Download - Bakkavor

Bakkavör Group is a provider of
fresh prepared foods and produce
with a total turnover of £1.64 billion
in 2010. We have over 30
manufacturing facilities in the
UK, where we are market leader,
and over 20 facilities in nine other
countries. We employ over 18,000
people and make around 6,000 fresh
prepared food products across 18
different product categories such
as ready meals, leafy salads, dips,
chilled desserts and soups. Our
main business focus is developing
retailer branded products for
local and global retailers; we also
work with leading international
foodservice companies.
In our core UK market we are
the market leader in 12 of our
product categories. We have also
established a significant presence
in developing fresh prepared foods
markets in Continental Europe, the
United States, Canada and China.
The information and accounts in this Annual
Report apply to Bakkavör Group ehf.
Overview
1 Snapshot
2 Chairman & CEO statement
Operating & Financial Review
17 Our performance
18 Market trends
20 Retail trends
22 Sales review
24 Financial review
28 Risk management
Corporate Responsibility
30 Responsibility report
Governance
36 Meet the management
38 Corporate Governance report
Financial Statements & Notes
43 Endorsement by the Board of Directors and CEO
45 Independent Auditor’s Report
46 Consolidated Income Statement (period)
47 Consolidated Income Statement (year)
48 Consolidated Statement of Comprehensive Income
49 Consolidated Statement of Financial Position
50 Consolidated Statement of Changes in Equity
51 Consolidated Statement of Cash Flows
52 Notes to the Consolidated Financial Statements
Mexican chilli bean soup

Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
1
Snapshot
Against the backdrop of a recessionary climate and a challenging trading
environment, we achieved good underlying sales growth in our key
markets and maintained our competitive position and market share.
Commodity inflation has, however, persisted longer than anticipated
and continues to affect the Group’s gross margins. Our parent entity in
Iceland was successfully refinanced in May 2010 and the key banking
facilities were extended in February 2011, bringing the operating
businesses under a single funding structure.
Net sales
EBITDA*
Free cash flow
£1.64bn
£131.4m
£54.8m
£1.65bn: 2009
£135.1m: 2009
£68.3m: 2009
(53 weeks) (53 weeks) (53 weeks)
See page 24
See page 25
*pre-restructuring costs
See page 26
Key achievements
Awards
1
2
Refinanced
Outperformed the market in our core UK
fresh prepared foods business
our parent entity and operating
businesses successfully
Generated positive free cash flow of
3 £54.8 million
4
Successfully developed and launched over
1,000 new products
Quality Food Awards
Winner of the
Vegetarian category
Tesco’s Finest Restaurant
Collection Roasted Pumpkin
& Goats Cheese Filo Tartlets
Food Manufacturing
Excellence Awards
Diversity in
Recruitment Award
Hitchen Foods
Marks & Spencer
’Plan A’ Awards
Leadership in
Working in the
Community Award
Caledonian Produce

2 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Chairman & CEO statement
Welcome. Overall demand for fresh prepared foods
continues to grow, underpinned by the strength of
the four global mega-trends – convenience, health,
pleasure and responsibility – which continue to
influence people’s lifestyle choices.
Lýdur Gudmundsson
Chairman
Ágúst Gudmundsson
Chief Executive Officer
However, the uncertain economic climate has
dented consumer confidence and intensified an
already competitive retail environment. On the
supply side inflationary costs have resurfaced.
None of these pressures is new to us. In recent
years we have restructured the business to optimise
capacity and reduce operating costs, enabling us to
provide value for money products and support our
customers through increased promotional activity.
Global mega-trends
Understand the global megatrends
that influence our business.
See page 18
We are confident of our business model and
strategy. This year we successfully refinanced our
operating businesses, bringing them together
under a single funding structure, and diversified
our funding sources through the successful issue
of seven-year Notes on the international capital
markets. With our well-invested, low-cost and
operationally flexible facilities, sound financial
base, excellent people and innovative spirit we are
in good shape to tackle today’s trading challenges.
But we know that we must continue to take vigorous
action to protect our profit margin. And this
remains our priority.
Bakkavör Group Annual Report 2010

3
Our strategy
To maintain and enhance our
position as a leading fresh
prepared foods producer, deliver
profitable sales growth, maintain
stable and strong cash generation
and improve profitability.
We aim to achieve this by
focusing on the following:
1
2
3
Maintain and strengthen
our leading market positions
Maintain and deepen
our relationships with
leading retailers
Continue to increase
efficiency and reduce costs
4
5
Focus on cash flow growth and
reducing leverage
Continue to drive selective
growth
Sales growth in tough trading environment
Our underlying sales grew in our key markets in
2010, with like-for-like sales 1 increasing by 2.5%.
Our performance was underpinned by strong
sales in our core UK Prepared business where
like-for-like sales 1 grew 6.0% against a market
growth of 4.6%.
The tough trading environment, which we
have talked about now for several years, has
not eased. Consumers continue to look for
good value for money and we have supported
our customers successfully by participating
in high levels of promotional activity and
price reduction campaigns. However, high
volume promotional uplifts come at a price
and so margins have reduced as promotional
costs have increased. As a result our full year
adjusted EBITDA 2 declined slightly.
Offsetting inflationary pressures
In addition, we have experienced inflation
in key raw materials throughout the year,
particularly in core dairy products and wheatbased
ingredients. Towards the end of 2010 we
also faced price increases in a number of key
materials including rapeseed oil, chicken, fruit
and packaging.
Offsetting these increased purchasing costs
remains a priority and our business model
stands us in good stead. In recent years we
have successfully restructured our operations
and invested in our facilities in order to optimise
our capacity, benefit from economies of scale
and lower our costs. In addition, our operational
flexibility means that we can (and do) react
quickly to changing market conditions. Over
and above this, we continue to take action
to offset the impact of inflation on our profit
margin, including:
1. Negotiating prices with customers
and suppliers
2. Re-evaluating product and packaging
specifications
3. Hedging against price rises wherever
possible
4. Driving further operational efficiencies and
performance across all our businesses
Strengthening our market positions
Despite the challenging trading conditions,
we know that we must not lose sight of
the needs of our consumers and customers.
Consumers require us to provide products
which represent good value and match their
lifestyle requirements. Our customers require
us to provide industry expertise, consumer
understanding and a diverse range of products
to help differentiate and update their retailer
brand. Both require us to remain innovative in
the way in which we develop and make new
products.
In 2010 we launched over 1,000 new
products and in early 2011 we entered the
Canadian market in collaboration with a
leading grocery retailer. We are committed
to maintaining and deepening our customer
relationships and strengthening our leading
market positions through such initiatives.
Investing in efficiency
We continue to invest in our business. Over
the last three years, we have invested over
£180 million in acquisitions and capacity
expansions, around half of which has been in
our existing and newly acquired factories. We
are reviewing all aspects of our operations
and business and we implemented new
efficiency programmes in 2010, mainly in our
Continental European operations. We aim to
improve productivity and lower costs across
our business by investing selectively in new
production equipment, implementing process
improvements and evaluating our product lines.
We also aim to consolidate our production to
maximise use of existing capacity and to realise
other economies of scale in manufacturing
and purchasing.
1. Like-for-like sales are on a ’constant currency’ basis. They include
sales from associates and exclude sales from discontinued
businesses. 2009 sales have been normalised due to 53rd week.
2. Adjusted EBITDA is presented pre-restructuring costs.

4 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Chairman & CEO statement
continued
Our risk management
priorities
1 Operational
safety
2 Sustainable
growth
3 Customer
relationships
4 Consumer
understanding
5 Shareholder
value
See page 28
Responsibility report
See an overview of our
responsibilities and how
we manage them.
See page 30
Refinancing for future growth
In February 2011 we refinanced our operating
businesses, diversified our funding sources
through the successful issue of seven-year
Notes on the international capital markets
and extended banking facilities out to 2014.
The parent entity, Bakkavör Group ehf., has
also now been fully refinanced following an
agreement made in April 2010 with the lenders
in Iceland. This agreement has deleveraged
the Group considerably with around half of the
debt converted into equity and the remainder
extended until 2014. These actions have
stabilised our financial platform for
future growth.
Generating cash and managing debt
Our focus on reducing costs, increasing
efficiencies and achieving profitable sales
growth will allow us to expand our profit
margins and improve our cash flow position.
In 2010 we generated £54.8 million in free
cash flow.
Growing selectively
Despite its relative maturity we aim to continue
to grow within our core market, UK fresh
prepared foods. We also intend to use our
consumer and operational expertise, economies
of scale and relationships in the UK to grow
in targeted international markets. Our current
operations in Continental Europe, the United
States and China leave us well positioned
to grow organically in these markets. In
addition, we continue to evaluate acquisition
opportunities that could improve our market
share, expand our product offering or support
our retail customers as they expand into new
geographic markets.
Dividends
It was resolved at the 2010 AGM that no
dividend would be paid in the year 2010
(2009: nil).
Responsibility
Our responsibilities span many areas – from
providing safe food to behaving responsibly as a
business. Our focus is on doing things the right
way and we have values and systems in place
to do just this. In 2010 we are pleased to report
continued improvement in our Health and Safety
performance, new environmental initiatives in
product and packaging and awards for product
quality, diversity and community projects.
People
We continue to be proud of the vitality,
passion and adaptability that our employees
demonstrate, even when it gets tough.
We employ around 18,000 people across the
world and we thank them for their continued
support and enthusiasm for the business.
Outlook
Looking ahead, we remain confident in the longterm
prospects of the business and our vision
for Bakkavör to be recognised and respected
as the leading provider of fresh prepared foods
and produce remains unchanged. However,
given the continued economic uncertainty,
we are cautious about consumer confidence
in the short term and the impact of continued
raw material inflation and we expect trading to
remain challenging. We will continue to maintain
a very selective approach to capital investment,
mitigate inflationary costs, improve operational
efficiencies, increase market share and
generate cash.
Lýdur Gudmundsson Ágúst Gudmundsson
Chairman
Chief Executive Officer
Bakkavör Group Annual Report 2010

Over 18,000 people work for Bakkavör – each contributing to our
success at being a leading fresh prepared foods provider. The
following pages give you an insight into how we work together
to make great food for you to enjoy.
Ágúst Gudmundsson

is to be recognised and respected as the
world’s leading provider of fresh prepared
foods and produce. We will achieve this by
being true to our strategy, our values and
our corporate responsibilities.
We have established leading positions in our
chosen markets and together with our excellent people,
well-invested facilities and our innovative culture we are
well positioned to take advantage of opportunities in the
growing fresh prepared foods markets.
Ágúst Gudmundsson
Chief Executive Officer
Fresh leafy salad

Sticky chocolate brownie pudding
We are the UK’s leading producer of fresh prepared foods, with a No.1
position in 12 of our key fresh prepared foods categories. Internationally,
we are unique in supplying the most diverse and innovative range of fresh
prepared foods, primarily for the retailer branded market.
We have over 30 manufacturing facilities in the UK, our core market. We
have also established a significant presence in developing fresh prepared
foods markets with over 20 manufacturing facilities in another 9 countries –
France, Belgium, Italy, Spain, the Czech Republic, South Africa, China,
the US, and Canada.
Group turnover
by region
We enjoy strong relationships with major grocery retailers and well-known
international foodservice operators. Our extensive retailer brand experience,
knowledge of consumer needs and expertise in creating innovative foods
have made us the supplier of choice for most of our customers.
Continental
Europe
Rest of
World
We focus on the needs of those that matter to us – our employees, our
customers, our consumers, our local communities, our suppliers and our
shareholders and lenders – as well as reducing our environmental impact
where we have direct control. We have values and systems in place to
ensure we continue to do things right.
United
Kingdom

Seafood paella
We are unique in supplying the widest variety of fresh prepared foods on an international
scale. Our products are successful because we ensure we know our markets, our customers
and our consumers inside out. This has given us market leading positions and a recognised
reputation for innovation.
Our core categories
Ready meals
* * *
Ready to cook meals
* * *
Pizza
* * *
Soups
* * *
Sauces
* * *
Stir fries
*
Bakery products
* * *
Pasta
*
Prepared vegetables
* * *
Ethnic snacks
* *
Leafy salads
* * *
Convenience salads
* * *
Dips
* * *
Dressings
* * *
Sandwiches & wraps
* *
Prepared fruit
* * *
Desserts & pastries
* * *
Smoothies
*
*
United Kingdom
Continental Europe
Rest of World
Duck spring rolls with a dipping sauce
Chicken korma with rice
Crispy vegetable samosas
Chocolate eclairs & jam doughnuts

Melon, grape & pineapple
Extra strong garlic baguette
Chicken ’n’ chorizo pizza
Spanish mild mixed olives
Mexican chilli bean soup
Butternut, spinach & broccoli
Cherry tomato sauce with pasta
Authentic Italian bolognese bake
Spicy salsa dip
Asparagus tips
Rosemary & garlic potatoes
Guacamole dip
Traditional beef casserole
Classic vegetable medley
Stuffed vine leaves
Jalapeno chicken wraps with a leafy salad
Moroccan topped houmous dip
Petite patisserie
Apple & pecan tart
New York cheesecake
Sticky chocolate brownie pudding
Red pepper flat bread

We have over 40 years' experience of making fresh prepared foods
and work with 8 of the top 10 global grocery retailers and wellknown
international foodservice operators.
The UK is our core market and we have established operations in
developing fresh prepared foods markets including Continental
Europe, the United States and China.
Group priorities for the medium term
• Mitigate infationary costs
• Improve operational efficiencies
• Increase market share
• Drive cash generation
• Ensure selective approach to
capital investment
We work with all the major grocery retailers in the UK
Turnover in 2010
Our UK locations
Fast facts
Product categories
Ready meals
Desserts
Pizza
Leafy salads
Dressed salads
Meal salads
Dips
Bakery products
Soups
Sauces
Sandwich wraps
Prepared fruit
Prepared vegetables
Ready to cook meals
Stir fries
Dressings
of Group
turnover
Tomatoes
Cucumbers
Peppers
Aubergines
Sweet potatoes
Asparagus and
other exotic
vegetables
1 Caledonian Produce – West Lothian
2 English Village Salads – Selby
Yorkshire Fresh Fruit – Selby
3 English Village Salads – Newport
4 New Primebake – Barton upon Humber
5 Hitchen Foods – Wigan
6 Melrow Salads – Southport
7 New Primebake – Crewe
8 New Primebake – Nantwich
9 Laurens Patisseries – Newark
10 Welcome Foods – Huthwaite
11 Cucina Sano – Boston
12 Bakkavör Spalding – Spalding
Bakkavör Group – Spalding
13 Bakkavör Pizza – Holbeach St Marks
Freshcook – Holbeach St Marks
14 Bakkavör Meals – Sutton Bridge
Wingland Foods – Sutton Bridge
15 Bourne Prepared Produce – Bourne
16 Bakkavör Meals – Park Royal
& Wembley
17 Bakkavör Pizza – Harrow
18 Anglia Crown – Colchester
19 Tilmanstone Salads – Dover
20 Alresford Salads – Alresford
21 Isleport Foods – Highbridge
6 5
2 3
8 7
4
10
9 11
15 12
13
14
21
20
17
16
18
19
Manufacturing
facilities
Product
categories
In 12 product
categories
Employees
Size of UK
FPF market*
Years of retailer
brand experience
*
* Kantar Worldpanel, 52 weeks ending 26 December 2010

Turnover in 2010
Our Continental European locations
of Group
turnover
1 Cinquième Saison - St Pol-de-Léon, France
2 Bakkavör Traiteur - Chevilly, France
3 Cinquième Saison – Mâcon, France
4 Crudi - Torreilles, France
5 Sogesol – Murcia, Spain
6 Vaco Olen – Olen, Belgium
7 Vaco Herselt – Herselt, Belgium
8 Heli Fresh Foods – Milin, Czech Republic
9 Italpizza – Modena, Italy
5
4
2
6 7
3
9
8
Key customers supplied from our Continental European operations
Product categories
Ready meals
Leafy salads
Convenience salads
Pizza
Bakery products
Dips
Prepared vegetables
Prepared fruit
Soups
Sauces
Turnover in 2010
Product categories
Key customers supplied from our Rest of World operations
of Group
turnover
Ready meals
Desserts & pastries
Convenience salads
Pizza
Bakery products
Dips
Soups
Sauces
Leafy salads
Prepared vegetables
Sandwiches & wraps
Prepared fruit
Pasta
Smoothies
Our Rest of World locations
1 Creative Food Group – Beijing, China
2 Creative Food Group – Shanghai, China
3 Creative Food Group – Wuhan, China
4 Creative Food Group – Haimen, China
Creative Food Group – Haimen, China (farm)
5 Creative Food Group – Xianyang, China
6 Creative Food Group – Guangzhou, China
7 Creative Food Group – Yantai, China
8 Creative Food Group – Anhui, China (farm)
9 La Rose Noire – Kowloon Bay, Hong Kong
10 Gastro Primo – Chaiwan, Hong Kong
5
8
3
6
9 10
7
4
2
16
15
12 14 13
11
11 Spring Valley Foods – Johannesburg,
South Africa
12 Two Chefs on a Roll – California, US
13 Two Chefs on a Roll – Pennsylvania, US
14 Two Chefs on a Roll – New Jersey, US
15 Bakkavör Foods Canada – Ontario,
Canada
16 Bakkavör Group – Reykjavík, Iceland

To ensure we remain a sustainable business we have put values and
systems in place to help us focus on the needs of the people that
matter to us most and the environments in which we live and work.
Fatima Ferreira
Fatima has benefited from our focus on
developing our people. She began working
for us 8 years ago as a production operative
and now works as the retort and meal line
team co-ordinator at Bakkavör Meals, Sutton
Bridge. (She is also lucky enough to work with
her husband!).
The place to work, the partner of choice and caring for our
community are our three key areas of responsibility and we have set
ourselves high standards in each of them.
Recruitment
Retention
Our Employees
Communication
Health & Safety
Diversity
Our Environment
Our Shareholders
Our Neighbourhood
Our Customers
Our Suppliers
Ricky Saunders
We encourage and involve our people
at every opportunity. Ricky Saunders
helped design the state of the art
kitchen in which he now works at
Bakkavör Meals in Sutton Bridge. As
a development chef, he spends his
days creating, developing, testing and
tasting new recipes.
Mark Steels
As a Production Operative at
our Pizza site in Holbeach, Mark
prides himself on ensuring every
pizza has the perfect base.

We believe in five core values which underpin the way we want to be known for
doing business and reflect the way in which we expect all our employees to behave.
Customer care
We are committed to supplying
outstanding quality, value and
service, never forgetting that our
relationship with customers is
pivotal to our success.
Can do
We encourage personal initiative
and empower our people to make
things happen. Our motivation
comes from a determination to
succeed in all we do.
Teamwork
We believe everyone has a
valuable part to play in the
success of the business. We aim
to communicate effectively and
are committed to the highest
standards of ethics and integrity.
Innovation
We thrive on challenges,
looking for innovative ways
to grow and improve our
business further.
Getting it right / keeping it right
We strive to deliver the right
result every time in the most
effective way providing value
for our customers and
stakeholders alike.
Sandra Lawson
With 22 years of service under her belt,
Sandra has made many lifelong friends
at Bakkavör Spalding and couldn’t think of a
better place to work.
Left (from left to right):
Lina Tezgel, Rafael Fernandez and Virginija Vaubsiene
Virginija and Rafael met working at our ready meals business in Sutton
Bridge. They soon married and now work with Virginija’s daughter, Lina, as
packing operatives at Wingland Foods. With new recipes always moving
through the factory the family are kept on their toes. ”The products are
changing all the time which is interesting”, says Virginija. ”We hope to
work here for a long time.”
Janet Phillips
At 65 years of age Janet is known as ’Mother’ by all at the
Wingland Foods site where she has worked since its opening in
2000. ”I’ve seen lots of changes over the years but what doesn’t
change is that the workers are cared for here and I believe in
treating everyone the same...I don’t ever want to retire.”

To grow and continuously improve our business to meet the ever-changing demand in the markets in
which we operate we promote an innovative culture, thriving on new challenges and inspiring creativity.
We encourage our people to embrace opportunities, pushing the boundaries to create innovative
products and working environments. Our approach continues to be recognised externally.
Quality Foods Awards, UK
Winner of the Vegetarian category
Roasted Pumpkin & Goats Cheese Filo Tartlets
made for Tesco’s Finest Restaurant Collection
at Bakkavör Meals, Park Royal

Quality Foods Awards, UK
Winner of the Delicatessen category
Tesco Frijolemole Dip made at Bakkavör Spalding
Highly Commended in the Desserts &
Puddings category
The Co-operative Truly Irresistible Tarte au Poire
made at Isleport Foods
Highly Commended in the Ready Meals category
Tesco Finest Restaurant Collection Smoked Haddock &
Prawn Pie made at Bakkavör Meals, Park Royal
The Grocer Food & Drink Awards, UK
Gold winner in the Chilled Sweet category
Tesco Finest Restaurant Collection Caramelised Williams
Pear & Hazelnut Frangipanes made at Isleport Foods
PAPA Awards, UK
Winner of Innovative Pizza Product category
Tesco’s Chicken, Bacon and Fontal Calzone made at
Bakkavör Pizza, Holbeach St Marks
Food Manufacturing Excellence Awards, UK
Hitchen Foods awarded for Diversity in Recruitment
Marks & Spencer ’Plan A’ Awards, UK
Caledonian Produce awarded for Leadership in Working
in the Community
Woolworths Stewardship Awards, South Africa
Spring Valley, South Africa awarded for Ethical and
Environmental Contribution from its domestic
customer, Woolworths
Awards achieved in 2010

number of different
ready meal recipes
we make
number of different
countries we buy
fresh produce from
amount invested in
the business over
the last three years
we aim to reduce
our energy usage
by 30% by 2015
number of years of
expertise in producing
retailer branded products
number of iceberg
lettuces we buy per year
we are committed to
‘growing our own’
and aim to fill 50% of
vacant roles internally
number of different languages
our produce procurement
team can speak
number of tonnes
of potatoes we buy
each year

WOULD YOU LIKE
TO ORDER A COPY
OF OUR BROCHURE
Email:
group.communications@bakkavor.co.uk

Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
17
Our performance
”During the year we achieved good underlying sales growth in our key markets
and maintained our competitive position and market share. Our core UK Prepared
business performed particularly well throughout 2010 as participation in high
levels of retailer promotional activity resulted in strong volume uplifts.
However, ingredient and packaging inflation persisted longer than anticipated and
continues to affect the Group’s gross margins. While the impact is being partially
offset through cost efficiencies and negotiating price increases, the environment
remains challenging and trading is expected to remain tough until the inflationary
environment stabilises.”
Ágúst Gudmundsson, CEO of Bakkavör Group
Group sales
£1.64bn
In order to provide context to our performance
commentaries, we have set out our Operating
and Financial Review (OFR) in three sections,
covering five topics. Our market information
helps to explain the long-term dynamics in
which we operate, our performance overview
provides a detailed analysis of our revenue and
financial results and our risk overview sets out
the key risks to the business. We hope that you
find our OFR thorough and informative.
Operating profit
£99.2m
Market information
Market trends
An overview of the global mega-trends and how
they influence the market for fresh prepared foods.
See page 18
Retail trends
An overview of the global retail trends and how
Bakkavör works with retailers to achieve
mutual goals.
See page 20
Performance overview
Sales review
An analysis of our sales performance at Group level
and also by geographical business segment: UK
Prepared, UK Produce, Continental Europe and
Rest of World.
See page 22
Risk overview
Risk management
An overview of the five key risks which we
have formally identified. Our focus is on the
management of these risks as they could
pose a threat to our strategic objectives.
See page 28
Financial review
A detailed financial analysis of our Group
performance in 2010.
See page 24

18
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Market trends
The effects of the economic crisis are not yet over and people are still spending
cautiously. However, the fresh prepared foods market continues to grow strongly,
underpinned by the four deep-rooted global mega-trends – convenience, health,
pleasure and responsibility.
For Bakkavör this means business as usual – continuing to develop and
make quality products that are good value for money and match the lifestyle
requirements of today’s consumer.
In the UK, our largest
market, fresh prepared
foods grew by a healthy
5% in 2010, outpacing
total food growth of 3%.
Kantar Worldpanel
In 2010 UK consumers
bought over 18 million
bags of our leafy salads
containing watercress.
Bakkavör
Convenience
Simple meal solutions at the right price
Smaller households, more working women,
and women delaying motherhood are strong
trends that continue to influence the need for
convenient solutions.
People are increasingly treating time,
energy and, more recently, money as precious
commodities which need to be ’consumed’
wisely to fulfil basic needs and relieve some
of the pressures of modern day life.
When it comes to food, especially in smaller
households or time-pressed families, people
want to spend less time planning and preparing
meals and therefore look for ways and products
to achieve this. Fresh prepared vegetables,
ready-made pizza or a potted salad meal that
can be eaten ’on the go’ all help to fulfil the
need for convenience.
With tighter household budgets, people are
also more determined to ensure that products
provide good value for money. This does not
necessarily mean choosing a product at the
lowest cost – it is more about the overall value
a person can get from it. For example, a readymade
moussaka may be considered better
value than cooking it from scratch with individual
ingredients which can be more expensive,
too time-consuming and too wasteful.
Bakkavör + Convenience
Each of the 6,000 or so different fresh prepared foods we make
has been developed to meet people’s convenience aspirations
no matter what the meal occasion or the budget.
Health
Eating smarter for physical and mental health
The global trend towards health remains strong,
influenced by factors such as increasing levels
of obesity and the significant rise in the number
of people living longer, along with the vast
amount of information we now have access
to relating to health issues and solutions.
As a result many people are constantly trying
to maintain or reach a healthy weight and/or
trying to preserve mental agility and physical
capacity for as long as possible to delay the
effects of ageing.
However, our increasingly busy lifestyles
mean this is not always easy to achieve.
Therefore, rather than following complicated
restrictive diets, people are tending to choose
a more simpler, straightforward approach. Today,
eating a balanced quantity of foods, which
are perceived to be naturally better for
your health and well-being, is increasingly the
preferred choice.
This has resulted in people eating more
protein-rich foods such as chicken and fish, and
increasing their intake of fruit and vegetables,
particularly those that are perceived to have
’superfood’ attributes such as watercress.
To find out more about the natural benefits of
watercress and why it is a popular, healthy food
choice go to www.watercress.co.uk.
Bakkavör + Health
In 2010 we launched a successful new healthy ready meal
range for Marks & Spencer in the UK, developed to keep people
feeling fuller for longer – high in protein and vegetables and
balanced with a moderate amount of carbohydrates, ”Simply
Fuller Longer.”
Bakkavör Group Annual Report 2010

19
What is important when you buy food %
World population 60 years or older
It all gets eaten, not thrown away
55
1950
8%
It’s healthy/nutritious
60
It’s fresh
69
2000
10%
It tastes good
74
It’s good quality
I get good value
75
78
2050
21%
The Futures Company, 2010
www.un.org
In 2010, 58% of UK
consumers agreed with
the statement that:
making the world a better
place is important in my
personal life today -
up 9% from 2008.
The Futures Company
Pleasure
Affordable foods that provide the ’feel
good’ factor
Household budgets may be tight and consumers
are still spending cautiously but this has not
stopped people from needing to experience
the ’feel good’ factor to relieve some of today’s
stresses.
However, instead of buying ’big ticket’ items
such as holidays and cars, people are tending
to treat themselves and their families to small
affordable day-to-day luxuries by way of reward
and more often than not this can be a food treat.
Home entertaining with family and friends
has become particularly popular as it is often
a less expensive option than eating out. With
the vast choice of high quality convenient fresh
foods available people can easily experiment
with foods that are fun to try, buy foods to share
or choose foods that bring back memories of
good times in the past.
This could mean, for example, trying a
new fresh dip such as houmous topped with
chickpeas and dressed in a Moroccan relish,
sharing a sticky chocolate brownie pudding as
a dessert or choosing a traditional childhood
recipe such as beef stew with dumplings.
Responsibility
Making the world a better place through
food choices
Whilst many people want to take steps to help
the environment, they often find it hard to judge
which processes and products are better or
worse for the environment due to conflicting
advice or too complex information.
Therefore, people are tending to understand
and connect most with straightforward ’green’
behaviours which relate to their home and
everyday life. This can include, for example,
making a conscious effort to turn off lights,
reduce water usage, recycle household items
and buy more products that have been locally
produced or made in a fair and ethical manner.
Waste, in the form of food and food packaging,
has become a key concern as it is seen as a cost
– a cost to the individual or family if uneaten food
has to be thrown away, as well as a cost to the
environment if food is over-packaged or presented
in packaging which cannot be recycled.
Bakkavör + Pleasure
In 2010 we won four prestigious food awards in the UK which
is testament to our ability to develop and deliver high quality,
innovative fresh prepared foods.
Bakkavör + Responsibility
In conjunction with our customers, we have clear targets on
reducing waste going to landfill. These include reducing product
packaging and increasing the recycled and recyclable content
within it.
See page 34

20
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Retail trends
In this tough economic climate, in which consumers are spending more cautiously,
grocery retailers are faced with managing increasing costs whilst striving to drive
growth. As such they are focusing on four key areas – making their commercial
model work harder, strengthening their global position successfully, developing
their multi-channel approach and reinforcing their retailer brand proposition.
We continue to adapt
to the challenging
environment, balancing
sales and margins while
seeking to grow market
share and volumes.
To continue to provide
value to our customers,
we have launched a new
€350m cost reduction
programme for the three
years ending 2012.”
John Rishton
CEO, Ahold, November 2009
Making the commercial
model work harder
Battling increasing costs and weak
consumer confidence
Higher energy and commodity costs coupled
with low consumer confidence are pushing
grocery retailers to implement a range
of initiatives to save costs and boost
customer spend.
Cost saving initiatives
Grocery retailers are stepping up their cost
reduction programmes, focusing on areas
such as supply chain efficiency, energy-saving
initiatives and investment in new in-store
technology.
For example, they are increasing their use
of shelf ready packaging, vehicle utilisation, low
energy refrigeration and lighting, and new selfservice
technology at the checkout.
Promotions and pricing
To encourage consumer spending grocery
retailers have increased their level of
promotional activity and introduced different
promotional mechanics, such as meal deals,
price reductions and rounded price points.
Cautious globalisation
Pressure in target markets to achieve
good Return on Investment
In recent years grocery retailers have
strengthened their positions outside their
domestic markets as part of their strategies for
growth. Despite the tough economic climate,
this has still remained high on the agenda.
The most successful retailers have taken their
experience and expertise from their core markets
and adjusted these to meet the local consumer
tastes and habits of the new market.
However, as well as market entries there
have been market exits where retailers have
failed to adapt their offer, achieve a good Return
on Investment or make significant investment.
Going forward, we expect that global grocery
retailers will continue to target growth potential
in new markets. However, instead of rolling out
quickly across several markets, retailers will
concentrate on developing scale and strength
locally in selected countries.
Bakkavör + Commercial model
In partnership with our customers we work hard to make
and deliver our products as efficiently as possible, benefiting
from our economies of scale. The combination of our size and
operational flexibility means that we are able to produce the
large promotional volumes required, at short notice, and in a
just-in-time manufacturing environment.
Bakkavör + Globalisation
We have established positions in developing fresh prepared
foods markets where we believe we can use our industry
expertise and relationships with retailers to lead the growth
and development of these markets.
For example, we work with Tesco in the Czech Republic and
Marks & Spencer in China and Hong Kong, and we have just
launched a range of fresh prepared foods in Canada for one
of the country’s leading retailers.
Bakkavör Group Annual Report 2010

21
UK grocery market share by channel % 2009 2014
Global retailer market entries/exits
Supermarkets and superstores
Convenience
20.7
23.5
Traditional retailing
4.5
3.3
Discounters
3.9
4.6
Online shopping
2.6
4.1
IGD Research, 2009
64.5
68.3
ExITS EnTRIES
Chile
India
South Africa
Walmart
Russia*
Bulgaria
India
Iran
Groupe Carrefour
Russia
Algeria
Thailand
* Moscow buying office closed and market entry plans cancelled
IGD Research, 2011
India
Tesco
Egypt
Kazakhstan
METRO Group
Morocco
The popularity of
our brand range with
customers has meant that
Tesco Finest and Tesco
Value are themselves big
brands in the UK. Tesco
Value has become the
second largest food brand
in the UK…pushed into
second place by Tesco
Finest.
Terry Leahy
Former CEO, Tesco Plc,
October 2010
Multi-channel approach
Online and convenience shopping gaining
share from traditional store formats
As people become increasingly time-pressured,
technology-savvy and value-conscious they
are looking for ways to make food shopping
easier and cheaper. In response, grocery
retailers are adopting a multi-channel approach,
giving consumers greater accessibility and
flexibility, and are investing significantly in
two key areas: online shopping and
convenience formats.
The US and UK lead the way in online
grocery retailing. In the UK the online market
share of the total grocery market is set to nearly
double over the next five years due to increasing
broadband penetration and internet familiarity,
improved functionality and mobile shopping
devices.
The increase in smaller households and the
propensity for top-up shopping has seen sales
in convenience stores growing ahead of those
in traditional store formats. In order to exploit
these trends, retailers continue to expand
and develop their convenience store portfolio.
Typically these stores stock a higher proportion
of fresh prepared foods and impulse lines.
Retailer brands
Achieving differentiation through
retailer brands
Grocery retailer strategies continue to evolve as
retailers work harder than ever to differentiate and
demonstrate value to their shoppers.
They are putting significantly more effort and
investment into developing their retailer brand
offers, either through lower prices or through the
introduction of new ranges to build scale, increase
choice, promote value/premium credentials and
boost margins.
Over the last two years, grocery retailers have
introduced or expanded their own ’value’ brand
ranges. Whilst these ranges are heavily reliant on
volume they have been able to reinforce a low
price perception, successfully attracting shoppers
into their stores.
At the same time grocery retailers have
invested in ’super premium’ ranges to capture
shoppers who want an eating out experience at
eating in prices.
As part of their strategic growth plans, the
top global grocery retailers are committed to
ensuring their retailer brands become increasingly
international and are rolling them outside their
core markets.
Bakkavör + Multi-channel approach
Most of our fresh prepared foods are ideally suited for the
convenience store format, providing quick and fresh meal ideas
for the time-pressed shopper. We are also seeing an increasing
proportion of fresh prepared foods sales through the online
shopping channel.
Bakkavör + Retailer brands
Developing products for retailer brands is at the heart of our
business and we have over 40 years of expertise in this area.
We are the supplier of choice for many of our customers owing
to our understanding of consumer trends, our track record
of innovation and our ability to develop and launch products
quickly in fast-moving markets.

22
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Sales review
We experienced good underlying sales growth in our key markets in 2010, with
performance underpinned by strong sales uplifts in our UK Prepared business
where like-for-like sales 1 growth was up 6.0% against a market growth of 4.6%
in the full year.
Turnover by business segment
77% UK Prepared
7% UK Produce
12% Continental Europe
4% Rest of World
Trading overview
We have achieved strong volume uplifts as
our businesses have supported customers by
participating in high levels of promotional activity
and price reduction mechanics. However, such
activity has also increased the commercial
pressure of trading in such a competitive
environment by reducing our price margins
and increasing our promotional costs.
In addition, increased inflation in certain key
raw materials affected our profit throughout
2010. High price rises in the core dairy markets
together with increases in wheat prices in Q4
had an impact on purchasing costs particularly
for our businesses that manufacture desserts,
bread and pizza. Towards the end of 2010
further price increases in rapeseed oil, chicken
and packaging were incurred and key fruit
growing regions were impacted by inclement
weather conditions. Mitigating these increased
purchasing costs remains a priority and we are
continuing to negotiate prices with customers
and suppliers and hedge against price rises
wherever possible. This inflationary environment
has continued into 2011. We remain committed
therefore to driving operational efficiencies and
performance across all our businesses in order
to offset these impacts on our profit margin.
Group sales
Like-for-like sales 1 for the Group increased
2.5% in the full year reflecting strong growth
in our core UK Prepared business. Group sales
of £1,643.2 million were down £7.2 million
compared with £1,650.4 million in 2009 following
the sale of our produce business International
Produce Limited (IPL) in October 2009 and the
53rd trading week in 2009. The impact of these
two movements on 2009 was £38.8 million and
£28.7 million respectively.
Sales by business segment
The Group manages its business through
four segments: UK Prepared, UK Produce,
Continental Europe and Rest of World.
UK Prepared
(77% of 2010 Group turnover)
Our core sales derive from our UK Prepared
business which primarily supplies retailer
branded products to all the major grocery
retailers in the UK. UK Prepared sales amounted
to £1,274 million in the full year compared to
£1,232 million in 2009. Like-for-like sales 1 in our
UK Prepared business were ahead of our
targets, up 6.0% against a market growth of
4.6% in the full year driven by strong sales
uplifts in ready meals, ready to cook meals,
soups, bakery products, prepared vegetables
and prepared fruit.
1. Like-for-like sales are on a ’constant currency’ basis. They include
sales from associates and exclude sales from discontinued
businesses. 2009 sales have been normalised due to 53rd week.
Bakkavör Group Annual Report 2010

23
In 2010 our sales grew
ahead of or in line with
the market in 10 out of
the 14 UK fresh prepared
foods categories which
we track.
Bakkavör
UK Produce
(7% of 2010 Group turnover)
This business segment sells wholehead fresh
produce to retail customers in the UK. Following
the downscaling of our fresh produce business
and in line with expectations, our like-for-like
produce sales 1 declined by 20% in the full year.
Sales dropped from £155.6 million in 2009 to
£108.5 million in 2010, reflecting the sale of
IPL in 2009 and the loss of sales as part
of that disposal.
Continental Europe
(12% of 2010 Group turnover)
In Continental Europe, Bakkavör has operations
in France, Spain, Italy, Belgium and the Czech
Republic which manufacture a variety of
fresh prepared foods for grocery retailers and
foodservice operators in mainland Europe.
Like-for-like sales 1 were up 2% in the full year.
We achieved strong sales performances in our
prepared foods businesses in Belgium, Italy
and France; however our French leafy salads
business continued to put downward pressure
on overall Continental European sales during
the year due to reduced sales prices, increased
competition and tighter margins. Sales in the
full year amounted to £202.9 million, down
by £8.3 million compared with 2009, mainly
due to the impact of the 53rd week and the
strengthening of sterling against the Euro
between the two periods.
Rest of World
(4% of 2010 Group turnover)
The Rest of World segment represents sales
to retail and foodservice customers in the
United States and Asia. Combined like-for-like
sales 1 growth increased by 11% in the full year.
Combined sales rose from £51.9 million in
2009 to £57.8 million in 2010. Sales growth in
the Group’s US business (Two Chefs on a Roll
Inc.) was particularly strong as it successfully
expanded both its customer base and product
portfolio. The business has recently started to
supply a major retailer in Canada in 2011 which
will provide us with an excellent opportunity
to grow our presence in this new region.
Following a weak start to the year our Asian
sales gradually improved and we saw modest
growth in the year.

24
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Financial review
”Our 2010 results reflect the tough economic climate we are faced with,
with high input inflation and cautious consumer spending.Our focus remains
on reducing costs, increasing efficiencies and achieving profitable sales growth
to protect our profit margins and continually improve our cash flow position.”
Peter Gates
Chief Financial Officer
Bakkavör Group
Refinancing of Group debt
The Group has now been fully refinanced
following an agreement made in April 2010
with the lenders to the Icelandic parent
entity. This agreement has deleveraged the
Group considerably with around half of the
debt converted into equity and the remainder
extended until 2014.
According to the agreement, 46% of
the indebtedness has been converted into
additional ordinary and preference share capital.
The remaining 54% has been classified as a
convertible debt instrument with the maturity
extended to June 2014.
Any amount of the convertible debt not
repaid on maturity will automatically convert
into ordinary shares.
Refinancing of operating businesses
The Group’s balance sheet has been
strengthened with the refinancing of the
operating businesses which took place in
February 2011. All operating businesses have
been placed under one funding structure and
the repayment profile and the funding sources
have been widened with the issuance of
a seven-year £350 million listed bond (Irish Stock
Exchange) and a new £380 million term loan and
revolving credit facility.
Sales
Like-for-like sales 1 for the Group increased 2.5%
in 2010, reflecting strong growth in our core UK
Prepared business. Group sales were £1,643.2
million in Fiscal Year 2010, compared with
£1,650.4 million in Fiscal Year 2009, a decrease
of £7.2 million, following the sale of International
Produce Limited (IPL) in October 2009 and
the 53rd trading week in 2009.
The impact of these two movements on
2009 sales was £38.8 million and £28.7 million,
respectively.
For more information on our overall sales
performance and segmental breakdown,
please see our Sales review on page 22.
Operating profit
Operating profit was £99.2 million compared
with £85.4 million in 2009, an increase of
£13.8 million or 16%. Operating profit in 2010
included a £15.8 million credit from a change
in the underlying assumptions in the UK defined
benefit pension scheme and restructuring costs
of £3.7 million (2009: £5.2 million).
1. Like-for-like sales are on a ’constant currency’ basis. They include
sales from associates and exclude sales from discontinued
businesses. 2009 sales have been normalised due to 53rd week.
Bakkavör Group Annual Report 2010

25
Key financial figures
Sales
£bn
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0
Adjusted EBITDA 2
Adjusted EBITDA margin 2
£m / %
Free cash flow 3
£m
180
15
140
160
120
140
100
120
10
80
100
60
80
40
60
5
20
40
0
20
-20
0
0
-40
05 06 07 08 09 10 05 06 07 08 09 10
05 06 07 08 09 10
EBITDA
In 2010 adjusted EBITDA 2 decreased by 3%
to £131.4 million compared with £135.1 million
in 2009. The Group achieved solid EBITDA
growth in its core UK Prepared business, but
overall performance was impacted by higher
commodity input costs, the sale of IPL and
the 53rd trading week in 2009. In 2010 the
adjusted EBITDA margin 2 was 8.0% compared
with 8.2% in 2009.
Interest
Interest payments in the year were £59.2 million
compared with £58.0 million in the same period
in 2009, an increase of £1.2 million. Payments
in 2010 representing an acceleration of interest
payments in anticipation of the refinancing
being completed.
Net finance costs excluding one-off items
in 2010 totalled £69.6 million compared with
£84.0 million in the same period in 2009.
The reduction of £14.4 million is due to lower
average operating debt and reduced interest
margins following the successful refinancing
process that was completed in May 2010.
One-off items of £12.3 million include
debt restructuring costs associated with
that process.
Other gains and losses
The Group classifies movements in derivatives,
financial instruments and exchange rate
adjustments as other gains and losses.
Non-cash losses arising on derivative
financial instruments and foreign exchange
movements amounted to £15.1 million in 2010
compared to a gain of £3.1 million in 2009.
The losses were largely due to the impact of
the strengthening of the ISK from the start
of the year on the Group’s ISK denominated
convertible loan.
Tax
Taxation charge for the Group was £17.1 million
in 2010, compared with a tax credit of
£16.4 million in 2009.
Trading between the Group’s subsidiaries
is monitored carefully to ensure that all
transactions are based on arm’s length
principles. Careful management of income
tax continues to be an important contribution
to the overall performance of the Group.
2. Adjusted EBITDA is presented pre-restructuring costs.
3. Free cash flow is defined as the amount of cash generated
by the business, after meeting all its obligations for interest,
tax and investments in tangible assets.

26
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Financial review
continued
Profit/loss
Loss after tax for 2010 was £13.6 million,
compared with a loss of £11.8 million in the
same period 2009.
Dividends
Dividends are decided each year at the Group’s
Annual General Meeting (AGM). The AGM of
Bakkavör Group ehf., held on 14 May 2010,
resolved that no dividend will be paid in the year
2010 (2009: nil) and the Group’s AGM on 25
February 2011 also resolved that no dividends
be paid out.
Capital structure
Following the successful refinancing of
the Group in spring 2010, the Group has
deleveraged considerably. Total equity increased
by £135.6 million in the year to December 2010
to £243.2 million as a considerable element of
the Group’s debt was converted to equity.
Assets
The Group’s total assets at 31 December 2010
were £1.48 billion, which is in line with the
value of the assets at year-end 2009. Under
IFRS, the value of goodwill is tested annually
for impairment. At year-end 2009 an impairment
test was performed on the goodwill of Bakkavör
Group and, as a result of the test, goodwill
impairment was not required.
Borrowings
Current liabilities reduced by £295.7 million to
£421.3 million at the end of 2010, reflecting the
restructuring of Group debt earlier in the year.
Non-current liabilities have increased by
£159.8 million to £814.6 million at the end
of 2010, largely due to debt maturities being
extended to 2014.
Cash flow
The Group’s free cash flow 3 generation in the
year was £54.8 million, £13.5 million less than
in the same period in 2009.
Comparing the year-on-year changes, the
cash flow in the second half of 2009 included
a step-change recovery of the working capital
position of the Group and therefore is not
representative of what can be achievable
going forward. Cash generated from operations
pre-restructuring costs was £138.4 million in
2010 compared with £164.3 million in the same
period in 2009, a decrease of £25.9 million.
This reduction in net cash from operations is
primarily due to the reduction of EBITDA and
a reduction in cash generated from working
capital changes.
3. Free cash flow is defined as the amount of cash generated
by the business, after meeting all its obligations for interest,
tax and investments in tangible assets.
Bakkavör Group Annual Report 2010

27
Investing activities
Investing activities totalled £36.1 million in 2010
compared with £32.8 million in 2009. Capital
investments of £20.9 million are £3.2 million
lower when compared with the same period
in 2009 as the business continues to keep its
capital expenditure programme focused. The
Company has made payments of £16.7 million
in the year relating to acquisitions made in
prior years.
Our capital expenditure programme is
geared towards meeting our planned growth
needs and ensuring that we can maintain costefficiency
and infrastructure requirements. Over
the last three years, we have made significant
investments in both acquisitions and capacity
expansions, totalling £184.2 million, of which
£94.7 million was invested in our existing and
newly acquired factories.
We expect that capital expenditure activity
will generally be in line with depreciation in
future years.
Financial risk management
The Group is exposed to a number of financial
risks such as access to and cost of funding,
interest rate exposure, currency exposure
and working capital management. The Group
seeks to minimise these risks where possible
and does this by constantly monitoring,
reviewing, effectively managing and using
derivative financial instruments. Use of financial
instruments is governed by Group policies
which are approved by the Board of Directors.
The treasury function does not operate as a
profit centre, makes no speculative transactions
and only enters into or trades financial
instruments for specific purposes.
Details of financial risk management,
including market risk (interest rate risk and
currency risk), credit risk and liquidity risk can
be found in note 33 in the Consolidated Financial
statements. For an overview of the Group’s key
operational risks please see page 28.
Accounting policies
The Consolidated Financial Statements
for the period ended 31 December 2010 have
been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted
by the EU. The accounting policies adopted are
consistent with those followed in the preparation
of the Group’s Annual Financial Statements for
the year ended 31 December 2009 except for
the impact of the adoption of IFRS 8 Operating
Segments and IAS1 (revised 2007) Presentation
of Financial Statements.
Peter Gates
Chief Financial Officer

28
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Risk management
The Group is exposed to a number of risks and uncertainties across a range
of strategic, operational and financial areas. The Group continually reviews
its internal control and risk management processes and is striving to align
itself with the processes set out by the Board of Bakkavör Group ehf., the
Group’s ultimate parent entity. The Board has the ultimate responsibility
for risk management, which includes the risk governance structure and the
maintenance of an appropriate internal control framework.
The key risk areas, as identified by Bakkavör Group ehf., are explained below.
Our five key risk areas
Operational
1 2
safety
Sustainable
growth
Link to strategic priority
We are focused on the fresh prepared foods and
produce markets, fast-moving markets which require
just-in-time manufacturing and the ability to handle
fresh foods in a safe manner.
Potential impact
Compromising on either the Health and Safety of our
employees or the quality and safety of our products
could affect the reputation of our business and
jeopardise the long-term prospects of the industry.
Mitigation
We train our employees in operational and food safety
at all levels within our operations and set internal
training targets.
We use documented quality management systems
(QMS) based on Hazard Analysis Critical Control Point
(HACCP) principles and Bakkavör Codes of Practice
to ensure products are safe, legal, of the quality
required by our customers and made in a safe working
environment.
We use traceability systems, allowing us to track
ingredients quickly both from source through to
the finished product and from finished product back
to source.
We work closely with our suppliers to source safe,
legal, quality ingredients to consistent standards. Our
raw material management system ensures the integrity
of our supply chains from both farms and factories.
Link to strategic priority
Bakkavör Group focuses on fast-growing sectors of the
food industry. The business has been characterised by
considerable growth in recent years through strategic
acquisitions and organic growth.
Potential impact
Major acquisitions entail risks, which relate to the
Group’s ability to integrate acquisitions effectively,
realise economic benefits and understand cultural
differences. Any failed integration would have an
adverse effect on Bakkavör Group’s operations.
Mitigation
We set management objectives which
focus on performance, maximising synergies and
integration. We insist on exacting due diligence
and rigorous capital expenditure sign off procedures.
We use existing management expertise wherever
possible to ensure best practice is adhered to and
spread across the Group.
Bakkavör Group Annual Report 2010

29
How we manage risk
The Board of Directors plays a leading role
in seeing that the Group has the necessary
capabilities, expertise, processes and controls
in place to manage risk in each of our five key
risk areas.
Identify key
Understand
1 2
risks
potential impact
The Group is striving to be fully aligned to
ensure that these areas of risk are fully
managed at all levels of the Group in order
to ensure the long-term sustainability and
profitability of the Group.
5
Review and
re-assess
4
Report regularly
on risk
management
to Board
3
Develop
action for
mitigation
Customer
Consumer
3 4 5
relationships
understanding
Shareholder
value
Link to strategic priority
We target growth sectors and build strong
relationships with our customers around the world.
We develop products in close partnership with our
customers and our products predominantly carry
their brand names.
Potential impact
Our industry is characterised by the concentration
of business with a small number of major customers.
Therefore, each customer is of critical importance to
us and maintaining strong relationships with each and
every customer is crucial for the business.
Mitigation
We maintain strong relationships with our customers
at various levels of the organisation. Our employees
talk to their customer peers regularly (often daily). At a
senior level, we appoint ’Customer Champions’ who are
responsible for managing overall customer relations
and longer-term strategic planning, which includes an
analysis of opportunities, detailed action plans and a
set of live internal targets and timelines against which
our employees are appraised and developed. Such
planning ensures that customer service, innovation,
product development and commercial viability remain
uppermost in our minds.
Link to strategic priority
At the heart of our success are the people who buy and
eat our finished products – our consumers. We need
to understand the needs of our customers and their
consumers in order to achieve growth.
Potential impact
Developing products which underperform in the market
place can negatively affect the profits, time, resource
and reputation of the business.
Mitigation
We carry out consumer research which we share with
our customers. We ensure that our marketing and
development teams stay abreast of major food trends.
We actively encourage our employees to be innovative.
Innovation is one of our five corporate values against
which we recruit and promote our employees.
Link to strategic priority
The principal goal of Bakkavör Group is to provide
good, long-term returns for its shareholders. We value
the trust that they place in us.
Potential impact
Losing their trust is a long-term risk for the business.
Mitigation
The key to achieving the Group’s principal goal is the
development and communication of a clear strategic
vision and the recruitment and retention of talented
management to implement it.

30
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Responsibility report
At Bakkavör we focus on doing things the right way, ensuring
we consider the needs of those that matter to us – our employees,
customers, consumers, suppliers, local communities and our
shareholders and lenders – as well as reducing our environmental
impact where we have direct control. We have values and systems
in place to ensure we not only do this right but keep doing it right.
Shareholders
Suppliers
Our
Our
Our
Environment
Our
Neighbourhood
1
2
3
Health & Safety
The place
to work
The partner
of choice
Caring for our
community
Our
Employees
Recruitment
Retention
Our
Customers
Diversity
Communication
Ann Savage
Group Technical Director
Responsible for Bakkavör’s
Corporate Responsibility.
Our CSR framework
We have created a clear framework, which
identifies our areas of Corporate Social
Responsibility (CSR). The diagram above
illustrates our three priority areas and
key stakeholders.
Our CSR pillars
Within our key areas of focus we have
identified six strategic CSR pillars, which we
believe we must successfully manage if we
are to achieve our long-term business goals
sustainably and profitably.
1. The place to work
We have 58 operating sites in ten different
countries and employ over 18,000 people.
We are committed to provide a safe working
environment for our employees and to reward
them for their initiatives and commitment to
the business.
Health and Safety (H&S)
Our responsibility is to take every reasonable
step to secure and protect the health and safety
of our employees, visitors and contractors at all
of our sites.
Our performance
Read about our performance
and targets.
See page 35
Bakkavör Group Annual Report 2010
How we manage our responsibilities
Our Group Technical Director, a member of
the Management Board, is responsible for
CSR and reports monthly to the Management
Board on progress and priorities. Our Group
CSR Manager is responsible for delivering the
CSR Strategy and co-ordinating improvement
activity across the Group. Our Group Safety,
Health and Environment Auditor is responsible
for monitoring and reporting business unit
compliance.
Our approach is to ensure we comply with
all legislation relevant to our global operations.
We also take a continuous improvement
approach to the development and sharing of
good practice across the business. To facilitate
this, we co-ordinate the activity of various Action
Teams, e.g. our Energy Action Team and our
Waste Action Team, who focus on providing
solutions and testing new technologies and
practices for wider application across the Group.
These teams are typically made up of internal
key stakeholders and, when required, selected
external experts.
Health and Safety reporting and performance
Our Group Technical Director is accountable for
Health and Safety management throughout the
business and reports monthly on KPIs agreed
by the Management Board. We also appoint
Health and Safety professionals at each site,
responsible for reporting on Health and Safety
matters to the site’s executive management
team and putting into action site-specific Health
and Safety plans.
Our Health and Safety KPIs include major
and reportable accidents per 100,000
employees and we are pleased to report that
in 2010, these reduced by 38% and 25%
respectively year-on-year.
This represents a significant step change
in a year that the Health and Safety Executive
(HSE) reported an 8% rise in accidents in the
Food and Drink Sector. We have set ourselves a
new target for 2011 to achieve a further 20%
reduction in major and reportable accidents
and have identified five areas of priority
through which we aim to further improve
our performance.

31
CSR pillars
People and ethics
Treating our employees fairly and assuring their health and well-being. Caring for and engaging with our local communities.
Sustainable sourcing
Environmental efficiency
Working with our customers and suppliers to ensure that the materials we use are sourced responsibly. Avoiding negative
impacts on the environment and local communities in the regions from which we source materials.
Minimising the usage of natural resources and the direct environmental impact of our operations.
Environmental protection
Conducting our operations in a responsible manner, avoiding negative impacts on the environment.
Health and Safety
New Product Development
Assuring the Health and Safety of all employees, visitors and contractors on our premises. Working with our employees to
continuously improve the Health and Safety culture of our businesses.
Working with our customers and suppliers to develop product and packaging solutions, delighting our customers and reducing
the impact of the products we make.
Our H&S priority areas
1. Slips and trips
2. Electrical safety
3. Manual handling
4. Machinery safety
5. Encouraging near miss
reporting and an accident
prevention culture
Our values
1. Customer care
2. Teamwork
3. Can do
4. Innovation
5. Getting it right / keeping it right
In 2010 we implemented
a people survey in the
UK, to gain the views
of our employees on
what it is like to work
for Bakkavör. We are
now working on action
plans for identified
improvement areas
including for example,
better communication
within and across our
businesses.
Health and Safety culture and communication
Our aim is to develop a pro-active accident
prevention culture within the Group and we
are making good progress through improved
communication networks and safe behaviour
training. Our annual Health and Safety
Conference provides an excellent forum for
encouraging Group-wide communication and
allowing our Health and Safety experts to
share knowledge and best practice. In 2010
we introduced three new internal Health
and Safety awards to encourage employee
engagement, pro-activity and innovative
approaches to Health and Safety across
the Group.
Our employees
The systems we have in place allow our
employees to be recognised, rewarded and
promoted fairly and our aim is to be the
employer of choice in the food industry.
The way in which our people work is
underpinned by our five core values, which
encourage initiative and give our people the
opportunity to reach their potential in an
environment where innovation and change
are welcomed. To ensure these values are
embedded in our working behaviour and
practices we recruit, reward, develop and
appraise our people against them. In 2010 we
reviewed and refreshed our values to ensure
they remain ’alive’ within our businesses and
this year we will be rolling out additional tools
for businesses to use to ensure the values are
embraced across our diverse Group.
Training and development
Our approach to training reflects the
decentralised structure of the Group, with
each business making the decision on how
they train and develop their employees,
complemented by Group-wide training courses
to develop excellence in particular functions.
We are committed to ’growing our own’ people
and, alongside training and development
programmes, we have an established appraisal
and self-development system. Through this we
have developed a ’talent bank’ of employees
based on performance and potential and we
identify opportunities for them to grow within
the business. We are pleased to report that
in 2010, 63% of our vacancies were filled
internally, exceeding our target of 50%.
Recruitment and retention
Our values play a key role in our recruitment
process, helping us to attract highly serviceorientated
and empowered self-starters who
thrive in a ’can do’ informal culture. We run
a two-year Accelerated Management Scheme
(AMS) – a fast-track programme for new
graduates and current employees, giving them
an opportunity to gain hands-on experience
in jobs within the Group, alongside trainers
and mentors. Participants in the AMS
specialise in one of the six core areas
of strategic importance to the business.

32
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Responsibility report
continued
Core areas covered by our AMS
1. Manufacturing
2. Product development
3. Technical (food safety)
4. Produce (procurement)
5. Purchasing
6. Finance
In 2010 we recruited 14 people on the AMS
in a year when overall graduate vacancies fell
by 7% in the UK.
We have set resignation turnover targets of
10% for managers and 25% for our site graded
employees. In 2010 we hit the first target and
exceeded our second with retention rates
at 90% for both managers and site graded
employees.
the necessary resources required to support
individuals within our businesses. In the UK,
for example, we provide training in a number of
different languages and offer English language
training to both native and non-native speakers.
2. The partner of choice
At Bakkavör we aim to be the partner of choice
for all who deal with us.
Case study
In 2010 Hitchen Foods won the
’Diversity in Recruitment’ Award at
the Food Manufacturing Excellence
Awards for its work in encouraging
local long-term unemployed and
disadvantaged people into fulltime
jobs.
Employee communication
One of the biggest challenges as a large
international food company is ensuring we
communicate effectively and encourage
employee engagement across, and within,
our businesses.
Locally, daily team briefings and weekly
up-dates are held to ensure our employees
know what is happening within their area at
their site. We also encourage open channels
of communication between employees and
management through regular Site Employee
Forums (SEFs) and the annual Group Employee
Forum (GEF) where matters of common
concern are discussed and learnings,
best practice and ideas are shared. This
enables positive policy development and
the communication and discussion of
operational changes.
Diversity
We are proud of our diverse, multi-cultural
workforce which spans ten countries. Our
aim is to create open and inclusive workplace
cultures and we offer diversity training courses
at a number of our sites in order to manage
our employees’ expectations and provide
Our customers and our consumers
We have a responsibility to provide food that is
safe to eat and we are committed to providing
our customers with outstanding service,
quality, innovation and value. To achieve this
we work closely with them to understand
their requirements so that we can develop,
manufacture and supply safe, innovative, high
quality products in a demanding just-in-time
manufacturing environment. At each site,
product quality and food safety at different
stages of the manufacturing process are
carefully monitored against strict specifications.
Our suppliers
We are proud of the strong and long
relationships we have built with a number of
our suppliers. We forge the most successful
relationships with those suppliers who have
a similar ethos to us – customer service, food
safety excellence, a quest for continuous
improvement and proof of innovative, forward
thinking. These criteria form part of our
supplier selection process and are essential
in meeting our long-term needs.
Bakkavör Group Annual Report 2010

33
In 2010 we hit our resignation turnover target for
managers and exceeded our target for site graded
employees – our retention rates were 90% for both.
Bakkavör
Case study
In 2010, seven Bakkavör
products were shortlisted
at the Quality Food Awards,
widely regarded as the
UK’s leading food and
drink awards. Two of these
products were judged as
winners in the Delicatessen
and the Vegetarian categories.
Ethical trading
Bakkavör supports the United Nations’
Universal Declaration of Human Rights and
the core conventions of the International
Labour Organisation. We, and our suppliers,
are required to comply with all local and
national laws covering working hours and
conditions, Health and Safety, rates of pay,
terms of employment and minimum age of
employment. We also carry out supplier
ethical audits based on risk-assessment and
customer input.
Our environment
We are committed to comply with all relevant
environmental legislation and pro-actively
manage and reduce our direct impacts on the
environment. We focus on five main areas of
impact over which we have immediate control.
We work collaboratively with key suppliers
and customers to ensure our goals in these
five priority areas are achievable and to
meet specific environmental initiatives,
as set out in our customers’ Corporate
Responsibility agendas.
Our environmental priorities
1. Energy
2. Water
3. Packaging
4. Transport
5. Waste
Temporary labour
We have seasonal requirements for additional
temporary resource and, in the UK, we work
closely with a selected group of temporary
labour providers who hold Gangmaster Licences.
All our temporary workers in the UK are subject
to UK legislation.
Our shareholders and lenders
We are committed to communicating openly
and in a consistent and detailed manner as is
commercially sensible.
3. Caring for our community
In our approach to this key priority we focus
on reducing the environmental impact of our
operations where we have direct control,
developing products that meet consumer needs
and minimise waste and supporting the local
communities in which we operate.
Environmental reporting and management
The overall responsibility for environmental
management falls under our Group Technical
Director, supported by the Group’s CSR
Manager who has day-to-day responsibility. The
CSR Manager and the Group’s Environmental
Steering Group (ESG) meet quarterly and
work closely on environmental initiatives. We
also have site-based Environmental Action
Teams to ensure our businesses deliver their
environmental goals.
We hold an annual UK Environmental
Conference which provides a platform to share
knowledge and best practice across our
operations and we have also established an
annual Group Environment Award to promote
environmental initiatives. Each of our businesses
takes ownership of its environmental
responsibilities, whilst being guided and
supported at Group level.

34
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Responsibility report
continued
Case study
Our Caledonian Produce business
received the ’Leadership in Working
in the Community’ Award at Marks
& Spencer 'Plan A' conference 2011
due to the unique partnership it has
developed with the local high school.
Bakkavör Group Annual Report 2010
Environmental performance
We have detailed some of the key initiatives and
improvements made in our five areas of priority
over the past twelve months:
Energy
Our sites employ a number of different
initiatives to reduce their energy consumption,
for example: undertaking site energy surveys,
installing sub-metering on key processes or
systems, using energy efficient lighting and
changing working practices to ensure energy is
not used unnecessarily.
Water
We aim to optimise the Group’s water efficiency
by minimising water usage, increasing water
recycling where possible and assessing
and refining on-site waste water treatment
processes. For example, at two of our UK sites
we have implemented rain water harvesting
systems reducing mains usage by around
10,000 litres every day.
Waste
We are committed to reducing and recycling
waste and diverting waste from landfill wherever
possible. Our target in the UK is to divert over
90% of our waste from landfill and we achieved
this target in 2010. Two of our key initiatives are:
1. Pro-active management of waste streams –
using segregation processes and isolating
waste that can be recycled, reused,
composted or anaerobically digested.
2. Eliminating waste at source i.e. developing
product and packaging solutions that
minimise waste, and reducing the amount
of packaging on inbound materials.
At our Bakkavör Spalding site, we are evaluating
the installation of an Anaerobic Digestion plant to
convert waste into renewable heat and electricity
for use on the site. This has the potential to
significantly reduce carbon emissions.
Packaging
In collaboration with our packaging suppliers
we are actively reducing the weight of packaging
waste going to landfill. Since 2006 this has
equated to packaging weight being reduced
by over 2,000 tonnes. We continue to reduce
packaging weight through NPD, increase
the percentage of recycled and recyclable
materials used and support the development
of sustainable sources of supply.
Transport
In partnership with one of our key supply
chain providers we have made a significant
improvement in vehicle utilisation. This has
involved the application of cost-effective
technology and an integrated approach to
transport planning that links inbound raw
materials with outbound finished product,
resulting in an annual reduction in CO 2 of
128,250 kg.
Our products: Environmental product
development (EPD)
We are committed to working with our
customers and their consumers to understand
how we can improve our environmental
performance throughout the product packaging
life cycle. For example, making the packaging as
environmentally efficient as possible and using
clear communication on the packaging to help
the consumer dispose of it correctly.

35
Our target in the UK is to divert over 90% of our
waste from landfill. We achieved 92% in 2010 and
have set ourselves a target of 98% by the end of 2012.
Bakkavör
Our improved waste and cost reduction
initiatives have been recognised and we have
been invited to speak at retailer conferences
to share our approach.
Our communities
We recognise that our businesses impact
their local communities. We expect our local
management teams to understand the issues
facing these communities and we encourage
them to be pro-active in organising and
supporting local initiatives.
Good Neighbour Awards
At the Group’s annual GEF we reward the sites
that have made the most positive impacts in
their local communities and have successfully
recognised neighbourhood issues as part of their
business plans.
Other sponsorships
In 2010 we donated over £120,000 to charitable
organisations.
Our CSR performance and future priorities
CSR pillar KPI and targets Performance and highlights 2010 Future targets/actions
People and
ethics
Employee resignation turnover. Target: 10% of
managers / 25% site graded employees
% of vacancies filled internally (Growing our
own initiative). Target: 50%
Resignations: Managers (10%), Site graded employees (10%).
Awarded Diversity in Recruitment (Hitchen Foods)
63% Target 50%
Target 10% managers /
25% site graded employees
Employee satisfaction People survey implemented Develop action plan for areas of
improvement identified by survey
Demonstration of formal engagement with
local communities through annual Good
Neighbour Awards
10 sites entered the awards. The winning entry from Bakkavör
Pizza in Holbeach St Marks included opening a Community
Gym on site which offers subsidised membership
Year-on-year increase in number
of sites submitting entries
Sustainable
sourcing
Health &
Safety
Environmental
protection
Environmental
efficiency
NPD/
Commercial
Avoid negative impacts on the environment and
local communities in the regions from which we
source materials
No. of major accidents and reportable accidents
per 100k employees. Target: 20% reduction of
major and reportable accidents
Compliance with relevant legislation in water
and waste management systems
Waste diverted from landfill. Target for UK: >90%
Worked towards sustainable sourcing of palm oil
Major accidents and reportable accidents down by 38% and
25% respectively. Three new internal awards launched to
recognise and reward H&S commitment
Introduced odour reduction measures and installed acoustic
fence to reduce noise at two ready meals sites
92% of our waste diverted from landfill. Step change
in amount of food waste diverted to Anaerobic Digestion
Became registered users of the
Sustainable Palm Oil Certification
Scheme in 2011
Target set to reduce major
and reportable accidents by a
further 20%
Aim to exceed relevant legislation
requirements
To divert 98% waste from landfill
by the end of 2012
Energy usage Implementation of various energy-saving initiatives To reduce our energy usage by
10% by 2011 and by 30% by 2015
Develop product and packaging solutions to
delight our customers and reduce the environmental
impact of the products we produce
Winner of two UK Quality Food Awards; another five
shortlisted

36
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Meet the management
Board of Directors
1 2 3
4 5
1. Ásgeir Thoroddsen* †
Non-executive Director
Ásgeir has served on Bakkavör Group ehf.’s
Board of Directors since 2000. He is a lawyer
and has been a partner in a Reykjavík law
firm since 1977 and an attorney to the
Supreme Court of Iceland. He is also
Chairman of Intrum Iceland hf., Frjálsi
lífeyrissjóðurinn and Íshestar ehf. Ásgeir
holds a Cand. Juris degree from the
University of Iceland and a degree in Public
Administration from New York University.
2. Ágúst Gudmundsson
Chief Executive Officer
Ágúst founded Bakkavör Group ehf. with
his brother Lýdur in 1986 and has served on
the Board of Directors since the Company’s
founding. He has served as Chief Executive
Officer of Bakkavör Group ehf. since 2006,
having previously served as the Company’s
Executive Chairman between 1986 and
2006. Ágúst was educated at the College
of Ármúli in Reykjavík, Iceland.
3. Lýdur Gudmundsson* †
Non-executive Chairman
Lýdur founded Bakkavör Group with his
brother Ágúst and has also served on
its Board of Directors since its founding.
He served as Chief Executive Officer of
Bakkavör Group ehf. from 1986 to 2006,
and has served as the Chairman of the
Board of Directors since 2006. Lýdur
was educated at the Commercial College
of Iceland.
4. Halldór B. Lúdvígsson †
Non-executive Director
Halldór was elected to Bakkavör Group ehf.’s
Board of Directors in May 2010. He serves as
a Managing Director at Arion Bank’s corporate
finance division, previously having served as
CEO of Maritech, an international technology
company. Halldór is a member of the Board of
Atorka hf., Exista ehf., 1998 hf., NordicPhotos
ehf., Stiki ehf., Ármannsfell ehf., Intelscan
ehf. and Interbulk plc. He holds a Masters
degree in Mechanical Engineering and a BSc
in Computer Science.
5. Bjarni Th. Bjarnason*
Non-executive Director
Bjarni was elected to Bakkavör Group
ehf.’s Board of Directors in May 2010. He is
Chairman of Arctica Finance hf., an Icelandic
advisory firm, and serves as an independent
consultant. Bjarni has held various corporate
advisory positions in Icelandic banks and the
financial sector. He is a member of the Board
of Árvakur hf., Byrjun hf., Arctica Finance hf.
to name a few. Bjarni holds a BSc degree
in Mechanical Engineering from University
of Iceland and an MBA from Southern
Methodist University.
Committee memberships
* Member of Audit Committee
†
Member of Compensation Committee
Bakkavör Group Annual Report 2010

37
Senior Management Team
1 2 3
4 5 6
1. Ágúst Gudmundsson
Chief Executive Officer
See page 36.
2. Einar Gustafsson
Managing Director – Bakkavör Asia
Einar was appointed Managing Director for
Bakkavör Asia in 2005. He has served within
the Group for five years and has a total of 10
years’ experience in the food industry. Einar
began his career at Deloitte Consulting, after
which he successfully turned around two
businesses in the seafood industry. He has
a BSc degree in Business Administration
from the University of Southern California
and an MBA from Columbia Business School.
Einar became a member of the Management
Board in March 2011.
Bakkavör Management Board
As of March 2011, the Management Board was
enlarged to include all members of the Senior
Management Team and UK Managing Directors
Steve Broadbent, Ivan Clingan and Mike Edwards.
3. Ann Savage
Group Technical Director
Ann was appointed Group Technical Director
in 2004. She is responsible for Food
Safety, Health and Safety management,
Manufacturing Excellence and Environmental
management at Bakkavör. Ann has more
than 30 years of experience in technical,
research and development and manufacturing
roles within the retail and food industry.
She studied at the Open University and has
a Postgraduate Diploma in Management
Studies from Nottingham University.
4. Gordon Pates
CEO Bakkavör UK and Europe
Gordon was appointed CEO of Bakkavör
UK in 2009 and CEO of Bakkavör Europe
and Traded Produce in January 2011, and is
responsible for our operations in the United
Kingdom and Continental Europe. Gordon
joined the horticulture division of Geest in
1969 and spent 10 years in the produce
business before moving into the prepared
produce and prepared food businesses in
the late 1990s.
5. Peter Gates
Chief Financial Officer
Peter was appointed CFO of Bakkavör Group
in November 2010. He is an experienced
finance professional who has worked in a
number of international companies, including
Saatchi & Saatchi Co. plc and Avis Europe
plc. Peter spent much of 2009 at Bakkavör
as Interim Group Treasurer. He is a Chartered
Accountant and a member of the Association
of Corporate Treasurers. Peter has a BSc
(Hons) degree in Economics from the
University of Southampton.
6. John Dutton
President – Bakkavör USA inc.
John was appointed President of Bakkavör
USA in 2007. He has more than 25 years
of experience in the fresh food industry,
having acquired, established and managed
many businesses in the United Kingdom and
across Continental Europe. John previously
served as a Managing Director at Geest and
was a member of the Geest PLC Board for
seven years. He has a BSc (Hons) degree and
a PhD in Biochemistry from the University
of Wales. John became a member of the
Management Board in March 2011.

38
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Corporate Governance report
Bakkavör Group defines Corporate Governance as the code of conduct by which
the Group is directed and controlled. This involves its relations with shareholders,
lenders, employees, customers, suppliers and other key stakeholders.
Policy and context
The duties of the various bodies within Bakkavör
Group are determined by law and by the Group’s
Corporate Governance policy, which is based
on the Guidelines on Corporate Governance
(’the Guidelines’). These were first issued in
2004 by the Iceland Chamber of Commerce,
the OMX Nordic Exchange in Iceland and the
Confederation of Icelandic Employers, and the
third issue was published in June 2009.
According to the Guidelines, it is preferable
that the majority of the members of the Board
committees are independent. Up to 14 May
2010 of the reporting period under review, the
recommended composition of Bakkavör Group’s
Board of Directors and of the Audit Committee
did not comply with the recommendations in the
Guidelines, as detailed below. However, since
14 May 2010, Bakkavör Group has complied with
the Guidelines’ recommendations.
Comply or explain
Bakkavör Group complied with all
recommendations in the Guidelines at the
end of the financial reporting period.
Structure and bodies
Bakkavör Group’s organisational structure is
decentralised, which enables the business to
respond quickly to the demands of the fast-
Bakkavör Group’s Corporate Governance structure and bodies
Board of Directors
Responsibilities include: strategy formulation,
approval of annual and interim statements,
approval of annual budget and business plan,
approval of acquisitions and disposals, approval of
major capital investments, monitoring of internal
controls and important policy matters.
Audit Committee
Responsible for monitoring the Group’s internal
control system and financial reporting process.
See page 41
See page 39
Compensation Committee
Discharges the Board’s responsibility in matters
relating to executive compensation and
includes administration of the Group’s incentive
compensation and equity-based plans.
See page 41
Management Board
The management of the Group’s operations
is delegated to this Board which sets Group
policies in important risk areas.
See page 42
Bakkavör Group Annual Report 2010

39
moving fresh prepared foods and produce
markets in which it operates. Bakkavör Group’s
governance structure reflects the organisational
structure of the Group.
A description of each of the key governance
bodies follows: Shareholder meetings, the
Board of Directors, the Board Committees,
the Chief Executive Officer (CEO) and the
Management Board.
Shareholder meetings
Shareholder meetings are the supreme
authority in Bakkavör Group’s affairs (within
the restrictions made by the Group’s Articles
of Association and Icelandic law). The Annual
General Meeting (AGM) is scheduled once
a year and other shareholder meetings are
convened when necessary.
All shareholders, as well as their
representatives, have the right to attend
shareholder meetings. The members of the
Board of Directors and the CEO also have
the right to speak and submit motions at
shareholder meetings, even if they are not
shareholders.
The Group’s AGM is held before the end
of June each year and, for the year 2010,
took place on 25 February 2011. The AGM is
advertised publicly and a letter is sent to each
shareholder with at least one week’s notice.
The Board of Directors
The Board of Directors has supreme authority
in the Group’s affairs in the period between
shareholder meetings.
The Board of Directors is elected annually
by shareholders at the AGM for the term of one
year. At year-end 2010, the Board was comprised
of five members: the non-executive Chairman,
three non-executive Directors and one executive
Director. At the Group’s AGM on 14 May 2010,
Ágúst Gudmundsson, Lýdur Gudmundsson and
Ásgeir Thoroddsen were re-elected. Two new
Directors were elected to the Board, Bjarni Th.
Bjarnason and Halldór B. Lúdvígsson, replacing
Hildur Árnadóttir and Katrín Pétursdóttir who did
not seek re-election. At the Group’s AGM on 25
February 2011, all current Board members were
re-elected.
According to the Guidelines, it is preferable
that the majority of the Directors be
independent. The majority of Bakkavör Group’s
Board Directors has been independent since
14 May 2010, consisting of three independent
members and two non-independent members.
The Board of Directors complied with the
Guidelines in all respects at year-end.
The responsibilities of the Board
The Board is responsible for the overall
management and performance of the Group and
has adopted written working rules specifying its
responsibilities.
The Chairman of the Board is responsible
for leading the Board, facilitating its work and
ensuring that the Board is capable of operating
in the interests of the Group’s shareholders.
The Chairman also serves as the Board’s
spokesperson.
Together, the Board members bring a
valuable and balanced range of experience as
they have all held, or hold, senior positions in
professional and public life.

40
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Corporate Governance report
continued
The Board elects a Chairman of the Board of
Directors and appoints the CEO.
The Board has a formal agenda of matters
reserved to it for decision making, which
include: strategy formulation, approval of
annual and interim statements, approval of
annual budget and business plan, approval of
acquisitions and disposals, approval of major
capital investments, monitoring of internal
controls and important policy matters.
The Board reviews and determines the
compensation of the CEO. However, the
Compensation Committee discharges the
Board’s responsibility in reviewing and
determining the CEO’s remuneration. The Board
also approves the organisational structure of
the Company.
The Board plans to assess its activities and
work procedures regularly with the assistance
of outside parties, as applicable. All Directors
are required to deal at arm’s length with the
Group and its subsidiaries and to disclose
circumstances that might be perceived as a
conflict of interest.
Board meetings
The Board of Directors convened 17 times in
2010. In advance of each regular Board meeting,
the Board members are provided with a Board
report which includes a comprehensive report
of the Group’s financial performance, operations
and market conditions. Board members
are informed about all significant matters
immediately.
Board meeting attendance in 2010
Board
meeting
attendance
Ágúst Gudmundsson, CEO 17 / 17
Ásgeir Thoroddsen 15 / 17
Erlendur Hjaltason** 1 / 1
Bjarni Th. Bjarnason 5 / 6
Gudmundur Sigurdsson** 1 / 1
Halldór B. Lúdvígsson 6 / 6
Lýdur Gudmundsson, Chairman 16 / 17
Total 98%
Former Board members
Hildur Árnadóttir* 11 / 11
Katrín Pétursdóttir* 11 / 11
* Hildur Árnadóttir and Katrín Pétursdóttir did not seek re-election
at the AGM on 14 May 2010
** Erlendur Hjaltason and Gudmundur Sigurdsson are reserve
Board Members
Bakkavör Group Annual Report 2010

41
Salary and
Board fee Benefits Pension Number of
GBP’000 GBP’000 GBP’000 shares**
Lýdur Gudmundsson 151 – 18 ***855,166,183
Ágúst Gudmundsson 518 22 53 ***855,166,183
Ásgeir Thoroddsen 18 – 1 1.418.164
Bjarni Th. Bjarnason 11 – 1 –
Halldór B. Lúdvígsson 11 – 1 –
No member of the Board holds options, warrants or other rights
* Restated to reflect remuneration earned in the year rather than cash payments received by the Directors during the year
** Including holdings of their spouses, dependent children, and companies owned by them, if any
*** Ágúst Gudmundsson and Lýdur Gudmundsson in total hold control of 855,166,183 shares through B Food Invest ehf. and
related parties
Board Committees
The Board’s work is supported by its
Committees – the Audit and Compensation
Committees. Each Committee’s Chairman and
members are appointed by the Board annually.
Audit Committee
The powers and duties of the Audit Committee
are determined in the Audit Committee Charter,
which is approved by the Board. The Audit
Committee is responsible for monitoring the
Group’s internal control system and financial
reporting process.
The Committee reviews with the external
auditor and the Chief Financial Officer (CFO)
the effectiveness of the internal control system
and financial reporting process. The Committee
keeps under review the scope and results of
the audit. The Audit Committee, acting with
the Board of Directors, is responsible for the
selection, evaluation and nomination, when
applicable, of an external auditor for shareholder
approval.
According to the Guidelines, employees
are not allowed to be members of the Audit
Committee, and the majority of members should
be independent. All Audit Committee members
must have thorough knowledge of accounting
and preparation of financial statements.
Bakkavör Group complied with these guidelines,
except for the fact that the majority of
members was not independent as, until 14
May 2010, the Audit Committee consisted of
two Directors, one independent and one nonindependent.
Since 14 May 2010, the Audit
Committee composition has complied with the
recommendations in the Guidelines.
Auditors
An external auditing firm is elected by the
shareholders at the AGM for a term of one year.
The auditors shall be neither members of
the Board of Directors nor employees of the
Group and are not allowed to own shares in the
Company. The auditors shall have access to all
books and documents of Bakkavör Group at all
times and shall ensure that the Group’s annual
accounts are in accordance with generally
accepted accounting standards.
Deloitte hf. was elected the Group’s auditor
at the AGM on 14 May 2010 and re-elected
at the AGM on 25 February 2011. Auditors on
Deloitte’s behalf are Hilmar A. Alfredsson, State
Authorised Public Accountant, and Mr. Birkir
Leósson, State Authorised Public Accountant.
Auditing fees and auditor independence
Clear guidelines exist which outline other
professional services which are appropriate for
Deloitte hf. to provide in their capacity as Group
auditors. These services include: due diligence
on mergers, acquisitions and disposals, and tax
and business risk assurance. These guidelines
ensure the independence of the Group’s auditors.
Details of auditing fees paid to Deloitte hf. are set
out in Note 8 on page 71.
Compensation Committee
The powers and duties of the Compensation
Committee are determined in the Compensation
Committee Charter, which is approved by
the Board. The Compensation Committee
discharges the Board’s responsibility in matters
relating to executive compensation. This
work includes administration of the Group’s
incentive compensation and equity-based plans.

42
Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Corporate Governance report
continued
Executive performance and compensation are
evaluated annually.
The principal responsibility in compensating
executives is to co-ordinate the incentives of
the executives with actions that will enhance
long-term shareholder value.
According to the Guidelines, employees
are not allowed to be members of the
Compensation Committee, and the majority
of members should be independent. Bakkavör
Group complied with these recommendations
in the Guidelines.
Chief Executive Officer
The Board of Directors appoints a CEO and
decides the terms of his employment. The
CEO is responsible for the daily management
of the Group as well as the implementation of
the Group’s strategy as set out by the Board.
Furthermore, the CEO shall ensure that the
accounts and finances of the Group conform
to law and accepted accounting standards
and that the disposal of the Group’s assets is
handled securely.
The Management Board
Below Board level, the management of
the Group’s operations is delegated to the
Management Board, which is headed by
Bakkavör Group’s Chief Executive Officer,
Ágúst Gudmundsson. The Management
Board meets monthly and sets Group policies
in important risk areas such as food safety,
employee matters, Health and Safety and the
environment.
Led by a General Manager, each of the
Group’s businesses must comply with these
policies as well as be responsible for running
their businesses, meeting the demands of
their customers, and the strategic and financial
targets that have been set by their Managing
Director.
Compliance
In accordance with statutory law, as a listed
company during part of the financial period
under review, Bakkavör Group has complied with
the Rules on Treatment of Insider Information
and Insider Trading (’the Rules’) issued by the
Financial Supervisory Authority.
Compensation report
Compensation to the Board of Directors, along
with the Group’s renumeration policy, is decided
at the Annual General Meeting. For 2010, the
agreed annual fee was £18,000 for each Board
member (including the Chairman). During 2010
the Board was compensated as stated in the
table on page 41.
There are no outstanding guarantees, loans,
advances or credits to members of the Board
or other Directors. No shares were allotted to
members of the Board in 2010 and there are no
programmes for share allotment in place for
Board members.
Besides the compensation detailed in the
table on page 41, some Board members have
been involved in commercial trading with
Bakkavör Group: The Group rents office space
from Tjarnargata 35 ehf., which is beneficially
owned by Ágúst Gudmundsson, CEO, and Lýdur
Gudmundsson, Chairman of Bakkavör Group ehf.
All such transactions must be approved
by the Board of Directors, are based on arm’s
length principles and are not considered to be
part of the Board’s compensation. Details of
related-party transactions can be found in Note
37 on page 99.
Bakkavör Group Annual Report 2010

43
Endorsement by the Board of Directors and CEO
The Consolidated Financial Statements
of Bakkavör Group ehf. for the year to
31 December 2010 consist of the Consolidated
Financial Statements of Bakkavör Group ehf.
and its subsidiaries, together referred to
as the Group.
In 2010, the Group had sales of
£1,643.2 million, down £7.2 million compared
with £1,650.4 million in 2009. However, the
produce business International Produce Limited
(IPL) was sold to Asda in October 2009 and
futhermore 2009 included a 53rd trading week.
The impact of these on 2009 was £38.8 million
and £28.7 million respectively. Underlying sales
for the Group therefore increased by 3.8%.
The loss for the year 31 December 2010
amounted to £13.6 million (2009: £11.8 million).
According to the statement of financial
position the Group’s assets amount to
£1,479.1 million (2009: £1,479.4 million)
and the end of year book value of equity
is £243.2 million (2009: £107.6 million).
The Directors do not recommend a final
dividend to ordinary shareholders which,
together with the interim dividend of nil
pence, makes a total of nil pence for the
year (2009: nil pence).
On 18 January 2010, Bakkavör Group ehf.
entered into a composition period to discuss
proposals for the restructuring of certain
liabilities of the company debt issued in Iceland.
On 4 March 2010, the creditors of the Company
approved the Composition Agreement and
this was confirmed by the court on 25 March
2010, with an effective date of 6 April 2010.
The Composition Agreement extends the
maturities of Bakkavör listed bonds and other
indebtedness until 30 June 2014.
On 29 March 2010, Bakkavör Estates Limited,
which holds a portfolio of UK freehold property
for the Group, refinanced its debt obligations
through the Group’s main UK banking facilities
made available to Bakkavör London Limited.
On 7 February 2011, the Group refinanced
its main financing facilities in Bakkavör London
Limited, Bakkavör Acquisitions (2008) Limited
and Bakkavör China Limited, through a seven
year £350 million listed bond issue and a
term loan and RCF facility of £380 million that
will expire on 30 June 2014. This has been
arranged by Bakkavör Finance (2) plc, a newly
incorporated subsidiary of Bakkavör Holdings
Limited. The refinancing extends
the debt repayment profile and widens the
lender base.
The Directors have reviewed the historic
trading performance of the Group and the
forecasts for the next five years, and have also
taken into consideration the principal risks and
uncertainties that the Group faces, in order to
assess the level of finance required across the
Group. The Directors consider that adequate
finance is available and therefore believe it
appropriate to prepare the financial statements
on a going concern basis.
The Consolidated Financial Statements
for the year from 1 January to 31 December
2010 have been prepared in accordance with
International Financial Reporting Standards as
adopted by the EU. It is our opinion that these
Consolidated Financial Statements present all
the information necessary to give a true and
fair view of the Group’s assets and liabilities,
financial position as at 31 December 2010 and
operating performance for the year ended 31
December 2010.

44 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Endorsement by the Board of Directors and CEO
continued
In our opinion the Consolidated Financial
Statements and the report by the Board
of Directors and CEO give a fair view of the
development and performance of the Group’s
operations and its financial position.
At the year-end the number of shareholders
amounted to 3,048, compared to 2,919
shareholders at the beginning of the year.
At the year-end, one shareholder holds more
than 10% of the shares, being B Food Invest
ehf. and related parties with 33.7% of the
shares. B Food Invest ehf. is a related party
(see note 7). The Group has three different share
classes, Bakkavör A shares, B shares which hold
voting rights capped at 15% and C shares which
have no voting rights. For further details of the
shares issued see note 24. The percentage
holding of B Food Invest ehf. is calculated
based on the voting rights of A and B shares
The Board of Directors of Bakkavör Group
ehf. have today discussed and approved the
audited Consolidated Financial Statements
for the year 2010 and confirmed with their
signature.
Reykjavík, 17 February 2011
Board of Directors and CEO
Lýdur Gudmundsson
Chairman
Ágúst Gudmundsson
CEO
Ásgeir Thoroddsen
Bjarni Th. Bjarnason
Halldór B. Lúdvígsson
Bakkavör Group Annual Report 2010

45
Independent Auditor’s Report
To the Board of Directors and shareholders of Bakkavör Group ehf.
Report on the Financial Statements
We have audited the accompanying financial statements of Bakkavör Group ehf., which comprise the financial
position as at 31 December 2010, and the income statement, statement of changes in equity and cash flow
statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with International Financial Reporting Standards as adopted by the EU. This responsibility includes: designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of Bakkavör Group
ehf. as of 31 December 2010, and of its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the EU.
Reykjavík, 17 February 2011
Deloitte hf.
Hilmar A. Alfreðsson
State Authorised Public Accountant

46 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Consolidated Income Statement
for the period 1 October to 31 December 2010
Unaudited
Fourth quarter
1 October – 31 December
2010
Unaudited
Fourth quarter
1 October – 31 December
2009
£m
Before
restructuring,
refinancing &
other gains
& losses
Restructuring,
refinancing &
other gains
& losses Total
Before
restructuring,
refinancing &
other gains
& losses
Restructuring,
refinancing &
other gains
& losses
Total
Revenue 402.9 – 402.9 388.5 – 388.5
Cost of sales (348.8) – (348.8) (338.1) – (338.1)
Gross profit 54.1 – 54.1 50.4 – 50.4
Other administrative costs (39.5) – (39.5) (28.1) – (28.1)
Defined benefit pension scheme credit – 15.8 15.8 – – –
Fire insurance claim – 0.6 0.6 – – –
Redundancy and other restructuring costs – (3.7) (3.7) – (0.2) (0.2)
Total administrative costs (39.5) 12.7 (26.8) (28.1) (0.2) (28.3)
Share of results of associates 0.4 – 0.4 0.1 – 0.1
Operating profit/(loss) 15.0 12.7 27.7 22.4 (0.2) 22.2
Investment revenues – – – 0.1 – 0.1
Finance costs (16.2) (4.1) (20.3) (21.9) (7.4) (29.3)
Other gains and (losses) – 7.8 7.8 – (2.6) (2.6)
Gain/(loss) on other financial assets – – – – (12.4) (12.4)
(16.2) 3.7 (12.5) (21.8) (22.4) (44.2)
Profit/(loss) before tax (1.2) 16.4 15.2 0.6 (22.6) (22.0)
Tax (5.0) (4.4) (9.4) 5.2 0.8 6.0
Profit/(loss) for the period (6.2) 12.0 5.8 5.8 (21.8) (16.0)
Attributable to:
Shareholders of Bakkavör Group ehf. 6.2 (15.9)
Non-controlling interest (0.4) (0.1)
5.8 (16.0)
Bakkavör Group Annual Report 2010

47
Consolidated Income Statement
for the year 2010
£m Notes
Before
restructuring,
refinancing &
other gains
& losses
Period
1 January – 31 December
2010
Restructuring,
refinancing &
other gains
& losses Total
Before
restructuring,
refinancing &
other gains
& losses
Period
1 January – 31 December
2009
Restructuring,
refinancing &
other gains
& losses
Revenue 5 1,643.2 – 1,643.2 1,650.4 – 1,650.4
Cost of sales (1,406.3) – (1,406.3) (1,405.1) – (1,405.1)
Gross profit 236.9 – 236.9 245.3 – 245.3
Other administrative costs (151.2) – (151.2) (155.7) – (155.7)
Defined benefit pension scheme credit 9 – 15.8 15.8 – – –
Fire insurance claim 9 – 0.6 0.6 – – –
Redundancy and other
restructuring costs 9 – (3.7) (3.7) – (5.2) (5.2)
Total administrative costs (151.2) 12.7 (138.5) (155.7) (5.2) (160.9)
Share of results of associates 18 0.8 – 0.8 1.0 – 1.0
Operating profit/(loss) 6 86.5 12.7 99.2 90.6 (5.2) 85.4
Investment revenues 10 0.2 – 0.2 1.2 – 1.2
Finance costs 11 (69.6) (12.3) (81.9) (84.0) (17.0) (101.0)
Other gains and (losses) 12 – (15.1) (15.1) – 3.1 3.1
Gain/(loss) on other financial assets 13 – 1.1 1.1 – (16.9) (16.9)
(69.4) (26.3) (95.7) (82.8) (30.8) (113.6)
Profit/(loss) before tax 17.1 (13.6) 3.5 7.8 (36.0) (28.2)
Tax 14 (21.1) 4.0 (17.1) 11.5 4.9 16.4
(Loss)/profit for the period (4.0) (9.6) (13.6) 19.3 (31.1) (11.8)
Attributable to:
Shareholders of Bakkavör Group ehf. (14.0) (13.2)
Non-controlling interest 0.4 1.4
(13.6) (11.8)
Total

48 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Consolidated Statement of Comprehensive Income
for the year 2010
Unaudited
Period
1 October to 31 December
Period
1 January to 31 December
£m 2010 2009 2010 2009
(Loss)/profit for the period 5.8 (16.0) (13.6) (11.8)
Other Comprehensive income
Translation difference 7.7 (7.3) (0.2) 4.9
Actuarial gain/(loss) recognised on pension plan 21.1 10.8 8.9 (12.9)
Tax on items taken directly to equity (5.9) (3.0) (2.5) 3.6
22.9 0.5 6.2 (4.4)
Total Comprehensive income 28.7 (15.5) (7.4) (16.2)
Attributable to:
Shareholders of Bakkavör Group ehf. 29.1 (15.4) (7.8) (17.6)
Non-controlling interest (0.4) (0.1) 0.4 1.4
28.7 (15.5) (7.4) (16.2)
Bakkavör Group Annual Report 2010

49
Consolidated Statement of Financial Position
As at 31 December 2010
£m Notes 31 December 2010 31 December 2009
Non-current assets
Goodwill 15 844.5 844.4
Other intangible assets 16 1.6 1.9
Property, plant and equipment 17 314.6 330.9
Interests in associates 18 12.2 12.3
Other investments 19 0.1 –
Trade and other receivables 0.3 –
Deferred income tax asset 30 – 4.1
Pension asset 35 11.8 –
1,185.1 1,193.6
Current assets
Inventories 20 56.6 50.5
Trade and other receivables 21 189.8 189.4
Assets classified as held for sale 22 7.9 7.9
Derivative financial instruments 27, 33 1.0 0.4
Cash and cash equivalents 23 38.7 37.6
294.0 285.8
Total assets 1,479.1 1,479.4
Equity
Share capital 24 156.0 14.9
Capital reserves 72.6 72.6
Other reserves 26.7 25.3
Retained earnings (15.6) (8.0)
Shareholders’ equity 239.7 104.8
Non-controlling interest 3.5 2.8
Total equity 243.2 107.6
Non-current liabilities
Borrowings 26 778.2 600.5
Trade and other payables 28 0.2 15.6
Provisions 29 12.7 13.8
Deferred income tax liability 30 23.5 11.7
Pension deficit 35 – 13.2
814.6 654.8
Current liabilities
Borrowings 26 66.1 377.0
Trade and other payables 28 310.6 282.5
Provisions 29 1.8 5.1
Current tax liabilities 18.0 18.7
Derivative financial instruments 27, 33 24.8 33.7
421.3 717.0
Total equity and liabilities 1,479.1 1,479.4
Off Balance Sheet Items:
Mortgages and commitments 31

50 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Consolidated Statement of Changes in Equity
for the year 2010
Shareholders’ equity
Share capital Capital Other Retained
Noncontrolling
Total
£m A shares B shares C shares reserves reserves earnings Total interest equity
Equity 1 January 2009 14.9 – – 72.6 19.6 14.5 121.6 1.1 122.7
Translation reserves – – – – 4.9 – 4.9 – 4.9
Actuarial loss recognised
on pension plan – – – – – (9.3) (9.3) – (9.3)
(Loss)/profit for the year – – – – – (13.2) (13.2) 1.4 (11.8)
Comprehensive income
for the year – – – – 4.9 (22.5) (17.6) 1.4 (16.2)
Recognition of share-based
payments – – – – 0.8 – 0.8 – 0.8
Change in non-controlling
interest – – – – – – – 0.3 0.3
Equity 31 December 2009 14.9 – – 72.6 25.3 (8.0) 104.8 2.8 107.6
Shareholders’ equity
Share capital Capital Other Retained
Noncontrolling
Total
£m A shares B shares C shares reserves reserves earnings Total interest equity
Equity 1 January 2010 14.9 – – 72.6 25.3 (8.0) 104.8 2.8 107.6
Translation reserves – – – – (0.2) – (0.2) – (0.2)
Actuarial gain recognised
on pension plan – – – – – 6.4 6.4 – 6.4
(Loss)/profit for the year – – – – – (14.0) (14.0) 0.4 (13.6)
Comprehensive income
for the year – – – – (0.2) (7.6) (7.8) 0.4 (7.4)
Recognition of share-based
payments – – – – 0.6 – 0.6 – 0.6
Transfer of own shares 0.1 – – – – – 0.1 – 0.1
New shares issued
(note 24) – 3.8 137.2 – – – 141.0 – 141.0
Acquisition of subsidiary – – – – 1.0 – 1.0 0.7 1.7
Change in non-controlling
interest – – – – – – – (0.4) (0.4)
Equity 31 December 2010 15.0 3.8 137.2 72.6 26.7 (15.6) 239.7 3.5 243.2
Bakkavör Group Annual Report 2010

51
Consolidated Statement of Cash Flows
for the year 2010
Unaudited
Period
1 October to 31 December
Period
1 January to 31 December
£m Notes 2010 2009 2010 2009
Cash flow from operating activities
Operating profit 27.7 22.2 99.2 85.4
Depreciation and amortisation 16, 17 12.5 11.5 44.6 44.5
Other items – 0.3 0.1 0.5
Net retirement benefits charge less contributions (15.6) (0.2) (16.1) 0.7
Changes in current assets and liabilities 10.9 16.3 10.6 33.2
Net cash generated from operations pre-exceptional creditors 35.5 50.1 138.4 164.3
Changes in exceptional creditors (1.2) (6.2) (2.4) (12.3)
Net cash generated from operations 34.3 43.9 136.0 152.0
Interest paid (13.5) (8.7) (59.2) (58.0)
Payments of tax (1.5) (1.1) (2.6) (3.4)
Net cash from operating activities 19.3 34.1 74.2 90.6
Investing activities
Interest received – – 0.2 1.2
Property, plant and equipment (7.4) (6.4) (20.9) (24.1)
Acquisitions, net of cash acquired 34 (9.9) (3.9) (16.7) (8.4)
Disposals, net of cash disposed of – (2.1) – (2.1)
Dividend received – – 1.3 0.6
Net cash used in investing activities (17.3) (12.4) (36.1) (32.8)
Financing activities
Dividends paid 0.0 (0.1) (0.3) (0.5)
Bank loans 18.0 (18.5) (26.3) (210.8)
Finance leases (0.8) (1.0) (4.3) (5.9)
Transaction fees (0.8) (0.7) (6.2) (13.1)
Net cash (used in)/generated from financing activities 16.4 (20.3) (37.1) (230.3)
Net increase/(decrease) in cash 18.4 1.4 1.0 (172.5)
Effects of foreign exchange adjustments 0.1 (0.2) 0.1 (0.6)
Cash and cash equivalents at beginning of period 20.2 36.4 37.6 210.7
Cash and cash equivalents at the end of the period 38.7 37.6 38.7 37.6
Other information:
Free cash generated by operating activities 11.9 27.7 54.8 68.3

52 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
1
General information
Bakkavör Group ehf. is a company incorporated and domiciled in Iceland. The Consolidated Financial Statements
for the period ended 31 December 2010 comprise Bakkavör Group ehf. (the parent) and its subsidiaries (together
referred to as the Group). The principal activities of the Group comprise the preparation and marketing of fresh
prepared foods and the marketing and distribution of fresh produce.
The Group prepares its Consolidated Financial Statements in sterling, which is the Group’s functional currency.
In the current year, the Group has adopted the following standards and interpretations with no material impact
on the financial statements of the Group:
IFRS 1 (Revised)
IFRS 2 (Revised)
IFRS 3 (Revised)
IFRS 7 (Revised)
IAS 27 (Revised)
IAS 39 (Revised)
IFRIC 17
IFRIS 18
First time adoption of International Financial Reporting Standards
Share-based Payment
Business Combinations
Financial instruments: Disclosures
Consolidated and Separate Financial Statements
Financial instruments: Recognition and Measurement
Distributions of Non-Cash Assets to Owners
Transfers of Assets from Customers
At the date of authorisation of these financial statements, the following standards and interpretations which have
not been applied in these financial statements were in issue but not yet effective (and in some cases have not
yet been adopted by the EU):
IFRS 9
IAS 24 (Revised)
IAS 32 (Revised)
IFRIC 14 (Revised)
IFRIC 19
Improvements to IFRS
Financial Instruments
Related Party Disclosures
Classification of Rights Issue
IAS 19 – the limit on a defined benefit asset, minimum funding requirements and
their interaction
Extinguishing financial liabilities with Equity Instruments
IFRS 9 which the Group plans to adopt for the year beginning on 1 January 2013 will impact both the
measurement and disclosures of Financial Instruments. The Directors anticipate that the adoption of these
Standards and Interpretations in future periods will have no material impact on the financial statements of
the Group.
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Significant
accounting policies
Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS). The financial statements have also been prepared in accordance with IFRS adopted
by the European Union.
The financial statements have been prepared on the historical cost basis, except for the revaluation
of financial instruments. The principal accounting policies are set out below.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries) for the period to 31 December each year. Control is achieved
where the company has the power to govern the financial and operating policies of an investee entity so
as to obtain benefits from its activities.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from
the Group’s entity therein. Non-controlling interests consist of the amount of those interests at the date
of the original business combination (see below) and the non-controlling interests’ share of changes in
equity since the date of the combination. Losses applicable to the non-controlling interest in excess of
the non-controlling interests’ interest in the subsidiary’s equity are allocated against the interests of the
Group except to the extent that the non-controlling interest has a binding obligation and is able to make
an additional investment to cover the losses.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
income statement from the effective date of acquisition or up to the effective date of disposal, as
appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used into line with those used by the Group. All intra-group transactions, balances,
income and expenses are eliminated on consolidation.
Change in 2009 Consolidated Income Statement
In 2010 the Group reviewed the allocation of costs that are directly attributable to the sales of goods
as compared to administrative costs. As a result of this review, the 2009 comparative cost of sales and
other administrative costs have been restated with £117.1 million of costs being reclassified to cost of
sales from administrative costs. There is no impact on reported operating profit.

54 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
2
Significant accounting policies continued
Business combinations
Business acquisitions with third parties are accounted for using the acquisition method. The cost of the
acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities
incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Any
acquisition-related costs are accounted for separately from the business combination, generally leading to those
costs being recognised as an expense in profit and loss as incurred. The acquiree’s identifiable assets, liabilities
and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value
at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in
accordance with IFRS 5 Non Current Assets Held for Sale and Discontinued Operations, which are recognised
and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of
the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities recognised. If, after reassessment, the Group’s interest in the net fair value
of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business
combination, the excess is recognised immediately in profit or loss.
The interest of minority shareholders in the acquiree is initially measured at the minority’s proportion of the net
fair value of the assets, liabilities and contingent liabilities recognised.
Investments in associates
An associate is an entity over which the Group is in a position to exercise significant influence, but not control
or joint control, through participation in the financial and operating policy decisions of the investee. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control over those policies. The results and assets and liabilities of associates are incorporated
in these financial statements using the equity method of accounting except when classified as held for sale.
Under the equity method, an investment in an associate is initially recognised in the consolidated statement of
financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other
comprehensive income of the associate. Losses of the associates in excess of the Group’s interest in those
associates are recognised only to the extent that the Group has incurred legal or constructive obligations or
made payments on behalf of the associate. Goodwill within the associate is separately identifiable at the date
of acquisition. Any negative goodwill is credited in profit or loss in the period of acquisition.
Where a Group company transacts with an associate of the Group, profits and losses are eliminated to the
extent of the Group’s interest in the relevant associate. Losses may provide evidence of an impairment of the
asset transferred in which case appropriate provision is made for impairment.
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Significant accounting policies continued
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s
interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly
controlled entity at the date of acquisition. Goodwill is initially recognised as an asset at cost and is
subsequently measured at cost less any accumulated impairment losses. Goodwill which is recognised
as an asset is reviewed for impairment at least annually. Any impairment is recognised immediately in
profit or loss and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units
expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has
been allocated are tested for impairment annually, or more frequently when there is an indication that
the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying
amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount
of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent
period. The assumptions that have been used in the impairment testing can be found in note 15.
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of goodwill is
included in the determination of the profit or loss on disposal.
Other intangible assets
Intangible assets have finite useful lives over which the assets are amortised on a straight-line basis.
The amortisation charge for each period is recognised as an expense on the following basis:
• Customer contracts – 10 years
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents
amounts receivable for goods provided in the normal course of business, net of discounts, VAT and other
sales-related taxes.
The Group sells fresh prepared foods and fresh produce. Revenue from the sale of these goods is
recognised when all of the following conditions are satisfied:
• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
• The Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
• The amount of revenue can be measured reliably;
• It is probable that the economic benefits associated with the transaction will flow into the entity;
• The costs incurred or to be incurred in respect of the transaction can be measured reliably.
As a result, revenue for the sale of these goods is generally recognised upon delivery to the customer.

56 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
2
Significant accounting policies continued
Investment revenue
Interest income is recognised when it is probable that the economic benefits will flow to the Group and the
amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the
principle outstanding and at the effective interest rate applicable, which is the rate that exactly discounts the
estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount
on initial recognition.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been
established (provided that it is probable that economic benefits will flow to the Group and the amount of revenue
can be measured reliably).
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
The Group as lessee
Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the
present value of the minimum lease payments, each determined at the inception of the lease. The corresponding
liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are
apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are charged directly against income, unless
they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the
Group’s general policy on borrowing costs (see below).
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the
relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread
on a straight-line basis over the lease term.
Foreign currencies
The individual financial statements of each Group company are presented in the currency of the primary
economic environment in which it operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each Group company are expressed in pounds sterling, which is
the functional currency of the Company, and the presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates
of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign
currencies are retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair
value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair
value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency
are not retranslated.
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Significant accounting policies continued
Foreign currencies continued
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary
items, are included in profit or loss for the period. Exchange differences arising on the retranslation of
non-monetary items carried at fair value are included in profit or loss for the period except for differences
arising on the retranslation of non-monetary items in respect of which gains and losses are recognised
directly in equity. For such non-monetary items, any exchange component of that gain or loss is also
recognised directly in equity.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and
expense items are translated at the average exchange rates for the period, unless exchange rates
fluctuate significantly during that period, in which case the exchange rates at the dates of transaction
are used. Exchange differences arising, if any, are classified as equity and transferred to the Group’s
translation reserve. Such translation differences are recognised as income or as expenses in the period
in which the operation is disposed of.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rate.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale. Investment income earned on the temporary investment of specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply
with the conditions attaching to them and that the grants will be received.
Government grants towards staff re-training costs are recognised as income over the periods necessary
to match them with the related costs and are deducted in reporting the related expense.
Government grants relating to property, plant and equipment are treated as deferred income and released
to profit or loss over the expected useful lives of the assets concerned.
Operating profit
Operating profit is stated after charging restructuring costs and after the share of results of associates
but before investment income and finance costs.

58 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
2
Significant accounting policies continued
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments
made to state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes
where the Group’s obligations under the schemes are equivalent to those arising in a defined contribution retirement
benefit scheme.
For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method,
with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in
full in the period in which they occur. They are recognised outside profit or loss and presented in the statement of
recognised income and expense.
Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is
amortised on a straight-line basis over the average period until the benefits become vested.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any
asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and
reductions in future contributions to the scheme.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit,
and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable
profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are
not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit
nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying
amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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Significant
accounting policies continued
Taxation continued
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to
items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Group intends to settle its current tax assets and liabilities on a net basis.
Property, plant and equipment
Land and buildings held for use in the production or supply of goods or services, or for administrative purposes,
are stated in the balance sheet at cost less any subsequent accumulated depreciation and subsequent
accumulated impairment losses.
Properties in the course of construction for production, rental or administrative purposes, or for purposes not
yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional fees and,
for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Depreciation
of these assets, on the same basis as other property assets, commences when the assets are ready for their
intended use.
Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under
construction, over their estimated useful lives, using the straight-line method, on the following bases:
Buildings 2% – 5%
Fixtures and equipment 5% – 33%
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned
assets or, where shorter, over the term of the relevant lease.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in income.

60 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
2
Significant accounting policies continued
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss
(if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates
the recoverable amount of the cash-generating unit (CGU) to which the asset belongs.
An intangible asset with an indefinite useful life is tested for impairment annually and whenever there is an indication
that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (CGU) is reduced to its recoverable amount. An impairment loss is recognised as an expense
immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated
as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset (CGU) in prior years.
A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a
revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Impairment of goodwill
For the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately
identifiable cash flows, known as cash-generating units. If the recoverable amount of the CGU is less than the
carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. The
recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash
flows have not been adjusted.
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Significant
accounting policies continued
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and,
where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories
to their present location and condition. Cost is calculated using the weighted average method. Net realisable
value represents the estimated selling price less all estimated costs of completion and costs to be incurred in
marketing, selling and distribution.
Financial assets
All financial assets are recognised and derecognised on a trade date where the purchase or sale of a financial
asset is under a contract whose terms require delivery of the financial asset within the timeframe established by
the market concerned, and are initially measured at fair value, plus transaction costs, except for those financial
assets classified as at fair value through profit or loss, which are initially measured at fair value.
Financial assets are classified into the following specified categories: financial assets at ’fair value through profit
and loss’ (FVTPL), ’held-to-maturity’ investments and ’loans and receivables’. The classification depends on the
nature and purpose of the financial assets and is determined at the time of initial recognition.
Effective interest method
Income is recognised on an effective interest basis for debt instruments other than those financial assets
designated as at FVTPL. The effective interest method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective interest rate is the rate
that exactly discounts estimated future cash receipts (including all fees on points paid or received that form
an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the
expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on
initial recognition.
Financial assets at FVTPL
Financial assets are classified as at FVTPL where the financial asset is either held for trading or it is designated
as at FVTPL.
A financial asset is classified as held for trading if:
• It has been acquired principally for the purpose of selling in the near term; or
• On initial recognition it is a part of a portfolio of identified financial instruments that the Group manages
together and has a recent actual pattern of short-term profit-taking; or
• It is a derivative that is not designated and effective as a hedging instrument.

62 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
2
Significant accounting policies continued
Financial assets at FVTPL continued
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if:
• Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
otherwise arise; or
• The financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its
performance is evaluated on a fair value basis, in accordance with the Group’s documented risk management or
investment strategy, and information about the Group is provided internally on that basis; or
• It forms part of a contract containing one or more embedded derivatives, and IAS 39 Financial Instruments:
Recognition and Measurement permits the entire combined contract (asset or liability) to be designated as
at FVTPL.
Financial assets at FVTPL are stated at fair value, with any gains or loss arising on re-measurement recognised
in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on
the financial asset and is included in the ’other gains and losses’ line item in the income statement. Fair value is
determined in the manner described in note 33.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an
active market are classified as ’loans and receivables’. Loans and receivables are measured at amortised cost using
the effective interest method, less any impairment. Interest income is recognised by applying the effective interest
rate, except for short-term receivables where the recognition of interest would be immaterial.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each balance sheet date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred
after the initial recognition of the financial asset, the estimated future cash flows of the investment have been
affected.
Objective evidence of impairment could include:
• Significant financial difficulty of the issuer or counterparty; or
• Default or delinquency in interest or principal payments; or
• It becoming probable that the borrower will enter bankruptcy or financial re-organisation.
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2
Significant
accounting policies continued
Impairment of financial assets continued
For certain categories of financial assets such as trade receivables, assets that are assessed not to be impaired
individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for
a portfolio of receivables could include the Group’s past experience of collecting payments, an increase in the
number of delayed payments in the portfolio past the average credit period, as well as observable changes in
national and local economic conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the
assets’ carrying amount and the present value of estimated future cash flows, discounted at the financial
assets’ original effective interest rate.
Financial liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss.
The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability. Fair value
is determined in the manner described in note 33.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss
is reversed through the income statement to the extent that the carrying amount of the investment at the date
the impairment is reversed does not exceed what the amortised cost would have been had the impairment not
been recognised.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and short-term deposits with an original maturity of three
months or less, and other short-term highly liquid investments that are readily convertible to a known amount
of cash and are subject to an insignificant risk of changes in value.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire; or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset
to another entity.
Financial liabilities and equity instruments issued by the Group
Financial liabilities held by the Group are classified as other financial liabilities at amortised cost and derivatives
at FVTPL.
Classification as debt or equity
Debt and equity instruments are classified either as financial liabilities or as equity in accordance with the
substance of the contractual arrangement.

64 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
2
Significant accounting policies continued
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or it is designated
as at FVTPL.
A financial liability is classified as held for trading if:
• It has been incurred principally for the purpose of disposal in the near future; or
• It is a part of an identified portfolio of financial instruments that the Group manages together and has a recent
actual pattern of short-term profit-taking; or
• It is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial
recognition if:
• Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would
otherwise arise; or
• The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and
its performance is evaluated on a fair value basis, in accordance with the Group’s documented risk management
or investment strategy, and information about the Group is provided internally on that basis; or
• It forms part of a contract containing one or more embedded derivatives, and IAS 39 Financial Instruments:
Recognition and Measurement permits the entire combined contract (asset or liability) to be designated as
at FVTPL.
Financial liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net
gain or loss recognised in profit or loss incorporates any interest paid on the financial liability. Fair value is determined
in the manner described in note 33.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other
financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest
expense recognised on an effective yield basis. The effective interest method is a method of calculating the
amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial
liability to its net carrying amount on initial recognition.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, are
cancelled or they expire.
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Significant accounting policies continued
Derivative financial instruments
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Group uses foreign exchange forward contracts and interest rate swap contracts to manage
these exposures. The Group does not use derivative financial instruments for speculative purposes.
The use of financial derivatives is governed by the Group’s policies approved by the Board of Directors, which
provide written principles on the use of financial derivatives. Changes in the fair value of derivative financial
instruments are recognised in the income statement as they arise.
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives
when their risks and characteristics are not closely related to those of host contracts and the host contracts are
not carried at fair value, with gains or losses reported in the income statement.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made
of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.
A restructuring provision is recognised when the Group has developed a detailed formal plan for the restructuring
and has raised a valid expectation in those affected that it will carry out the restructuring by starting to implement
the plan or announcing its main features to those affected by it. The measurement of a restructuring provision
includes only the direct expenditures arising from the restructuring, which are those amounts that are both
necessarily entailed by the restructuring and not associated with the ongoing activities of the entity.
Present obligations arising from onerous contracts are recognised and measured as provisions. An onerous
contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received under it.

66 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
3
Critical accounting judgements and key sources of estimation uncertainty
Critical judgements in applying the Group’s accounting policies
In the process of applying the Group’s accounting policies, which are described in note 2, the Directors
have made the following judgements that have the most significant effect on the amounts recognised in
the financial statements (apart from those involving estimations, which are dealt with below).
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the
balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are discussed below.
Going concern
A key judgement in the preparation of the financial statements is the appropriateness of using the
going concern basis in preparing them. Management has considered the availability of future cash to
this business and concluded that as a result of refinancing the bank facilities and issuing a seven-year
listed bond in February 2011, there will be sufficient cash available to allow the Group to meet its
financial liabilities as they fall due. Therefore management believes it appropriate to prepare the financial
statements on a going concern basis.
Impairment of goodwill
The Group assesses goodwill for impairment on an annual basis, or more frequently if there are any
indications of impairment. The recoverable amount of each CGU is compared to the carrying amount and
impairment is recorded if the recoverable amount is less than the carrying amount. The recoverable amount
is based on the value in use of the CGUs to which goodwill has been allocated. The value in use calculation
requires the entity to estimate the future cash flows expected to arise from the CGU and a suitable discount
rate in order to calculate present value. The key assumptions for the value in use calculations are those
regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the
period. Management estimates discount rates using pre-tax rates that reflect current market assessments of
the time value of money and the risks specific to the CGUs. The growth rates are based on industry growth
forecasts. Changes in selling prices and direct costs are based on historical trends and expectations of future
changes in the market related to sales costs and costs of raw materials. The most significant judgements
in the value in use calculations are the discount rate and the terminal growth rate. The sensitivities around
these assumptions are disclosed in note 15.
The carrying amount of goodwill at the balance sheet date was £844.5 million (2009: £844.4 million). No
impairment was considered necessary (see note 15).
Impairment of tangible and intangible assets other than goodwill
At each balance sheet date, or more frequently if there are indications of impairment, the Group reviews
the carrying amounts of its tangible and intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the
asset does not generate cash flows that are independent from other assets, the Group estimates the
recoverable amount of the CGU to which the asset belongs.
Bakkavör Group Annual Report 2010

67
3
Critical
accounting judgements and key sources of estimation uncertainty continued
Impairment of tangible and intangible assets other than goodwill continued
The Group considers there to be an indication of impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. The recoverable amount is based upon the estimated
discounted future cash flows generated by the underlying assets. If the recoverable amount of the asset
determined by this evaluation is less than the book value of the asset, an impairment is recognised for the
difference. No impairment was recognised in the year (2009: £nil).
Fair value of derivatives and other financial instruments
Derivative financial instruments and certain other financial assets are recorded at fair value in the statement
of financial position. The fair value of the financial instruments that do not have quoted market prices requires
significant judgement and estimates. The Directors use their judgement in selecting an appropriate valuation
technique for these financial instruments. Valuation techniques commonly used by market practitioners are applied.
For derivative financial instruments, assumptions are made based on quoted market rates adjusted for specific
features of the instrument. Other financial instruments are valued using a discounted cash flow analysis based
on assumptions supported, where possible, by observable market prices or rates. The estimation of fair value
of unlisted shares includes some assumptions not supported by observable market prices or rates. These
assumptions are based on past and expected future performance. Details of the assumptions used and of the
results of sensitivity analysis regarding these assumptions are disclosed in note 33.
Pensions
The Group maintains a number of defined benefit pension plans for which it has recorded a pension asset or
liability. The pension asset or liability is based on an actuarial valuation that requires a number of assumptions
including discount rate, mortality rates and actual return on plan assets that may necessitate material
adjustments to this asset/liability in future. The assumptions used by the Company are the best estimates based
on historical trends and the composition of the work force. Details of the principal actuarial assumptions used in
calculating the recognised asset/liability for the defined benefit plan are given in note 35.
Recognition of deferred tax assets
The recognition of deferred tax assets is based upon whether it is probable that sufficient and suitable taxable
profits will be available in the future against which the reversal of temporary differences can be deducted. Where
the temporary differences related to losses, the availability of the losses to offset against forecast taxable profits
is also considered. Recognition therefore involves judgement regarding the future financial performance of the
particular legal entity or tax group in which the deferred tax asset has been recognised.
The Group operates in various countries and its income tax returns are subject to audit and adjustment by local tax
authorities. The nature of the Group’s tax exposures is often complex and subject to change and the amounts at
issue can be substantial. The Group develops an estimate of the potential tax liability based upon the tax positions
taken, historical experience and its internal tax expertise. These estimates are refined as additional information
becomes known. Any outcome upon settlement that differs from a recorded provision may result in a materially
higher or lower tax expense in future periods. The impact of any such adjustments is disclosed in note 14.
The Group had unrecognised deferred tax assets as a result of unused tax losses of £18.9 million (2009 : £15.7
million), available for offset against future profits. Deferred tax assets are not recognised on the losses carried
forward to the extent that it is not probable that the losses will be utilised.

68 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
4
Subsidiaries
As at 31 December 2010, Bakkavör Group ehf. held investments in the share capital in the following companies (ownership
in dormant companies has not been listed):
Place of registration
Directly held investments: and operation Interest Principal activity
Bakkavör Holdings Limited United Kingdom 100% Holding company
Indirectly held investments:
Bakkavör Foods Limited United Kingdom 100% Preparation and marketing of fresh prepared foods
Exotic Farm Produce Limited United Kingdom 100% Preparation and marketing of fresh produce
Heli Food Fresh A.S Czech Republic 100% Preparation and marketing of fresh prepared foods
Anglia Crown Limited United Kingdom 100% Preparation and marketing of fresh prepared foods
Bakkavör Fresh Cook Limited United Kingdom 100% Preparation and marketing of fresh prepared foods
English Village Salads Limited United Kingdom 65% Packaging and marketing of fresh produce
Cinquième Saison SAS Group (includes 2 subsidiaries) France 100% Preparation and marketing of fresh prepared foods
Centrale Salades France SAS France 100% Preparation and marketing of fresh prepared foods
Crudi SAS France 100% Preparation and marketing of fresh prepared foods
S.B.L.P. SAS France 100% Preparation and marketing of fresh prepared foods
Bakkavör Traiteur SAS France 100% Preparation and marketing of fresh prepared foods
Sogesol SA Spain 100% Preparation and marketing of fresh prepared foods
Vaco BV Belgium 100% Preparation and marketing of fresh prepared foods
Bakkavör (SA) (Pty) Limited South Africa 100% Preparation and marketing of fresh prepared foods
Italpizza Srl Italy 90% Manufacture of branded and private label pizza products
Two Chefs on a Roll Inc USA 100% Manufacture of custom and private label savoury and
bakery products
Bakkavör Overseas Limited. United Kingdom 100% Importer and exporter of machinery and equipment
Creative Food Group Limited (includes 13 subsidiaries) Hong Kong 80% Produces and manufactures salad products
Bakkavör Acquisitions (2008) Limited United Kingdom 100% Holding company
Bakkavör USA Inc USA 100% Holding company
Bakkavör USA Limited United Kingdom 100% Holding company
Bakkavör London Limited United Kingdom 100% Holding company
Bakkavör (Acquisitions) Limited United Kingdom 100% Holding company
Bakkavör Invest Limited United Kingdom 100% Holding company
Bakkavör (Jersey Two) Limited Jersey 100% Holding company
Bakkavör Limited United Kingdom 100% Holding company
BV Negecos United Kingdom 100% Holding company
Bakkavör European Marketing BV Netherlands 100% Holding company
Bakkavör Asia Limited United Kingdom 100% Holding company
Bakkavör China Limited United Kingdom 80% Holding company
4G SAS France 100% Holding company
Financière 4G SAS France 100% Holding company
Bakkavör Estates Limited United Kingdom 100% Property management
Bakkavör Properties Limited United Kingdom 100% Property management
Bakkavör Finance Limited United Kingdom 100% Group management services
Notsallow 256 Limited United Kingdom 100% Non-trading
Exotic Farm Prepared Limited United Kingdom 100% Non-trading
Cucina Sano Limited United Kingdom 100% Non-trading
Katsouris Fresh Foods Limited United Kingdom 100% Non-trading
New Primebake Limited United Kingdom 100% Non-trading
Hitchen Foods Limited United Kingdom 100% Non-trading
Laurens Patisseries Limited United Kingdom 100% Non-trading
Bakkavör Jersey Limited Jersey 100% Non-trading
Bakkavör Acquisitions (2008) ehf. Iceland 100% Non-trading
Bakkavör London ehf. Iceland 100% Non-trading
Bakkavör Central Finance Limited United Kingdom 100% Non-trading
Butterdean Products Limited United Kingdom 100% Non-trading
Bakkavör Overseas Holdings Limited United Kingdom 100% Non-trading
Bakkavör Maroc Morocco 100% Non-trading
Bakkavör Group ehf. also operates a finance branch in Switzerland to govern intercompany long-term liabilities and investments.
Bakkavör Group Annual Report 2010

69
5
Divisional information
The executive Directors review the Group’s internal reporting in order to assess performance and allocate resources.
Management has determined the reporting divisions based on these reports.
The Group is geographically diverse and, within the UK, operates primarily within the fresh prepared foods and produce
markets. Management assesses the performance of the Group based on geographic location and splits the UK business into
Prepared and Produce divisions. As at the balance sheet date, the Group is organised as follows:
UK Prepared: The preparation and marketing of fresh prepared foods for distribution in the UK.
UK Produce: The marketing and distribution of fresh produce in the UK.
Continental Europe: The preparation and marketing of fresh prepared foods and the marketing and distribution of fresh
produce in Continental Europe.
Rest of World: The preparation and marketing of fresh prepared foods and the marketing and distribution of fresh produce in
the rest of the world.
The Group’s divisions’ measure of profit represents operating profit before restructuring costs, exceptional defined benefit
pension scheme credit and share of results of associates. The following table provides an analysis of the Group’s divisional
reporting for the year 1 January 2010 to 31 December 2010:
UK UK Continental Rest
£m Prepared Produce Europe of World Unallocated Total
Net sales 1,274.0 108.5 202.9 57.8 – 1,643.2
Operating profit pre-exceptional income/(costs) 83.2 (0.4) 2.7 0.2 – 85.7
Exceptional income/(costs) 14.9 (0.1) (1.5) (0.6) – 12.7
Operating profit post-exceptional income/(costs) 98.1 (0.5) 1.2 (0.4) – 98.4
Share of results of associates 0.8
Operating profit 99.2
Investment revenues 0.2
Finance costs (81.9)
Other gains and (losses) (15.1)
Gain on other financial assets 1.1
Profit before tax 3.5
Tax (17.1)
Loss for the year (13.6)
Other information:
Capital additions 24.0 0.2 3.1 1.5 – 28.8
Depreciation and amortisation 32.8 0.8 8.4 2.6 – 44.6
Total assets 1,167.4 40.6 174.4 78.9 17.8 1,479.1

70 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
5
Divisional information continued
The following table provides an analysis of the Group’s segment information for the year 1 January 2009 to 31 December 2009:
UK UK Continental Rest
£m Prepared Produce Europe of World Unallocated Total
Net sales 1,231.7 155.6 211.2 51.9 – 1,650.4
Operating profit pre-exceptional income/(costs) 79.4 5.1 3.1 2.0 – 89.6
Exceptional income/(costs) (0.8) (0.1) (4.3) – – (5.2)
Operating profit post-exceptional income/(costs) 78.6 5.0 (1.2) 2.0 – 84.4
Share of results of associates 1.0
Operating profit 85.4
Investment revenues 1.2
Finance costs (101.0)
Other gains and (losses) 3.1
Loss on other financial assets (16.9)
Loss before tax (28.2)
Tax 16.4
Loss for the year (11.8)
Other information:
Capital additions 17.7 – 5.3 2.6 – 25.6
Depreciation and amortisation 33.3 0.8 7.8 2.6 – 44.5
Total assets 1,181.0 14.3 166.5 73.2 44.4 1,479.4
6
Operating profit
Profit for the period has been arrived at after charging/(crediting):
£m 2010 2009
Depreciation of property, plant and equipment – owned 41.7 41.2
– leased 2.6 2.6
Research and development 5.5 1.4
Amortisation of intangible assets included in other administrative expenses 0.3 0.7
Exceptional (income)/costs (see note 9) (12.7) 5.2
Loss on disposal of property 0.3 0.7
Staff costs (see note 7) 378.2 391.6
Bakkavör Group Annual Report 2010

71
7
Salaries
The average monthly number of employees (including executive Directors) during the year was:
2010 2009
Production 15,593 16,327
Management and administration 1,632 1,687
Sales and distribution 896 924
18,121 18,938
Their aggregate remuneration comprised:
£m 2010 2009
Wages and salaries 330.2 340.3
Social security and other costs 43.1 45.6
Other pension costs 4.9 5.7
378.2 391.6
The Directors’ emoluments were as follows:
Salary and
Board fee Benefits Pension Number of
GBP’000 GBP’000 GBP’000 shares*
Lýdur Gudmundsson 151 – 18 ***855,166,183
Ágúst Gudmundsson 518 22 53 ***855,166,183
Ásgeir Thoroddsen 18 – 1 1,418,164
Bjarni Th. Bjarnason 11 – 1 –
Halldór B. Lúdvígsson 11 – 1 –
No member of the Board holds options, warrants or other rights.
* Restated to reflect remuneration earned in the year rather than cash payments received by the Directors during the year
** Including holdings of their spouses, dependent children, and companies owned by them, if any
*** Ágúst Gudmundsson and Lýdur Gudmundsson in total hold control of 855,166,183 shares through B Food Invest ehf.
and related parties
8
Fees to Auditors
£m 2010 2009
Audit of financial statements 0.6 0.6

72 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
9
Exceptional (income)/costs
£m 2010 2009
Defined benefit pension scheme credit (15.8) –
Fire insurance claim (0.6) –
Redundancy and other restructuring costs 3.7 5.2
(12.7) 5.2
There is an exceptional credit of £15.8 million in the year relating to the defined benefit pension scheme. This has arisen due
to changes to the scheme regarding future discretionary increases (see note 35). The Group has also received £0.6 million in
relation to a fire insurance claim.
The Group has completed various restructuring activities during the years presented in order to integrate its acquired entities
and to optimise its operations.
During 2010, the Group incurred £3.7 million of restructuring costs. These include a further £1.5 million of costs in relation
to the restructuring in France, and a further £2.2 million in relation to redundancies and related costs of UK factories. During
2009, the Group closed two factories in France incurring £3.7 million of redundancy and related costs and additional costs
associated with UK factory closures that commenced in 2008 of £1.5 million.
10
Investment revenues
£m 2010 2009
Loans and receivables at amortised cost:
Interest on bank deposits 0.2 1.2
11
Finance costs
£m 2010 2009
Amortisation of refinancing costs (12.3) (17.0)
Interest expenses – Bakkavör Group ehf. (21.6) (25.4)
Interest expenses – Rest of the Group (48.0) (58.6)
(81.9) (101.0)
12
Other gains and losses
£m 2010 2009
Increase/(decrease) in the fair value of derivative financial instruments 6.2 (3.7)
Foreign exchange (loss)/gain (21.3) 6.8
(15.1) 3.1
The Group has experienced non-cash gains from mark to market movements on foreign currency contracts of £0.7 million
(2009: £5.5 million loss) and interest rate swaps of £5.5 million (2009: £1.8 million).
The exchange rate losses and gains are as a result of foreign exchange movements on ISK, Euro and US Dollar
denominated loans.
Bakkavör Group Annual Report 2010

73
13
Gain/(loss) on other financial assets
£m 2010 2009
Reversal of impairment 1.1 –
Impairment of assets – (15.9)
Loss on sale of subsidiary undertaking – (1.8)
Gain recognised on disposal of interests in associates – 0.6
Gain on other financial assets – 0.2
1.1 (16.9)
The reversal of impairment during the year relates to impairment previously booked in relation to the Group’s stake in Fram
Foods hf. and related receivables.
14
Tax
£m 2010 2009
Current tax 3.7 (3.5)
Deferred tax (note 30) 13.4 (12.9)
17.1 (16.4)
Reconciliation of effective tax rate:
2010 2009
Amount % Amount %
Profit/(loss) before tax 3.5 (28.2)
Tax calculated at domestic tax rate 0.6 18.0% (4.2) 15.0%
Effect of different tax rates of other jurisdictions 4.3 122.7% (3.4) 21.1%
Permanent differences for tax purposes 3.6 102.8% (1.1) 3.9%
Tax asset not recognised 5.3 151.3% 0.3 (1.1%)
Adjustments in respect of prior years 3.3 94.2% (8.0) 28.4%
17.1 489.0% (16.4) 58.2%

74 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
15
Goodwill
£m Total
Cost
At 31 December 2008 846.6
Exchange differences (2.2)
At 31 December 2009 844.4
Exchange differences 0.2
Adjustment to consideration on acquisition of subsidiaries (note 34) (6.2)
Acquisition of business (note 34) 6.1
At 31 December 2010 844.5
Accumulated impairment losses
At 31 December 2009 & 2010 & 2011 –
Carrying amount
At 31 December 2010 844.5
At 31 December 2009 844.4
Goodwill acquired in a business combination is allocated, at acquisition, to the cash-generating units (CGUs) that are
expected to benefit from that business combination.
The carrying amount of goodwill has been allocated (each being a single CGU) as follows:
£m 2010 2009
UK Prepared 728.1 728.1
UK Produce 2.0 –
Europe Prepared 28.3 28.6
Rest of World 15.1 14.1
Italpizza Srl 43.8 41.2
Two Chefs on a Roll Inc 27.2 32.4
844.5 844.4
The recoverable amounts of the CGUs are determined based on the value in use calculations.
Bakkavör Group Annual Report 2010

75
15
Goodwill continued
The key assumptions used are determined as follows:
Discount rates: Management uses pre-tax rates that reflect current market assessments of the time value of money and the
risks specific to the CGUs.
Growth rates: The growth rates are based on industry growth forecasts. Changes in selling prices and direct costs are based
on past practices and expectations of future changes in the market. The Group prepares cash flow forecasts derived from the
most recent financial budgets approved by management for the next year and extrapolates cash flows for the following four
years based on an estimated growth rate, determined by business unit, to provide a five-year forecast. Cash flows are then
extrapolated using a perpetuity growth rate of 2 per cent (2009: 2 per cent) which does not exceed the average long-term
growth rate for the relevant markets.
The assumptions used, and the impact of sensitivities on these assumptions, are shown below:
UK UK Rest Two Chefs
£m Prepared Produce Europe of World Italpizza Srl on a Roll Inc
Assumption:
Pre-tax discount rate 10.6% 11.1% 10.3% 10.5% 11.0% 10.8%
Perpetuity growth rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Sensitivity:
Head room of impairment test based
on management assumptions 47.5 5.9 5.3 1.7 44.9 53.0
Increase to pre-tax discount rate that
would result in an impairment charge 0.37% 9.47% 0.49% 0.57% 6.00% 9.48%
Reduction in perpetuity growth rate that
would result in an impairment charge 0.57% 33.20% 0.72% 0.87% 13.66% 29.64%

76 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
16
Other intangible assets
Customer
£m contracts
Cost
At 31 December 2008 8.0
Exchange differences (0.6)
Disposal of a subsidiary (4.1)
At 31 December 2009 3.3
Exchange differences (0.1)
At 31 December 2010 3.2
Accumulated amortisation
At 31 December 2008 (3.6)
Disposal of a subsidiary 2.9
Charge for the year (0.7)
At 31 December 2009 (1.4)
Exchange differences 0.1
Charge for the year (0.3)
At 31 December 2010 (1.6)
Carrying amount
At 31 December 2010 1.6
At 31 December 2009 1.9
Bakkavör Group Annual Report 2010

77
17
Property, plant and equipment
Land Fixtures
and
and
£m Buildings Equipment Total
Cost
At 31 December 2008 104.1 406.7 510.8
Reclassification 2.5 (2.5) –
Additions 2.9 22.7 25.6
Disposal of subsidiary – (1.9) (1.9)
Disposals – (5.5) (5.5)
Properties reclassified as held for sale (5.1) – (5.1)
Exchange differences (0.6) (6.0) (6.6)
At 31 December 2009 103.8 413.5 517.3
Additions 3.5 25.3 28.8
Acquisition of subsidiary – 0.6 0.6
Disposals (0.1) (6.5) (6.6)
Exchange differences 0.4 (1.6) (1.2)
At 31 December 2010 107.6 431.3 538.9
Accumulated depreciation and impairment
At 31 December 2008 (20.9) (131.6) (152.5)
Charge for the year (6.2) (37.6) (43.8)
Disposal of subsidiary – 1.7 1.7
Disposals – 4.8 4.8
Exchange differences 0.4 3.0 3.4
At 31 December 2009 (26.7) (159.7) (186.4)
Charge for the year (6.3) (38.0) (44.3)
Disposals – 6.1 6.1
Exchange differences (0.1) 0.4 0.3
At 31 December 2010 (33.1) (191.2) (224.3)
Carrying amount
At 31 December 2010 74.5 240.1 314.6
At 31 December 2009 77.1 253.8 330.9
Insurance value of property, plant and equipment at year end amounts to £1,086 million (2009: £1,014 million).
Freehold land and buildings with a carrying value of £57.1 million (2009: £57.1 million) have been pledged to secure certain
borrowings of the Group. The Group is not allowed to pledge these assets as security for other borrowings or to sell them to
another entity.
The carrying value of the Group’s fixtures and equipment includes an amount of £13.5 million (2009: £15.5 million) in respect
of assets held under finance leases.
At 31 December 2010, the Group had entered into contractual commitments for the acquisition of property, plant and
equipment amounting to £5.3 million (2009: £0.2 million).

78 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
17
Property, plant and equipment continued
Depreciation in the consolidated income statement is specified as follows:
£m 2010 2009
Depreciation included in cost of sales 26.1 27.7
Depreciation included in other administrative costs 18.2 16.1
44.3 43.8
18
Interests in associates
Details of associates for the Group at 31 December 2010:
£m 2010 2009
Aggregated amounts relating to associates
Total assets 17.0 19.6
Total liabilities (11.3) (11.0)
Net assets 5.7 8.6
Group’s share of associates net assets 3.7 3.8
Premium on acquisition 8.5 8.5
12.2 12.3
Revenue 72.0 78.9
Profit for the year 2.9 4.0
Group’s share of associates’ profit for the year 0.8 1.0
Place of registration Method of Proportion of voting interest
£m and operation accounting Principal activity 2010 2009
Manor Fresh Limited United Kingdom Equity Marketing of fresh produce 27.5% 27.5%
Gastro Primo Ltd Hong Kong Equity Food and beverage supplier 48.0% 48.0%
La Rose Noire Ltd Hong Kong Equity Preparation and marketing of pastry products 45.0% 45.0%
Manor Interfruit and Fram La Rose Gastro
Fresh Tropical Foods Noire Primo
£m Limited Fresh hf. Limited Limited Total
Share of net assets/costs
At 31 December 2008 0.6 1.2 1.9 7.2 2.0 12.9
Share of profit after tax 0.2 – – 0.8 – 1.0
Disposal – (1.2) – – – (1.2)
Impairment of associate – – (1.9) – – (1.9)
Currency movement – – – 1.6 0.7 2.3
Dividend payment (0.3) – – (0.3) (0.2) (0.8)
At 31 December 2009 0.5 – – 9.3 2.5 12.3
Share of profit/(loss) after tax 0.3 – – 0.8 (0.3) 0.8
Currency movement 0.0 – – 0.2 0.2 0.4
Dividend payment (0.3) – – (1.0) – (1.3)
At 31 December 2010 0.5 – – 9.3 2.4 12.2
Bakkavör Group Annual Report 2010

79
19
Other investments
£m 2010 2009
Non-listed investment held at cost 0.1 –
20
Inventories
£m 2010 2009
Raw material and packaging 44.2 40.1
Work in progress 2.1 2.0
Finished goods 10.3 8.4
56.6 50.5
Insurance value of inventories at the end of the year amounts to £65.4 million (2009: £46.5 million).
21
Trade and other receivables
£m 2010 2009
Amounts receivable from trade customers 165.8 165.0
Allowance for doubtful accounts (4.4) (3.1)
Other debtors 11.7 12.6
Prepayments 16.7 13.1
Tax recoverable – 1.8
189.8 189.4
The Directors consider that the carrying amount of trade and other receivables approximates their fair value due to their
short-term nature.
The following table is an ageing of trade receivables including past due but not impaired:
£m 2010 2009
Not past due 142.4 140.5
Past due by 1-30 days 15.1 16.5
Past due by 31-60 days 4.1 2.5
Past due by 61-90 days 1.5 0.9
Past due by more than 90 days 2.7 4.6
165.8 165.0

80 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
21
Trade and other receivables continued
The following table is an analysis of the movement of the Group’s trade receivables allowance for doubtful debts:
£m 2010 2009
Balance at beginning of the year (3.1) (2.5)
Impairment losses recognised on receivables (1.2) (1.7)
Amounts written off as uncollectible during the year (0.4) 0.1
Amounts recovered during the year – 0.6
Allowance reversed – 0.4
Currency 0.3 –
Balance at end of the year (4.4) (3.1)
The following table is an analysis of the Group’s net trade receivables by currency:
£m 2010 2009
GBP 127.4 126.9
USD 4.7 3.3
EURO 25.5 27.8
CZK 0.2 0.4
ZAR 1.5 1.3
RMB 2.1 1.9
Other – 0.3
161.4 161.9
22
Assets held for sale
£m 2010 2009
Assets held for sale 7.9 7.9
In 2009 the Group closed one factory in the UK that was surplus to requirements in addition to the two factories that were
closed in 2008. A search is underway for buyers for these properties. No impairment was recognised on the reclassification
of the properties as held for sale.
The factories that are currently held for sale as of 31 December 2010 and 31 December 2009 are within the UK Prepared
segment.
23
Cash and cash equivalents
£m 2010 2009
Cash and cash equivalents 38.7 37.6
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three
months or less. The carrying amount of these assets approximates their fair value.
Bakkavör Group Annual Report 2010

81
24
Share capital
Share capital is registered in Icelandic króna (ISK) and is 31,066,636,447 ISK as required by the Articles of Association. The
share capital is divided into 2,157,888,219 Class A Shares with a nominal value of ISK 1 each, 784,686,625 Class B Shares
with a nominal value of ISK 1 each and 28,124,061,603 Class C Shares with a nominal value of ISK 1 each.
£m 2010 2009
Share capital – issued and fully paid 15.0 15.0
Share capital – issued and fully paid 141.0 –
Own shares – (0.1)
156.0 14.9
Changes in share capital are as follows:
£m 2010 2009
Share capital at 1 January 14.9 14.9
Changes during the period 141.1 –
Share capital at 31 December 156.0 14.9
Debt has been converted into share capital during the year, as part of the composition agreement discussed in note 26.
As at 31 December 2010, executives and senior employees held options over 29,433,763 (2009: 34,635,241) ordinary shares
(of which all are unvested), in aggregate, with all of those options expiring on 23 May 2011.
Share options granted under the employee share option plan carry no rights to dividends and no voting rights. Further details
of the employee share option plan are contained in note 36 to the financial statements.
25
Dividends
The Annual General Meeting of Bakkavör Group ehf. held on 14 May 2010, resolved that no dividend will be paid in the year
2010 (2009: nil).
26
Borrowings
£m 2010 2009
Borrowings in GBP 523.1 573.4
Borrowings in ISK 220.2 265.7
Borrowings in USD 46.7 50.0
Borrowings in EUR 53.0 80.8
Borrowings in NOK – 5.9
Borrowings in other currencies 1.3 1.7
Less: borrowings due in less than year (66.1) (377.0)
778.2 600.5

82 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
26
Borrowings continued
The borrowings are repayable as follows:
£m 2010 2009
2010 – 377.0
2011 66.1 3.1
2012 566.7 595.4
2013 0.5 0.6
2014 211.0 0.5
Later – 0.9
844.3 977.5
Included in the non-current ISK borrowings figure there is a convertible loan denominated in ISK of £211.0 million (2009:
£nil). On 18 January 2010 Bakkavör Group ehf. entered a composition period to discuss proposals for the restructuring of
certain liabilities of the Company. On 4 March 2010 the creditors of the Company approved the composition agreement
and this was confirmed by the court on 25 March 2010 with an effective date of 6 April 2010. The compositon agreement
extends the maturities of Bakkavör listed bonds and other indebtedness until 30 June 2014. Bakkavör’s creditors will convert
approximately 1% of the Company’s debt into new ordinary B shares, which will amount to 27% of the total ordinary voting
share capital of the Company (A and B ordinary shares), with a converison rate of 1:1.
55% of the Company’s remaining debt will be classified as convertible debt which carries interest at a rate of three months
REIBOR plus margin of 3% per annum. On 30 June 2012 the margin increases to 3.5% until 30 June 2013 when it becomes
4% until maturity. The interest is not payable until 30 June 2014. Any convertible debt and interest unpaid as at 30 June 2014
will be automatically converted to A ordinary share capital on a ratio of 5:1 (debt to share capital). The remaining 45% of
Bakkavör indebtedness will be converted into newly issued preference shares (C shares) in Bakkavör at a conversion ratio of
1:1. These shares carry no dividend or voting rights and will be automatically converted to A ordinary share capital on 30 June
2014 at a ratio of 3:1 (C shares to A shares). These shares can be redeemed at the behest of the Company at an agreed price.
The Group has four other main loan facilities which are subject to various restrictive financial covenants. At 31 December
2010 the Group was in compliance with all covenants, except those associated with Bakkavör China Limited for which a
waiver has been agreed (see note 38). Details of these facilities are as follows:
• Bakkavör London Limited has a revolving credit facility of £627 million (2009: £646.3 million) which expires on 27 March
2012. The Group has drawn £500 million (2009: £500 million) of the loan at 31 December 2010. The facility has a variable
interest rate of 3.84% which represents LIBOR plus a margin of 3.5% and is secured against specific assets of Bakkavör
London Limited.
• Bakkavör Estates Limited has an outstanding bank loan at 31 December 2010 of £19.8 million which bears interest at
3.24%, which represents LIBOR plus a margin of 2.5%. The bank loan is secured by a floating charge over all of the assets
of Bakkavör Estates Limited.
• Bakkavör China Limited has two loan facilities of US$26 million & US$12.75 million (2009: US$26 million & US$12.75
million), which expire on 30 March 2012 and are both fully drawn down (2009: fully drawn) as at 31 December 2010. The
weighted average interest rate of the facilities was 3.29% which represents LIBOR plus 3%.
Bakkavör Group Annual Report 2010

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26
Borrowings continued
• Bakkavör Acquisitions (2008) Limited has a £60 million multi-currency term loan facility which expires in March 2012. From
1 July 2010 the facility bears interest at LIBOR plus a margin of 3.5%. Prior to this date the margin was 2.0%. The facility
is fully drawn down at 31 December 2010. The borrowings are split 45.6 million, US$32.8 million and £1.3 million with an
average interest rate in 2010 of 4.06% (2009: 3.16%).
See note 38 for details of Group refinancing since the year end.
Analysis of net debt:
£m 2010 2009
Cash and cash equivalents 38.7 37.6
Borrowings (Rest of the Group) (624.1) (661.4)
Net debt (operational) (585.4) (623.8)
Borrowings (Bakkavör Group ehf.) (220.2) (316.1)
Net debt (805.6) (939.9)
27
Derivative financial instruments
The Group utilises currency derivatives, mainly forward exchange contracts and currency options, to hedge significant future
transactions and cash flows. At the balance sheet date, the total notional principal amount of total outstanding forward
exchange contracts to which the Group is committed amounts to £45.0 million (2009: £52.5 million).
The Group uses interest rate swaps and collars to manage its exposures to interest rate movements on its bank borrowings.
At the balance sheet date, the total notional principal amount of total outstanding interest rate swaps amounts to £400.0
million (2009: £451.4 million).
Held for trading derivatives that are not designated in hedge accounting relationships:
£m 2010 2009
Foreing currency contracts – included in current assets 1.0 0.4
Foreign currency contracts – (0.2)
Interest rate contracts (24.8) (33.5)
Included in current liabilities (24.8) (33.7)
Total (23.8) (33.3)

84 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
28
Trade and other payables
£m 2010 2009
Trade creditors 183.8 161.9
Accruals 82.9 85.9
Social security and other taxation 3.8 7.6
Put option consideraton 5.0 –
Contingent consideration – 15.5
Deferred consideration – 3.1
Other creditors 35.3 24.1
310.8 298.1
Less amounts due after one year:
Other creditors (0.2) (0.1)
Contingent consideration – (15.5)
(0.2) (15.6)
Trade and other payables due within one year 310.6 282.5
The Directors consider that the carrying amount of trade payables approximates to their fair value.
The following table is an analysis of the Group’s trade payables by currency.
Trade payables by currency
£m 2010 2009
GBP 131.9 112.4
USD 3.3 2.6
EURO 44.2 43.1
CZK 0.4 0.4
ZAR 1.4 0.9
RMB 2.6 2.5
183.8 161.9
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Provisions
Onerous leases
and other Dilapidations
£m provisions provision Total
At 31 December 2008 7.9 9.5 17.4
Additional provision in the year 5.7 1.1 6.8
Release of provision (1.3) (0.2) (1.5)
Utilisation of provision (5.3) (0.1) (5.4)
Unwinding of discount 0.3 1.3 1.6
At 31 December 2009 7.3 11.6 18.9
Included in current liabilities 3.9 1.2 5.1
Included in non-current liabilities 3.4 10.4 13.8
At 31 December 2009 7.3 11.6 18.9
Additional provision in the year 3.4 0.3 3.7
Release of provision (1.3) (3.4) (4.7)
Utilisation of provision (3.0) (1.5) (4.5)
Unwinding of discount 0.2 0.9 1.1
At 31 December 2010 6.6 7.9 14.5
Included in current liabilities 1.8 – 1.8
Included in non-current liabilities 4.8 7.9 12.7
Onerous leases and other provisions
Onerous leases and other provisions includes provision related to unused premises and restructuring. Of this provision,
£5.5 million (2009: £3.1 million) relates to onerous leases and related costs that will be utilised over the term of the individual
leases to which they relate. There is no provision included relating to restructuring redundancies (2009: £1.7 million).
Releases of provisions relate to where onerous leases have been reviewed due to changing circumstances and adjustments
to the ongoing provisions are required. The release of provisions follows the original treatment with the exception of
provisions acquired from acquisitions in previous periods which are released in administrative costs.
Dilapidation provisions relate to obligations under various property leases to ensure that, at the end of the leases, the
buildings are in the condition agreed with the landlords. The provision will be utilised at the end of the individual lease terms
to which they relate.

86 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
30
Deferred tax
Deferred tax Deferred tax
£m asset liability Total
At 1 January 2009 0.1 (33.9) (33.8)
Deferred tax movement arising on disposal of subsidiary – 0.3 0.3
Computed income tax for the year 2009 4.0 8.9 12.9
Deferred tax movement associated with pension asset movement – 3.6 3.6
Deferred tax movement on goodwill – 8.8 8.8
Deferred tax on foreign currency movements – 0.6 0.6
At 31 December 2009 4.1 (11.7) (7.6)
Computed income tax for the year 2010 (4.1) (9.3) (13.4)
Deferred tax movement associated with pension liability movement – (2.5) (2.5)
At 31 December 2010 – (23.5) (23.5)
31
Mortgages and commitments
Operating lease commitments
The Group as lessee
£m 2010 2009
Minimum lease payments under operating leases recognised as an expense in the year 15.2 13.0
At 31 December 2010, the Group had outstanding commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
£m 2010 2009
Not later than 1 year 10.4 12.3
Later than 1 year and not later than 5 years 29.7 31.7
Later than 5 years 50.2 62.1
90.3 106.1
The Group leases various offices and operational facilities under non-cancellable operating lease arrangements. The leases
have various terms, escalation clauses and renewal rights. The Group also leases plant and machinery under non-cancellable
operating lease agreements.
Purchase commitments
The Group has purchase commitments for the next 12 months to guarantee supply and price of raw materials of £35.4 million
(2009: £38.3 million).
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32
Contingent liabilities
The Group will from time to time, and in the normal course of business, be subject to legal claims. The Group regularly
reviews each of these claims, and believes that no provision is necessary in the consolidated financial statements as the
outcome cannot at present be foreseen. Provisions have been provided for all probable liabilities.
At 31 December 2010 the Group has granted its subsidiaries and associates guarantees amounting to £101.9 million (2009:
£108.0 million) in respect of potential obligations arising in the ordinary course of business.
33
Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the
Group consists of debt, which includes the borrowings disclosed in note 26, cash and cash equivalents in note 23 and equity
attributable to equity holders, comprising issued capital disclosed in note 24 and equity attributable to equity holders of the
parent, comprising capital, reserves and retained earnings.
The Group manages its capital by collating timely and reliable information to produce various internal reports such as capital
expenditure and weekly cash reports, which enable the Board of Directors to assess the Group’s capital, and manage that
capital effectively and in line with the Group’s objectives. The gearing of the Group is constantly monitored and managed to
ensure that the ratio between debt and equity is at an acceptable level and enables the Group to operate as a going concern
and maximise stakeholders’ return.
When the Group considers an acquisition, the Board of Directors will decide how to fund that acquisition through debt,
equity or a combination of both. The Board of Directors will look at the Group’s existing debt to equity ratio and the costs
involved in financing debt or equity, before deciding how to fund the proposed acquisition.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in note 2 to the financial statements.

88 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
33
Financial instruments continued
Categories of financial instruments
£m 2010 2009
Financial assets
Fair value through profit and loss:
Derivative financial instruments 1.0 0.4
Loans and receivables at amortised cost:
Trade receivables 161.4 161.9
Other debtors 11.7 12.6
Cash and cash equivalents 38.7 37.6
212.8 212.5
Financial liabilities
Fair value through profit and loss:
Derivative financial instruments 24.8 33.7
Loans and receivables at amortised cost:
Trade payables 183.8 161.9
Put option consideration 5.0 –
Contingent consideration – 15.5
Deferred consideration – 3.1
Other creditors 35.3 24.1
Finance leases 6.4 9.6
Borrowings excluding finance leases 837.9 967.9
1,093.2 1,215.8
The fair value of the financial assets approximates to their carrying value due to the short-term nature of the trade receivables
and other debtors. Fair values have been determined as level 2 under IFRS 7.
The fair value of other financial liabilities at amortised cost approximates to their carrying value. The trade and other payables
approximate to their fair value due to the short-term nature of the payables. The finance lease fair value approximates to the
carrying value based on discounted future cash flows.
Financial risk management
The Group is exposed to a number of financial risks such as access to and cost of funding, interest rate exposure, currency
exposure and working capital management. The Group seeks to minimise these risks where possible and does this by
constantly monitoring, reviewing, effectively managing and using derivative financial instruments. Use of financial instruments
is governed by Group policies which are approved by the Board of Directors. The treasury function does not operate as a profit
centre, makes no speculative transactions and only enters into or trades financial instruments for specific purposes.
To make sure the management of those financial risks faced by the Group remains effective, it is very important that any
new businesses that are acquired by the Group are immediately integrated. This means the new business is providing timely
and accurate information to the central Treasury department, so they can produce Group reports on key financial risks that
reflect the ultimate position of the Group at that time.
Bakkavör Group Annual Report 2010

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33
Financial instruments continued
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest
rates. The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign
currency risk, including:
• Interest rate swaps to mitigate the risk of rising interest rates; and
• Forward foreign exchange contracts to hedge the exchange rate risk arising on revenues and purchases in foreign
currencies.
Market risk exposures are supplemented by sensitivity analysis. There has been no change to the Group’s exposure to
market risks or the manner in which it manages and measures the risk.
Interest rate risk management
The Group is exposed to interest rate risk on borrowings. The risk is managed by maintaining an appropriate mix between
fixed and floating rate borrowings. Interest risk management balances debt financing as a tool to improve the returns through
leverage in the capital structure with the potential for an increase in interest rates to impact profits negatively. The Group
also uses derivative financial instruments such as interest rate swaps and interest rate collars to minimise the risk associated
with variable interest rates. As a result, at the year end 64% of the Group’s borrowings (excluding the convertible debt) were
covered by interest rate swaps and collars (2009: 63%). The remaining borrowings were at floating rates. Board approval is
required for the use of any interest rate derivative.
Interest rate sensitivity
Interest rate sensitivity analysis has been performed on the financial assets and liabilities to illustrate the impact on Group
profits and equity if interest rates increased/decreased. This analysis assumes the liabilities outstanding at the year end
were outstanding for the whole period. A 100 basis points increase or decrease has been used, comprising management’s
assessment of reasonably possible changes in interest rates.
Profit or (loss)
£m 2010 2009
Effects of 100 basis points increase in interest rate (5.2) (4.1)
Effects of 100 basis points decrease in interest rate 5.2 4.1
It is assumed that all other variables remained the same when preparing the interest rate sensitivity analysis.
Interest rate swaps
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest
amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing
interest rates on the fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt
held. The fair value of interest rate swaps at the reporting date is determined by discounting the future cash flows using
the yield curves at the reporting date and the credit risk inherent in the contract. The average interest rate is based on the
outstanding balances at the end of the financial year. Interest rate contracts are carried at fair value through profit or loss.

90 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
33
Financial instruments continued
Interest rate swaps continued
The following table details the notional principal amounts and remaining terms of interest rate swap contracts and collars
outstanding as at 31 December 2010:
Average contracted fixed
interest rate
Notional principal
amount
Fair value
£m 2010 2009 2010 2009 2010 2009
% %
Interest rate swaps:
0 to 1 years 4.90 – 100.0 – (3.0) –
1 to 5 years 4.94 5.41 150.0 250.0 (10.0) (17.1)
1 to 5 years – 8.91 – 51.4 – (5.3)
Over 5 years 5.17 4.90 50.0 50.0 (6.7) (5.1)
Collars:
1 to 5 years 4.37 5.75 100.0 100.0 (5.1) (6.0)
400.0 451.4 (24.8) (33.5)
The interest rate swaps settle on a quarterly basis. The floating rate on the interest rate swaps is three months’ LIBOR. The
Group will settle the difference between fixed and floating interest rates on a net basis.
Foreign currency risk management
Foreign currency risk management occurs at a transactional level on revenues and purchases in foreign currencies and
at a translational level in relation to the retranslation of overseas operations. Board policy is for UK businesses to hedge
transactional exposures using forward foreign exchange contracts wherever material. Transactional exposure in our overseas
business is not hedged, as receipts and payments are largely in their local currencies. The Group monitors foreign exchange
rates to assess the potential impact on Group profits if exchange rates move significantly and a summary of hedges in place
is reported to the Board.
Foreign currency sensitivity
The following table details the Group’s sensitivity to a 10% strengthening and weakening in the GBP against the relevant
foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an
increase in profit and equity where the GBP strengthens 10% against the relevant currency. For a 10% weakening of the GBP
against the relevant currency, there would be an opposite impact on the profit and equity, and the balances below would be
negative. Tax effects are disregarded in the sensitivity analysis.
10% Strengthening 10% Weakening
£m 2010 2009 2010 2009
EUR 2.3 7.8 (2.6) (9.6)
ZAR 0.1 (0.3) (0.1) 0.3
USD 2.7 7.5 (2.9) (9.2)
RMB 0.1 0.1 (0.1) (0.1)
ISK 20.0 24.0 (22.0) (29.3)
NOK – 0.5 – (0.7)
A positive number indicates a gain and a negative number indicates a loss.
Bakkavör Group Annual Report 2010

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33
Financial instruments continued
Forward foreign exchange contracts
It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency payments and
receipts. The Group also enters into forward foreign exchange contracts to manage the risk associated with anticipated sales
and purchase transactions to minimise the exposure generated.
The following table details the forward foreign currency contracts outstanding as at the reporting date:
Average exchange rate Foreign currency (m) Contract value (£m) Fair value (£m)
Outstanding contracts 2010 2009 2010 2009 2010 2009 2010 2009
Buy Euros:
Less than 3 months 1.18 1.11 22.7 25.9 19.3 23.3 0.3 (0.2)
3 to 6 months 1.20 1.12 14.0 15.1 11.7 13.5 0.4 –
6 to 12 months 1.19 1.13 6.9 3.0 5.8 2.7 0.2 –
Buy US Dollars:
Less than 3 months 1.56 1.51 4.9 8.9 3.1 5.6 – –
3 to 6 months 1.55 1.52 5.9 4.7 3.8 2.9 – –
6 to 12 months 1.56 1.47 1.6 7.0 1.1 4.5 – 0.4
44.8 52.5 0.9 0.2
Average exchange
rate
Foreign currency
(m)
Contract value
(ZAR m)
Fair value
(ZAR m)
Fair value
(£m)
Outstanding contracts 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Buy US Dollars:
Less than 3 months 0.12 – 0.3 – 2.8 – 0.5 – 0.1 –
Credit risk management
Credit risk refers to the risk of financial loss to the Group if a counterparty defaults on its contractual obligations of the loans
and receivables at amortised cost held in the balance sheet.
The Group’s main credit risk is attributable to its trade receivables. The Group’s top five customers, all leading UK retailers,
continue to represent more than 75% of the Group’s revenue. These customers have favourable credit ratings and
consequently reduce the credit risk for the Group’s overall trade receivables.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with good
credit ratings assigned by international credit rating agencies. Group policy dictates that Group deposits are shared between
banks to spread the risk. Currently Group deposits are shared between banks that are current counterparties in the Group’s
secured committed bank facilities.
Processes are in place to manage receivables and overdue debt and to ensure that appropriate action is taken to resolve
issues on a timely basis. Credit control operating procedures are in place to review all new customers. Existing customers
are reviewed as management become aware of changes of circumstances for specific customers. The amounts presented in
the balance sheet are net of appropriate allowance for doubtful trade receivables, specific customer risk and assessment of
the current economic environment. The carrying amount of financial assets recorded in the financial statements, which is net
of impairment losses, represents the Group’s maximum exposure to credit risk.

92 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
33
Financial instruments continued
Credit risk management continued
The Group’s maximum exposure to credit risk, without taking into account value of any collateral obtained, is represented in
the table below:
Maximum credit risk
£m 2010 2009
Financial assets and other credit exposures
Trade and other receivables 189.8 189.4
Cash and cash equivalents 38.7 37.6
228.5 227.0
Commodity risk management
The Group acquires substantial amounts of raw materials for its operations, including dairy, wheat and rapeseed oil. The
Group is exposed to commodity price and supply risks for these raw materials. The Group takes actions to reduce overall
material costs and exposure to price fluctuations. This is done in a number of ways. For example, the Group buys raw
materials from suppliers all over the world, thereby decreasing geographic risk, and frequently tenders to benchmark market
prices. In general our requirements are managed using contracts for periods of between three and 12 months forward. The
Group also manages any local currency exposure in line with agreed policy.
Liquidity risk management
Liquidity risk refers to the risk that the Group may not be able to fund the day-to-day running of the Group. Liquidity risk is
reviewed by the Board on a monthly basis. The Group manages liquidity risk by monitoring actual and forecast cash flows
and matching the maturity profiles of financial assets and liabilities. The Group also monitors the drawdown of debt against
the available banking facilities and reviews the level of reserves. Liquidity risk management ensures sufficient debt funding
is available for the Group’s day-to-day needs. Board policy is to maintain reasonable headroom of unused committed bank
facilities in a range of maturities at least 12 months beyond the year end.
Liquidity and interest risk tables
The following table details the Group’s contractual obligations for its non-derivative financial liabilities. The table has been
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be
required to pay. The table includes both interest and principal cash flows.
£m 2011 2012 2013 2014 Later Total
Liabilities
Interest bearing 106.6 569.7 0.5 211.0 – 887.8
Non-interest bearing 335.4 0.2 – – – 335.6
442.0 569.9 0.5 211.0 – 1,223.4
Assets
Non-interest bearing 229.5 – – – – 229.5
229.5 – – – – 229.5
Bakkavör Group Annual Report 2010

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Acquisition of business
MS Salads Marketing Limited
On 4 May 2010, a subsidiary company, English Village Salads Limited, acquired the trade and assets of the packaging and
marketing business of MS Salads Marketing Limited from Hedon Salads Holdings Limited. In exchange for the assets
acquired, English Village Salads Limited issued share capital to its current shareholders and the shareholders of Hedon
Salads Holdings Limited on a basis that effectively transferred 30% of the Group’s ownership of English Village Salads to the
shareholders of Hedon Salads Holdings Limited.
The net effect of the acquisitions is as follows:
£m
Fair value of shares issued 2.6
Book value and fair value of net assets acquired (0.6)
Goodwill on acquisition 2.0
Goodwill from the acquisition relates to benefits associated with the wider range of produce marketing experience in the
combined business and anticipated future operating synergies from the combination.
Italpizza Srl.
On 7 December 2010 a put option in relation to the 10% non-controlling interest in Italpizza Srl was exercised by the offer
holder. As a result the Group is required to acquire the remaining 10% for consideration of 5.8 million (£5.0 million).
A liability for this has been included in these financial statements within Trade and other payables and the £0.9 million
of non-controlling interests has been removed with the result that £4.1 million of goodwill has been created.
Two Chefs on a Roll Inc.
During 2010, £3.1 million (2009: £nil) of deferred consideration payments and £9.9 million (2009: £nil) of contingent
consideration payments were made in relation to Two Chefs on a Roll Inc. which was acquired in 2008. The contingent
consideration payment was a full and final settlement and has had the impact of reducing the Group’s goodwill in relation
to this acquisition by £6.2 million.
During 2010, £3.7 million (2009: £8.4 million) of deferred consideration payments were made in relation to acquisitions
transacted in previous years.

94 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
35
Retirement benefit schemes
The Group operates a number of pension schemes in the UK and overseas. These schemes are either trust or contract
based and have been set up in accordance with appropriate legislation. The assets of each of the pension schemes are held
separately from the assets of the Group.
In the UK, there are two main schemes – one, a defined contribution scheme, is open to new UK employees joining the
Group (full or part time) and the other, a funded defined benefit scheme, which is closed to new members.
Pension (credit)/costs charged in arriving at profit on ordinary activities before taxation were:
£m 2010 2009
UK defined benefit scheme net charge (12.3) 4.2
UK defined contribution scheme net charge 0.7 0.8
Overseas net charge 0.3 0.7
Total (credit)/charge (11.3) 5.7
The exceptional credit has arisen due to scheme changes regarding future discretionary increases. This is discussed
further below.
Defined contribution scheme
The total cost charged to income of £0.7 million (2009: £0.8 million) represents contributions payable to these schemes by
the Group at rates specified in the rules of the plans. No amounts were owing at the year end for the defined contribution
scheme (2009: £nil).
Defined benefit scheme
A full actuarial valuation of plan assets and the present value of the defined benefit obligation was carried out at 31 March
2010 and was updated for IAS 19 purposes to 31 December 2010 by a qualified independent actuary. The projected unit cost
method was used to value the assets and liabilities and was conducted by Lloyd Cleaver, a qualified independent actuary with
Towers Watson Limited.
The major assumptions used in this valuation were:
£m 2010 2009
Expected rate of salary increases 4.40% 4.50%
Future pension increases 3.30% 3.20%
Expected return on scheme assets 7.34% 7.30%
Discount rate applied to scheme liabilities 5.50% 5.70%
Inflation assumption 2.70% 3.50%
Bakkavör Group Annual Report 2010

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Retirement benefit schemes continued
The mortality table is based on the PMA92/PFA92 tables rated down one year with future medium cohort improvements,
giving life expectancies as follows:
Males’ expected Males’ expected Females’ expected Females’ expected
future lifetime future lifetime future lifetime future lifetime
2011 2010 2011 2010
Member aged 45 in 2010 41.5 41.5 43.8 44.5
Member aged 65 in 2010 21.9 21.0 24.0 24.1
The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:
Assumption Change in assumption Impact on scheme liabilities
Discount rate Decrease by 0.2% Increase by 3.9%
Rate of inflation Decrease by 0.8% Decrease by 10.6%
Rate of salary growth Decrease by 0.1% Decrease by 0.3%
Rate of mortality Increased by 1 year Increase by 2.9%
Amounts recognised in income in respect of these defined benefit schemes are as follows:
£m 2010 2009
Current service costs (4.1) (3.2)
Interest costs (9.5) (8.1)
Expected return on scheme assets 10.1 7.1
Past service cost 15.8 –
Total credit/(charge) 12.3 (4.2)
All of the credit for the year has been included in total administrative expenses. Actuarial gains and losses have been
reported in the statement of recognised income and expense. During the year the Group has decided that there should be no
future discretionary pension increases whilst the scheme remains in deficit on a Funding Basis. The removal of the allowance
for discretionary increases has led to a reduction in the IAS 19 pension liability of £15.8 million which is accounted for as an
immediate gain in the income statement and is disclosed within exceptional income.
The actual return on scheme assets was £24.0 million (2009: £28.7 million).
Cumulative amount of actuarial gains and losses recognised in other comprehensive income since the date of IFRS transition
is £26.3 million loss (2009: £22.4 million loss).
£m 2010 2009
Fair value of scheme assets 179.7 156.4
Present value of defined benefit obligations (167.9) (169.6)
Surplus/(deficit) in scheme 11.8 (13.2)
Related deferred taxation (liability)/asset (3.2) 3.7
8.6 (9.5)
The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions which,
due to the timescale covered, may not necessarily be borne out in practice.

96 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
35
Retirement benefit schemes continued
Movements in the present value of defined benefit obligations were as follows:
£m 2010 2009
Opening balance (169.6) (127.5)
Current service cost (4.1) (3.2)
Interest cost (9.5) (8.1)
Contributions from scheme members (2.5) (2.2)
Benefits paid 5.9 5.9
Gain/(loss) on change of assumptions 1.7 (38.0)
Experience (loss)/gain (5.6) 3.5
Removal of future discretionary pension increases 15.8 –
(167.9) (169.6)
During the year, the inflationary assumptions for the future liabilities of the scheme were changed from an RPI basis to a
CPI basis. The resulting change in the liabilities are posted as part of the gain/(loss) on change of assumptions through the
statement of comprehensive income.
Movements in the fair value of scheme assets were as follows:
£m 2010 2009
Opening balance 156.4 127.9
Expected return on scheme assets 10.1 7.1
Experience gain 12.8 21.6
Contributions from the sponsoring companies 3.8 3.5
Contributions from scheme members 2.5 2.2
Benefits paid (5.9) (5.9)
179.7 156.4
The analysis of the scheme assets and the expected rate of return at the balance sheet date was as follows:
2010 2009
Expected rate Estimated Expected rate Estimated
£m of return bid value of return bid value
UK equities 7.80% 67.7 7.90% 54.6
Overseas equities 7.80% 61.9 8.40% 55.5
Corporate bonds 4.90% 31.1 5.70% 30.6
UK government bonds 4.00% 10.6 4.50% 7.3
Property 6.40% 8.7 6.70% 8.4
Cash (0.3) –
179.7 156.4
Bakkavör Group Annual Report 2010

97
35
Retirement benefit schemes continued
£m 2010 2009
Fair value of scheme assets 179.7 156.4
Present value of defined benefit obligations (167.9) (169.6)
Surplus/(deficit) in the scheme 11.8 (13.2)
Experienced gains/(losses) adjustments on scheme liabilities
Amount (5.6) 3.5
Percentage of scheme liabilities % (3.3%) 2.1%
Experienced gains/(losses) adjustments on scheme assets
Amount 12.8 21.6
Percentage of scheme liabilities % 7.1% 13.8%
The estimated amount of contributions expected to be paid to the pension scheme during the current financial year is
£6.6 million. The employer contribution rate for the current financial year is 13.2%.
The next triennial valuation is scheduled to be carried out as at 31 March 2013.
The levels of contributions are based on the current service cost and the expected future cash flows of the defined benefit
scheme. The Group estimate the scheme liabilities on average fall due over 20 years.
The Trustees currently adopt a policy of 70% return seeking assets (equities) and 30% liability matching assets (bonds/
property) which will be reviewed periodically. Within the return seeking portfolio the Trustees have decided to increase their
allocation to overseas equities and have recently appointed a passive manager in this regard.
The Group and the Trustees work closely together in matters concerning the Bakkavör Pension Scheme. Regular meetings
and correspondence on matters concerning the scheme are shared in an open manner between both parties.

98 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Notes to the Consolidated Financial Statements
continued
36
Share-based payments
The Group has an ownership-based compensation scheme for executives and senior employees of the Group. In accordance
with the provisions of the plan, as approved by shareholders at a previous general meeting, executives and senior employees
in the Group may be granted options to purchase ordinary shares at an exercise price of ISK 36.0.
Each employee share option converts into one ordinary share of Bakkavör Group ehf. on exercise. No amounts are paid or
payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may
be exercised at any time from the date of vesting to the date of their expiry.
The number of options granted is calculated in accordance with the performance-based formula approved by shareholders at
a previous annual general meeting and is subject to approval by the Remuneration Committee.
The following share-based payment arrangements were in existence during the current and comparative reporting periods:
Expiry Exercise Fair value at
Option series Number Grant date date price grant date
Issued to Executive Management (*) 6,479,620 23/5/08 23/5/11 ISK 36.0 ISK 32.3
Issued to Middle Management and Senior Employees (*) 35,214,948 23/5/08 23/5/11 ISK 36.0 ISK 32.3
* In accordance with the terms of the share-based arrangement, options issued on 23 May 2008 will vest after a three-year service period.
There were no options granted during the current year or the prior year.
The following reconciles the outstanding share options granted under the employee share option plan at the beginning and
end of the financial year:
2010 2009
Weighted
Weighted
average
average
Number exercise Number exercise
of options price of options price
Balance at the beginning of the financial year 34,635,241 ISK 36.0 40,305,417 ISK 36.0
Forfeited during the financial year (5,201,478) ISK 36.0 (5,670,176) ISK 36.0
Balance at the end of the financial year 29,433,763 ISK 36.0 34,635,241 ISK 36.0
Exercisable at the end of the financial year – – – –
Balance at end of the financial year
The share options outstanding at the end of the financial year had an exercise price of ISK 36.0 (2009: ISK 36.0) and a
weighted average remaining contractual life of 143 days (2009: 508 days).
Bakkavör Group Annual Report 2010

99
37
Related-party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and
are not disclosed in this note. Transactions between the Group and its associates are disclosed below.
For further information regarding salaries and other benefits to key management personnel see note 7.
Tjarnargata 35 ehf.
Bakkavör Group ehf. has a rental agreement with Tjarnargata 35 ehf. which is owned by Ágúst Gudmundsson, CEO and Lýdur
Gudmundsson, Chairman of the Board of Bakkavör Group ehf. Rent paid was £19,200 in 2010 (2009: £19,200).
Exista BV and related parties
£m 2010 2009
Net rent received – 0.8
Finance charge – (0.4)
Debt (1.1) (6.9)
Associates
£m 2010 2009
Purchases of goods and other services from associates 0.2 0.7
The above transactions were carried out on commercial terms.
38
Events after the statement of financial position date
On 10 January 2011, the Group made a final payment of £21.3 million to the lenders to fully repay the loan outstanding in
Bakkavör Estates Limited.
On 19 January 2011, in respect of the Bakkavör China Limited loan, the Group agreed with the lenders to a waiver of the
covenant requirements for the year ended 31 December 2010.
On 7 February 2011, the Group refinanced its main financing facilities in Bakkavör London Limited, Bakkavör Acquisitions
(2008) Limited and Bakkavör China Limited, through a seven-year £350 million listed bond issue, a term loan and a revolving
credit facility of £380 million that will expire on 30 June 2014. This has been done through Bakkavör Finance (2) plc, a newly
incorporated subsidiary of Bakkavör Holdings Limited. The refinancing extends the debt repayment profile and widens the
arranged lender base.
39
Approval of the Consolidated Financial Statements
The Consolidated Financial Statements were approved by the Board of Directors and authorised for issue on 17 February 2011.

100 Overview
Operating & Financial Review
Corporate Responsibility
Governance
Financial Statements & Notes
Corporate information
Bakkavör Group
Bakkavör Group ehf.
Tjarnargata 35
101 Reykjavík
Iceland
Tel: +354 550 9700
Fax: +354 550 9701
Bakkavör Holdings Limited
West Marsh Road
Spalding
Lincolnshire
PE11 2BB
United Kingdom
Tel: +44 1775 761111
Bakkavör Group website
www.bakkavor.com
Principal bankers
Barclays Capital
Royal Bank of Scotland PLC
Rabobank International, London Branch
Mizuho Corporate Bank, Ltd.
Auditor
Deloitte hf.
Smáratorg 3
201 Kópavogur
Iceland
Exchange rate used throughout the report
(unless otherwise stated): 1 GBP = ISK 179.5
Printed on Mohawk Superfine produced using ECF,
FSC certified mixed source pulp from well managed
and legally harvested forests. Mohawk Superfine is
made Carbon Neutral with 100% of energy usage
offset by Green-e certified wind certificates.
Bakkavör Group Annual Report 2010

Bakkavör Group (Bakkavör) shares or other financial
instruments are no longer listed at the Iceland stock exchange,
NASDAQ OMX Iceland. The Company is hence no longer
subject to information requirements according to law or the
rules of the NASDAQ OMX Iceland.
This report has been issued for personal use only and
exclusively for information purposes. Accordingly this
document may not be used for any other purpose. Nothing
in this report is or shall be interpreted as an offer pursuant
to the Icelandic Securities Act no. 108/2007, a tender, or
encouragement to invest, buy, sell or dispose of shares or
other financial instruments in or issued by Bakkavör.
Designed and produced by JohnstonWorks (www.johnstonworks.com)
In the preparation of this report Bakkavör has not taken
into account any single shareholder investment objectives,
financial resources or other relevant circumstances. All
securities transactions involve risks, which include (among
others) the risk of adverse or unanticipated market, financial
or political developments and, in international transactions,
currency risk. Due care and attention has been used in the
preparation of any forecast information. Actual results may
vary from their forecasts, and any variation may be materially
positive or negative. Forecasts, by their very nature, are
subject to uncertainty and contingencies, many of which
are outside the control of Bakkavör.
Bakkavör cannot guarantee that the information contained
herein is without fault or entirely accurate. The information
in this material is based on sources that Bakkavör believes
to be reliable. Information and opinions may change without
notice. Bakkavör is under no obligation to make amendments
or changes to this publication if errors are found or opinions
or information change. Bakkavör accepts no responsibility
for the accuracy of its sources.
Bakkavör is the owner of all works of authorship including,
but not limited to, all design, text, images and trademarks in
this material unless otherwise explicitly stated. The use of
Bakkavör’s material, work or trademarks is forbidden without
written consent except where otherwise expressly stated. It is
prohibited to publish material made or gathered by Bakkavör
without written consent.