company did not record any interim dividends because it had cumulative losses. Pursuant to Law 18046, when the Company has cumulative losses, it must initially allocate its profits in the period to the absorption of such losses.

87

d) Shareholders The companies or individuals who own 1% or more of the share capital as of March 31, 2018 are as follows. These shareholdings total 92.85%.

Holding Salmones Ltda

Chilean ID number 76.474.078-5

Number of shares 382,115,000

Inversiones Patagonia Ltda.

76.070.159-9

382,115,000

33.03%

Inversiones Megeve Capital Ltda.

76.072.695-8

103,452,673

8.94%

Moneda S.A. AFI para Pionero Fondo de Inversi贸n

96.684.990-8

89,630,000

7.75%

BTG Pactual Chile S.A. Corredora de Bolsa

84.177.300-4

29,770,535

2.57%

Compass Small Cap Chile Fondo de Inversi贸n

96.804.330-7

25,298,194

2.19%

Banchile Corredora de Bolsa S.A.

96.571.220-8

16,277,405

1.41%

Siglo XXI Fondo de Inversi贸n

96.514.410-2

16,205,498

1.40%

Credicorp Capital S.A. Corredores de Bolsa

96.489.000-5

15,762,853

1.36%

Chile Fondo de Inversi贸n Small CAP

96.767.630-6

13,513,532

1.17%

1,074,140,690

92.85%

Personal/Company Name

Total

% interest 33.03%

NOTE 21 - RETAINED EARNINGS (CUMULATIVE LOSSES) AND REVALUATION SURPLUS a) Cumulative losses are as follows.

Cumulative losses

Opening balance Comprehensive income and expenses Increase (decrease) due to transfers and other changes

3/31/2018

12/31/2017

ThUS$

ThUS$

Unaudited

Audited

(142,860)

(202,364)

24,811

59,504

142,860

-

Dividends

(6,137)

-

Total cumulative loss

18,674

(142,860)

b)

The revaluation surplus is described as follows.

The revaluation surplus arose from the accounting policy adopted by the Group in 2013, where land included in property, plant and equipment was revalued in accordance with the revaluation model, using the standards contained in IAS 16 for this purpose. External experts conducted this revaluation, and they determined the fair value of the land included in this asset class.

3/31/2018

12/31/2017

ThUS$

ThUS$

Opening balance

17,933

17,933

Closing balance

17,933

17,933

Revaluation surplus (net of deferred taxes)

88

c) Other reserves are as follows.

Other reserves

3/31/2018

12/31/2017

ThUS$

ThUS$

(4,404)

(6,344)

-

1,940

(4,404)

(4,404)

Opening balance Increased interests in other companies * Closing balance

* Corresponds to the difference between the fair value and the proceeds from selling a 30% interest in the subsidiary Centro de Innovaciรณn Aquainnovo - Biomar S.A. This transaction did not result in any loss of control over this subsidiary. Therefore, the difference between the fair value and the proceeds from selling this 30% interest have been recorded in equity.

NOTE 22 - NON-CONTROLLING INTERESTS These represent the share of equity and income of subsidiaries that belongs to non-controlling investors.

Non-controlling interests

3/31/2018

Interest in equity

%

12/31/2017

ThUS$

%

Unaudited

ThUS$

Audited

Grupo ACI S.A.

20.04%

4,378

20.04%

4,256

Centro de Innovaciรณn Aquainnovo-Biomar S.A.

30.00%

2,150

30.00%

2,137

Total

6,528

Non-controlling interests

6,393

3/31/2018

3/31/2017

Interest in income

%

Grupo ACI S.A.

20.04%

122

20.04%

(140)

Centro de Innovaciรณn Aquainnovo-Biomar S.A.

30.00%

13

30.00%

9

Total

ThUS$

%

135

ThUS$

(131)

NOTE 23 - EARNINGS PER SHARE Earnings per share are as follows: Basic earnings per share

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Income attributable to owners of the parent company Income (loss) attributable to non-controlling interests

24,811

18,322

135

(131)

Income attributable to shareholders

24,946

18,191

Weighted average number of shares

1,157,000,000

1,157,000,000

0.0216

0.0157

Basic earnings per share (US$/share)

The basic earnings (loss) per share are obtained by dividing the income attributable to shareholders by the number of single series shares. The Company has not issued convertible debt or other equity securities.

Consequently, there are no potentially diluting effects on earnings per share.

89

NOTE 24 - REVENUE Group revenue is as follows: Operating revenue

3/31/2018

3/31/2017

ThUS$

ThUS$ Unaudited

Salmon and trout sales Tilapia sales Feed sales

158,599

170,186

15,789

16,364

8,659

10,051

935

175

183,982

196,776

Other sales Total

NOTE 25 - OTHER INCOME AND EXPENSES BY FUNCTION Other income by function

3/31/2018

3/31/2017

ThUS$

ThUS$ Unaudited

Insurance claims

2

Recoverable expenses Asset sales

-

3

228

33

8

16

Asset leases Provision reversals

8

227

505

Other

20

55

Total

485

620

Other expenses by function

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Taxes, penalties, and interest Inventory impairment and write-off Disposals of property, plant and equipment

(25)

(58)

-

(132)

(9)

(2)

Deductible income or expenses for income tax purposes

-

(2)

Sacrificed biomass

-

(71)

Catastrophic mortality (HAB) **

-

(14)

Other

(109)

(1,286)

Unrecoverable credits

(224)

-

(19)

-

Expenses for not using water Betecoi loss

(4)

-

-

(7)

Compensation for eliminating Coho smolts

(45)

(533)

Atlantium case

(31)

-

(466)

(2,105)

Lenca loss

Total

90

NOTE 26 - ADMINISTRATION EXPENSES AND DISTRIBUTION COSTS 1) Administrative expenses

Description

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Personnel expenses

(2,181)

(1,737)

Third-party services

(710)

(618)

General expenses

(534)

(426)

(82)

(90)

(3,507)

(2,871)

Depreciation and amortization Total

a) Personnel expenses Personnel expenses are as follows.

3/31/2018

3/31/2017

Description

ThUS$

ThUS$

Employee remuneration

(2,074)

(1,650)

(107)

(87)

(2,181)

(1,737)

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Other personnel expenses Total

b) Depreciation and amortization in administration expenses Depreciation and amortization are as follows:

Description

Unaudited Depreciation

(82)

(90)

Total

(82)

(90)

91

2) Distribution costs Below are the main distribution costs of the Group for each period: Distribution costs

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Marketing and promotion expenses

(410)

(222)

Shipping expenses

(1,056)

(912)

Storage expenses

(1,288)

(899)

Marketing expenses

(1,435)

(1,368)

(392)

(488)

(4,581)

(3,889)

Other sales expenses Total

3)

The major Groupâ&#x20AC;&#x2122;s costs, operating and administrative expenses for the periods ended March 31, 2018 and 2017 are as follows.

Description

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Fish, feed, energy, processes and others

(145,002)

(148,453)

(2,074)

(1,650)

Other personnel expenses

(107)

(87)

Third-party services

(710)

(618)

General expenses

(534)

(426)

Employee remuneration

Employee remuneration and other expenses

(3,425)

(2,781)

Depreciation expense

(82)

(90)

Depreciation and amortization

(82)

(90)

Marketing and promotion expenses

(410)

(222)

Shipping expenses

(1,056)

(912)

Storage expenses

(1,288)

(899)

Marketing expenses

(1,435)

(1,368)

(392)

(488)

Other sales expenses Distribution costs Total

(4,581)

(3,889)

(153,090)

(155,213)

92

NOTE 27 - FINANCIAL INCOME AND EXPENSES Financial income is as follows.

Financial income

3/31/2018

3/31/2017

ThUS$

ThUS$

Unaudited Bank interest

362

196

Total

362

196

3/31/2018

3/31/2017

ThUS$

ThUS$

Financial costs are as follows.

Financial costs

Unaudited Financial interest Bank charges Other expenses Total

(2,912)

(4,190)

(254)

(276)

(386)

(230)

(3,552)

(4,696)

93

NOTE 28 - EXCHANGE DIFFERENTIALS IN ASSETS AND LIABILITIES IN FOREIGN CURRENCIES a) Exchange differences recognized in income Exchange differences generated by assets and liabilities in foreign currencies, other than the functional currency, were credited (charged) to income for the periods ended March 31, 2018 and 2017 as follows: 3/31/2018 Classification Assets

Item

3/31/2017

ThUS$ ThUS$ Unaudited

Current assets Cash and cash equivalents Other non-financial assets, current Trade and other receivables, current Related party receivables, current Inventories, current Tax assets, current

193 10 465 6 117 119

398 121 (81) 26

Total current assets

910

464

2 2

(15) (1) (16)

912

448

(854) (20) (1) (40)

(152) (13) 1 29

(915)

(135)

Total non-current liabilities Other financial liabilities, non-current Accounts payables, non-current Deferred tax liabilities, non-current Accounts payable, non-current

(11) (8) (50) -

(5) 86 (19)

Total non-current liabilities

(69)

100

(984)

(35)

(72)

413

Non-current assets Other financial assets, non-current Deferred tax assets Total non-current assets Total assets Liabilities Current liabilities Other financial liabilities, current Trade and other payables, current Related party payables, current Tax liabilities, current Employee benefit provisions, current Total current liabilities

Total liabilities Total exchange differences

94

Assets and liabilities in foreign currencies Current assets

Currency

Cash and cash equivalents

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros

Subtotal for cash and cash equivalents Other non-financial assets, current

Subtotal for other non-financial assets, current Trade and other receivables, current

Subtotal for trade and other receivables, current Related party receivables, current

Subtotal for related party receivables, current Inventories

Subtotal for inventories Biological assets, current

Subtotal for biological assets, current Tax assets, current

Subtotal for tax assets, current Total current assets

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros

3/31/2018 ThUS$ Unaudited 10,616 1,561 53,304 407 65,888 2,053 132 8 2,193 17,877 51,075 68,952 9,473 9,473 62,919 62,919 211,608 211,608 4,851 8,176 13,027 434,060

12/31/2017 ThUS$ Audited 6,686 3,417 30,018 651 40,772 1,713 182 40 1,935 13,827 62,298 76,125 10,239 10,239 68,976 68,976 188,147 188,147 4,560 8,175 12,735 398,929

95

Non-current assets

Currency

Other financial assets, non-current

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros

Subtotal for other financial assets, non-current Trade and other receivables, non-current

Subtotal for trade and other receivables, non-current Related party receivables, non-current

Subtotal for related party receivables, non-current Equity method investments

Subtotal for equity method investments Intangible assets other than goodwill

Subtotal for intangible assets other than goodwill Goodwill

Subtotal for goodwill Property, plant and equipment

Subtotal for property, plant and equipment Biological assets, non-current

Subtotal for biological assets, non-current Deferred tax assets

Subtotal for deferred tax assets Total non-current assets

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Euros Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Euros

3/31/2018 12/31/2017 ThUS$ ThUS$ Unaudited Audited 10 10 10 10 288 288 288 288 1,050 1,050 1,050 1,050 43,040 42,968 43,040 42,968 63,224 63,224 63,224 63,224 195,385 191,448 195,385 191,448 30,461 31,132 30,461 31,132 57,031 65,841 57,031 65,841 390,486 395,961

96

Current liabilities Other financial liabilities, current

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euros

Subtotal for other financial liabilities, current Trade and other payables, current

27,883

25,348

46,611 3,260 81,876 131,747

46,611 3,260 74,265 124,136

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

41 13,818 13,859

4 18,135 18,139

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

11,437 -

11,349 -

11,437

11,349

348 348

133 133

Subtotal for related party payables, current Tax liabilities, current

Subtotal for tax liabilities, current Employee benefit provisions, current

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

Subtotal for employee benefit provisions, current Other non-financial liabilities, current

Subtotal for other non-financial liabilities, current Total current liabilities

12/31/2017 ThUS$ Audited 25,348 -

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

Subtotal for trade and other payables, current Related party payables, current

3/31/2018 ThUS$ Unaudited 27,883 -

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

6,137 6,137 191,411

179,105

97

Types of liabilities, non-current Other financial liabilities, non-current

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

Subtotal for other financial liabilities, non-current Other accounts payable, non-current

193,046

193,383

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

7,181 7,181

7,868 7,868

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

18,618 18,618

19,044 19,044

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

3,060 669 -

3,060 678 -

3,729 227 227 222,801

3,738 227 277 224,260

Subtotal for other accounts payable, non-current Related party payables, non-current

Subtotal for related party payables, non-current Deferred tax liabilities

Subtotal for deferred tax liabilities Other non-financial liabilities, non-current

Subtotal for other non-financial liabilities, non-current Total liabilities, non-current

3/31/2018 12/31/2017 ThUS$ ThUS$ Unaudited Audited 193,046 193,383 -

Inflation indexed Chilean pesos Chilean peso Costa Rican colons US dollars Yen Euro

98

NOTE 29 - CONTINGENCIES a) Guarantees from third parties The Parent Company had not received any significant guarantees from third parties as of the reporting date. b) Lawsuits and other legal cases b.1)

The most significant cases involving the Group are described as follows, including all those that may possibly result in a liability and whose claims are in excess of ThUS$100. It also includes all indeterminate claims.

1. FISHING LAWSUITS Filed against the Parent Company EMPRESAS AQUACHILE S.A. 1) "Sernapesca vs. Empresas AquaChile S.A." case 2917-2014, Second Civil Court of Puerto Montt.

Subject: Infringement of General Fishing and Aquaculture Law (LGPA from its acronym in Spanish) and Sanitary Regulations (RESA). Amount: 50 to 3,000 UTM (Monthly Tax Unit: an official inflationindexed unit used in taxation). Current Status: Evidence period pending. Uncertain outcome.

2) "Sernapesca vs. Empresas Aqua Chile S.A.â&#x20AC;? case 620-2014, First Civil Court of Puerto Montt. Subject: Infringement of LGPA and Aquaculture Environmental Regulations (RAMA from its acronym in Spanish). Amount: 50 to 3,000 UTM. Current Status: Evidence period pending. Uncertain outcome.

3) "Sernapesca vs. Empresas Aqua Chile S.A." case 5-2018, Civil and Criminal Court of Quellon.

Subject: Infringement of the LGPA and Exempt Resolution 13/2015, RESA. Amount: 50 to 3,000 UTM. Status: Appeal of the decision ordering payment of a fine of 50 UTM. Outcome: Uncertain.

4) "Sernapesca vs. Empresas AquaChile S.A." case 624-2018, Civil Court of Castro. Subject: Infringement of the LGPA and Exempt Resolution 13/2015. Amount: 50 to 3,000 UTM. Status: Pending a hearing of defensive arguments. Uncertain outcome.

5) "Sernapesca vs. Empresas AquaChile S.A." case 625-2018, Civil Court of Castro. Subject: Infringement of the LGPA and Exempt Resolution 13/2015. Amount: 50 to 3,000 UTM. Status: Pending completion of the submission of evidence. Uncertain outcome.

Filed against subsidiaries: AQUACHILE S.A. 6) "Sernapesca vs. Aquachile S.A." case 14-2015, Trial and Guarantee Court of Pucon. Subject: Infringement of RAMA and RESA. Amount: 50 to 3,000 UTM. Current Status: Evidence period pending.

Uncertain outcome.

99

7) "Sernapesca vs. Aquachile S.A." case 1005-2015, Trial Court of Puerto Varas. Subject: Infringement of RAMA Amount: 50 to 3,000 UTM. Current Status: Judgment handed down by the court of first instance ordered the company to pay a fine of 100 UTM and the facilities administrator to pay a fine of 10 UTM. An appeal was filed against this judgment before the Appeals Court of Puerto Montt (case 381-2017).

The Court of Appeals annulled this judgment and returned the case to the point where the measure ordering evidence to be presented is issued. The completion of the submission of evidence is pending.

Uncertain outcome.

SALMONES MAULLÍN LIMITADA 8) "Sernapesca vs. Salmones Maullín Ltda.” case 3863-2011, First Civil Court of Puerto Montt. Subject: Infringement of RAMA and RESA. Amount: 50 to 3,000 UTM. Current status: The court annulled all the proceedings to date and will recommence with hearing charges, which is pending. Uncertain outcome.

AGUAS CLARAS S.A. 9) "Sernapesca vs. Aguas Claras S.A." case 253-2015, Trial and Guarantee Court of Puerto Aysén.

Subject: Infringement of D.S. 345/2005, "Hydrobiological Pest Regulations" and Resolution 529/2013, "Surveillance, Detection and Control of the Pest Alexandrium Catanella Program". Amount: 50 to 3,000 UTM. Aguas Claras S.A. was acquitted on February 15, 2018. Sernapesca filed an appeal against that decision on March 2, 2018. Current Status: The appeal is being heard. Uncertain outcome.

10) "Sernapesca vs. Aguas Claras S.A.” case 6933-2010, First Civil Court of Puerto Montt Subject: Infringement of RAMA Amount: 3 to 300 UTM. Current Status: A decision was rendered on April 30, 2013 ordering payment of 3 UTM. That decision was appealed to the Court of Appeals of Puerto Montt (Case 631-2014). The appellate court revoked the decision and returned the case to the point where defensive arguments are heard, which are pending. Uncertain outcome.

11) "Sernapesca vs. Aguas Claras S.A.” case 2152-2017, Trial Court of Castro, Subject: Infringement of RAMA. Amount: 50 to 3,000 UTM. The court rendered a decision on February 12, 2018 ordering Aguas Claras S.A. to pay a fine of 200 UTM. Current Status: That decision was appealed and is now pending before the Court of Appeals of Puerto Montt. Uncertain outcome.

12) "Sernapesca vs. Aguas Claras S.A.” case 36-2018, Civil and Criminal Court of Puerto Aysen.

Subject: LGPA and ED 290/1993. Amount: 3 to 300 UTM. Status: Completion of the submission of evidence is pending. Uncertain outcome.

PISCICULTURA AQUASAN S.A. 13) "Sernapesca vs. Aquasan and Alvarez” case 130-2017, Trial and Guarantee of Panguipulli. Subject: Infringement of Article 86 of LGPA, D.S. 319-2001 of RESA (Articles 10, 11 paragraph 3, and 12), Resolution 1468-2012 Point IV and Resolution 1577-2011. Amount: 50 to 3,000 UTM. Aguas Claras S.A. was ordered to pay a fine of 200 UTM by decision rendered August 22, 2017. Current Status: That decision was appealed and is now pending before the Court of Appeals of Valdivia (Case 87-2018).

Uncertain outcome.

100

SALMONES AUSTRALES S.A. 14) “Sernapesca vs. Salmones Australes S.A.,” case 68-2018, Civil and Criminal Court of Puerto Aysen.

Subject: LGPA, ED 290/1993 and Exempt Resolution 5243 of the Undersecretary of the Armed Forces.

Amount: 3 to 300 UTM. Status: Completion of the submission of evidence is pending. Uncertain outcome.

2. CIVIL LAWSUITS Filed against subsidiaries: AQUACHILE S.A. 1) "Herrera vs. Aquachile S.A.” case C-7414-2015 First Civil Court of Puerto Montt Subject: Compensation for damages. Amount: Ch$270,000,000 Compensation for damages claimed for an occupational accident that resulted in death. Judgment of the court of first instance sentenced the defendant to pay Ch$150,000.000. Judgment upheld by the Court of Appeals of Puerto Montt, case 1842017. Current Status: Pending judgment of the appeal against the judgment handed down by the Appeal Court. (Supreme Court case 44325-2017). Claim covered by liability insurance, so this will not result in liabilities for the Company. The insurance company is handling the judicial defense.

2) "Bello vs. Garfias y Garfias Limitada and Aquachile S.A.” case C-2639-2015, Second Civil Court of Puerto Montt. Subject: Compensation for damages, Aquachile has been sued as legally responsible for the contractor Garfias y Garfias Limitada. Amount: Ch$600,000,000 Compensation for damages claimed for an occupational accident that resulted in death. Current Status: Evidence period pending. Claim covered by liability insurance, so this will not result in liabilities for the Company. The insurance company is handling the judicial defense.

PROCESADORA HUEÑOCOIHUE SpA. 3) "Procesadora Hueñocoihue SpA vs. RSA Seguros Chile S.A.,” Arbitration Proceedings. Subject: Claim for fire damage. Amount: Undetermined. The arbitration was requested to hear the claim regarding a fire at the processing plant. Current Status: The arbitration has been constituted and the process is pending.

SALMONES CHAICAS S.A. 4) "Salmones Chaicas S.A. vs. Atlantium Technologies Ltd.,” Arbitration Proceedings, case CAM-27472016. Subject: Salmones Chaicas S.A. filed a lawsuit demanding compensation for breaches in obligations during the installation of water disinfection systems. Atlantium filed a counterclaim, with the amount to be determined when judgment is handed down. Amount: US$2,500,000. Current status: The arbitration has been constituted. The discussion stage in the case filed by Salmones Chaicas S.A. has been completed.

The Atlantium case is in the discussion stage. The outcome is uncertain.

101

3. LABOR LAWSUITS. Filed against the Parent Company EMPRESAS AQUACHILE S.A. 1) "Coñuecar vs. Contreras and Empresas Aquachile,” case M-51-2016, Trial Court of Ancud. Subject: Payment of employment benefits. Empresas Aquachile is a party to the case as a joint and several defendant, together with Granja Marina Tornagaleones S.A. Amount: Ch$1,439,241 The claim was sustained in a summary judgment. Current status: That decision was appealed. The reconciliation hearing, answer and evidence submission processes are pending. Uncertain outcome.

2) "Levin vs. Servicios Marítimos Bless Limitada and others,” case M-392-2017, the Labor Court of Puerto Montt. Subject: Dismissal without legal cause and payment of employment benefits. Empresas AquaChile S.A. is involved in the case as joint and several defendant. Amount: Ch$2,600,000. The claim was sustained in a summary judgment and both defendants were ordered to jointly and severally pay the benefits. Current status: That decision was appealed. The reconciliation hearing, answer and evidence submission processes are pending. Uncertain outcome.

3) "Sanchez vs. Diver Chile Limitada and others” case O-529-2017, the Labor Court of Puerto Montt.

Subject: Dismissal without legal cause, revoke dismissal and payment of employment benefits. Empresas AquaChile S.A. is involved in the case as joint defendant. Amount: Ch$8,000,000 Current Status: The pre-trial hearing is pending. Uncertain outcome.

4. TAX LAWSUITS Filed against subsidiaries: SALMONES MAULLÍN LIMITADA 1) "Salmones Maullín Limitada vs. SII (Servicio de Impuestos Internos) - Puerto Montt Regional Direction” case GR-12-00044-2016, RUC 16-9-0001500-7. The Taxation and Customs Tribunal for the Los Lagos Region. Subject: Claim against IRS Resolution 612, which reduced the tax loss for 2013 originally declared by Salmones Maullín Limitada at US$33,903,286.15 to US$28,819,741.44. On December 20, 2016, the tax claim was filed with the Taxation and Customs Tribunal for the Los Lagos Region. Current Status: The court rendered a final decision on March 14, 2018 sustaining part of the Company’s claim and setting a new tax loss of US$32,518,657.36 as a result. The SII filed an appeal against this decision on April 3, 2018, petitioning for vacation of the entire judgment. Salmones Maullin Limitada filed its own appeal on April 10, 2018 seeking validation of some expense items excluded from the final decision.

2) "Salmones Maullín Limitada vs. SII (Servicio de Impuestos Internos) - Puerto Montt Regional Direction” case GR-12-00071-2017, RUC 17-9-0001478-3. The Taxation and Customs Tribunal for the Los Lagos Region. Subject: Claim against IRS Resolution 497, which reduced the tax loss for 2014 originally declared by Salmones Maullín Limitada at US$34,795,790.35 to US$26,176,496.26. On December 21, 2017, the tax claim was filed with the Taxation and Customs Tribunal for the Los Lagos Region. Current Status: The court must still render a decision on the appeal for reconsideration that included a regular appeal if reconsideration was denied. Both parties filed the same appeals.

102

NOTE 30 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES Related parties comprise the following entities and individuals. a) Shareholders that can exercise control b) Subsidiaries and their members c) Parties with sufficient interest to give them significant influence d) Parties with joint control e) Associates f) Interests in joint ventures g) Senior management of the entity or its parent company h) Close relatives of individuals described under the previous points i) An entity that controls, or jointly controls, and is significantly influenced by any of the individuals described in the two previous points.

Generally, transactions with related companies are payable/receivable immediately and are not subject to special conditions. These transactions are in accordance with Articles 44 and 49 of Law 18,046 governing Corporations and with IAS 24.

Transfers of short-term funds between related companies and the parent company, which do not relate to the collection or payment of services, are recorded using commercial current accounts.

1) Related party receivables Related party receivables, current and non-current, as of March 31, 2018 and December 31, 2017 were as follows: -

Related party receivables, current

Company

Biomar Group A/S Biomar Chile S.A. Roblencinas Servicios Ltda.

VĂ­ctor Hugo Puchi AcuĂąa Total

Chilean ID number

Country

Relationship

Currency

Foreign 96,512,650-3 77,645,140-1 6,680,823-8

Denmark Chile Chile Chile

Indirect Indirect Indirect Indirect

US dollar US dollar Chilean pesos US dollar

3/31/2018 12/31/2017 ThUS$ ThUS$

Unaudited 1,758 7,642 73 9,473

Audited 1,577 8,361 184 117 10,239

103

-

Related party receivables, non-current

Company

Chilean ID number

Country

Relationship

Currency

Foreign

Costa Rica

Joint operation

US dollar

Biomar Aquacorporation Products S.A Total

3/31/2018 12/31/2017 ThUS$ ThUS$

Unaudited

Audited

1,050

1,050

1,050

1,050

2) Related party payables Related party payables, current and non-current, as of March 31, 2018 and December 31, 2017 were as follows.

-

Related party payables, current Chilean ID number

Country

Relationship

Currency

Ganadera Las Lagunas Ltda

76.148.251-3

Chile

Common shareholder

Pesos

Centro Veterinario y Agrícola Ltda.

86.510.400-6

Chile

Common shareholder

US dollar

Inversiones Aéreas Patagonia Ltda.

77.758.740-4

Chile

Common shareholder

Chilean pesos

Inversiones Patagonia Dos Ltda

76.179.337-3

Chile

Common shareholder

Pesos

11

-

El Pelón de la Bajura S.A.

Foreign

Costa Rica

Indirect

US dollar

2,246

2,210

Biomar Aquacorporation Products S.A.

Foreign

Costa Rica

Joint operation

US dollar

1,947

2,358

Biomar Aquaculture Corporation S.A.

Foreign

Costa Rica

Indirect

US dollar

820

1,081

96.512.650-3

Chile

Indirect

US dollar

925

833

Foreign

Costa Rica

Indirect

US dollar

14

81

Roblencinas Servicios Ltda.

77.645.140-1

Chile

Indirect

Chilean pesos

Alitec Pargua S.A.

76.591.150-8

Chile

Joint operation

US dollar

Costa Austral SpA.

76.353.413-8

Chile

Indirect

Chilean pesos

Company

Biomar Chile S.A. Asociación de empleados de Aqua.

Total

-

3/31/2018 ThUS$

12/31/2017 ThUS$

Unaudited

Audited

2

-

3,132

3,724

112

62

40

4

4,177

7,405

433

381

13,859

18,139

3/31/2018 ThUS$

12/31/2017 ThUS$

Related party payables, non-current Chilean ID number

Country

Relationship

Currency

Unaudited

Audited

Foreign

Denmark

Indirect

US dollar

1,050

1,050

Inversiones La Montaña S.A

76.126.929-1

Chile

Indirect

US dollar

-

662

Holding Salmones S.A.

96.789.670-5

Chile

Indirect

US dollar

8,784

8,666

Fondo de Inversión Privado Patagonia Dos

76.155.302-K

Chile

Indirect

US dollar

Company

Biomar Group A/S

Total

8,784

8,666

18,618

19,044

104

3) Transactions with related parties and their effect on income.

Transactions with related companies and their effects on income for the periods ended March 31, 2018 and December 31, 2017 were as follows: 3/31/2018 Company

Chilean ID Number

Country

Relationship

Description

Currency

Ganadera Valle Grande Ltda.

Ganadera Las Lagunas Ltda.

Víctor Hugo Puchi Acuña Inversiones Patagonia Dos Ltda.

Inmobiliaria Aleph Ltda.

Centro Veterinario y Agrícola Ltda.

Inversiones Aéreas Patagonia Ltda.

Estacionamientos Subterráneos Puerto Montt S.A. Roblencinas Servicios Ltda.

Costa Austral SpA. Inversiones la Montaña S.A.

76.284.571-7 76.148.251-3 6.680.823-8 76.179.337-3 76.023.270-K 86.510.400-6 77.758.740-4 96.994.490-1 77.645.140-1 76.353.413-8 76.126.929-1

Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile Chile

Common shareholder Common shareholder Chairman of the Board Common shareholder Common shareholder Common shareholder Common shareholder Common shareholder Indirect Indirect Indirect

Holding Salmones S.A.

96.789.670-5

Chile

Indirect

Fondo de Inversión Privado Patagonia Dos

76.155.302-K

Chile

Indirect

Alitec Pargua S.A Biomar Aquacorporation Products S.A.

76.591.150-8 Foreign

Chile Costa Rica

Joint operation Joint operation

Biomar Aquaculture Corporation S.A. El Pelón de la Bajura S.A.

Foreign Foreign

Costa Rica Costa Rica

Indirect Indirect

Asociación de empleados de Aqua

Foreign

Costa Rica

Indirect

Biomar Chile S.A.

96.512.650-3

Chile

Indirect

Leased hatchery Leased hatchery Leased concession Rental of facilities Rental of facilities Purchase of drugs Air services Parking lot services Purchase of consumables Harvesting services Purchase of shares Loan Purchase of shares Loan Purchase of shares Loan Purchase of feed Loan interest Sale of feed Purchase of feed Purchase of feed Purchase of consumables Loans received Sale of consumables Purchase of consumables Sale of feed Sale of raw materials Sale of consumables Purchase of raw materials Purchase of consumables

Chilean pesos Chilean pesos Chilean pesos Chilean pesos Chilean pesos US dollar Chilean pesos Chilean pesos Chilean pesos Chilean pesos US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar US dollar

Amount ThUS$ Unaudited 16 5 35 1 2,225 251 1 38 907 70 70 7,128 41 318 2,907 1,053 22 117 125 14,273 3,033 16 7,126 385

Effect on income ThUS$ (16) (5) (35) (1) (251) (1) 38 -

12/31/2017 Effect on Amount income ThUS$ ThUS$ Audited 54 (54) 18 (18) 175 115 (115) 4 (4) 10,167 510 (510) 168 168 3,366 3,599 703 5,920 3,092 5,920 3,093 49,095 151 809 11,558 4,507 90 120 487 477 51,902 9,656 44 20,650 1,320 -

The policy at Empresas AquaChile S.A. and its subsidiaries is to disclose all transactions with related parties during the period, except for dividends paid and capital contributions received, which are not considered to be transactions with related parties.

105

4) Remuneration and fees for the Directors, Directorsâ&#x20AC;&#x2122; Committee members and senior management Remuneration and fees received by Directors for their financial, business and management advice during the period ended March 31, 2018 amounted to ThUS$175 (ThUS$132 for the period ended March 31, 2017).

Empresas AquaChile S.A. and its subsidiaries have an incentive scheme based on the Group's operating performance, departmental productivity, and individual performance evaluation based on the achievement of objectives. It consists of bonuses payable to senior executives and other employees that the Group believe are eligible for inclusion in the scheme. This scheme aims to motivate, reward and improve executive and employee loyalty by rewarding good individual performance and team work.

Total gross compensation earned by the executives of Empresas AquaChile S.A. and its subsidiaries, which includes these incentives, was ThUS$1,939 as of March 31, 2018 (ThUS$1,748 as of March 31, 2018).

NOTE 31 â&#x20AC;&#x201C; ENVIRONMENT Care and respect for the environment have a high priority within management strategy at Empresas AquaChile S.A. and its subsidiaries. This has resulted in the Group adopting programs and best practices, with the aim of increasing its operational efficiency and reducing the environmental impact of its business in a sustainable and significant manner.

These programs safeguard the environment, as they involve investing in production improvements and increasing control and monitoring of processes that impact the environment.

Disbursements relating to the environment are as follows. a) Parent company

Empresas Aquachile S.A. (Individually)

Project 1

Waste management

Disbursement during the period:

ThUS$301 (ThUS$209 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$115 (ThUS$79 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$269 (ThUS$148 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Studies of currents, depth, oxygenation, and algae content of fish farms. Preparation of INFA (environmental reports) and related external certified compliance. Disposal, monitoring, analysis and treatment of waste at each production stage, which is also required by relevant legal organizations.

106

Project 4

Dead Fish Disposal and Silaging

Disbursement during the period:

ThUS$574 (ThUS$706 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future:

-

Estimated completion date:

March 31, 2018

Project 5

Silage Investment

Disbursement during the period:

ThUS$72 (ThUS$0 as of March 2017)

Accounting recognition:

Property, Plant and Equipment

Amounts committed in the future:

ThUS$0

Estimated completion date:

March 31, 2018

Disbursement description for projects 4-5 Investments in facilities, mortality platforms and equipment to comply with Environmental Law governing the appropriate disposal of dead salmon from fish farms to treatment plants. b) Subsidiary Alitec S.A. Project 1

Environment

Disbursement during the period:

ThUS$6 (ThUS$8 as of March 2017)

Accounting recognition:

Expense

Project 2

Analysis and Certified Compliance

Disbursement during the period:

ThUS$47 (ThUS$192 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2:

-

Estimated completion date for projects 1-2:

March 31, 2018

Disbursement description for projects 1-2 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations. c) Subsidiary Grupo ACI S.A. Project 1

Waste management

Disbursement during the period:

ThUS$2 (ThUS$1 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$1 (ThUS$1 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$3 (ThUS$3 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations.

107

d) Subsidiary

Antarfood S.A.

Project 1

Waste management

Disbursement during the period:

ThUS$20 (ThUS$7 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$2 (ThUS$1 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$54 (ThUS$24 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations. e) Subsidiary Aguas Claras S.A. Project 1

Environment

Disbursement during the period:

ThUS$3 (ThUS$23 as of March 2017)

Accounting recognition:

Expense

Project 2

Silage, Removal of Dead Salmon

Disbursement during the period:

ThUS$0 (ThUS$193 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2:

-

Estimated completion date for projects 1-2:

March 31, 2018

Disbursement description for projects 1-2 Investment in facilities, mortality platforms and the equipment required to comply with the Environmental Law in regard to the appropriate removal of dead salmon from farms to treatment plants. f) Subsidiary Procesadora Aguas Claras Ltda.

Project 1

Waste management

Disbursement during the period:

ThUS$14 (ThUS$14 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$1 (ThUS$0 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$61 (ThUS$44 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations.

108

g) Subsidiary

Piscicultura Aquasan S.A.

Project 1

Waste management

Disbursement during the period:

ThUS$99 (ThUS$70 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$65 (ThUS$40 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$136 (ThUS$0 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Studies on currents, depths, oxygenation and algae content at farms; preparation of environmental reports (INFA) and certification of those reports; disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations. h) Subsidiary Procesadora HueĂąocoihue SpA Project 1

Waste management

Disbursement during the period:

ThUS$15 (ThUS$10 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$1 (ThUS$40 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$33 (ThUS$15 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations. i) Subsidiary Salmones Cailin S.A. Project 1

Waste management

Disbursement during the period:

ThUS$11 (ThUS$17 as of March 2017)

Accounting recognition:

Expense

Project 2

Environment

Disbursement during the period:

ThUS$2 (ThUS$0 as of March 2017)

Accounting recognition:

Expense

Project 3

Analysis and Certified Compliance

Disbursement during the period:

ThUS$29 (ThUS$23 as of March 2017)

Accounting recognition:

Expense

Amounts committed in the future for projects 1-2-3:

-

Estimated completion date for projects 1-2-3:

March 31, 2018

Disbursement description for projects 1-2-3 Preparation of environmental reports (INFA) and certification of those reports; disposal, monitoring, analysis and treatment of waste at each production stage, which is also required by relevant legal organizations.

109

j) Subsidiary Aquachile S.A. Project 1 Waste management Disbursement during the period: ThUS$8 (ThUS$6 as of March 2017) Accounting recognition: Expense Project 2 Environment Disbursement during the period: ThUS$0 (ThUS$7 as of March 2017) Accounting recognition: Expense Project 3 Analysis and Certified Compliance Disbursement during the period: ThUS$26 (ThUS$32 as of March 2017) Accounting recognition: Expense Amounts committed in the future for projects 1-2-3: Estimated completion date for projects 1-2-3: March 31, 2018 Disbursement description for projects 1-2-3 Studies of currents, depth, oxygenation, and algae content of fish farms. Preparation of INFA (environmental reports) and related external certified compliance. Disposal, monitoring, analysis and treatment of waste at each production stage, which is also required by relevant legal organizations.

Project 4 Dead Fish Disposal and Silaging Disbursement during the period: ThUS$4 (ThUS$5 as of March 2017) Accounting recognition: Expense Amounts committed in the future: Estimated completion date: March 31, 2018 Project 5 Silage Investment Disbursement during the period: ThUS$9 (ThUS$0 as of March 2017) Accounting recognition: Property, Plant and Equipment Amounts committed in the future: ThUS$0 Estimated completion date: March 31, 2018 Disbursement description for projects 4-5 Silage and other elements required to comply with the Environmental Law governing the appropriate disposal of dead salmon from fish farms to treatment plants. k) Subsidiary Salmones Australes S.A. Project 1 Environment Disbursement during the period: ThUS$0 (ThUS$1 as of March 2017) Accounting recognition: Expense Amounts committed in the future: Estimated completion date: March 31, 2018 Disbursement description for project 1 External analysis and certification, which is required by relevant legal organizations. l) Subsidiary Laboratorio Antares S.A. Project 1 Waste management Disbursement during the period: ThUS$1 (ThUS$0 as of March 2017) Accounting recognition: Expense Amounts committed in the future: Estimated completion date: March 31, 2018 Project 2 Analysis and Certified Compliance Disbursement during the period: ThUS$17 (ThUS$13 as of March 2017) Accounting recognition: Expense Estimated completion date for projects 1-2: March 31, 2018 Disbursement description for projects 1-2 Waste removal and treatment in each of the production stages, which are also requirements of the pertinent regulatory agencies.

110

m) Subsidiary Aquainnovo S.A. Project 1 Waste management Disbursement during the period: ThUS$8 (ThUS$3 as of March 2017) Accounting recognition: Expense Project 2 Analysis and Certified Compliance Disbursement during the period: ThUS$37 (ThUS$30 as of March 2017) Accounting recognition: Expense Estimated completion date: March 31, 2018 Amounts committed in the future to projects 1-2: Disbursement description for projects 1-2 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations. o) Subsidiary Centro de Innovacion Aquainnovo - Biomar S.A. Project 1 Environment Disbursement during the period: ThUS$12 (ThUS$0 as of March 2017) Accounting recognition: Expense Project 2 Analysis and Certified Compliance Disbursement during the period: ThUS$3 (ThUS$0 as of March 2017) Accounting recognition: Expense Estimated completion date: March 31, 2018 Disbursement description for projects 1-2 Certified compliance, disposal, monitoring, analysis and treatment of waste at each production stage, which is required by relevant legal organizations. p) Subsidiary Salmones Chaicas S.A. Project 1 Waste management Disbursement during the period: ThUS$25 (ThUS$39 as of March 2017) Accounting recognition: Expense Project 2 Environment Disbursement during the period: ThUS$7 (ThUS$3 as of March 2017) Accounting recognition: Expense Project 3 Analysis and Certified Compliance Disbursement during the period: ThUS$53 (ThUS$209 as of March 2017) Accounting recognition: Expense Amounts committed in the future for projects 1-2-3: Estimated completion date for projects 1-2-3: March 31, 2018 Disbursement description for projects 1-2-3 Studies of currents, depth, oxygenation, and algae content of fish farms. Preparation of INFA (environmental reports) and related external certified compliance. Disposal, monitoring, analysis and treatment of waste at each production stage, which is also required by relevant legal organizations.

Project 4 Dead Fish Disposal and Silaging Disbursement during the period: ThUS$2 (ThUS$6 as of March 2017) Accounting recognition: Expense Amounts committed in the future: Estimated completion date: March 31, 2018 Disbursement description for project 4 Silage and other elements required to comply with the Environmental Law governing the appropriate disposal of dead salmon from fish farms to treatment plants.

111

The main concepts relating to these environmental costs are described as follows.

1. Bathymetry: Measures the depth of a concession.

2. Current meter: Measures the dynamics of marine currents around concessions. It identifies the prevailing currents, together with their frequency and speed.

3. INFA: An environmental report on marine and lake fish farms, which is reviewed by Sernapesca.

This report covers facilities in operation, and must comply with the deadlines established by Resolution.

4. Pre-operation INFA: An environmental report on fish farms before they become operational, and have been fallow for over a year.

5. Oxygen profiles: Monitoring oxygen levels in the water column at marine and lake fish farms every 2 months.

6. Phytoplankton monitoring: Analyzing water samples from the marine fish farms, primarily to detect the presence of harmful algae that affect normal fish behavior.

7. Grey and black water sampling and analysis at the Pontoon treatment plants: Treated water from pontoon treatment plants must be monitored, in accordance with requirements issued by the Maritime Authority.

Waste Management Inorganic, organic and hazardous waste management at each productive unit.

-

Effluent treatment 1. Sludge: Removal and final disposal of the sludge produced by hatcheries and processing plants.

The company that removes and disposes these wastes must have all the health and environmental permits required by environmental legislation.

2. Effluent monitoring and analysis: The industrial liquid waste produced by hatcheries and processing plants is monitored and analyzed. The results are sent to the Superintendent of sanitary Services (SISS = Superintendencia de Servicios Sanitarios) and the Maritime Authority, as appropriate. This analysis conforms with D.S.90-2001.

Environmental Standards External Laboratory Analysis - Certified Compliance: The analyses provided by the laboratory are: - INFAs and pre-INFAs. - Effluent - Monitoring pontoon treatment plants - Drinking water

112

NOTE 32 - OTHER INFORMATION The number of employees by category at Empresas AquaChile S.A. and its subsidiaries is as follows.

Headcount

3/31/2018

12/31/2017

Unaudited

Audited

39

38

893

938

Laborers

3,335

3,873

Total

4,267

4,849

Managers and executives Administrators and technicians

NOTE 33 - INSURANCE As of March 31, 2018, the Group carried different insurance policies to reduce the risks inherent to each type of asset held by the Company. Those policies are described below. a)

Inventory

The Group had insurance policies to cover the risks to products in process and finished products, including business interruption and strike losses. Empresas AquaChile S.A. and its subsidiaries believe that these policies provide sufficient coverage of the risks inherent to its business.

The insurance policies for products in process and finished products carried by Empresas AquaChile S.A. and its subsidiaries are as follows: Product

Risks covered

Fresh, frozen and smoked fish (salmon and trout).

Loss and/or damage during air, maritime and land transportation Loss and/or damage caused by natural disasters (floods, ocean swells, wind).

Loss and/or damage caused by earthquakes, fires and/or tsunamis.

b) Biological assets Empresas AquaChile S.A. and its subsidiaries carry the following insurance for biological assets (see Note 11 on Biological Assets): Product Eggs, live and harvested fish

Risks covered Damage as a consequence of, or directly caused by, an external agent during loading/unloading and transport by sea, air or land.

Biomass fattening

Damage as a result of disease, theft and natural risks such as storms, ocean swells, tsunamis, earthquakes, volcanic eruptions, currents, floods, avalanches, mudslides, underwater currents and algae bloom.

113

c) Property, plant and equipment The Company carries insurance policies covering risks to movable property, vehicles, equipment, plant and machinery, including business interruption and strike losses. Empresas AquaChile S.A. and its subsidiaries believe that these policies provide sufficient coverage for the risks inherent to its business.

The insurance policies carried by Empresas AquaChile S.A. and its subsidiaries for property, plant and equipment are as follows: Asset Buildings, facilities, machinery and equipment

Risks covered Damage to property tidal wave or tsunami.

due

to

fire,

earthquake,

Damage to property caused by natural risks.

Coverage for fire and material damage as a direct result of strikes, looting, riots and caused by its own or third-party vehicles.

Loss and/or damage caused by natural disasters (floods, ocean swells, wind).

Platforms, cages, pontoons and maritime hull

Physical loss or damage attributable to: Fire or explosion.

Ship or boat that runs aground, is beached, sinks or turns over.

Overland transport that overturns or derails Collision or colliding of the ship, boat or means of transport Unloading in a forced port call, if this is legitimate.

Losses of insured matter caused by general average sacrifice or jettisoned cargo.

d) Liability The Group carries insurance policies to cover the risks of liability inherent to its business, namely the production, sale and export of products derived from eggs, smolt, fish fattening and the entire process of activities both related and inherent to these operations.

The policy covers tort liability for material damage and/or bodily harm to third parties as a result of actions inherent to the insured activity, including attorneysâ&#x20AC;&#x2122; fees and expenses.

NOTE 34 - SUBSEQUENT EVENTS a)

The Groupâ&#x20AC;&#x2122;s consolidated interim financial statements for the period ended March 31, 2018 were approved by the Board of Directors on May 16, 2018.

b)

There were no subsequent events from March 31, 2018 to the date these financial statements were issued that could significantly affect their presentation.

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