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SurfStitch Group Limited | ACN 602 288 044 1

FOR IMMEDIATE RELEASE ‐ ASX ANNOUNCEMENT 25 FEBRUARY 2015

Consolidated 1H FY2015 total sales1 up 23% to A$103.6 million with improved gross margin1 and EBITDA1 of A$3.0 million (up 160% on pcp). Management

reaffirms FY2015 full‐year prospectus forecast

Burleigh Heads, Australia – SurfStitch Group Limited (ASX: SRF) today reported pro forma first half FY2015

sales1 of $103.6 million, representing a 23% increase versus prior year first half FY2014. Revenue grew in

all regions for the first half FY2015, accelerating in 2Q15 under SurfStitch Group control. Over the same

period, the Consolidated Group reported an increase of 236bps in gross profit margin1 increasing from

44.5% in 1H FY2014 to 46.9% in 1H FY2015 reflecting improved stock management and partnerships with

key suppliers. Despite consolidation costs incurred relating to integrating the Surfdome and Swell

acquisitions, the Company delivered pro forma EBITDA of $3.0 million (160% growth on pcp) with margins

for the first half FY2015 2.9% up from first half FY2014 EBITDA margin of 1.4%%.1 This is the Company’s

first results period since completing its initial public offering on 16 December 2014.

SurfStitch also reported statutory reports for the interim period of 13 October to 31 December 2014,

representing two weeks of trading activity since the Company listed. During this period, the Consolidated

SurfStitch Group reported $12.3 million in revenue, and ($5.3) million in net losses. The losses incurred in

the statutory period relate predominantly to acquisition and IPO listing fees, which are considered non‐

recurring, one‐time costs.

In order to provide a comprehensive view of the consolidated business and to provide visibility into year

over year comparisons, pro forma adjustments have been taken to reflect the full 1H period of 1 July to

31 December. Pro forma adjustments to the statutory accounts include: assumption that SurfStitch AU,

SurfStitch EU, Surfdome and SWELL were acquired as at 1 July 2012 with their earnings included in all

periods shown; historical pro forma numbers for FY13 and FY14 that match prospectus numbers and

include SurfStitch AU, SurfStitch EU, Surfdome and SWELL, historical pro forma numbers for 1H FY14 that

match figures used to build to FY14 prospectus numbers and include SurfStitch AU, SurfStitch EU,

Surfdome and SWELL; and exclusion of Billabong managed websites to match treatment in the prospectus.

All numbers are stated in this announcement are on a pro forma basis, unless indicated otherwise.

1 The statutory accounts for the SurfStitch Group only include the results for the period 13 October 2014 to 31 December 2014.

Pro forma results reflect the full 1H FY2015 period of 1 July 2014 to 31 December 2014 and are adjusted for one‐time non‐recurring expenses.

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Pro forma Sales and Gross Profit Financial Highlights by Region

(A$ in millions)

Consolidated SurfStitch Group

Asia‐Pacific Operations

European Operations

North American Operations

1H FY2015 total sales $103.6 $42.2 $46.7 $14.8

1H FY2015 total sales growth 23% 40% 16% 7%

2Q FY 2015 sales growth 28% 41% 22% 13%

Gross profit margin 46.9% 49.5% 46.4% 40.8%

Margin improvement 236bps 526bps (117)bps 468bps

Pro forma Earnings Highlights for the Consolidated SurfStitch Group

(A$ in millions) 1H2014 $ 1H2015 $ % growth

Revenue $84.3 $103.6 23%

Gross Profit $37.5 $48.6 29%

Operating expenses $36.4 $45.6 (25%)

EBITDA $1.2 $3.0 160%

EBIT $(1.4) $0.3 NM

NPAT $(1.4) $0.3 NM

Basic EPS N/A $0.00 N/A

Net debt N/A $0 N/A

SurfStitch Chief Executive Officer, Justin Cameron, is excited to announce the Company’s maiden profit

result as a public company. After only a short period the Company has witnessed immediate revenue and

gross profit margin benefits realised from the integration of recent acquisitions Surfdome and SWELL.

“We have been thrilled by the success of our global growth strategy to date. As expected, becoming a

global leader in online actions sports and youth apparel provided immediate benefits to the SurfStitch

Group. Access to a sizeable global database and providing customers with a unique assortment and range

with exclusive products and content have been key to our strong revenue growth for the 1H FY2015

period, while many of our competitors2 saw single digit growth over the same period. Furthermore, by

working closely and partnering with key suppliers we have seen gross profit margin expansion, reaffirming

our belief in our business model,” said Mr. Cameron.

“Growth in Asia‐Pacific accelerated in the 1H2015. Our focus on building key relationships with suppliers

together with renewed customer engagement delivered revenue growth of over 40% in 1H2015.

Customers have come to identify our brand with first‐to‐market and exclusive brand and product

assortment. Coupled with our strong growth focus, SurfStitch Australia delivered significant 526bps gross

margin expansion in 1H2015.”

2 Exhibit A

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“We are also gaining momentum as we fully integrate Surfdome and SWELL into the consolidated

business. After taking control of the North American business “SWELL” in September, we saw a 13%

increase in sales for 2Q FY2015. Not only did this outpace North American key competitors’ growth3 by

nearly double, but we did so while also improving gross profit margins by over 468bps. Admittedly, the

growth came at the expense of increased operating and other re‐investment costs.”

“Having only acquired Surfdome in December, early trends in gross profit improvement provide us further

confidence of the expected accretive nature of the Surfdome transaction. We remain on track with our

integration schedule for both SWELL and Surfdome.”

“As we continue to grow revenue, we also remain focused on costs. 1H FY2015 saw significant investment

to bring the acquisition companies in‐line with the Consolidated Group, including globalising our inventory

management and technology platform together with marketing spend around brand awareness of the

new invigorated product mixes.”

“Recognizing the opportunities for continued double digit growth, the Board has determined to continue

to reinvest cash into the business and will not be issuing a dividend this period,” Mr. Cameron stated.

EXHIBIT A – 2Q FY15 comparable store sales growth4,5

3 Based on PacSun, Tilly’s and Zumiez; Source: J.P. Morgan research 4 Source: J.P. Morgan research 5 Source: J.P. Morgan research; Mono‐ brand / multi‐channel includes: Nike and Converse; Pure‐Play includes: Boohoo and Asos; Multi‐brand / multi‐channel includes: Zumiez, PacSun and Tillys

75%

41%

28% 25% 24% 22%17% 15% 13%

7% 6% 2%

GoPro SurfStitchAU

SurfStitchGroup

Boohoo Converse Surfdome/ SurfStitch EU

Nike Asos SWELL Zumeiz Pacsun Tillys

2Q FY15 comparable store sales growth vs competitors

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1H FY2015 FINANCIAL PERFORMANCE

SALES

Sales momentum is in‐line with prospectus numbers. Total sales grew by 23% for the half to $103.6

million. Q2 sales were up 28% to $66.1 million.

Despite adverse currency movements over the period impacting the broader ecommerce market, our

unique infrastructure model provided an effective hedge driving strong growth in each region. Our global

business model with domestic inventory sourcing and warehousing provided a natural hedge to FX

fluctuations by minimising the impact FX has on costs (both in terms of product cost and distribution cost)

while still allowing us to price at local rates.

Importantly our focus on the male demographic (70% of Group sales), allowed the Group to benefit from

price inflation in key product categories, against a general price deflationary spiral in the women’s fast

fashion marketplaces.

GROSS PROFIT MARGIN

Gross profit margin has improved 236bps in the first half of FY2015. The margin expansion resulted from

improved terms and strong traffic generation delivering improved Group conversion rates. By leveraging

our global buying power we have been able to partner with suppliers to offer customers exclusive brands,

products and content, driving premium pricing engagement.

Importantly, the focus away from fast fashion inventory to curated, branded and athlete authenticated

inventory delivered price and margin expansion in all key product categories. Further investment in

hardgoods and accessories for 2015 has continued to benefit.

Content continues to be a key focus for the business with the recent launch of a dedicated content hub

“The Lens”; a content publishing platform created for customers to engage in and experience everything

action sports and youth lifestyle related. This platform has delivered increased visitation (over 40% of

users visit the platform over 10+ times a month) and as such improved stock turn and product sell‐

through. Further investment is planned in content for 2015.

75%

41%

28%22% 21% 20%

13%5%

GoPro SurfStitch AU SurfStitch Group Surfdome /SurfStitch EU

Mono‐brand /multi‐channel

Pure‐play SWELL Multi‐brand /multi‐channel

2Q FY15 comparable store sales growth by competitor type

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OPERATING EXPENSES

Operating expenses increased by 25% as the business focused on integrating the recent acquisitions of

Swell and Surfdome and prepared the platform for strong growth beyond 2015.

Labour costs increased in‐line with the business, as the Group invested in key personnel around IT,

logistics and finance. Limited incremental hires are expected in FY15 beyond warehouse and customer

service as the business continues its growth trajectory.

Marketing investment continued its disciplined approach, gained through ROI visibility, a focus on high

yield channels and the removal of redundant strategies.

Freight costs were a significant contributor to operating expenses in 1H FY2015 as shipping costs and the

free component thresholds remain a key aspect of fine tuning growth and profitability. Freight costs as a

percent of sales remained flat for the Consolidated Group.

Operating expenses for the 1H FY2015 were also be impacted by meaningful investment in integrating

Surfdome and SWELL to the standards and expectations that customers have come to associate with the

SurfStitch brand.

DEPRECIATION, NET FINANCE AND TAX

Capital investments made in previous years, especially relating to investment in our IT platforms as part

of the Billabong Group resulted in a 40% increase in depreciation and amortization.

There is no third‐party debt at the SurfStitch Group or subsidiary levels. Debt that had been due to

previous majority owners was paid off when the SurfStitch Group bought‐out the majority shareholders.

The resulting decrease in interest expense and interest income gained from proceeds of capital raising

has had a positive impact to net financing in 1H FY2015 that will continue in 2H FY2015.

CASH GENERATION AND WORKING CAPITAL

The focus for 1H FY2015 had been to re‐invigorate the category and product mix for the acquired

businesses. Merchandise assortment is central to the integration of SWELL and Surfdome businesses. The

Company will continue to leverage the supply terms it currently has in place, including on consignment or

under take‐back provisions.

CAPITAL EXPENDITURE

In anticipation of growth and capacity requirements to support growth, the SurfStitch Group has made

significant capital investments in IT platforms, including capital expenditures to build‐out the IT

infrastructure at SWELL and Surfdome to mirror SurfStitch AU and SurfStitch EU.

STRONG BALANCE SHEET

The SurfStitch Group has no external debt at the group or subsidiary levels and is in a net cash position as

of 31 December 2014.

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FX IMPACT

The SurfStitch Group is a global business with operations in the USA, UK, Europe and Australia. While our

business model serves as a natural FX hedge allowing us to price at the regional level and minimise impact

to costs by sourcing at the least expensive area, we report in Australian dollars but earn revenues in US

dollars, British pounds, Euros and Australian dollars. Although FX movements have been most favorable

to the US business, SWELL represents less than 15% of total global consolidated sales. As such, FX impact

has not been material to the overall trends of the consolidated business.

FX rate to Australian Dollars

Region 1H FY2015 1H FY2014

SurfStitch AU N/A N/A

Surfdome 1.8427x 1.7602x

SurfStitch EU 1.4493x 1.4833x

SWELL 1.1547x 1.1029x

2H FY2015 OUTLOOK Strong momentum and favorable trends in 1H FY2015 reaffirm our FY2015 full‐year prospectus forecast

of $199 million in sales and $5.1 million of EBITDA.

January and February trading to date indicate accelerating growth in key regions.

SECOND HALF EXPECTATIONS

Double digit sales growth trends are expected to continue into the second half of FY2015:

Further refinement and expansion of merchandise assortment

Widening exclusive product and brands offering

Increased content publishing strategy

New market entries

We anticipate continued gross profit margin benefits into 2H FY2015:

Benefits of global buying power

Margin protection made possible through exclusive brand and product assortment

New market focus

Continued improvements in operating expenses:

Benefits of scale and growth on broader fix cost operating structure

Disciplined marketing spend / reinvestment

Refinement of freight costs strategy

Impact of run‐rate integration benefits

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SurfStitch Group Resources: For more information on the SurfStitch Group, please visit:

Investor Centre: https://www.surfstitchgroup.com/investors/

Website: https://www.surfstitchgroup.com/ Media and Investor Relations: Clover Chambers [email protected] Ph: (07) 5507 0931

Analyst and Investor briefing: A briefing will be held for analysts and investors today at 10:30am (AEDT time). This briefing will be

webcast live at: http://www.openbriefing.com/OB/1733.aspx. Viewers will need to register their name,

email and company to access the webcast. An archive webcast of the briefing will be available afterwards

at: https://www.surfstitchgroup.com/investors/

All numbers are unaudited. The financial information includes non‐IFRS information which has not been

specifically audited in accordance with Australian Accounting Standards. This release may contain

“forward‐looking statements”. Forward‐looking statements can generally be identified by the use of words

such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”,

“objectives”, “outlook”, “guidance” and similar expressions. Indications of plans, strategies and objectives

of management, sales and financial performance are also forward‐looking statements. Forward‐looking

statements are not guarantees of future performance, and involve known and unknown risks,

uncertainties and other factors, many of which are outside the control of SurfStitch Group. Actual results,

performance or achievements may vary materially from any forward‐looking statements. Readers are

cautioned not to place undue reliance on forward‐looking statements, which are current only as at the

date of this release. SurfStitch assumes no obligation to update such information.

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TABLE 1: PRO FORMA PROFIT OR LOSS STATEMENT FOR THE PERIOD 1 JULY TO 31 DECEMBER 2014

Consolidated pro forma profit or loss statement

Pro forma historical

(prospectus) Pro forma 1H

A$ in millions FY2013 FY2014 1H FY2014 (prospectus) 1H FY2015

Revenue 109.1 153.7 84.3 103.6

COGS (60.2) (86.7) (46.8) (55.1)

Gross profit 48.9 67.0 37.5 48.6

Opex (50.6) (69.1) (36.4) (45.6)

EBITDA before significant items (1.7) (2.1) 1.2 3.0

Significant items (1.9) (0.9) (0.5) –

EBITDA (3.6) (3.0) 0.7 3.0

Depreciation & Amortisation (2.5) (4.6) (2.0) (2.9)

EBIT (6.1) (7.6) (1.4) 0.1

Interest – – – 0.1

Profit before tax (6.1) (7.6) (1.4) 0.3

Income tax expense (0.4) (0.5) – –

NPAT (6.5) (8.1) (1.4) 0.3

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TABLE 2: STATUTORY CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE

PERIOD 13 OCTOBER TO 31 DECEMBER 2014

Consolidated profit or loss for the period 13 October to 31 December 2014

Continuing operations (A$ in millions)

Revenue 12.3

COGS (7.6)

Gross Profit 4.7

Other income 0.01

Selling & distribution expenses (5.4)

Administrative expenses (0.8)

Other expenses (5.7)

Results from operating activities (7.2)

Finance income 0.02

Finance costs ‐

Net finance income 0.02

Profit before tax (7.2)

Income tax benefit 1.8

Net (loss) attributable to the owners of SurfStitch Group Limited (5.3)

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TABLE 3: STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS

AT 31 DECEMBER 2014

Consolidated statement of financial position as at 31 December 2014

A$ in millions

Assets

Cash & Cash equivalents 36.1

Trade and other receivables 2.3

Inventories 44.9

Other assets 2.2

Total current assets 85.4

Deferred tax assets 4.4

Property, plant & equipment 4.1

Intangible assets & goodwill 92.5

Total assets 186.4

Liabilities

Trade & other payables 42.7

Employee benefits 3.5

Provisions 2.1

Total current liabilities 48.3

Non current employee benefits 0.2

Total liabilities 48.4

Equity

Share capital 210.3

Reserves (66.9)

Retained earnings (5.3)

Total equity 138.0

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TABLE 4: STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE

PERIOD 13 OCTOBER TO 31 DECEMBER 2014

Consolidated cash flow for the period 13 October to 31 December 2014

A$ in millions

Cash flows from operating activities

Cash receipts from customers 11.2

Cash paid to suppliers and employees (11.8)

Net cash from operating activities (0.6)

Cash flows from investing activities

Interest received 0.02

Acquisition of intangible assets (0.1)

Acquisition of subsidiary, net of cash acquired (42.8)

Acquisition of property, plant and equipment (0.07)

Total cash used in investing activities (43.0)

Cash flows from financing activities

Proceeds from share capital 83.2

Transaction costs related to the issue of share capital (3.5)

Total cash used in financing activities 79.7

Net increase/(decrease) in cash and cash equivalents 36.1

Cash and cash equivalents at 13 October -

Effect of exchange rate fluctuations on cash held (0.008)

Cash and cash equivalents at 31 December 36.1

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TABLE 5: SURFSTITCH GROUP LIMITED 1H FY2015 PRESENTATION

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SURFSTITCH GROUP LIMITED1H FY2015 RESULTS PRESENTATION

JUSTIN CAMERON - CEO

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INTRODUCTION TO SURFSTITCH

Company snapshot Group structure

‒ SurfStitch Australia (surfstitch.com)

‒ SurfStitch Europe (surfstitch.com)

‒ Surfdome (surfdome.com)

‒ Swell(swell.com)

‒ The World’s Leading Online Action Sports Store

‒ Products span skate, surf, street and snowboard apparel, accessories, footwear and hard goods

‒ 2.0 million customers, predominantly in the 15-25 year old male demographic

‒ Sell to >125 countries with infrastructure in Australia, France, UK and USA

‒ Multi-jurisdiction sale and supply capabilities provide efficiencies and competitive advantages

‒ FY12-FY14A revenue CAGR of ~43%

‒ Prospectus FY2015 forecast revenue $199 million and EBITDA $5.1 million

Australia Europe USA

700 Established and emerging brands

600+ Suppliers globally

50,000 Different product offerings

200% Increase in product offering since 2010

HIGHLIGHTS1H FY2015 Pro forma Financial Highlights

‒ Strong revenue growth in all regions A$103.6m (+23%)

‒ Asia Pacific: A$42.2m (+40%), +41% in 2Q15

‒ Europe: A$46.7m (+16%) , +22% in 2Q15

‒ North America: A$14.8m (+7%), +13% in 2Q15

‒ Significant gross profit margin expansion (+236bps) - 1H14 (44.5%) to 1H15 (46.9%)

‒ EBITDA +$3.0m (up 160% on pcp)

Asia-Pacific Europe North America

1H FY2015 to December

2014


2013 Change

Revenue1 42,186 46,653 14,798 103,638 84,315 23%

Gross profit 20,868 21,653 6,044 48,565 37,522 29%

Gross profit margin 49.5% 46.4% 40.8% 46.9% 44.5% +235.8bps

EBITDA2 3,001 1,153 160%

Profit before tax 274 (1,388) nm

Basic earnings per share $0.00 n/a nm

Cash and cash equivalents 36,072 n/a n/a

1 Includes retail sales, freight revenue; Excludes BBG managed websites; 2 Before significant expenses of $494k in 1H FY2014

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HIGHLIGHTS (CONT’D)1H FY2015 Pro forma Financial Highlights (cont’d)

‒ SurfStitch Group reported statutory results for the interim period of 13 October to 31 December 2014‒ Represents two-weeks of trading activity since the Company listed on 16 December 2014‒ $12.3 million in revenue and ($5.3) million in net losses‒ Losses incurred in the statutory period resulting from acquisition and IPO listing fees

‒ Two weeks of operations are not indicative of the overall operations of the Consolidated Group

‒ In order to provide a comprehensive view of the Consolidated business and to provide visibility into year over year comparisons, pro forma adjustments have been taken to reflect the full 1H period of 1 July to 31 December

‒ Pro forma numbers assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL were acquired as at 1 July 2012‒ Historical pro forma numbers for FY13 and FY14 match prospectus numbers and include all four businesses‒ Historical pro forma numbers for 1H FY14 match figures used to build to FY14 prospectus numbers and include all four

businesses‒ Pro forma numbers excluded Billabong managed websites to match treatment in the prospectus

‒ All figures stated this presentation represent pro forma numbers, unless otherwise indicated

‒ Significant progress in Global platform rationalisation‒ Global Inventory system rollout close to completion‒ Europe Consolidation in progress‒ Separation of Billabong Group websites to complete 2H15

‒ Increasing customer engagement from +2m global database of 15-25 year olds

Statutory financials

1.0 FINANCIAL OVERVIEW

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CONSOLIDATED PRO FORMA PROFIT OR LOSS STATEMENT

Asia-Pacific Europe North America


2014


2013 % Change

Revenue1 42,186 46,653 14,798 103,638 84,315 23%

COGS (21,318) (25,001) (8,754) (55,073) (46,793) 18%

Gross profit 20,868 21,653 6,044 48,565 37,522 29%

Gross profit margin 49.5% 46.4% 40.8% 46.9% 44.5% +235.8bps

Opex (45,564) (36,369) (25%)

EBITDA2 3,001 1,153 160%

Profit before tax 274 (1,388) nm

Income tax expense – – –

Profit after tax 274 (1,388) nm

A$000

Note: Pro forma numbers reflect the full 1H period of 1 July to 31 December; Exclude BBG managed websites; Assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL acquired as at 1 July 2012 and are included in all periods shown; and include 1H FY14 figures used to build to FY14 prospectus numbers1 Includes retail sales, freight revenue2 Before significant expenses of $494k in 1H FY2014

SALES1 & GROSS PROFIT PERFORMANCE BY REGIONA$000

1H FY2015 Asia-Pacific Europe North America Group total

Revenue1 42,186 46,653 14,798 103,638

% contribution 41% 45% 14% n/a

Growth 1H15 40% 16% 7% 23%

Growth 2Q15 41% 22% 13% 28%

Gross profit 20,868 21,653 6,044 48,565

Gross profit margin 49.5% 46.4% 40.8% 46.7%

% contribution 43% 45% 12% n/a

1H FY2014 1H FY2015 2Q FY2014 2Q FY2015Asia-Pacific Europe North America

$84

$104

$66 43

% 46

%

45

%

45

%

36

%

48

%

44

%

45

%

41

%

46

% 49%

47

%

North America Europe Asia-Pacific Consolidated1H FY2013 1H FY2014 1H FY2015

Consolidated sales1 (A$ in millions) to December Gross profit margin to December

$52

Note: Pro forma numbers reflect the full 1H period of 1 July to 31 December; Exclude BBG managed websites; Assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL acquired as at 1 July 2012 and are included in all periods shown; and include 1H FY14 figures used to build to FY14 prospectus numbers; 1 Includes retail sales, freight revenue

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COMPETITIVE LANDSCAPE

75%

41%

28%25% 24% 22%

17% 15% 13%7% 6%

2%

GoPro SurfStitchAustralia

SurfStitchGroup

Boohoo Converse Surfdome /SurfStitch EU

Nike Asos SWELL Zumeiz Pacsun Tillys

2Q FY15 comparable store sales growth vs competitors

2Q FY15 comparable store sales growth by competitor type

75%

41%

28%22% 21% 20%

13%5%

GoPro SurfStitch Australia SurfStitch Group Surfdome /SurfStitch EU

Mono-brand / multi-channel

Pure-play SWELL Multi-brand / multi-channel

Outpacing our global competitors

Source: J.P. Morgan ResearchNote: Mono- brand / multi-channel includes: Nike and Converse; Pure-Play includes: Boohoo and Asos; Multi-brand / multi-channel includes: Zumiez, PacSun and Tillys

ACQUISITION INTEGRATIONAcquisition Progress Update

‒ Gaining momentum as we fully integrate Surfdome and SWELL into the consolidated business

‒ After taking control of the North American business “SWELL”, we saw a 13% increase in sales for 2Q FY2015

‒ Witnessing early trends in gross profit improvement after acquiring Surfdome in December

‒ Delivered +160% EBITDA growth on pcp despite meaningful up-front investment relating to integrations

‒ Globalising inventory management platform

‒ Globalising technology platform

‒ Consolidating European businesses

‒ Marketing spend around brand awareness of the new product mixes

‒ We remain on track with our integration schedule for both SWELL and Surfdome

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2H FY2015 OUTLOOKProspectus Forecasts

‒ Strong momentum and favorable trends in 1H FY2015 reaffirm our FY2015 full-year prospectus forecast

‒ $199 million in sales

‒ $5.1 million of EBITDA

‒ January and February trading to date indicate accelerating growth in key regions

‒ No dividend currently planned. Cash will continue to be reinvested in growth given recognizable double digit growth opportunities

2.0 STRATEGIC OVERVIEW

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OUR HISTORY

2007

2009

2012

20102011

2013

2008

2014

SurfStitch.com website launched

SurfStitch founded by Justin Cameron & Lex Pedersen

Billabong acquires 20% of SurfStitch AU1

Billabong acquires a further 31% stake in SurfStitch AU

SurfStitch EU2

established

Completed initial public offering on 16 Dec 2014

Acquisition of Billabong’s 51% stakes in SurfStitch AU and SurfStitch EU and acquisition of Swell

SurfStitch has evolved into a global online Action Sports retailer

1 SurfStitch Pty Limited; 2 SurfStitch (Europe) Pty Ltd

Consolidating the Worlds leading Online Actions Sports Retailers

Acquisition of Surfdome from Quiksilver Group

Surfdome founded by Justin Stone

Quiksilver Group acquires 51% of Surfdome

DIFFERENTIATED PURE PLAY ONLINE RETAILER

Premium pricing operating modelInvestment in content publishing platform

Efficient global business inventory model

Large exclusive product ranges in each region

First to market product offering

Next day delivery to more than 125 countries

Consignment and strong rebate / rotation inventory model

Male demographic focus, which reduces fast fashion exposure

Recent launch of dedicated content hub “The Lens”; a content publishing platform created for customers to engage in and experience everything action sports and youth lifestyle related

Platform has delivered increased visitation (over 40% of users visit the platform over 10+ times a month)

Future investment focus

Unique infrastructure model provides an effective FX hedge

Minimises impact of FX on product cost and distribution cost while still pricing at local rates

Sustainable gross profit margins

Benefits of global buying power

Margin protection made possible through exclusive brand and product assortment

New market focus

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37%63%

Mobile &Tablet

Desktop

48%52%34%

66%

Mobile &Tablet

Desktop

CUSTOMER ENGAGEMENT

Consolidated traffic1

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

SurfStitch AU Europe SWELL

1 Includes all visits from mobile, tablets and desktops devices

SurfStitch Australia orders by device

Surfdome / SSE orders by device

SWELL orders by device

1H FY2014 1H FY2015

1H FY2014 1H FY2015

1H FY2014 1H FY2015

49%51%

45%55%35%

65%

Mobile &Tablet

Desktop

CUSTOMER METRICS

Conversion Average order value (AUD)

$104 $106 $113 $107 $107

$111 $113 $110

Europe North America Asia-Pacific Consolidated1H FY2014 1H FY2015

‒ Global email database: Over 2mm‒ Facebook: Over 1mm followers

Our focus on the male demographic (70%+ of Group sales), driving price inflation in key product categories

$-

$50.00

$100.00

$150.00

Mens Womens Kids Footwear Accessories& bags

Watches Sunglasses Surf, skate& snow

Total

1H FY2014 1H FY2015

Average price per unit sold (AUD)

+9% +2%(4%)

+13%+5%

+3%

+13%

+3% +5%

2.1%

3.1% 3.1%2.5%

2.3%

3.2% 3.6%

2.8%

Europe North America Asia-Pacific Consolidated1H FY2014 1H FY2015

+11.9% +2.1% +15.7% +12.5%

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CONTENT DRIVEN STRATEGY

Role of content

‒ Audience no longer responds as effectively to advertising

‒ Audience is demanding relevant authentic, entertainment that connects with their personality, interests and friends

Objectives

‒ Become a destination retailer and be recognised as a greater entity than a retailer

‒ Localised content alongside investment in a global content strategy shared within the SurfStitch Group

‒ Opportunity to share globally relevant content across all businesses

‘The Lens’ our global content hub driving changes in user engagement

Frequency visits per month

53%

47%

40%

16% 17% 19%

31%36%

41%

31-Dec-12 31-Dec-13 31-Dec-14

1-4x 4-10x 10+

DUAL-HEMISPHERE FULFILLMENT CAPABILITIES PROVIDE COMPETITIVE ADVANTAGES

‒ Hossegor, France (SurfStitch Europe)‒ Warehouse floor space: 6,000m2

‒ Expansion capacity: 9,000m2

‒ Wembley, UK (Surfdome)‒ Warehouse floor space: 10,500m2


‒ Burleigh Heads, Queensland

‒ Sydney (IT office)

‒ Warehouse floor space: 7,0000m2


‒ Irvine, California

‒ Floor space: 5,400m2

‒ Expansion capacity: 2,000

Global operations

UK

Europe

USA

Canada

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Australia Europe USAUSA

Australia

IT offices Product sourcingDistribution centre

‒ Drive greater efficiency‒ Deliver a higher quality service

‒ Later cut-offs‒ Bed in significant operational change

‒ Review further capacity options

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GLOBAL PRO FORMA ORDER CONTRIBUTION

A$ in millions, except per order values

1H FY2015 Asia-Pacific Europe North America Group total

COGS $21.3 $25.0 $8.8 $55.1

Distribution cost 4.0 4.8 1.5 10.4

Total direct costs $25.3 $29.8 $10.3 $65.4

Orders 409,778 470,345 163,129 1,043,252

Direct cost/order $61.81 $63.40 $63.00 $62.71

1H FY2014 Direct cost/order

$65.80 $75.63 $64.82 $70.07

Variance 6% 19% 3% 12%

Note: Pro forma numbers reflect the full 1H period of 1 July to 31 December; Exclude BBG managed websites; Assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL acquired as at 1 July 2012 and are included in all periods shown; and include 1H FY14 figures used to build to FY14 prospectus numbers

TECHNOLOGY

Current status ‒ Global platform migrations

Planning for the future

‒ Web to cloud

‒ Customized content driven website that’s responsive and adaptive to our customers’ needs

‒ Consolidated data analytics

‒ Zonal

‒ Eurohub

‒ Improved mobile and tablet platforms

‒ Improvements for ease of processing and checkout

Key initiatives

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REMAIN FOCUSED ON GROWTH

Strategic Overview

‒ Double digit sales growth trends are expected to continue into the second half of FY2015

‒ Further refinement and expansion of merchandise assortment

‒ Widening exclusive product and brands offering

‒ Increased content publishing strategy

‒ New market entries

‒ We anticipate continued gross profit margin benefits into 2H FY2015

‒ Benefits of global buying power

‒ Margin protection made possible through exclusive brand and product assortment

‒ New market focus

‒ Continued improvements in operating expenses

‒ Benefits of scale and growth on front-loaded costs

‒ Disciplined marketing spend / reinvestment

‒ Refinement of freight costs strategy

3.0 OPERATIONS OVERVIEW

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THE MARKET

SurfStitch dominates the significant niche of Online Action Sports

Global action sports market size

North America market: A$23bn

Surf/snow/skate apparel + hard goods: A$9bn

Footwear: A$2bn

Street fashion: A$12bn

Europe market: A$7bn


Footwear: A$1bn

Street fashion: A$1bnAsia and Japan market: A$1bn

Australia and New Zealand: A$4bn


Footwear: A$500mm

Street fashion: A$500mm

Source: Equity research, global eCommerce model data, Management data; Converted at an exchange rate of A$:$USD of 1.101 Global is defined as the estimated retail spend of the following 15 countries: United States, United Kingdom, Germany, France, Spain, Italy, Russia, Japan, China, South Korea, Brazil,

Argentina, Chile, Mexico and Australia

A$302bn

Total retail market

A$259bn

Total retail market

Addressable online market

in 2012(A$15bn)


in 2016(A$31bn)

10.3%

5.9%

CAGR+4.0%

CAGR+18.9%

A$12,935bn

Total retail market

A$10,552bn

Total retail market


in 2012(A$683bn)


in 2016(A$1,205bn)

9.3%

6.5%

CAGR+5.2%

CAGR+15.2%

Global retail market1

Australian retail market

TRULY GLOBAL

‒ Only major pure play Action Sports online retailer in Australia and New Zealand

‒ Top-ten online Australian apparel / accessories retailer in Australia over last three years

‒ Approximately 1,075,000 Customers

Asia PacificAsia Pacific EuropeEurope North AmericaNorth America

SurfStitch AustraliaSurfStitch Australia SurfStitch EuropeSurfStitch Europe SwellSwellSurfdomeSurfdome

‒ A fast growing player in the European online Action Sports segment

‒ Focus on French, Spanish and Italian markets

‒ Approximately 200,000 Customers

‒ A leading UK-based pure play online retailer of Action Sports products

‒ UK, Germany and Nordic region focus complements SurfStitch Europe


‒ USA’s first pure play online Action Sports retailer with established market position


SIZEABLE GLOBAL DATABASE

‒ Sell to over 125 countries

‒ Four websites with multi-language / multi-currency capabilities

‒ Local pricing with sourcing at the least expensive area

‒ New market entry

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NATURAL FX HEDGE

Unique infrastructure model

‒ SurfStitch Group is a global business with operations in the USA, UK, Europe and Australia

‒ While we report in AUD, we also earn local revenues in USD, GBP and EURO

Minimises product cost and distribution cost

‒ Minimise impact to costs by sourcing at the least expensive area

‒ Domestic inventory sourcing and warehousing in regions where FX is favorable minimises distribution costs

Provides an effective natural FX hedge

‒ Adverse currency movements over the period impacted the broader ecommerce market

‒ However, SurfStitch Group’s unique infrastructure model provided an effective natural hedge driving strong growth in each region by pricing at the regional level

Materiality

‒ Although FX movements in 1H FY2015 have been most favorable to the US business, SWELL represents less than 15% of total global consolidated sales

4.0 SUMMARY

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1H FY2015 SUMMARY

Leverage the dominant positions of each brand in respective regions

‒ Shared database and marketing driving stronger return on investment

‒ Conversion benefits from shared intellectual property and existing platform strength

Shared global inventory pool

‒ Improving stock turn and working capital position

‒ Increasing closing gross profit margins leveraging global buying capability

‒ Benefits of counter seasonality

Consolidate IT platforms

‒ Back end inventory management platform shared globally

‒ Swell integration achieved in short time frame

Successful integration track record

Strong revenue growth

‒ Focus on male demographic (70% of Group sales), driving price inflation

‒ Unique assortment and range

‒ Exclusive products and content

Up-front investment

‒ Globalising inventory management and technology platform

‒ Marketing spend around brand awareness of the new invigorated product mixes

Margin expansion

‒ Improved buying behaviors and strong traffic generation delivering improved conversion rates

‒ Improved stock management and partnerships with key suppliers

Growth & efficiencies realised

SURFSTITCH’S GROWTH STRATEGY

Drive operational synergies

‒ Share operational best practices across the group

‒ Integration of e-Commerce technology platforms to remove duplicate costs

‒ More favourable trading terms from product suppliers and technology providers with global buying power

Grow Action Sports market share

‒ Continued expansion of brand and product range

‒ Enhance user experience functionality

‒ Increase personalisation of email marketing

‒ Content driven strategy

Complete integration of acquisitions

‒ Assess and execute acquisitions to build scale or enter new geographies

‒ Complete integration of newly acquired businesses to capitalise on synergies and scale

‒ Consolidate position as a global leader in pure play online Action Sports retail

Expansion into new markets

‒ Evaluate organic expansion opportunities based on certain criteria to achieve greater scale

‒ Organic expansion into Asia

‒ Efficiently and cost effectively enter new markets

Leverage operational efficiencies

‒ Increase site traffic and conversion rates

‒ Exploit counter seasonal aspects of dual-hemisphere operating platforms

‒ 2H FY2015 to realise benefits of 1H FY2015 up-front investment and increased scale

‒ Disciplined marketing spend / reinvestment and refinement of freight costs strategy

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5.0 APPENDICES

HISTORICAL PRO FORMA REVENUE AND GROSS PROFIT BY REGION

Revenue1 (A$ in millions)

Gross profit (A$ in millions)

$39.7 $35.7

$56.7 $52.5

$84.3 $69.3

$103.6

1H FY2012 2H FY2012 1H FY2013 2H FY2013 1H FY2014 2H FY2015 1H FY2015

SSA Europe SWELL

$18.0 $17.0

$25.6 $23.3

$37.5 $29.4

$48.6

1H FY2012 2H FY2012 1H FY2013 2H FY2013 1H FY2014 2H FY2015 1H FY2015

SSA Europe SWELLNote: Pro forma numbers reflect the full 1H period of 1 July to 31 December; Exclude BBG managed websites; Assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL acquired as at 1 July 2012 and are included in all periods shown; and include 1H FY14 figures used to build to FY14 prospectus numbers1 Includes retail sales, freight revenue

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CONSOLIDATED PRO FORMA HISTORICAL PROFIT OR LOSS STATEMENT

Consolidated pro forma historical profit or loss statement

Pro forma historical (prospectus numbers) Pro forma 1H

A$ in millions FY2013 FY2014 1H FY2014 (prospectus) 1H FY2015

Revenue 109.1 153.7 84.3 103.6

COGS (60.2) (86.7) (46.8) (55.1)

Gross profit 48.9 67.0 37.5 48.6

Opex (50.6) (69.1) (36.4) (45.6)

EBITDA before significant items (1.7) (2.1) 1.2 3.0

Significant items (1.9) (0.9) (0.5) –

EBITDA (3.6) (3.0) 0.7 3.0

Depreciation and amortisation (2.5) (4.6) (2.0) (2.9)

EBIT (6.1) (7.6) (1.4) 0.1

Interest – – – 0.1

Profit before tax (6.1) (7.6) (1.4) 0.3

Income tax expense (0.4) (0.5) – –

NPAT (6.5) (8.1) (1.4) 0.3

Start up losses of SurfStitch EU impacting FY 2013 and FY 2014 earnings

Note: Pro forma numbers reflect the full 1H period of 1 July to 31 December; Exclude BBG managed websites; Assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL acquired as at 1 July 2012 and are included in all periods shown; and include 1H FY14 figures used to build to FY14 prospectus numbers

CAPITAL EXPENDITUREA$ in millions

FY2012 FY2013 FY2014 FY2015E(prospectus)

IT

Warehouse

Office

Note: Pro forma numbers reflect the full 1H period of 1 July to 31 December; Exclude BBG managed websites; Assume SurfStitch AU, SurfStitch EU, Surfdome and SWELL acquired as at 1 July 2012 and are included in all periods shown; and include 1H FY14 figures used to build to FY14 prospectus numbers; 1 Includes retail sales, freight revenue

$3.2

$5.9

$4.3

$7.8

$8.6 million investment in IT

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STATUTORY CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Continuing operations (A$ millions)Revenue 12.3COGS (7.6)Gross Profit 4.7Other income 0.01Selling & distribution expenses (5.4)Administrative expenses (0.8)Other expenses (5.7)Results from operating activities (7.2)Finance income 0.02Finance costs –Net finance income 0.02Profit before tax (7.2)Income tax benefit 1.8Net (loss) attributable to the owners of SurfStitch Group Limited (5.3)

Statutory profit or loss for the period 13 October 2014 to 31 December 2014

STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

A$ in millions As at 31 December 2014AssetsCash and cash equivalents 36.1Trade and other receivables 2.3Inventories 44.9Other current assets 2.2Total current assets 85.4Deferred tax assets 4.4Property, plant and equipment 4.1Intangible assets and goodwill 92.5Total non current assets 101.0Total assets 186.4LiabilitiesTrade and other payables 42.7Employee benefits 3.5Provisions 2.1Total current liabilities 48.3Non current employee benefits 0.2Total liabilities 48.4Net assets 138.0EquityShare capital 210.3Reserves (66.9)Retained Earnings (5.3)Total equity 138.0

Statutory financial position as at 31 December 2014

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STATUTORY CONSOLIDATED STATEMENT OF CASH FLOW

A$ in millionsCash flows from operating activitiesCash and cash equivalents 11.2Other current assets (11.8)Total current assets (0.6)Cash flows from investing activitiesInterest received 0.02Acquisition of intangible assets (0.1)Acquisition of subsidiary, net of cash acquired (42.8)Acquisition of property, plant and equipment (0.07)Total cash used in investing activities (43.0)Cash flows from financing activitiesProceeds from share capital 83.2Transaction costs related to the issue of share capital (3.5)Total cash used in financing activities 79.7Net increase/(decrease) in cash and cash equivalents 36.1Cash and cash equivalents at 13 October –Effect of exchange rate fluctuations on cash held (0.008)Cash and cash equivalents at 31 December 36.1

Statutory cash flow for the period 13 October 2014 to 31 December 2014

KEY TERMS & DEFINITIONS

Revenue

‒ Sales through our internet sites, includes retail sales, freight revenue

‒ Excludes any Billabong Managed sites

‒ After returns and GST

AOV ‒ Total order value including VAT and before returns / total orders

Basket size ‒ Total orders divided by total units sold, before returns

Active customers

‒ An “Active Customer” is a customer who has placed an order in the last 12 months

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DISCLAIMER

This presentation and information communicated verbally to you may contain certain projections and other forward-lookingstatements with respect to the financial condition, results of operations, businesses and prospects of SurfStitch Group Limited(“SurfStitch Group”). These statements are based on current expectations and involve risk and uncertainty because they relateto events and depend upon circumstances that may or may not occur in the future. There are a number of factors which couldcause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.Any of the assumptions underlying these forward-looking statements could prove inaccurate or incorrect and therefore anyresults contemplated in the forward-looking statements may not actually be achieved. Nothing contained in this presentation orcommunicated verbally should be construed as a profit forecast or profit estimate. Investors or other recipients are cautionednot to place undue reliance on any forward-looking statements contained herein. SurfStitch Group undertakes no obligation toupdate or revise (publicly or otherwise) any forward-looking statement, whether as a result of new information, future events orother circumstances. Neither this presentation nor any verbal communication shall constitute an invitation or inducement toany person to subscribe for or otherwise acquire securities in SurfStitch Group.

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