Chairman's Address 2011
In 2011, Icelandic Group disposed of its operations in France and Germany to an investor group led by the seafood company Pacific Andes International Holdings Ltd from Hong Kong. The operating plants in these countries had very little value for the Icelandic fishing industry and were not strategically important to the Group. The disposal represented an important step in the restructuring of Icelandic Group, resulting in more focused operations and debt reduction.
approximately EUR 13 million in 2011. The Company currently has manufacturing operations in the UK, Spain and Iceland and sales and marketing operations in Europe and Asia. The Company further relies on its long-standing business relationship with Icelandic fishing companies in various parts of the country. These foundations allow us to build a trustworthy and profitable seafood company which will continue to service Icelandic producers and operate strong businesses in other countries.
Icelandic Group also sold its operations in the US along with related procurement and manufacturing businesses to the Canadian seafood company High Liner Foods Inc.
I would like to take this opportunity to thank the management and staff of the Company for their excellent work in 2011. I would also like to thank the Board of Directors and former Board Directors for their support and co-operation.
During the sales process, it was always clear and essential for Icelandic Group to keep the ownership of the brand, IcelandicTM. In relation to the sale process, Icelandic Group made a brand license agreement with High Liner Foods, as well as a distribution agreement. Under the agreements, High Liner is allowed to use the brand IcelandicTM for primary products by following certain rules with strict clauses and monitoring rights by Icelandic Group. This means that Icelandic Group maintains full control over the quality aspects under which products are being sold and marketed and that the market access for Icelandic producers selling to the USA is not only protected, but also opens up an opportunity for greater sales channels through High Liner Foods' strong presence in retail in the USA and Canada.
Herdis Fjeldsted Chairman of the Board of Directors
Current status and prospects Following the sale of assets, Icelandic Group is a very different business, with a strong balance sheet. Year-end equity is more than ISK 29 billion despite repurchases of own shares totalling about ISK 6 billion in 2011. EBITDA from continuing operations was
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