ACQUISITION OF GARAGE ENTERTAINMENT & PRODUCTION

12 NOVEMBER 2015

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Strategic Rationale

TRANSACTION OVERVIEW

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The Acquisitions

‒ The SurfStitch Group has entered into definitive agreements to acquire Garage Entertainment Pty Aust Ltd and TMG Pty Ltd (collectively, “Garage Entertainment and Production” or the “Acquisitions”)

‒ Total consideration for the Acquisitions of A$15 million (a combination of cash and deferred shares)

‒ Garage Entertainment and Production both accelerates and increases SurfStitch Group’s exposure in the strategically important content production and digital video on demand world

The Companies

‒ Garage Entertainment and Production produces and digitally distributes premium action and extreme sports long form films and TV content

‒ Combines the youthful edge of MTV with the premium ‘best in class’ programming of HBO in the action extreme sports space

‒ Garage Entertainment Pty Ltd forms the SVOD and distribution arm of Garage Entertainment and Production while TMG Pty Ltd focuses on long form productions which Garage Entertainment has sole exclusive lifetime rights to distribute

‒ Consolidates the SurfStitch Group’s digital ecosystem by creating a full media and content spectrum to support SurfStitch Group’s strategy

‒ Garage Production and Entertainment allows SurfStitch Group to fulfil the mass appeal of SVOD

‒ Significantly enhances customer engagement levels among the three types of action sports consumers (core, enthusiast and mass)

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ENTERTAINMENT & PRODUCTION

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GARAGE ENTERTAINMENT & PRODUCTION OVERVIEW

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11%

89%

Company Overview

Key Partnerships

‒ Produces and digitally distributes premium action and extreme sports films (long form) and TV content

‒ Distributes through proprietary digital platform & dedicated channels across Pay TV, Telco’s and devices manufactured by Sony & Samsung

‒ Largest library of action sports on the web with dedicated TV channels (over 3,000 titles)

OverviewOverview

OtherOther

Revenue model

Revenue model

‒ Headquarters in Sydney, Australia

‒ SVOD membership and one-time rentals

‒ Library distribution to third parties

‒ Advertising revenue

‒ Branded content creation and partnerships

‒ Production (Live events, Film & TV)

Award winning TV & Film

Highest grossing Australian documentary of all time

3 seasons of 10 x 26 minute TV episodes commissioned by Fox Sports & Channel 9

Top 5 in iTunes charts in 17 countries

AACTA Award for Best Director and Best Cinematography in a documentary

WomenMen

GEN

DER 27%

39%

22%

12%18-2425-3435-44

Significant partnership synergies (endemic & non-endemic)

Key Demographics

AG

E

<18For

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EXTENSIVE CONTENT DISTRIBUTION CHANNELS

5

Stea

min

g ac

ross

m

ultip

le d

evic

esA

pps

Line

ar te

levi

sion

‒ Streaming films & TV at anytime, anywhere across all platforms

‒ Transaction video on demand & Subscription video on demand

‒ Pre-loaded Garage app on Sony Smart TVs

‒ Dedicated channel through Samsung Fearless App (phones, tablets and smart televisions)

‒ Dedicated linear cable channel on NZ SKY TV

‒ Launched in May 2015

‒ On track to do over 750k unique viewers by end of year

‒ Syndications in Australia/Asia expected in FY16

‒ Global ambitions for cable/IPTV syndications

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Opportunities

STRATEGIC RATIONALE

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Consumers can engage by watching films and television, even when they themselves don’t participate in the sport

SurfStitch Group consumer demographic watch video. Mobile video traffic represents more than 50% of all mobile traffic today. In the next five years, global mobile traffic is expected to increase 10 fold with three quarters of that growth expected to be video.

SurfStitch Group demographic spends 1.2 hours / day on online TV, second only to social networking

Compelling content from which we can create a subscription model to bolster loyalty among customers – become the Netflix / Amazon of action sports‒ Appeals to the three types of action sports

consumers (core, enthusiast and mass)

Leverage content creation through Stab across our dedicated video and TV network

Strong marketing capabilities to lock brands into full circle of marketing to purchasing

Role of content ‒ Capture the global action sports audience from core to mass market and monetize that relationship through our commerce platforms and marketing partnerships

Why acquire Garage Entertainment

‒ Our acquisitions of Magicseaweed and Stab provided SurfStitch Group with access to user generated content and short form content creation capabilities that appeals to the core and enthusiast audience

‒ The mass market also engages heavily now through TV and digital subscription (SVOD). Garage Production and Entertainment allows SurfStitch Group to fulfil the mass appeal of SVOD

‒ Consolidates the SurfStitch Group’s digital ecosystem by creating a full media and content spectrum to support SurfStitch Group’s strategy

Mass appeal Monetization

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Significant shift in how core demographic gets their information & entertainment… … and advertising is taking notice

Source: Nielson Global E-Commerce Report

38%

11%32%

5% 15%

TV Radio Print Outdoor Digital Media

38%

10%20%5%

28%

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DIGITAL MEDIA APPEALS TO OUR CUSTOMER DEMOGRAPHIC & PARTNERS

Engaging in apparel,

technology, lifestyle and travel through media, the SurfStitch Group is

the voice of our core demographic

Engaging millennials in their

preferred digital medium

Capturing their wallet by offering

products that appeal to their

interests

Source: J.P. Morgan Media ReportSource: J.P. Morgan Media Report

Global average online purchase intentions Average hours/day our consumer spends on:

46%

46%

31%

30%

27%

17% ApparelTravelLifestyleTechnologyOtherAutomotive

0.95

1.07

1.16

2.67

Online radio

Online press

Online TV

Socialnetworking

-84%

-36%-10%

3%

65%

Other media Print Radio TV DigitalMedia

Avg min/day using media growth since 2010 Ad Spend by Medium2010 2015

Source: Global web index. “Brand Advocates.” Q3 2015

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THE ECONOMIC BENEFITS OF COMBINING CONTENT AND COMMERCE ARE REAL

3%

10%

Rest Core (Stab / MSW)

A$120 A$180

Rest Core (Stab / MSW)

3.2 5.0

Rest Core (Stab / MSW)

Conversion is 700bps higher among Stab/MSW consumers

that go onto the commerce sites

AOV is 50% higher among Stab/MSW consumers that go

onto the commerce sites

Annual purchase frequency is 50% higher among Stab/MSW

consumers that go onto the commerce sites

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SURFSTITCH TO EVOLVE TO THE NETFLIX AND AMAZON OF ACTION SPORTS

Capturing the Audience

‒ Dominant internet streaming video service

‒ Curated, robust library of movie & television

‒ International rights

‒ Exclusive content (own + 3rd party)

‒ Tiered subscription (ad free)

Monetisation Key Stats (USD)

69 million subscribers

‘15E Rev $6.8bn

Plan $/mo(USD) Quality Screens

$7.99 SD 1

$9.99 HD 2

$11.99 Ultra HD 4

‒ Annual subscription USD$99

‒ Television episode / season purchase

‒ Movie rentals

‒ E-commerce on Amazon platform

‒ Unlimited, instant movie & television streaming with an emphasis on exclusive content (in key markets)

‒ Free two-day shipping

‒ Unlimited music streaming

‒ Early access to deals

‒ Free e-books

60-80 million prime subscribers

‘15E Rev $106bn (retail + prime)

25 Sep 2015

23 Apr 201530 Jul 2015

6+ million action sports audience

Double digit revenue growth

‒ SWELL TV SVOD platform

‒ Exclusive content through publications / brands

‒ Action sports utility forecasting

‒ Exclusive products/ services to commerce platform

TV

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LEADING INTEGRATED ACTION SPORTS NETWORK

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WAV

ES

‒ Appeals to COREdemographic

‒ Represents smallest and pointiest audience across the content spectrum

WH

ITE

WAT

ER ‒ Appeals to ENTHUSIASTS

‒ Represents large user generated engagement

BEA

CH

‒ Represents MASS MARKET

‒ Largest

‒ Edgy content that appeals to the core audience

‒ Athlete engagement, brand inspiration and video/social user engagement

‒ Large engagement among users

‒ The core utility for surf and snow conditions leveraging content with commerce capabilities

monetizecontentacross the

masses

opportunity(volume) to

‒ Trusted source of product reviews and exclusive content

BA

CK

CO

UN

TRYSLO

PESSK

I LOD

GE

To become the leader in action sports and youth lifestyle, our strategy is simple: link every aspect of the surf and action sports lifestyle, from impression to purchase

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DEFINING THE ACTION SPORTS NETWORK OF THE FUTURE

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Mobile First Data Centric Scalable Tech Platform

Social core

Internal Agency for Brands Leveraging content to commerce:

SVOD + Action Sports Utilities + News

Category expertise Commerce Monetisation

APP

Customer Centric

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SUMMARY

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‒ Garage Entertainment and Production has the largest online library of actions sports film and TV on the web and has dedicated TV channels

‒ Acquisition provides the solution to mass appeal of SVOD market while still appealing to every type of consumer (Core, Enthusiast & Mass)

‒ Both accelerates and increases SurfStitch Group’s exposure in the strategically important content product and digital video on demand world

‒ Consolidates the SurfStitch Group’s digital ecosystem to catapult SurfStitch Group into the Netflix and Amazon of action sports

‒ Strong marketing capabilities to lock brands into full circle of marketing to purchasing through our channel

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FY2016 OUTLOOK

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FY16 guidance + Outlook‒ Reaffirm FY2016 guidance of A$15-$18m EBITDA (growth of

100%+) leveraging continued double digit revenue growth momentum

‒ Global content strategy delivering early signs of strong momentum in core markets.

‒ The Garage Entertainment & Production acquisition will complement our Stab and Magicseaweed investments and strengthen the delivery of our global content strategy

‒ Brand partnerships/ vertical product focus now a mid term priority

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

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DISCLAIMER

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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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