UNLOCKING BILLABONG GROUP’S VALUE

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AGENDA

I. Introduction
II. Billabong Group’s inherent value III. The pathway to unlocking value IV. What we will focus on

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SECTION 1

INTRODUCTION

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EVOLUTION OF THE BILLABONG GROUP
Where we were
Australia

Where we are now
Global

Surf
Year (Store #s)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 49 64 110 159 242 335 380 639 634 Establishment of Nixon JV

Surf Skate Snow

Wholesale

Wholesale & Retail

Single Brand

Portfolio of Brands
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BILLABONG GROUP’S INHERENT VALUE
Leading brand portfolio in board sports Core competency of identifying and growing promising brands Diversified product offering and experienced design team Global retail portfolio providing direct customer touch points First mover in board sports pure play e-Commerce Talented and passionate people that live and breathe the business Significant upside identified
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I

II

III

IV

V

VI

VII

BILLABONG GROUP’S RECENT CHALLENGES

External challenges
 Unprecedented macroeconomic environment  Structural change impacting the Billabong Brand via diminishing board sport account base

Internal challenges
 Organisational capability unable to keep pace with global expansion strategy  Own brand performance  Retail implementation

 Unfavourable FX translation impacts

 Supply chain cost and responsiveness

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WE HAVE UNDERTAKEN A DEEP DIVE INCLUDING A DIAGNOSTIC ANALYSIS OF THE BUSINESS
Customer Research (Primary across surf, skate & snow and Secondary) People & Processes
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Financial Analysis

Brands

Retail

e-Commerce Regions

Supply Chain & Systems

Strategic Direction

SECTION 2

BILLABONG GROUP’S INHERENT VALUE
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SIGNIFICANT UPSIDE OPPORTUNITY EXISTS IN NORTH AMERICA, EUROPE AND THE EMERGING MARKETS
Estimated boardsports market annual retail sales by region* (CY2011, $bn)

$8.2bn

$2.4bn $1.7bn ?

North America

Europe^

ANZ & Japan

Emerging markets

Approx. Billabong Group FY12 revenue in retail $ (AUD)

~$1.0bn

~$0.4bn

~$0.6bn

~$0.2bn

Note: *Boardsports are defined as action/extreme sports which inherently involve the use of a board as primary equipment, includes equipment and related apparel; ^ Includes the main European countries in which BBG International operates (the UK, France, Germany, Italy and Spain) Source: Global Industry Analysts, Boardsports Global Strategic Business Report 2012

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BILLABONG GROUP’S REPUTATION WITH CONSUMERS IS VERY STRONG

The very best brands achieve ~70% on these attributes

2012 Billabong Brand Health Study

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BRAND BILLABONG AWARENESS IS VERY STRONG IN AUSTRALIA WITH AN OPPORTUNITY TO INCREASE CONVERSION
Australia
%Population
AWARENESS 86%

USA
%Population
47%

Conversion

Conversion

62%
CONSIDER IN FUTURE 53% 87% 27%

57%

52% 14%

EVER BOUGHT

46%
39%

29% 4%

BOUGHT (LTM)

18%

Europe
8.7%

FAVOURITE BOARD SPORTS BRAND¹

5.8%

5.1%

4.8%

4.8%

Billabong

Competitor 1

Competitor 2

Competitor 3

Competitor 4

2012 Billabong Brand Health Study - Benchmark Conversion 1. NPD EuroSima survey

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BRAND BILLABONG IS THE PREFERRED LIFESTYLE BRAND IN AUSTRALIA AND TOP THREE WITH UNDER 21s IN THE US
Australia
Strong preference across every age group
% population who prefer the brand by age group

US
Strong preference with under 21s

< 21

22-29

30-44

45+ 20%
Billabong Competitor 1 Hollister Competitor 2 Vans Competitor 3 Competitor 4

10%

2012 Billabong Brand Health Study

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ELEMENT, DAKINE & RVCA HAVE GREAT CONVERSION AND CAN GROW THROUGH INCREASED AWARENESS
% action sports passionates and participants (United States only)
ELEMENT
%Population AWARENESS 32% 59% CONSIDER IN FUTURE 19% 58% 10% 50% Conversion 16% 63% 7% 57%

DAKINE
%Population Conversion 13%

RVCA
%Population Conversion

54%

EVER