Billabong announced it has formed a joint venture
arrangement with airport-based surfwear retailer beachculture. The move will see the beachculture business transferred into a new company, which will be owned by existing beachculture owner John Brooks and Billabong.
While not material to the Billabong group, the transaction is expected to be immediately EPS accretive.

beachculture is a Sydney-based surfwear chain founded in 1993 as a specialist
airport-based retailer. The joint venture agreement takes in 19 stores, with seven of
those located in Sydney’s domestic and international terminals.

Other airport locations include three in Melbourne, three in Brisbane, two in each of
Perth and Cairns and one in Auckland.

All stores will continue to trade under the beachculture banner and will remain multibranded
retail outlets under the new ownership structure.
A new general manager will be appointed by the joint venture parties.

It is the intention of the joint venture to remain focused on airport retailing, both within
and outside Australia.