Annual Shareholders Meeting – Chairman’s & CEO’s Commentary

ASM
25 October 2018
Sue Sheldon | ChairmanMark Troughear | CEO

A heritage
that started in 1964

SUE SHELDON CHAIRMAN
· ASM PRESENTATION ·
INTRODUCTION
· Slide 3

AGENDA
−
Chairman’s Introduction
−
CEO’s Review and Trading Update
−
Resolutions
· ASM PRESENTATION ·
INTRODUCTION
· Slide 4

GENERALHIGHLIGHTS

−
Year on year revenue, earnings and dividend growth
−
Investment in capacity for the air network and critical Auckland and Christchurch facilities
−
The move to Agile IT deployment
−
A successful first year in the Medical Waste industry
−
The successful completion of a major data transformation project
−
Sustained strong cash generation leading to reduced gearing levels
GENERAL HIGHLIGHTS
· ASM PRESENTATION ·
INTRODUCTION
· Slide 6

FINANCIAL HIGHLIGHTS
· ASM PRESENTATION ·
INTRODUCTION
· Slide 7
Note
Jun
‐
18
$M
Jun
‐
17
$M
Increase
%
Revenue
580.9
545.3
6.5
EBITA
 
(before
 
non
‐
recurring
 
items)
(i)
93.7
89.3
4.9
Non
‐
recurring items
2.6
3.7
EBITA
(ii)
96.3
93.0
3.5
NPAT
 
(before
 
non
‐
recurring
 
items)
(iii)
59.6
56.6
5.3
Non
‐
recurring
 
items
 
after
 
tax
2.6
4.3
NPAT
(iv)
62.2
60.9
2.1
Basic
 
EPS
 
(cents)
(before
 
non
‐
recurring
 
items)
38.4
36.5
NOTES(i)
Operating profit before interest, tax
and amortisation, befor
e non-recurring items
(ii) Operating profit
before interest, tax and amortisation
(iii) Net profit after tax (NPAT), before non-recurring items(iv) Profit for the year attr
ibutable to the shareholders

FY18 EXPRESS PACKAGE & BUSINESS MAIL
Operating Revenue
$428.8m
EBITDA
$74.8m
EBITA
$67.9m
· ASM PRESENTATION ·
INTRODUCTION
· Slide 8
EBITA Margin
15.8%
6.5%
6.4%
4%

6.6%
8.1%
4%
FY18 INFORMATION MANAGEMENT* EBITDA, EBITA and EBITA Margin represent the operating resu
lts of the division, exclusiv
e of any non-recurring items
.
Operating Revenue
$153.8m
EBITDA*
$35.4m
EBITA *
$29.8m
· ASM PRESENTATION ·
INTRODUCTION
· Slide 9
EBITA Margin *
19.4%
7.8%

−
Final dividend:
15.25 cps
−
Imputation credits:
5.9306 cps (at 28% tax rate)
−
Supplementary dividend:
2.6912 cps
−
Record date:
14 September 2018
−
Payment date:
2 October 2018
−
No DRP was offered in respect of this dividend
FINAL DIVIDEND
· ASM PRESENTATION ·
INTRODUCTION
· Slide 10

−
Compliance with the new NZX Corporate Governance Code
−
Launched an updated Freightways website
−
2018 annual report expands on Freightways strategy and a range of ESG initiatives
CORPORATE GOVERNANCE
· ASM PRESENTATION ·
INTRODUCTION
· Slide 11

MARK TROUGHEARCEO
· ASM PRESENTATION ·
INTRODUCTION
· Slide 12

−
Business Strategy:
•
Express Package &
Business Mail
•
Information Management
−
ESG Initiatives
−
Trading Update
−
Outlook
AGENDA
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 13

Express
 
Package
 
Video

EXPRESS PACKAGE & BUSINESS MAIL
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 15

1. Residential Network Review
•
Assess the opportunities across our various
brands to improve our delivery density,
productivity and courier earnings
•
Our objective is to improve our resident
ial delivery productivity by at least 5%
2. Pricing for Effort
•
Recognise the lower density, the extra ef
fort required, and therefore the cost
incurred, for delivering to residential addr
esses and price these items accordingly.
•
Our objective is to improve
our pricing per item to fund
higher courier pay as well as
to improve B2C margins
EXPRESS PACKAGE & BUSINESS MAIL
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 16

3. Visibility and Data Analytics
•
Improve visibility for customers and receiv
ers on the progress of their deliveries and
improve reporting on every aspect
of our business for our teams
•
Our objective is to improve customer
and receiver satisfaction and enable our teams
with accurate and timely data to impr
ove efficiency and service quality
EXPRESS PACKAGE & BUSINESS MAIL
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 17

INFORMATION MANAGEMENT
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 18

83%
70%
FY19 NZ
FY19 AU
INFORMATION MANAGEMENT
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 19
1. Facility Utilisation
•
Warehouse utilisation was 81% in NZ and
61% in Australia at the end of 2018.
OUR OBJECTIVE:

2. Growth in Digital Services
•
Invest in further sales & marketing resour
ce to be able to scale-up our digital revenue
streams, which are currently circ
a 10% of revenue for this division
•
Our goal is to grow the revenue for thes
e services and, through that scale, drive
improved EBITA margins
3. Secure Destruction / Medical Waste
•
Develop the niches within Secure Dest
ruction and Medical Waste through start-ups,
alliances and acquisitions to provide a nat
ional, high quality service offering to our
customers
•
Our goal is to establish a new
arm of growth for Freightways
INFORMATION MANAGEMENT
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 20

ACQUISITIONS AND ALLIANCES
1. Acquisitions completed in 2018
•
Bolt-on Secure Destruction business in NSW
•
Records Management business in VIC
•
Medical Waste business in NSW which allows
us to establish a starting point in
medical and sanitary collection and disposal services
2. Acquisitions completed in Q1, 2019
•
Bolt-on Secure Destruction business in WA
•
Medical Waste business in VIC
•
75% share in a Digital Online back-
up business servicing NZ & Australia
3. Continue to explore opportunities to add bolt-on acquisitions to
current lines of business, as well as acquisitions which are complementary to our business model
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 21

1. Materiality assessment
ESG INITIATIVES
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 22

2. Materiality assessment:
SDG 3 Good health and well-beingSDG 8 Decent work and economic growthSDG 9 Industry, innovation and infrastructureSDG 13 Climate actionSDG 16 Peace, justice and strong institutions
ESG INITIATIVES
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 23

ESG INITIATIVES
3. Highlights
•
SDG 3: Installed Guardian Seeing Machi
nes into the cabs of our linehaul fleet
•
SDG 8: Implemented a programme to provi
de a pathway for school leavers and long-term
unemployed into the workforce
•
SDG 8: Implemented Employee Assistance Programme across NZ and AU
•
SDG 8: Implemented
The Movement
Wellbeing campaign across Post Haste
•
SDG 9: Census (TIMG NZ), Express Refr
igerated Services (MSL), InMotion (DAP)
•
SDG13: Introduction of a fleet of 737’s
achieved significantly lower emissions
•
SDG 16: New annual report format, commitm
ent to increasing non-financial measures
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 24

KEY SUSTAINABLE DEVELOPMENTAL GOALS
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 19
4. Courier earnings (SDG 8)
•
Average courier revenue = NZ$97,000 per annum
•
Significant improvements to point-to-point
and residential incomes over the past 6 months
•
Trial of a new residential courier pay model at Post Haste
•
Average courier pay up 8-10%
year on year across NZC, PHL, MSL (Sept17 vs Sept18)
•
Ongoing run reviews to minimise km’s driven
and improve courier pr
oductivity and incomes
•
Aspiration that couriers earn superior incomes

Q1 TRADINGUPDATE

Q1 CONSOLIDATED PERFORMANCENOTES(i)
Operating profit bef
ore interest, tax, depreciation and amortisation
(ii) Operating profit
before interest, tax and amortisation
(iii) Net profit after tax before amortisation(iv) Net profit after tax
Quarter
 
ended:
 
(Unaudited)
Note
Sept
‐
18
$M
Sept
‐
17
$M
Increase
%
Revenue
155.1
143.2
8.3
EBITDA
(i)
27.6
26.9
2.5
EBITA
(ii)
23.9
23.6
1.4
NPATA
(iii)
15.6
15.5
0.2
NPAT
(iv)
15.1
15.0
0.2
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 27

8.3%
Q1 EXPRESS PACKAGE & BUSINESS MAIL* Unaudited
Operating Revenue
$114.1m
EBITDA
$19.4m
EBITA
$17.5m
EBITA Margin
15.4%
6%
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 28
6.6%
6%

EBITDA
$9.3m
Q1 INFORMATION MANAGEMENT* Unaudited
Operating Revenue
$41.6m
EBITA
$7.8m
EBITA Margin
18.7%
8.5%
0.1%
(1.7%)
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 29
8.5%
0.1%
1.7%

OUTLOOK
1. Increased demand for services in both divisions2. Continue to target year on year earnings growth for FRE3. Expect by the end of 2019 that our pricing and efficiency initiatives
for B2C are gaining traction
4. Investing for the future in terms of IT, sales and marketing resource5. Capital expenditure of $20-22m forecast for 20196. Continue to explore complementary acquisition opportunities
· ASM PRESENTATION ·
CEO’S REVIEW & TRADING UPDATE
· Slide 30

QUESTIONS

RESOLUTIONS
· ASM PRESENTATION ·
RESOLUTIONS
· Slide 32
1. Election of Director – Abby Foote2. Election of Director – Andrea Staines3. Re-election of Director – Peter Kean4. Approval of Directors’ fees5. Authority to fix Auditor’s remuneration

ASM
25 October 2018
Sue Sheldon | ChairmanMark Troughear | CEO

---

ANNUAL SHAREHOLDERS MEETING


A. CHAIRMAN’S INTRODUCTION

Slide 1. Freightways - 25 October 2018, Annual Shareholders Meeting

Slide 2. Heritage slide

Slide 3. Sue Sheldon, Chairman

Shareholders and guests, welcome to Freightways’ Annual Shareholders Meeting.
My name is Sue Sheldon and I am the Chairman of Freightways’ Board of
Directors.

Slide 4. Agenda

Before we get underway I will run through the structure of the meeting.

 I will begin with procedural matters, introduce the Freightways Board and some
of the team to you, and then summarise some of the Company’s 2018 highlights.
I will then ask Mark Troughear, Freightways’ Chief Executive Officer, to
provide a review of the Company and an update on current trading performance.

 I ask that you hold all questions about the performance of the Company until the
close of the CEO’s presentation and direct them through the Chair. Any
questions related to resolutions should be asked when we consider those
resolutions.

 Following the CEO’s presentation, I will introduce the resolutions as outlined in
the Notice of Meeting. Again this year, polls will be held in respect of the
resolutions put to shareholders. The polls will be conducted following the
meeting.

 The Notice of Meeting, which includes the explanatory notes, was circulated to
all shareholders and I intend to take it as read.

The Company’s constitution prescribes a quorum requirement of 3 shareholders.
As you can see this requirement is met. As a quorum is present, the meeting is duly
constituted and I declare it open.

Proxies have been appointed for the purpose of this meeting in respect of
approximately 66 million ordinary shares. As was indicated on the proxy form,
where proxy discretion has been given, the Directors, and I as Chairman, intend to
vote those proxies we have received in favour of resolutions 1, 2, 3 and 5 set out
in the Notice of Meeting. As also indicated on the proxy form, unless directed how
to vote by the shareholder giving the proxy in respect of resolution 4 relating to

Directors’ fees, the Directors, including myself, will not be able to vote on
resolution 4 on behalf of the proxy.

I would now like to introduce those at the table with me:

Your Directors are:

 Kim Ellis. Kim was appointed a Director in 2009, having spent 28 years in chief
executive roles in a number of sectors, including 13 years as Managing Director
of Waste Management NZ Limited. Kim is Chairman of Metlifecare,
Sleepyhead Group and NZ Social Infrastructure Fund and has a number of other
directorships, including Port of Tauranga.

 Abby Foote. Abby joined the Board in June this year and is qualified in both
law and accounting. She brings over 10 years’ of governance experience,
including time spent in senior management roles. Abby is currently a Director
of Z Energy, The Museum of NZ Te Papa Tongarewa and Sanford Limited.

 Peter Kean. Peter was appointed a Director in 2016, bringing to Freightways
many years of senior executive experience with the Lion group of companies in
both New Zealand and Australia. After retiring from Lion in 2014 he has
developed a career in governance. Peter is also a Director of Sanford Limited,
the New Zealand Rugby Union and a number of private companies.

 Mark Rushworth. Mark was appointed a Director in 2015 and has extensive
experience in the technology sector, with a decade’s governance experience,
predominantly in the high tech and innovation space. He spent 4 years on the
senior executive team of Vodafone NZ and has previously served as CEO of
Pacific Fibre, ihug and Paymark. Mark is a Director of a number of small
technology start-up companies.

 Andrea Staines. Andrea is a professional director based in Australia and was
appointed to the Board in August this year. Andrea has 12 years’ governance
experience on the Boards of a range of Australian entities, mostly in the
transport and retail services sectors, having previously held senior management
roles in the airline industry, in particular.

 Mark Verbiest. Mark has been a Director of Freightways for more than 8 years.
A lawyer by training, he has widespread experience in the capital markets and
digital & technology businesses. Mark is Chairman of Willis Bond Capital
Partners and sits on the boards of ANZ Bank NZ, Meridian Energy and MyCare.
Mark is also a member of NZ Treasury’s Advisory Board and Commercial
Operations Advisory Board.

 I was appointed a Director of Freightways ahead of its IPO in 2003 and elected
Chairman in 2010. I am a full-time professional director with previous roles in
a number of large organisations. I am currently Chair of Regenerate
Christchurch and a Director of Real Journeys. As previously announced, my
retirement from the Board is effective at the end of this meeting.

Also at the table are:

 Mark Royle, Freightways’ Chief Financial Officer and Company Secretary.
Mark was appointed to these roles 18 years ago. Mark is a key contributor to
the strategic direction and performance of the Company, with over 30 years
accounting and commercial experience, including 13 years at a major
international chartered accounting firm.

 Mark Troughear, Freightways’ Chief Executive Officer, who was appointed to
the role of CEO in January 2018. Mark has been with Freightways in various
senior executive roles for over 20 years and has a comprehensive knowledge of
the group’s operations across both the Express Package & Business Mail
division and the Information Management division.

Also present today are representatives from the Freightways executive team who
you will be able to meet following the meeting. This executive team has
considerable experience, often in more than one Freightways business, and has an
average tenure at Freightways of almost 20 years per executive.

The Company’s Auditors, PricewaterhouseCoopers, are represented here today by
Leo Foliaki and the Company’s legal advisors, Russell McVeagh, are represented
here today by David Raudkivi.

The Financial Statements for the year ended 30 June 2018 are set out in the
Company’s Annual Report that was released to shareholders last month. You will
have noted quite a change to our Annual Report. This year, for the first time, we
have endeavoured to give shareholders and other interested parties a lot more
information about what we do at Freightways. At the same time, we have started
to report on our environmental footprint, using the Sustainable Development Goals
developed by the United Nations. Our CEO will talk to you about work on
intensification of our network and fleet flexibility – work towards reducing our
environmental impact.

We have written about the importance of our people, including our independent
contractor network, to give insight into how these essential relationships work, and
how we value career advancement, reward and safety for all our people. We also
describe our work towards being a good corporate citizen, especially amongst the
communities we work in.

I would now like to speak briefly to some of the financial highlights of
Freightways’ 2018 year. I will then ask Mark Troughear to address you.

Slide 5. General highlights – 2018 – cover slide

Slide 6. General highlights - 2018

The latest full year’s results for the year ended 30 June 2018 reflect the ongoing
strength of the Freightways businesses.

The express package & business mail division delivered a solid result while it
continued to invest in capacity to handle current and future volume growth. Further
investment was also made in IT resources to accelerate system development and
project implementation.

The information management division saw earnings from its developing Australian
operations reach par with its New Zealand business, highlighting the division’s
success in leveraging a national footprint on each side of the Tasman to drive
current earnings and position it for further growth, including in particular its recent
expansion into the medical waste industry in Australia. Ongoing growth in the
division’s digital service offerings was underpinned by the winning of a major data
collection and transformation project which was successfully completed and is
leading to new opportunities in that space.

Slide 7. Financial highlights - 2018

This slide presents the reported 2018 result and the underlying trading result
compared to the prior comparative period, excluding the impact of non-recurring
items. EBITA refers to earnings (or operating profit) before interest, tax and
amortisation. NPAT refers to net profit after tax. EPS refers to earnings per share.

The 2018 non-recurring items are comprised of a non-taxable benefit of $1.6
million relating to reversing an accrued final acquisition payment no longer
expected to be required, and a non-taxable $1 million gain relating to recording the
replacement of earthquake-damaged racking funded by insurance proceeds. While
these non-recurring items are included in the full year financial statements
contained in your annual report, we believe for the purposes of assessing the
underlying year-on-year operational performance of Freightways, these one-off
items should be excluded and accordingly have been excluded for this presentation
and my commentary.

Consolidated operating revenue of $581 million for the 2018 full year was 6.5%
higher than the prior comparative period.

EBITA of $94 million was 4.9% higher than the prior comparative period.

Consolidated NPAT of $60 million was 5.3% higher than the prior comparative
period.

EPS for the full year (and again exclusive of non-recurring items) was 38.4 cents
per share, an improvement of 5.2% on the prior comparative period.

Overall, the full year result delivered year-on-year revenue, earnings and dividend
growth.

Slide 8. Express Package & Business Mail division - 2018 performance

As mentioned, this division produced a sound result, while investing in its network
capacity. Volume growth has led to supplementing the jet airfreight fleet with a
chartered Convair aircraft. Moving into larger facilities in Christchurch and
Auckland’s North Harbour is also reflective of volume growth and now positions
the division with quality capacity for the near to medium term.

In pursuit of this division’s stated objective to be a technology leader in its industry,
Freightways IT team was expanded and embraced an agile approach to project
management and deployment of IT-enabled solutions and initiatives. This saw
further improvement in Freightways internal systems and customer-facing
applications and is expected to support enhanced services and profitability in the
years ahead.

Also during the latest financial year, the express package businesses continued to
experience the ongoing shift in business mix toward Business to Consumer - or
B2C - deliveries, from the traditional core Business to Business - or B2B -
deliveries. A number of key strategies have been developed in regard to handling
the growing B2C deliveries and Mark Troughear will speak to these shortly.

Freightways’ business mail operator, DX Mail, had a challenging second half and
ultimately returned lower earnings compared to the prior year. Although DX Mail’s
volumes have grown overall, a change in business mix between high and low
margin mail has affected its level of earnings. There continues to be strong demand
for DX Mail’s overnight and 5-day per week delivery of standard-priced letters.

Year-on-year earnings growth for this division in 2018 was an excellent
contribution to Freightways results.

Slide 9. Information Management division - 2018 performance

A highlight for the Information Management division in 2018 was seeing all its
core brands improve their financial results compared to the prior year.

In respect of the physical storage of records and computer media, The Information
Management Group - or TIMG – improved the utilisation of its archive storage
sites on both sides of the Tasman and is still experiencing ongoing organic growth
in its customers’ box holdings. While computer tape volumes stored remained
robust, the activity of swapping out tapes with customers’ IT departments slowed
markedly. The growing range of digital services offered by TIMG saw increasing

revenue in 2018 and, as noted, the winning of a major data collection &
transformation project bolstered this part of TIMG’s business.

Secure document destruction revenues at TIMG in New Zealand and Shred-X in
Australia increased during 2018, but were also supplemented by growing revenue
from e-destruction, i.e. destroying computer hard drives and peripheral equipment.
The recent move into the medical waste industry in Australia, through an initial
acquisition in New South Wales, also delivered to expectations and bodes well for
the information management division’s future growth aspirations.

The information management division also made a solid contribution to
Freightways’ 2018 full year results.

Slide 10. Final Dividend - 2018

The Directors declared a final dividend of 15.25 cents per share, fully imputed,
which was paid at the start of this month. This represented a pay-out of
approximately $23.7 million compared with $22.9 million for the pcp; a 3.5%
increase. The full year’s dividend pay-out was in line with the Company’s dividend
policy of paying 75% of annual NPATA, excluding any non-cash, non-recurring
items.

The Dividend Reinvestment Plan - or DRP - was not offered in relation to this
dividend. As a capital management tool, the application of the DRP will continue
to be reviewed for each future dividend.

The strength of Freightways’ business models, the expertise of its people and the
positive features of the markets it operates in were once again evident in this full
year result.

The Directors acknowledge the outstanding work and ongoing dedication of the
Freightways team of people throughout New Zealand and Australia.

Slide 11. Corporate Governance

The New Zealand Stock Exchange released a new Corporate Governance Code in
2017 that took effect for Freightways for the first time during 2018. As a
responsible corporate citizen, Freightways is naturally in compliance with this new
Code. In addition, many of you may have already noticed Freightways has
revamped its website to make navigating to information about Freightways’
policies, and approach to governance, easier and clearer. I referred earlier to the
new look Freightways’ Annual Report released last month. If you haven’t seen the
latest Annual Report please take the time to view it on Freightways’ website. I
think you’ll find it informative.

I’ll now call on Freightways’ CEO, Mark Troughear, to address the meeting.

Slide 12. Freightways – Mark Troughear, Chief Executive Officer

B. CHIEF EXECUTIVE OFFICER’S REVIEW AND TRADING
UPDATE

Thanks Sue and thank-you ladies and gentlemen for coming along today.

Slide 13. Chief Executive Officer’s presentation agenda

− Business Strategy:
• Express Package & Business Mail
• Information Management
− ESG Initiatives
− Trading Update
− Outlook

Slide 14. Video

Slide 15. Express Package & Business Mail Brands

Slide 16. Express Package & Business Mail

1. Residential Network Review
− Assess the opportunities across our various brands to improve our delivery
density, productivity and courier earnings
− Our objective is to improve our residential delivery productivity by at least
5%

2. Pricing for Effort
− Recognise the lower density, the extra effort required, and therefore the cost
incurred, for delivering to residential addresses and price these items
accordingly.
− Our objective is to improve our pricing per item to fund higher courier pay
as well as to improve B2C margins

Slide 17. Express Package & Business Mail (continued)

3. Visibility and Data Analytics
− Improve visibility for customers and receivers on the progress of their
deliveries and improve reporting on every aspect of our business for our
teams.
− Our objective is to improve customer and receiver satisfaction and enable
our teams with accurate and timely data to improve efficiency and service
quality

Slide 18. Information Management Brands

Slide 19. Information Management

1. Facility Utilisation
− Warehouse utilisation was 61% in Australia and 81% in NZ at the end of
2018.
− Our Objective 83% NZ FY19, 70% AU FY19

Slide 20. Information Management (continued)

2. Growth in Digital Services
− Invest in further sales & marketing resource to be able to scale-up our digital
revenue streams, which are currently circa 10% of revenue for this division
− Our goal is to grow the revenue for these services and, through that scale,
drive improved EBITA margins

3. Secure Destruction / Medical Waste
− Develop the niches within Secure Destruction and Medical Waste through
start-ups, alliances and acquisitions to provide a national, high quality
service offering to our customers
− Our goal is to establish a new arm of growth for Freightways

Slide 21. Acquisitions and Alliances

1. Acquisitions completed in 2018
− Bolt-on Secure Destruction business in NSW
− Records Management business in VIC
− Medical Waste business in NSW which allows us to establish a starting point
in medical and sanitary collection and disposal services

2. Acquisitions completed in Q1, 2019
− Bolt-on Secure Destruction business in WA
− Medical Waste business in VIC
− 75% share in a Digital Online back-up business servicing NZ & Australia

3. Continue to explore opportunities to add bolt-on acquisitions to current lines
of business, as well as acquisitions which are complementary to our business
model

Slide 22. ESG Initiatives (chart)

1. Matrix

Slide 23. ESG Initiatives
2. Materiality assessment:
− SDG 3 Good health and well-being
− SDG 8 Decent work and economic growth
− SDG 9 Industry, innovation and infrastructure
− SDG 13 Climate action
− SDG 16 Peace, justice and strong institutions


Slide 24. ESG Initiatives

3. Highlights
− SDG 3: Installed Guardian Seeing Machines into the cabs of our linehaul
fleet
− SDG 8: Implemented a programme to provide a pathway for School leavers
and long term unemployed into the workforce
− SDG 8: Implemented Employee Assistance Programme across NZ and AU
− SDG 8: Implemented The Movement Wellbeing campaign across Post Haste
− SDG 9: Census (TIMG NZ), Express Refrigerated Services (MSL),
InMotion (DAP)
− SDG13: Introduction of a fleet of 737’s achieved significantly lower
emissions
− SDG 16: New annual report format, commitment to increasing non financial
measures

Slide 25. Key Sustainable Developmental Goals

4. Courier earnings (SDG 8)
− Average courier revenue = NZ$95,000 per annum
− Significant improvements to point-to-point and residential incomes over the
past 6 months
− Trial of a new courier pay model at Post Haste
− Aspiration that couriers earn superior incomes

Slide 26. Q1 Trading Update Cover Page

Slide 27. Q1 Consolidated Performance

Consolidated operating revenue of $155.1million was 8.3% higher than the prior
comparative period.

EBITDA of $27.6 million and EBITA of $23.9million were 2.5% and 1.4% higher
than the prior comparative period, respectively.

Consolidated NPATA of $15.6 million and NPAT of $15.1 million were both 0.2%
higher than the prior comparative period.

Slide 28. Q1 Express Package & Business Mail

Slide 29. Q1 Information Management

Slide 30. Outlook

1. Increased demand for services in both divisions
2. Continue to target year on year earnings growth for FRE
3. Expect by the end of 2019 that our pricing and efficiency initiatives for B2C
are gaining traction
4. Investing for the future in terms of IT, sales and marketing resource
5. Capital expenditure of $20-22m forecast for 2019
6. Continue to explore complementary acquisition opportunities

Thank-you.

(CLOSE OF MEETING)

Before I bring the meeting to a close, I would like to thank shareholders for their
support over the 15 years I have been first a director since the IPO in 2003, and
then as Chairman from 2010 to date. Freightways demonstrates that length of
service alone is not a sufficient measure of the effectiveness of either executives or
the Board. In assessing succession, shareholders should instead look to
performance, strategy, the management of risk, future thinking and the overall mix
and depth of capability to determine the effectiveness of senior management and
governance.

Since listing in 2003, Freightways can demonstrate listing at a market price of
$1.60 vs the latest price of around $7.30, market capitalisation at listing of $200m
vs capitalisation today in excess of $1bn and a compound annual growth rate in
excess of 14%.

It has been gratifying to transition the leadership of the business to Mark as CEO
over the last year. He is making great progress with his team, and focussing on the
future, innovation and efficiency with the strong disciplines established previously
under Dean Bracewell’s leadership.

It is now time for the leadership of the Board to also transition in line with the
Board’s succession plan. I am delighted that the Board has chosen Mark Verbiest
as its Chairman going forward. Mark is a very experienced director and Chair,
having already chaired one of New Zealand’s largest listed companies. In view of
Mark’s deep knowledge of the Freightways business and his understanding of its
market environment, I am sure that the transition will be seamless, and that Mark
will continue to be a prudent steward of your investment.

I will now invite Mark Verbiest to speak to you briefly on his intentions as
Chairman, and then to close the meeting.

Mark Verbiest to acknowledge Sue Sheldon’s contribution.

I now bring the meeting to a close and invite you to join your Directors and the
Freightways Executive Team for some light refreshments.

Thank-you.