Billabong AGM Motion

Some people are going to read the below motion that I intend to put forward at the next Billabong AGM and right me off as some green extremist. This would be a very convenient thing to do. However ignoring this web site will not make it go away.

The motion that I would like to see Billabong shareholders vote at the next AGM is

“That by 2012 the only sort of cotton that Billabong International Limited buys or sells is organic cotton.”

I have been wearing Billabong clothing for over twenty years. I am a little bit older now so my selection of Billabong clothes that I wear has changed but thankfully the Billabong range and styles have changed and broadened over the years. Typically I wear board shorts and wet suits made by Billabong when I am out surfing and I also like the Billabong dress shorts and shirts. I still don't know what to make of the Billabong "togs". I have started to go commando while surfing so this is not an issue. I am also impressed with the financial performance of the company and that is why I am a shareholder.

My favourite surf break is an isolated one in Central Queensland. When surfing there it is sensible to take extra precautions regarding sea snakes, crocodiles and deadly jellyfish. I am not very good at surfing but I enjoy it. I surf on Gavin Nash surfboards which suit the local surf conditions with wax made by a Billabong subsidiary.

I have owned shares since I was eighteen and I have also worked as a stockbroker. I follow the share market closely. While working as a stockbroker I often spoke to parents who wanted to buy shares for their children as a gift. I often recommended a small parcel of Billabong shares because I knew that it was a company that they understood to some extent and this would make their financial education process more interesting. Who doesn't like looking at the pictures in a Billabong International Limited annual report? You have to start somewhere. Hopefully some of them eventually read the Chairman's report and got to the financial statements.

Many people are familiar with shareholders who own one or two shares in a public company and then want to exercise their rights under corporate law at annual general meetings. Stephen Mayne could be a good example of this. I own more shares than most Billabong shareholders.

It seems to be a global trend that more people are recognizing unpolluted water as a basic human right. I have never meet a surfer who does not want to surf clean waves. Maybe the directors of Billabong who actually surf can inform you of the people they know who like surfing in polluted water.

In the surf wear industry I believe that there is a big gap in the market for a surf apparel company that recognizes the importance of unpolluted waves and water. Such a company has the potential to take millions of dollars of revenue from an established company such as Billabong International Limited. This is not something I want to see. The last time I bought a Billabong T-shirt it cost over $50. If I had to pay an extra dollar or two to have one made of organic cotton it would probably inspire me to buy another one.

I ask that you support my motion because you care about the short and long-term financial returns from your Billabong International Limited investment. Signing and returning the below letter and voting in favour of the motion will send a clear and positive message to Billabong's core customers without spending millions of dollars on advertising.

Under the Corporations Act, a resolution proposed by at least 100 shareholders must be put to a meeting. I ask that you cut and past the following letter into a word document and return it to me ASAP signed and filled out. Under the corporations act it is important that all the wording in the letters is identical.

Please return them to my home address and I will forward them on to the relevant Billabong director.

Name

Address

HIN/SRN

Date

Billabong International Limited

1 Billabong Place

Burleigh Heads QLD 4220

Dear Billabong International Limited,

In accordance with the Australian Corporations Act 249 I ask that the following resolution be moved at the next Billabong International Limited AGM.

“That by 2012 the only sort of cotton that Billabong International Limited buys or sells is organic cotton.”

Could you also please distribute the following 249P statement to all shareholders.

“Dear Shareholders,

I ask that you support this motion regarding organic cotton because you care about the short term and long term financial returns from your Billabong International Limited investment.”

Yours Sincerely

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