Online sales zoom 50% at Billabong in FY'12

Specifically:

- US$285m in proceeds from the partial sale of Nixon

- 58 non-performing stores closed as at 30 June 2012, with a further 82 non-performing stores identified for closure in FY13, expected to realise incremental EBITDA in FY13 of approximately $6 million (approximately $8 million on an annualised basis)

- Cost savings of approximately $30 million per annum expected to be realised in FY13 from cost reduction initiatives undertaken in FY12

These, together with the Transformation Strategy announced today, are expected to return the Group to growth and to significantly strengthen the Company’s financial position.

Transformation Strategy

Billabong today announces its Transformation Strategy which provides a clear pathway to unlocking the inherent value within the Billabong Group. Over the next four years, the

Transformation Strategy aims to return the Group to positive sales growth and is targeted to deliver EBITDA greater than 2.5x FY12 pro-forma EBITDA of $84.0 million, excluding 100% of Nixon and significant and exceptional items.

Specifically, Billabong will achieve these objectives by focussing on the following key strategic priorities:

- Simplifying its business

- Leveraging Brand Billabong

- Leveraging other key brands

- Realising the strategic potential of retail

- Continuing to expand Billabong’s global e-commerce platform

- Globalising and integrating the supply chain

Further details of Billabong’s Transformation Strategy and the key strategic priorities outlined above can be found in the accompanying Transformation Strategy presentation.

Outlook and dividend The Group expects the current challenging trading conditions to continue during FY13.

Assuming no further deterioration in these conditions, FY13 EBITDA is currently expected to be in the range of $100 million to $110 million in constant currency terms. This compares to pro-forma FY12 EBITDA of $84.0 million, excluding 100% of Nixon and significant and exceptional items.

This result is expected to be driven by:

- The benefits from the previously announced Strategic Capital Structure Review;

- The additional benefits realised under the Transformation Strategy announced today; and

- Recognition of Billabong's share of after tax Nixon associate profits.

The Board has not declared a final dividend in respect of FY12 and does not expect to pay an interim dividend in respect of 1H FY13. The dividend policy will be reviewed thereafter.

Billabong International