GLOBE INTERNATIONAL LIMITED — AGM Information 2004

Nov 16, 2004

PAUL ISHERWOOD, CHAIRMAN - ADDRESS TO SHAREHOLDERS 17 November 2004

Good afternoon.

On behalf of my fellow Directors, thank you for joining us today at what is Globe's fourth annual general meeting since listing as a public company.

Over these last four vears, Globe has experienced a number of significant events and seen a number of highs and lows. One factor that has remained constant throughout however has been the relentless pursuit by the company to remain a leader in the board sports and streetwear market and to do so in a manner that supports Globe's culture and heritage.

At last year's Annual General Meeting, I reported to shareholders that Globe had just come out of a disappointing year however by that stage had clearly started the process of recovery and was once again trading profitably. I also advised shareholders that we were continuing in our efforts to get our cost structure right whilst ensuring that we provided a creative environment for our staff.

Today I can report to you that the immediate tasks we set ourselves this time twelve months ago have largely been completed and that Globe continues to trade profitably and continues to develop products that lead our market. This does not mean that the job is done or that we are vet satisfied, as all of our efforts over the last year have really just been a first step in achieving our long term goals for the business.

It is the expectation of Directors that this year, we will exceed our previous record sales levels and whilst our short term earnings will remain impacted by a number of well considered and planned strategic investments we are making for our future growth and profitability, the outlook for the company remains strong.

Operational Results

Group profit before tax, depreciation and amortization increased to \$16.6 million for the year, a \$25.4 million turnaround for the year. Net profit after tax was \$7.1 million compared to the previous year's loss of \$59.7 million which was adversely impacted by significant write downs.

Total sales for the year declined from \$204.5 million to \$184.2 million with a major factor being the adverse impact of currency of \$20 million resulting from the strong Australian dollar. In local currencies, we were in fact up in all our markets with a particularly strong result in Australasia and an improved second half result in North America.

I will invite our recently appointed CEO, Matt Hill, to talk more about the result in a few minutes, but this considerable turnaround clearly has come about as a result of a lot of hard work and determination.

As shareholders would be aware, in September this year, Directors took the decision to appoint Matt Hill to the position of Chief Executive Officer and Mike Sonand to the position of Chief Operating Officer.

As I said at the time of the announcement. Matt comes to his new role with Globe with a lifetime's experience with the company and with extensive international brand development and brand management expertise.

Matt's knowledge and deep understanding of the culture from which he comes, combined with his many years experience, will ensure that Globe will continue to grow across all regions.

Under Matt's leadership, Globe will explore every opportunity and will continue to invest heavily in both existing and new brands in order to increase our position in all markets.

I feel that it is also important to comment at this stage on the recent announcement that Globe will be the naming rights sponsor of the world championship surfing event in Fili next year. This is a significant event in the history of the company and is further acknowledgement of the position within the international surfing industry that Globe has established. The challenges that Matt and his team now face are to ensure that the full

potential of this event is realized and that Globe's reputation in the sport is further enhanced

I also find it most encouraging that Globe has continued to support junior surfing through event sponsorship and of course, Globe World Cup skateboarding has become the leading event of its type in the world.

It is important for our future that our outstanding brands remain synonymous with the culture they represent and are continually supported to the maximum possible extent in creative and innovative ways – they are in fact our business. Brands such as Globe, Gallaz, Mooks and World Industries all enjoy strong market support and as Matt and his team continue the process of making these truly global brands, the growth prospects for the company remain strong.

Outlook

Globe has been through some difficult times, however in the last 12 months we have emerged as a stronger company with a very clear vision of what needs to be achieved in the future.

Our result for the June 2004 year has shown a solid improvement and a strong foundation for the future has been laid. With Matt Hill's international and brand development experience, the business is positioned for sustainable growth and we look to the future with a strong degree of optimism.

Sales for the first quarter of the current financial year exceed those achieved in the comparable period for the '04 year but our strategically agreed objective of directing considerable investment into Brand support, and some margin contraction, has impacted unfavourably on Group profits for the quarter.

Whilst we refrain from providing earnings forecasts, it is our expectation that our full year 2005 result will approximate the June 2004 outcome, notwithstanding the considerable additional and necessary investment that we are directing to ensure future growth.

Thank you.

GLOBE INTERNATIONAL Annual General Meeting 2004

MATT HILL, CEO - ADDRESS TO SHAREHOLDERS 17 November 2004

Thank you Chairman,

I see Globe as an exciting business with a great heritage and huge untapped growth potential. We have built multiple brands in the skate, surf and streetwear markets, we sell into multiple regions around the world and we manufacture in multiple product categories, including apparel, footwear and boardsports' hardgoods. We are an integral part of a world wide and growing cultural movement which is even stronger today than when I started in this business over 15 years ago.

The job for me as CEO is to realize the full potential of what we have and what we are capable of achieving. My fundamental belief is that Globe is nowhere near its full potential yet on any measure of its performance. To get there will involve selective and intense focus on the opportunities ahead, an understanding of key global brands and strategies, and raising all of our expectations of what is acceptable performance in the business.

The last two years have been tough for Globe, and our performance has been lacklustre. Our task is to get back to the outstanding performance levels that, with the exception of these years, have been the standard in the history of this company.

The results of the past financial year represent the initial stage of the re-emergence of Globe International. Step one was to lay a solid financial foundation for the future and I am proud to say that in the 2004 financial year, we achieved this. The company returned to profitability, recommenced paying dividends to its shareholders and succeeded in establishing a sound financial base.

However, while this was an important first step, I do not consider this level of performance to be satisfactory.

In our more developed markets, Australia and North America, overall, our brands are performing well but we should be gaining much greater market share and realizing our huge growth potential. Our brands are still to emerge as a significant force in key emerging markets such as Europe and Asia. Furthermore we have to keep pushing for excellence in leading product and marketing.

Our business is now in solid shape and so now is the time for investment if we are to reach the levels of performance both I and you expect from Globe. These investments, which I will outline in a moment, will drive this year's revenues to record levels, but will have an impact on short term earnings. However, the benefits of these investments will be evident for many years to come both in growing revenues and a return to desirable levels of long-term profitability.

In September we announced that agreement had been reached with the Association of Surfing Professionals (ASP) for Globe to become the naming rights sponsor of the Globe World Championship Tour surfing event in Fiji. The Globe $WCT - Fiji$ , as it will be known, is the most significant surf milestone in the history of the company and is an event that firmly establishes Globe as one on the leading surf companies in the world.

Globe will also increase its' core commitment to skate promotion. The 2005 Globe World Cup Skateboarding event will take place at Rod Laver Arena in February and will be the biggest and best ever on a brand new course being especially designed and built for the event. The Globe World Cup is now entrenched as one of the premier skate events on the world circuit and receives phenomenal coverage world wide across all forms of media including an estimated television audience of over 20 million viewers around the World. In addition, our skate brands, Almost, Blind and Enjoi all have new films coming out in the next twelve months.

Athlete endorsements are also key to brand success in the surf and skate markets. In coming months Globe will be announcing the signing of sponsorship arrangements for both new AAA surf and skate riders.

In addition to these investments, we are implementing cultural changes within the Globe organisation. We aim to provide a reinvigorated workplace that encourages creativity and innovation and reinforces the core values that built this business. At the same time greater performance and accountability will be demanded from all of Globe's people.

In my first few weeks in my new role as CEO. I devoted a lot of time to a thorough review of the business from the ground up to ensure our structure and plans matched the vision that the Board and I have for Globe. As a result I determined that some structural changes were needed and these changes have been made. New performance expectations have been set at every level of the Globe organisation.

We are now moving into a new phase for Globe, and the time is right for investment. The business has good traction but we need to invest to truly capitalize on this for the years to come.

In the North American Globe and Gallaz division the 2004 year saw sales in local currency increase by 29%, with second half sales improving over 60% half on half. The re-emergence of Globe footwear as a powerful force in the North American shoe market and the strengthening of the Gallaz brand, which is currently tracking at over 80% up on last year, are great results and a credit to all concerned.

In North America, our operations have also recently benefited positively from initially a stabilizing, and then strengthening of the Dwindle Brands. We are now starting to see encouraging growth in the Dwindle core skate brands such as Enjoi, Almost, Blind and Darkstar. The skate market is showing signs of strengthening again, and the Dwindle brands have gained market share.

Our innovative licensing strategy for World Industries in North America is also performing to expectations and the increasing profile and distribution for this brand demonstrates the exceptional heritage and credibility that World Industries brings to the skate hardware and apparel market. We are confident in the future for this brand, not just in North America but also globally.

The outlook for the current year remains extremely positive for the North American division, with sales for the first six months looking to be up over 20% on last year.

In Australia and New Zealand, the last financial year saw a solid improvement in sales of 12% over the previous year, together with a significant improvement in EBIT margins.

During the year we also undertook a number of key initiatives in Australasia, including the purchase of the Sandolls girls shoe business and moving our Globe apparel and more recently, Gallaz apparel design operations to Torquay, the longtime core base of Australian surfing.

After a recent review of the Australasian division, it was clear that whilst most of our brands in Australasia such as Globe and Gallaz shoes, Stussy and Mossimo have been performing well, some of our other brands had lost some direction and decisive action has been taken to correct this situation. I am confident that the performance of our Australian and New Zealand operations will now strengthen and we still expect significant overall topline sales growth from the Australasian division in the current year driven by our best performing brands.

Our European performance in the last financial year was solid, with sales in local currency up 10.9% following the opening of our new European headquarters in Hossegor, France. We continue to invest significantly in Europe with offices that now deal directly with retailers in the French, UK and German markets. These three regional operations mean that we can support our remaining third party distributors in Europe in more meaningful ways with more immediate contact and understanding of their markets. Additionally, we now have the critical mass needed to invest in long term retailer relationships, European-specific marketing initiatives, and have the sales infrastructure to grow in what is a largely untapped market for Globe.

We are a business that is in a great industry sector offering outstanding growth potential, and a business that is driven very much by our culture and heritage. We want to make money as much as the day we started, but we will never sacrifice our longer term future for a short term upkick.

In August, we advised shareholders that for the 2004/05 year we were expecting to exceed our previous record sales of \$217 million and we are still on line to achieve this goal. At that time, we also said that our North America division was expected to deliver at least a 20% increase in sales and again, we are on track to do this. We also remain confident that our European operation will perform strongly. In addition for 2004/05, Australasian sales are expected to grow by 15%.

At Globe we have a unique challenge and how we respond will determine our future. We need to continue to attract and retain culturally relevant and talented staff, provide an environment that is creative and positive and always push the boundaries to excel and be different. To stay relevant and competitive, we need to keep delivering great product, great marketing and great brand positioning across all our markets in a way that is innovative and moves at the pace that matches the lifestyles of our core consumers. However, while creativity and innovation need to be at the forefront of our business, ensuring we have a culture of sound financial management is also vitally necessary.

Stage one of Globe's re-emergence is complete $-$ we are stable and have a solid base. We are confident in the growth potential of the market and our brands, and as we move into the second stage of this rebuilding process we are investing significantly in our future. The key is to make sure those investments are focused, worthwhile and pay off for Globe and its shareholders in future years. This process will only be complete when we deliver high level returns to shareholders, our brands realize their potential and Globe emerges as the leading surf, skate and streetwear company in the World.