Half Year Results to 31 December 2021 and Interim Dividend

Results for announcement to the market
Name of issuer FREIGHTWAYS LIMITED
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$441,985 8%
Total Revenue $441,985 8%
Net profit/(loss) from
continuing operations
$43,670 104%
Total net profit/(loss) $43,670 104%
Interim Dividend
Amount per Quoted Equity
Security
$0.25000000
Imputed amount per Quoted
Equity Security
$0.07000000
Record Date 11 March 2022
Dividend Payment Date 1 April 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$(0.80) $(0.88)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the section “Half Year Review” for commentary.
Authority for this announcement
Name of person

authorised
to make this announcement
Stephan Deschamps
Contact person for this
announcement
Stephan Deschamps
Contact phone number +64 27 562 5666
Contact email address stephan.deschamps@freightways.co.nz
Date of release through MAP

21 February 2022

Unaudited financial statements accompany this announcement.

---

Section 1: Issuer information
Name of issuer Freightways Limited
Financial product name/description Fully Paid Ordinary Shares
NZX ticker code FRE
ISIN (If unknown, check on NZX
website)
NZFREE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 11 March 2022
Ex-Date (one business day before the
Record Date)
10 March 2022
Payment date (and allotment date for
DRP)
1 April 2022
Total monies associated with the
distribution
1

$29,845,000
Source of distribution (for example,
retained earnings)
Current earnings for the year ending 30 June 2022
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.25000000
Gross taxable amount
3
$0.25000000
Total cash distribution
4
$0.18000000
Excluded amount (applicable to listed
PIEs)
$-
Supplementary distribution amount $0.03176471
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.07000000

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Resident Withholding Tax per
financial product
$0.01250000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Stephan Deschamps
Contact person for this
announcement
Stephan Deschamps
Contact phone number +64 27 562 5666
Contact email address stephan.deschamps@freightways.co.nz
Date of release through MAP

21 February 2022

---

FREIGHTWAYS LIMITED














Half Year Report
December 2021

1
HALF YEAR REVIEW
From the Chairman and Chief Executive Officer

Freightways’ business model again demonstrated its resilience as both NZ and Australia operated in various
states of lockdown or restrictions for much of the first half of FY22. Throughout level 4 lockdown in NZ and
in particular during the extended lockdown of Auckland, we continued to see express package and information
management activity decrease materially as businesses were forced to remain closed. Those express package
volumes then rebounded strongly as online shopping was permitted and NZ began to slowly re-open for
business-to-business freight. Australia also experienced material lockdowns, initially in Victoria, but then
eventually across all states in some form. While this hindered core information management activity, it
provided an opportunity for our burgeoning medical waste business which benefitted from extremely strong
customer demand.
Our “half of two quarters” has delivered pleasing top-line revenue growth of 7.7%, EBITA growth of 5.6%
and NPAT growth of 7.4% (before changes in the fair value of contingent consideration for the Big Chill earn
out). We are also pleased that this was achieved whilst remaining focused on the health and safety of our people
in what has been a particularly challenging period to operate in.
While the first quarter of the year was challenging with revenue and EBITA down by 4.1% and 9.2%
respectively primarily due to the financial impact of lockdowns, the second quarter generated revenue growth
of 20.3% and EBITA growth of 20%, as the network benefitted from a surge in volumes for express courier
items and perishables carried through our Big Chill network; a material increase in the amount of medical
waste which required collection and processing in Australia; and an increase in Business Process Outsourcing
activity within information management. Revenue growth in these three areas was driven by a combination of
organic growth, market share gains and improved pricing versus the same period last year.
During the half year, we also announced the acquisition of ProducePronto which complements Big Chill with
its same-day temperature-controlled delivery and 4PL capabilities. We also announced a $2.7 million
investment in SaveBoard: a building product made from packaging waste such as courier satchels and TetraPak
cartons. The plant has produced over 13,000m2 of board for a building sector that welcomed the introduction
of 100% recycled building products.
Freightways is well positioned to take advantage of the opportunities that are in front of us with loyal
customers, high-performing businesses, a strong balance sheet as well as experienced and adaptable customer-
focused teams.
The Board has announced an interim dividend of 18 cents for the first half of the year, based on the strong
performance of the businesses.
Divisional performance
Each division’s key features are listed below for HY22.
Express Package & Business Mail
• Strong volume growth from new and existing customers after the level 4 lockdown. The express package
& business mail division was successful in winning market share and helping new-to-market customers
with their logistics needs. This resulted in 7.2% improvement in revenue over the same period last year.
• B2C deliveries also contributed positively to revenue and contractor incomes, without weighing on
margins. B2C deliveries increased by 16% over the pcp with peaks during level 2 and 3 lockdowns
establishing a sustainable higher base volume for 2022.
• Pricing For Effort (PFE) peaked at $1.41 per item by December, which has assisted courier income to
grow by an average of 8.4% on the pcp.
• Volumes placed pressure on existing facilities at the very end of 2021 and, as a result, the EP brands will
add further capacity in South Auckland and Christchurch in 2022.

2
• Big Chill 3PL utilisation approached 95% for the Auckland facility. We have committed to a new 16,000
pallet facility in Tainui’s Ruakura logistics hub which should be ready for completion by July 2023.
• DX Mail volumes were up 3% on the pcp despite the impact of lockdowns.
• Labour costs are forecast to increase in 2022 as the labour market further tightens and the new minimum
wage pushes up the overall base rates for labour. We expect to recover these costs in the pricing strategies
we will execute over the coming year, to ensure we have the right level of resource and capability so our
customers to continue to receive the levels of service they have come to expect.

Information Management & Waste Renewal
• The first half year was characterised by solid revenue and strong earnings gains for the division, off the
back of digitisation wins and extremely strong medical waste volumes at premium rates.
• We achieved incremental gains in storage volume through the half year even though the main metro
markets are still challenged by Covid-related disruption to their businesses.
• There were a number of contracts signed for digitalisation revenue for FY22 and FY23 on both sides of
the Tasman representing $10 million and $21 million respectively.
• Our litigation support services –print and eDiscovery – operated at lower levels for most of the HY due to
customers predominantly working from home over that period.
• Document destruction volumes were steady at slightly higher levels of paper pricing during the HY.
• Medical waste revenue increased by 67% on the pcp as Covid required many more sites to be serviced.
While we expect some of that pricing to moderate over the second half of the year revenue for FY22 should
exceed $20 million for the first time for the full year which would represent a 7x fold increase on the small
business we acquired in 2018.

Balance sheet strength
Capital expenditure for FY22 is forecast to be in a range of $24-26 million and invested in a number of IT
development projects, medical waste plant, replacement of vehicles and freight handling equipment. Thanks
to strong cash flow generation, our gearing has continued to reduce as expected following the Big Chill
acquisition. We remain committed to a solid investment-grade credit profile.
Director Movements
After over 11 years on the Board, Mark Verbiest, the current Chair of the Board of Directors, has announced
that he will be retiring from the Board with effect from 31 March 2022. Mark joined Freightways Limited as
an independent director in 2010 and has been Board Chair since June 2018.
Mark’s strong commercial acumen, knowledge of Freightways and broad experience as a listed company chair,
have supported Freightways’ development in particular over the past 3 years. Mark has been a key figure in
the expansion of Freightways’ interests into temperature-controlled freight and waste renewal as well as a
steady hand as the company navigated the challenges of Covid-19.
The Board has unanimously resolved to appoint Mark Cairns to replace Mark Verbiest upon his retirement.
Mark joined the Board of Freightways as an independent director in April 2021. He has been Chief Executive
of Port of Tauranga, New Zealand’s largest and most successful port, since 2005, retiring in June 2021 to
pursue a full-time governance career.
The Board has also appointed David Gibson to the Board of Freightways, effective on 1 April 2022. David
will stand for election at the Annual Shareholders Meeting currently scheduled to be held on 27 October 2022.
David is a professional director and investor. His current directorships include the NZX listed companies
Trustpower, Goodman (NZ) Limited and NZME Limited.
His background is in finance with a 20-year
career in investment banking having held senior positions and governance roles with Deutsche Bank
and Deutsche Craigs, in New Zealand. He holds a Bachelor of Laws (Honours) and Bachelor of
Commerce from the University of Canterbury. He is actively involved with several New Zealand
growth companies.

3
Outlook
Whilst the economic climate remains uncertain, we are encouraged by the strong trade in express package and
the resilience of our information management businesses, as demonstrated in our results in HY22. The second
quarter delivered strong volume growth after the lockdowns of August and September. Much of this growth
was from profitable delivery of B2C and this higher level of volume will be supported by further investment
in facilities in Auckland and Christchurch.
We do however expect that the impact of Covid-19 will continue in this financial year through:
• Higher volumes of home delivery (B2C) during periods of higher in-home isolation;
• Potential restrictions to either our customer's businesses or our own networks as Omicron forces;
workers into isolating, all in the context of a very tight labour market.
We will continue to target revenue and earnings growth in FY22 and we have plans in place to adapt to:
• A tight labour market putting upward pressure on labour costs,
• The impact of Omicron in AU & NZ;
• A constrained supply chain which could continue to disrupt the flow of goods coming in NZ
and ultimately impact the volumes we receive from our customers.
We will continue to review the portfolio of services we provide with a view to delivering superior long-term
value to shareholders through short, medium and long-term initiatives.
The company will continue to consider acquisition opportunities that are complementary to our
existing operations and capabilities.
The Freightways directors would again like to acknowledge the efforts of every one of our team across
Australasia during what have been and remain highly challenging times.







Mark Verbiest Mark Troughear
Chairman Chief Executive Officer

21 February 2022

6

FREIGHTWAYS LIMITED
CONSOLIDATED INCOME STATEMENT
for the half year ended 31 December 2021 (unaudited)



Note
6 mths
ended
31 Dec 2021
$000
6 mths
ended
31 Dec 2020
$000
(restated)
Variance
%

Operating revenue
4 & 5
441,985 410,332 8%




Transport and logistics expenses

(173,419) (162,216) 7%
Employee benefits expenses

(126,362) (112,667) 12%
Occupancy expenses

(3,310) (3,585) (8%)
General and administrative expenses
2
(36,566) (32,627) 12%
Change in fair value of contingent consideration – Big
Chill Distribution Limited
10 - (19,200) (100%)
Depreciation and software amortisation
2
(27,883) (28,761) (3%)
Amortisation of intangibles

(3,861) (3,791) 2%
Operating profit before interest and income tax
4
70,584 47,485 49%
Net interest and finance costs

(10,068) (11,222) (10%)
Profit before income tax

60,516 36,263 67%
Income tax

(16,846) (14,814) 14%
Profit for the period

43,670 21,449 104%



Profit for the period attributable to:


Owners of the parent

43,625 21,412 104%
Non-controlling interests

45 37 22%


43,670 21,449 104%



Earnings per share for the period*:


Basic earnings per share (cents)

26.4 13.0
Diluted earnings per share (cents)

26.3 12.9

*Basic and diluted earnings per share for the 6 months ended 31 December 2020 calculated on the profit for the
period attributable to shareholders, excluding Change in fair value of contingent consideration – Big Chill
Distribution Limited, are 24.6 cents and 24.5 cents, respectively.





The above Income Statement should be read in conjunction with the accompanying notes.

7


FREIGHTWAYS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half year ended 31 December 2021 (unaudited)


6 mths ended
31 Dec 2021
$000
6 mths ended
31 Dec 2020
$000
(restated)

Profit for the period 43,670 21,449

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of foreign operations
(554) (2,817)
Cash flow hedges taken directly to equity, net of tax
1,490 (701)
Total other comprehensive income after income tax 936 (3,518)

Total comprehensive income for the period 44,606 17,931

Total comprehensive income for the period is attributable to:
Owners of the parent 44,561 17,894
Non-controlling interests 45 37
44,606 17,931



The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

FREIGHTWAYS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year ended 31 December 2021 (unaudited)

GROUP

Contributed
equity
Retained
earnings
Cash flow
hedge
reserve
Foreign
currency
translation
reserve
Non-
controlling
interests
Total equity
$000 $000 $000 $000 $000 $000
Balance at 1 July 2021 182,571 166,643 (1,195) (6,945) 148 341,222
Impact of restating accounting treatment of cloud
computing arrangement
2 - (3,129) - - - (3,129)
Restated Balance at 1 July 2021 182,571 163,514 (1,195) (6,945) 148 338,093
Profit for the period - 43,625 - - 45 43,670
Exchange differences on translation of foreign operations - - - (554) - (554)
Cash flow hedges taken directly to equity, net of tax - - 1,490 - - 1,490
Total Comprehensive Income - 43,625 1,490 (554) 45 44,606
Dividend payments - (29,833) - - - (29,833)
Shares issued 1,301 - - - - 1,301
Balance at 31 December 2021 183,872 177,306 295 (7,499) 193 354,167

Balance at 1 July 2020 180,630 142,746 (2,075) (4,635) 114 316,780
Impact of restating accounting treatment of cloud
computing arrangement
2 - (1,382) - - - (1,382)
Restated Balance at 1 July 2020 180,630 141,364 (2,075) (4,635) 114 315,398
Profit for the period (restated) - 21,412 - - 37 21,449
Exchange differences on translation of foreign operations - - - (2,817) - (2,817)
Cash flow hedges taken directly to equity, net of tax - - (701) - - (701)
Total Comprehensive Income (restated) - 21,412 (701) (2,817) 37 17,931
Shares issued 1,391 - - - - 1,391
Balance at 31 December 2020 (restated) 182,021 162,776 (2,776) (7,452) 151 334,720


The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

FREIGHTWAYS LIMITED
CONSOLIDATED BALANCE SHEET
as at 31 December 2021 (unaudited)


Notes
As at
31 Dec 2021
$000
As at
31 Dec 2020
$000
(restated)
As at
30 Jun 2021
$000
(restated)
Current assets
Cash and cash equivalents 28,815 27,437 19,940
Trade and other receivables 130,822 106,989 103,947
Inventories 8,248 6,708 -
Contract assets 1,381 - -
Income tax receivable - - 7,438
Total current assets 169,266 141,134 131,325

Non-current assets
Trade receivables and other non-current assets 4,209 7,421 6,825
Property, plant and equipment 128,719 131,227 128,338
Right-of-use assets 261,789 273,220 275,849
Intangible assets 2 499,942 496,611 491,374
Derivative financial instruments 622 - -
Investment in associates 9,899 7,692 7,510
Total non-current assets 905,180 916,171 909,896
Total assets 1,074,446 1,057,305 1,041,221

Current liabilities
Trade and other payables 167,598 100,747 102,944
Borrowings (secured) 7 - 3,861 -
Lease liabilities 31,276 38,602 31,078
Income tax payable 5,389 19,564 11,982
Provisions 1,647 1,638 1,562
Derivative financial instruments 213 422 1,082
Contract liability 14,740 14,925 14,593
Total current liabilities 220,863 179,759 163,241

Non-current liabilities
Trade and other payables 3,792 46,798 51,352
Borrowings (secured) 7 182,160 176,744 163,696
Deferred tax liability 38,470 40,493 36,726
Provisions 6,999 6,519 6,979
Lease liabilities 267,995 268,838 280,557
Derivative financial instruments - 3,434 577
Total non-current liabilities 499,416 542,826 539,887
Total liabilities 720,279 722,585 703,128
NET ASSETS 354,167 334,720 338,093

EQUITY
Contributed equity 6 183,872 182,021 182,571
Retained earnings 2 177,306 162,776 163,514
Cash flow hedge reserve 295 (2,776) (1,195)
Foreign currency translation reserve (7,499) (7,452) (6,945)
353,974 334,569 337,945
Non-controlling interests 193 151 148
TOTAL EQUITY 6 354,167 334,720 338,093



The above Balance Sheet should be read in conjunction with the accompanying notes.

10
FREIGHTWAYS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half year ended 31 December 2021 (unaudited)



6 mths
ended
31 Dec 2021
$000
6 mths
ended
31 Dec 2020
$000


Inflows
(Outflows)
Inflows
(Outflows)
Cash flows from operating activities


Receipts from customers

421,147 405,524
Payments to suppliers and employees

(332,176) (301,907)
Cash generated from operations

88,971 103,617
Interest received

14 18
Interest and other costs of finance paid

(9,718) (11,042)
Income taxes paid

(23,301) (17,147)
Net cash inflows from operating activities

55,966 75,446



Cash flows from investing activities


Payments for property, plant & equipment

(6,800) (6,112)
Payments for software

(2,099) (3,163)
Proceeds from disposal of property, plant & equipment

157 93
Payments for businesses acquired (net of cash acquired)

(12,070) 16
Payments for investment in associates

(910) -
Receipts from joint venture

766 1,450
Cash flows from other investing activities

(117) (63)
Net cash outflows from investing activities

(21,073) (7,779)



Cash flows from financing activities


Dividends paid

(29,833) -
Increase (decrease) in bank borrowings

19,472 (40,717)
Proceeds from issue of ordinary shares

318 423
Principal elements of lease payments

(15,867) (16,645)
Net cash outflows from financing activities

(25,910) (56,939)



Net increase in cash and cash equivalents

8,983 10,728
Cash and cash equivalents at the beginning of the period

19,940 16,686
Exchange rate adjustments

(108) 23
Cash and cash equivalents at the end of the period

28,815 27,437



The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)

11

1. Basis of Preparation

The interim financial statements are those of Freightways Limited (the ‘Company’) and its subsidiary
companies (together with the Company, referred to as the ‘Group’). The Company is registered under the
Companies Act 1993 and is an FMC Reporting Entity under Part 7 of the Financial Markets Conduct Act
2013. The financial statements of the Group have been prepared in accordance with the requirements of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.

The financial statements are stated in New Zealand dollars and rounded to the nearest thousand, unless
otherwise indicated.

The consolidated financial statements of the Group have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with New Zealand Equivalent to
the International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34) and International
Accounting Standard 34: Interim Financial Reporting (IAS 34) and consequently, do not include all the
information required for full financial statements. These condensed Group interim financial statements
should be read in conjunction with the annual report for the year ended 30 June 2021.

The Group is designated as a for-profit entity for the purposes of complying with NZ GAAP.


2. Significant Accounting Policies

Other than Accounting Treatment for Cloud Computing Arrangements described below, the accounting
policies and methods of computation are consistent with those used in the most recent annual report.

Accounting Treatment of Cloud Computing Arrangements

The Group previously capitalised costs incurred in configuring or customising certain suppliers’ application
software in certain cloud computing arrangements as intangible assets, as the Group considered that it would
benefit from those costs to implement the cloud-based software over the expected terms of the cloud
computing arrangements. Following the International Financial Reporting Standards Interpretations
Committee (IFRIC) agenda decision on Configuration or Customisation Costs in a Cloud Computing
Arrangement in March 2021 (ratified by the International Accounting Standards Board (IASB) in April
2021), the Group has completed a review of these capitalised costs to determine whether they would need to
be expensed or reclassified as prepayments. The IFRIC concluded that costs incurred in configuring or
customising software in a cloud computing arrangement can be recognised as intangible assets only if the
activities create an intangible asset that the entity controls and the intangible asset meets the recognition
criteria. Costs that do not result in intangible assets are expensed as incurred, unless they are paid to the
suppliers of the cloud-based software to significantly customise the cloud-based software for the Group, in
which case the costs paid upfront are recorded as prepayments for services and amortised over the expected
terms of the cloud computing arrangements.

As a result of this change in accounting policy, the Group has determined that certain costs relating to the
implementation of cloud-based software would need to be expensed when they were incurred, as the amounts
were paid to third parties who were not subcontracted by the supplier of the cloud-based software and did
not create separate intangible assets controlled by the Group, or significantly customise the cloud-based
software for the Group.

The change in policy has been applied retrospectively and comparative information has been adjusted. The
impact on the consolidated financial statements is as follows:

• General and administrative expenses in the consolidated income statement for the half year ended 31
December 2020 has increased by $0.6 million.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


12
• Depreciation and software amortisation in the consolidated income statement for the half year ended 31
December 2020 has decreased by $0.05 million.
• Intangible assets in the consolidated balance sheet at 31 December 2020 and 30 June 2021 have reduced
by $1.9 million and $3.1 million, respectively.
• Retained earnings in the consolidated balance sheet at 31 December 2020 and 30 June 2021 have
reduced by $1.9 million and $3.1 million, respectively.
• Earnings per share for the half year ended 31 December 2020 has reduced from 13.3 cents per share to
13.0 cents per share.
• Net tangible assets per security as at 31 December 2020 has reduced from ($0.88) to ($0.89).


3. Impact of COVID-19

On 18 August 2021, New Zealand entered an alert level 4 lockdown. Freightways businesses are deemed to
provide essential services in New Zealand and have well established protocols to ensure that all staff and
contractors can operate safely under all alert levels. However, under alert level 4, activity levels are
significantly impacted across all the New Zealand businesses. The move from level 4 to level 3 in September
2021, and later to the traffic lights framework, saw the express package businesses recover quickly and
experienced a significant increase in volumes. The information management business activities are weaker
during lockdown but not at a material level during the half year.

During the half year, parts of Australia have seen increased restrictions because of a resumption of COVID-
19 cases. This has not had an adverse impact on the Group’s business activities.

The risk of a resurgence and new variants of COVID-19 in New Zealand or Australia creates a continued
level of uncertainty, although Freightways’ businesses are now well prepared to operate efficiently in
different COVID-19 environments.


4. Segment Reporting

(a) Description of segments


A segment is a component of the Group that can be distinguished from other components of the Group by
the products or services it sells, the primary market it operates in and the risks and returns applicable to it.
Operating segments are reported upon in a manner consistent with the internal reporting used by the Chief
Executive Officer, as the chief operating decision maker, and the Board for allocating resources, assessing
performance and strategic decision making.

The Group is organised into the following reportable operating segments:

Express package & business mail
Comprises network (hub & spoke) courier, refrigerated transport, point-to-point courier and postal services.

Information management
Comprises secure paper-based and electronic business information management services.

Corporate and other
Comprises corporate, financing and property management services.

The Group has no individual customer that represents more than 4% of external sales revenue.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


13
(b) Segment analysis

Express
package &
business
mail
Information
management
Corporate Inter-
segment
elimination
Consolidated
operations
$000 $000 $000 $000 $000
Half year ended
31 December 2021


Sales to external customers 350,197 91,788 - - 441,985
Inter-segment sales 928 (1,772) 4,170 (3,326) -
Total revenue 351,125 90,016 4,170 (3,326) 441,985

Operating profit (loss) before
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 76,292 29,289 (3,253) - 102,328
Depreciation and software
amortisation (16,447) (10,670) (766) - (27,883)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles 59,845 18,619 (4,019) - 74,445
Amortisation of intangibles,
excluding software amortisation (2,737) (1,124) - - (3,861)
Operating profit (loss) before
interest and income tax 57,108 17,495 (4,019) - 70,584
Net interest and finance costs (3,037) (2,380) (4,651) - (10,068)
Profit (loss) before income tax 54,071 15,115 (8,670) - 60,516
Income tax (14,797) (4,497) 2,448 - (16,846)
Profit (loss) for the period
attributable to the shareholders 39,274 10,618 (6,222) - 43,670

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


14
Segment Reporting (continued)

Express
package &
business
mail
Information
management
Corporate Inter-
segment
elimination
Consolidated
operations
$000 $000 $000 $000 $000
(restated) (restated)
Half year ended
31 December 2020


Sales to external customers 325,300 84,997 35 - 410,332
Inter-segment sales 2,383 (81) 2,428 (4,730) -
Total revenue 327,683 84,916 2,463 (4,730) 410,332

Operating profit (loss) before
change in fair value of
contingent consideration,
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 73,876 26,485 (1,124) - 99,237
Change in fair value of
contingent consideration – Big
Chill Distribution Limited (Note
10) - - (19,200) - (19,200)
Operating profit (loss) before
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 73,876 26,485 (20,324) - 80,037
Depreciation and software
amortisation (16,947) (10,883) (931) - (28,761)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles 56,929 15,602 (21,255) - 51,276
Amortisation of intangibles,
excluding software amortisation (2,640) (1,151) - - (3,791)
Operating profit (loss) before
interest and income tax 54,289 14,451 (21,255) - 47,485
Net interest and finance costs (3,201) (2,458) (5,563) - (11,222)
Profit (loss) before income tax 51,088 11,993 (26,818) - 36,263
Income tax (14,158) (3,520) 2,864 - (14,814)
Profit (loss) for the period
attributable to the shareholders 36,930 8,473 (23,954) - 21,449

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


15
5. Revenue from Contracts with Customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the
following major product lines:


Express
Package &
Refrigerated
Transport
Postal Storage &
Handling
Destruction
Activities
Other Total
Half year ended
31 December 2021
$000 $000 $000 $000 $000 $000
Revenue from external
customers
321,299 23,762 29,807 42,015 25,102 441,985
Timing of revenue
recognition:

At a point in time - 1,335 - 10,775 5,761 17,871
Over time 321,299 22,427 29,807 31,240 19,341 424,114
321,299 23,762 29,807 42,015 25,102 441,985

Half year ended
31 December 2020

Revenue from external
customers
295,974 24,835 30,042 35,545 23,936 410,332
Timing of revenue
recognition:

At a point in time - 1,407 - 9,919 5,047 16,373
Over time 295,974 23,428 30,042 25,626 18,889 393,959
295,974 24,835 30,042 35,545 23,936 410,332


6. Equity


Contributed equity

Fully paid ordinary shares
As at 31 December 2021, there were 165,803,446 fully paid ordinary shares on issue (2020: 165,538,104).
All fully paid ordinary shares have equal voting rights and share equally in dividends and surplus on winding
up.

Share rights
On 24 November 2021, 94,370 share rights were issued to certain senior executives under the rules of the
Freightways Long Term Incentive (LTI) Scheme (2020: 308,268). The LTI Scheme offers share rights to
senior executives, with vesting determined at the end of a 3-year vesting period. Vesting is subject to the
achievement of certain financial hurdles set by the Board and included in the annual offer of participation
to executives. Each share right converts to one Freightways fully paid ordinary share upon vesting. Share
rights do not carry a dividend entitlement and are non-transferable.

As at 31 December 2021, there were 402,638 share rights on issue (2020: 308,268).

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


16

Partly-paid ordinary shares, fully paid up to ordinary shares
On 31 August 2021, 200,342 partly-paid shares were fully paid-up by certain Freightways senior executives
upon the achievement of agreed performance targets in accordance with the terms of the original issue of
the relevant partly-paid shares under the Freightways Senior Executive Performance Share Plan (2020: Nil).
The average issue price per share was $7.43 (2020: Nil).

As at 31 December 2021, there were no partly-paid ordinary shares on issue (2020: 200,342). Partly-paid
ordinary shares have no voting rights and no rights to dividends and surplus on winding up.


Employee share plan
On 24 December 2021, the Company issued 65,000 fully paid ordinary shares at $11.49 each to Freightways
Trustee Company Limited, as Trustee for the Freightways Employee Share Plan (2020: 125,000 fully paid
ordinary shares at $6.64 each). In total, participating employees were provided with interest-free loans of
$0.7 million to fund their purchase of the shares in the Share Plan (2020: $0.8 million). The loans are
repayable over three years and repayment commenced in January 2022.


7. Borrowings (secured)

As at 31 December 2021, the Group’s debt facilities with its banking syndicate comprised NZ$150 million
and A$80 million (2020: NZ$213.5 million and A$90.4 million), of which NZ$71 million and A$35.2
million (2020: NZ$69 million and A$61.7 million) had been drawn, respectively.

In March 2021, the Group entered into a US$160 million uncommitted finance facility with a US-based
lender on the same terms as the banking syndicate. Of this facility, the US dollar equivalent of NZ$20
million and A$50 million were drawn as at 31 December 2021.

The Group had an undrawn bank overdraft facility of NZ$8 million available (2020: NZ$8 million).

The Group was in compliance with all its banking covenants throughout this financial period.


8. Transactions with Related Parties

Trading with related parties: The Group has not entered into any material external related party
transactions which require disclosure. The Group does trade, on normal commercial terms, with certain
companies in which there are common directorships. These counterparties include Z Energy Limited and
Sanford Limited.


Payments to associate: During the period, the Group paid Parcelair Limited $7.5 million (2020: $7.5
million) for the provision of airfreight linehaul services to the express package businesses on normal
commercial terms. Parcelair Limited is incorporated in New Zealand and is half-owned by the Group.

Key management compensation: Compensation paid during the period (or payable as at 31 December
2021 in respect of the half year) to key management, which includes senior executives of the Group and
non-executive independent directors, is as follows:



2021
$000
2020
$000
Short-term employee benefits 7,126 3,530
Share-based payments 554 651

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


17


Short-term employee benefits paid during the period is higher than prior comparative period due
predominantly to:
• partly-paid shares being fully paid-up by certain Freightways senior executives during the half year
ended 31 December 2021 upon achievement of agreed performance targets in accordance with the terms
of the Freightways Senior Executives Performance Share Plan. The performance targets were not met
in the prior comparative period and none of the partly-paid shares vested.
• short-term incentives for the year ended 30 June 2020 paid to key management during the six months
ended 31 December 2020 was low as the financial performance in the second half of the year ended 30
June 2020 was adversely impacted by COVID-19.

9. Financial Risk Management

The Group has a treasury policy which is used to assist in managing foreign exchange and interest rate risks.
The interim financial statements do not include all financial risk management information and disclosures
and should be read in conjunction with the Group’s annual financial statements as at 30 June 2021 contained
in its Annual Report, which can be obtained from the Company’s registered office or www.freightways.co.nz.

There have been no significant changes in the Group’s risk management objectives and policies since 30
June 2021.

In the period to 31 December 2021 there were no significant changes in the business or economic
circumstances that affect the fair value of the Group’s financial assets and financial liabilities.

Fair values and valuation techniques
The Group uses various methods in estimating the fair value of financial instruments. The methods comprise:

Level 1 - Quoted prices (adjusted) in active markets for identical assets or liabilities at the reporting date. A
market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis.
Level 2 - Inputs that are observable for the asset or liability, either directly (i.e., as prices; other than quoted
prices referred to in Level 1 above) or indirectly (i.e., derived from prices). The fair value of
financial instruments that are not traded in an active market (for example, over-the-counter
derivatives and US Private Placement (USPP)) is determined by using valuation techniques. These
valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on entity specific estimates. If all significant inputs required to fair value an
instrument are observable, the fair value of an instrument is included in Level 2.
Level 3 - Inputs for the asset or liability that are not based on observable market data (i.e., unobservable
inputs). In these cases, the fair value of an instrument would be included in Level 3.

Specific valuation techniques used to value financial instruments include:
• In respect of interest rate swaps, the fair value is calculated as the present value of the estimated future
cash flows based on observable yield curves;
• In respect of forward foreign exchange contracts, the fair value is calculated using forward exchange
rates at the balance sheet date, with the resulting value discounted back to present value;
• In respect of USPP, the fair value is calculated on a discounted cash flow basis using the USD Bloomberg
curve and applying discount factors to the future USD interest payment and principal payment cash
flows; and
• discounted cash flow analysis for other financial instruments.

Specific valuation techniques used to value contingent consideration in a business combination and estimated
purchase price adjustments include:
• fair value is calculated as the present value of the estimated future cash flows based on management’s
assessment of future performance; and
• management’s knowledge of the business and the industry it operates in.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


18
The Group’s derivative financial instruments and USPP are all Level 2 financial instruments. Contingent
consideration in a business combination and estimated purchase price adjustments are all Level 3 financial
instruments. There have been no transfers between levels of the fair value hierarchy used in measuring the
fair value of financial instruments in the period to 31 December 2021.

There have been no reclassifications of financial assets and finance liabilities since 30 June 2021.

The carrying value of the following financial assets and liabilities approximate their fair value:
• cash and cash equivalents
• trade and other receivables
• trade and other payables
• bank borrowings


10. Business Combinations

Acquisition of ProducePronto (PP)

Effective 1 November 2021, the Group acquired the business and assets of PP for an initial consideration of
approximately $12.1 million and future earn-out of up to $3.8 million over 3 years. PP operates fourth party
logistics (4PL) services with 365 day/year, same-day fresh and frozen delivery to convenience outlets
nationally and businesses across Auckland. This acquired business operates within the Group’s express
package & business mail division.

The contribution of PP to the Group results for the half year ended 31 December 2021 was revenue of $1.2
million and operating profit before interest, income tax and amortisation of intangibles of $0.2 million. If
this acquisition had occurred at the beginning of the half year, the contribution to revenue and operating
profit before interest, income tax and amortisation of intangibles for the period is estimated at $3.1 million
and $0.7 million, respectively.

The following table summarises the amounts determined for purchase consideration and the provisional fair
value of assets acquired and liabilities assumed:

Purchase consideration $000
Cash paid during the period 12,070
Fair value of future earn-out payment 3,709
Total purchase consideration 15,779

Fair value of assets and liabilities arising from the acquisition
Contract assets 1,301
Plant and equipment 2,562
Right-of-use assets 499
Software 250
Brand name 765
Customer relationships 4,554
Non-compete agreement 525
Goodwill 7,549
Trade and other payables (126)
Deferred tax liability (1,601)
Lease liabilities (499)
15,779

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


19
The estimated discounted future earn-out payment of $3.7 million may be payable in August 2024 and has
been accrued for in the financial statements, but is contingent upon certain financial performance hurdles
being achieved over the years ending 30 June 2022, 2023 and 2024. The potential undiscounted amount of
the future earn-out payment that the Group expects could be required to be made in respect of this acquisition
is between nil and $3.8 million. The Group has forecast several scenarios and probability-weighted each to
determine a fair value for this contingent payment arrangement.

The goodwill of $7.5 million arising upon this acquisition is attributable to the business know-how and the
premium paid for strategic reasons, including acquiring an entry point into the 4PL temperature-controlled
transport and facilities industry.

The fair value of certain assets and liabilities arising from the acquisition have been determined on a
provisional basis due to the acquisition being completed close to the financial year end. Plant and equipment,
software, customer relationships, brand name and non-compete agreement have been measured
provisionally, pending confirmation of certain determinants and finalisation of independent valuations. The
fair value of these assets will be finalised within 12 months from the acquisition date.

Prior period acquisition – Big Chill Distribution Limited (“BCD”)

At 31 December 2021 the estimated discounted future payment for the acquisition of BCD was $51.9 million
(30 June 2021: $51.3 million), with the change from 30 June 2021 arising from unwinding of discount on the
future payment. This represents no change in the estimated undiscounted future payment from the last balance
date. The Group has forecast several scenarios and probability-weighted each to determine an updated fair
value for this contingent payment arrangement. The liability is presented within current trade and other
payables in the balance sheet.

11. Capital Commitments and Contingent Liabilities

As at 31 December 2021, the Group had capital commitments to purchase equipment of $8.4 million (2020:
$2.4 million).

As at 31 December 2021, the Group had outstanding letters of credit and bank guarantees issued by its lenders
totalling approximately $4.7 million (2020: $5.1 million). The letters of credit relate predominantly to support
for regular payroll payments. The bank guarantees relate to security given to various landlords in respect of
leased operating facilities.

There were no other contingent liabilities as at 31 December 2021 (2020: nil).


12. Net Tangible Assets per security

Net tangible assets (liabilities) per security at 31 December 2021 was ($0.80) ( 2020: ($0.88)).


13. Post Balance Date Events

Dividend declared

On 21 February 2022, the Directors declared a fully imputed interim dividend of 18 cents per share
(approximately $29.8 million) in respect of the year ended 30 June 2022. The dividend will be paid on 1
April 2022. The record date for determination of entitlements to the dividend is 11 March 2022. A
supplementary dividend of 3.18 cents per share will be paid to overseas shareholders when the interim
dividend is paid. The Freightways Dividend Reinvestment Plan will not operate for this dividend.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2021 (unaudited)


20
COVID-19

On 23 January 2022, New Zealand moved to COVID-19 red traffic light setting. To date this has not had a
material impact on the Group’s business activities.

At the date of this report, there have been no other significant events subsequent to the reporting date.

---

HY22 RESULTS
21 February 2022
Mark Troughear | Chief Executive
Stephan Deschamps | Chief Financial Officer
NZX | FRE
For the six months ending 31 December 2021

Disclaimer
PLEASEREADTHISPAGEBEFORETHERESTOFTHEPRESENTATION
HY22 Results Presentation
Slide
2
READTHISPRESENTATIONWITHTHEFINANCIALSTATEMENTS
Thefinancialresultsinthispresentationshouldbereadinconjunctionwiththeabridgedfinancialstatementsforthesixmonthsended31December2021whichcanbefoundintheNZX
preliminaryresultsannouncement.
NOOFFERORINVESTMENTADVICE
Thispresentationis forinformationpurposesonly. It is nota productdisclosurestatement,prospectusorinvestmentstatement. Nothingin it constitutesaninvitationtosubscribeforshares,
securitiesorfinancialproductsinFreightways,orinvestmentoranyotherkindofadvice. Anyinvestorshouldconsulttheirownprofessionaladvisorsandconducttheirownindependent
investigationofFreightwaysandtheinformationcontainedin thispresentation,includinganystatementsrelatingtothefutureperformanceofFreightways. Theinformationin thispresentation
is givenin goodfaithandhasbeenobtainedfromsourcesbelievedto bereliableandaccurateat thedateof thispresentation.
OURNON-GAAPINFORMATION
Certainitemsoffinancialinformationincludedin thispresentationare"non-GAAP"financialmeasures. Thesenon-GAAPfinancialmeasuresdonothavea standardisedmeaningprescribed
byNewZealandAccountingStandardsandsomaynotbecomparabletosimilarlynamedmeasurespresentedbyotherentities. Freightwaysbelievesthatthesemeasuresprovideuseful
informationin measuringthefinancialpositionandperformanceoftheFreightwaysbusiness. However,unduerelianceshouldnotbeplacedonnon-GAAPfinancialmeasuresincludedin this
presentation.
FORWARDLOOKINGSTATEMENTS
Thispresentationmayincludeforward‐lookingstatementsregardingfutureeventsandthefuturefinancialperformanceofFreightways. Suchforward‐lookingstatementsarebasedoncurrent
expectationsandinvolverisksanduncertainties. Freightwayscautionsinvestorsnottoplaceunduerelianceontheseforward-lookingstatements,whichreflectFreightways’viewsonlyasof
thedateofthispresentation.Actualresultsmaybemateriallydifferentfromthosestatedin anyforward‐lookingstatements. Freightwaysgivesnowarrantyorrepresentationastoitsfuture
financialperformanceoranyfuturematter. ConsistentwiththeNZXandASXlistingrulesFreightwayswillcommunicatewiththemarketif thereis a materialchange,howeverit willnotupdate
thispresentation.
DISCLAIMER
NoneofFreightways,itsaffiliates,ortheirrespectiveadvisersorrepresentatives,giveanywarrantyorrepresentationastotheaccuracyorcompletenessoftheinformationcontainedin this
presentation,andexcludetheirliabilityto themaximumextentpermittedbylaw.

Agenda
1.Introduction and Highlights
2.Financial Summary
3.Business Performance
4.Outlook
5.Conclusion
Mark Troughear
Chief Executive
Stephan Deschamps
Chief Financial Officer
Neil Wilson
General Manager
Steve Wells
General Manager of Express Package
Scott Hedgman
General Manager of Express Package Sales
Presenters
HY22 Results Presentation
Slide
3

HY2022 Highlights
Strongrecovery,afterCovidlockdowns,in the2ndquarter
Market share gains in all businesses as result of service performance
Q2 EBITA growth of 20% (before change in fair value of contingent consideration –BCD)
H1 revenuegrowthof 7.7%
H1 EBITAgrowthof 5.6%andNPATgrowthof 7.4%(beforechangein fairvalueof contingentconsideration– BCD)
INFORMATION MANAGEMENT
Strongdigital growth and a good
pipeline of Government
opportunities on both sides of
Tasman.
During Covid lockdowns annuity
storage revenues have remained
resilientunderpinning the
TIMGresult.
WASTE RENEWAL
Secure Destruction rebounded in
H1 in NZ and AU, although the
current Omicron outbreak in AU is
affecting H2 revenue.
Exceptional growth in Medical
Waste, achieved $15m in revenue
in first half, up 67% on the pcp.
SaveBoard production plant
opened in December. During the
initial set up period they produced
13,000m2 of building board and
diverted 111 tonnes of waste from
landfill.
BUSINESS MAIL
DX Mail volumes remain strong
up 3% on the prior pcp despite
most of Q2 being in lockdown for
Auckland.
EXPRESS PACKAGE
Growth in courier revenue of
9.5%in the half year.
Pleasing improvement in Pricing
for Effort (PFE)over H1 for B2C
and Local.
Contractor earnings up 8.4% v the
pcp.
Growth in Big Chill transport
and3PLrevenue of 14% (over
thepcp).
Purchase of ProducePronto to
complement the development of
the temperature-controlled
express package niche.
HY22 Results Presentation
Slide
4

Impact of COVID-19
OMICRON
AUhasfelttheimpactofOmicroninJanuaryandFebruarythis
year.
Ourexperience,andthatoftransportoperatorsinAU,isthat
Omicronhasthepotentialtoaffecttheworkforcewithupto 30%of
employeespotentiallyimpactedatanyonetimethroughhavingto
isolate.
WhilethishascurtailedsomeactivityinSecureDestructionand
InformationManagementin AU,wehaveensuredourbrandscan
stilloperate,albeitat lowerlevelsof staffing.
WeexpectthatwhenOmicronbecomeswidespreadinNZ,there
willsimilarlybeanimpactonthevolumeoffreightthatis sentby
ourcustomersduetolabourshortages,andhandledby
Freightwaysbusinessesifourstaffareforcedtoisolatein
significantnumbers.
Freightwayshavea rangeofinitiativestoattempttomitigatethe
impactofOmicrononourteamsandoperationsbuta widespread
outbreakand7-10dayisolationperiodswillundoubtablyimpact
activity.
HY COVID LOCKDOWN IMPACT
Asdiscussedinthequarterlyupdateon28thOctober,inAugust
2021,NewZealandenteredanalertlevel4 lockdown.
Underalertlevel4, activitylevelsaresignificantlyimpactedacross
ourNewZealandbusinesses.
Themovefromlevel4 tolevel3 inSeptember2021sawthe
expresspackagebusinessesrecoverandexperiencea significant
increasein volumes.
Duringthehalfyear,someareasofAustraliaalsosawincreased
restrictionsbecauseof a resumptionof COVID-19cases.
Weestimatethecostoflevel4 inNZ,anda rangeofrestrictions
inAU,ataround$5minearningsinH1(andallinthefirst
quarter).
HY22 Results Presentation
Slide
5

Note
HY22
$m
HY21
$m
Change
%
Revenue442.0410.37.7
EBITA, before change in fair value of contingent consideration – Big Chill Distribution
Limited (BCD) (non-GAAP)
i.74.470.55.6
Change in fair value of contingent consideration – BCD-(19.2)(100)
EBITA (non-GAAP)ii.74.451.345.2
NPAT, before change in fair value of contingent
consideration – BCD (non-GAAP)
iii.43.740.67.4
Change in fair value of contingent consideration – BCD
-(19.2)(100)
NPAT – GAAP v.
iv.43.721.4103.6
Basic EPS (cents)
(after change in fair value of contingent consideration – BCD)
26.413.0103.1
Basic EPS (cents)
(before change in fair value of contingent consideration – BCD)
26.424.67.3
NOTES
i.Operating profit before interest, tax and amortisation, before change in fair value of contingent consideration – BCD.
ii.Operating profit before interest, tax and amortisation.
iii.Net profit after tax (NPAT), before change in fair value of contingent consideration – BCD.
iv.Profit for the half year attributable to shareholders.
v.GAAP – Generally Accepted Accounting Principles (IFRS-compliant)
Financial Summary
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 (UNAUDITED)
HY22 Results Presentation
Slide
6

HY22
$m
HY21
$m
Change
%
Express package & refrigerated transport321.3296.08.6
Postal23.824.8(4.3)
Storage & handling29.830.0(0.8)
Destruction activities42.035.518.2
Other25.123.94.9
Total Revenue 442.0410.37.7
NOTES
Other includes Digital Services, Print & Copy and Cold Storage revenue
Revenue Segmentation
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 (UNAUDITED)
HY22 Results Presentation
Slide
7

HY22
$m
HY21
$m
Change
%
Operating Revenue
351.1327.77.2
EBITDA
76.373.93.3
EBITA
59.856.95.1
EBITA Margin
17.0%17.4%
The New Zealand Covid Level 4 lockdown in August -September 2021 is estimated to have resulted in EBITA that is $3.9m lower than the prior comparative period.
Results in this table are after NZ IFRS16 (Leases). Refer to appendix for reconciliation to results before NZ IFRS16 which are non-GAAP
Express Package & Business Mail
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 (UNAUDITED)
GAAP – Generally Accepted Accounting Principles (IFRS-compliant)
HY22 Results Presentation
Slide
8

HY22
$m
HY21
$m
Change
%
Operating Revenue
90.084.96.0
EBITDA
29.326.510.6
EBITA
18.615.619.3
EBITA Margin
20.7%18.4%
Information Management
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 (UNAUDITED)
The New Zealand Covid Level 4 lockdown in August -September 2021 is estimated to have resulted in EBITA that is $0.6m lower than the prior comparative period.
The Australian Covid lockdown in the first quarter of FY22 is estimated to have resulted in EBITA that is $0.4m lower than the prior comparative period.
Results in this table are after NZ IFRS16 (Leases). Refer to appendix for reconciliation to results before NZ IFRS16 which are non-GAAP
GAAP – Generally Accepted Accounting Principles (IFRS-compliant)
HY22 Results Presentation
Slide
9

2022 Full Year Forecast
$m
2021 Full Year Actual
$m
Capital Expenditure
24 – 2618
Depreciation and software amortisation(including impact of NZ IFRS 16)
5957
Depreciation and software amortisation(excluding impact of NZ IFRS 16)
2222
Capital Expenditure
FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 (UNAUDITED)
HY22 Results Presentation
Slide
10

Capital Management Policy
CAPITAL MANAGEMENT PRINCIPLES
Targeting solid Investment Grade credit profile, at a level that
minimises the cost of capital. Range of Net Debt / EBITDA between 2x
and 3x.
DIVIDEND POLICY
DividendPolicyalignedwithCapitalManagementPolicy,balancinga
numberof objectives:
1.The setting of the dividend is subordinated to the overall capital
structure of Freightways. When debt is considered high, the
cash dividend will be reduced to allow for faster debt reduction
2.The dividend is set at a level that the Board expects to be
sustainable in the medium term
3.Subject to the first two principles, the Board will aim to pay 75%
to 80% of the NPATA adjusted for significant one-offs
18 CPS
INTERIM DIVIDEND
7.00 CPS (FULLY IMPUTED AT 28% TAX
RATE)
IMPUTATION CREDITS
3.1765 CPS
SUPPLEMENTARY
DIVIDEND
11 MARCH 2022RECORD DATE
1 APRIL 2022PAYMENT DATE
HY22 Results Presentation
Slide
11

The Freightways Blueprint
HY22 Results Presentation
Slide
12

EXPRESS
Steve Wells| General Manager of Express Package
Scott Hedgman| General Manager of Express Package Sales
HY22 Results Presentation
Slide
13

NETWORK EXPRESS COURIERS
In late 2021 we took on a number of contingency sites
in Auckland and Christchurch to cope with volume
growth of around 15% on the pcp over the last 15
weeks of the year.
That volume growth and the long-term volume outlook
will see us adding permanent additional depot
capacityin Auckland, Wellington, Hamilton and
Christchurch.
PFE progress is pleasing with around half of the local
target of 25c per item achieved by the half year and
B2C at $1.41 by the end of December.
Courier retention very pleasing –as a result of the
improvements in courier pay driven by PFE in
particular.
Express Package Highlights
POINT TO POINT EXPRESS
Revenue growth of 9% on the pcp.
Development of our Oversize service through Kiwi
Express is underway.
Working through an amicable transition of a large
dedicated contract (which will be insourced by the
customer) over the next 3 years.
TEMPERATURE CONTROLLED EXPRESS
Expansion of the transport and 3PL footprint into the
Waikato with the commissioning of a 13,000m2
facility at Ruakura due for completion by mid 2023.
This will more than double current available national
capacity for 3PL.
ProducePronto: Currently building out volumes with
new and existing customers. Even allowing for the
impacts of Omicron, overall volumes have increased.
HY22 Results Presentation
Slide
14

AlertLevel 4
17 August 2021
Express Package
B2C NETWORK ITEM GROWTH: 2021 V 2019
HY22 Results Presentation
Slide
15
48%
25%
25%
37%
25%
28%
27%
51%
104%
93%
85%
58%
0%
20%
40%
60%
80%
100%
120%
JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC
21 v 19
2021 vs 2019

AlertLevel 4
17 August 2021
Express Package
B2C PROPORTION 2021 CALENDAR YEAR
19%
18%
18%
18%
17%
18%
17%
27%
26%
24%
24%
24%
0%
5%
10%
15%
20%
25%
30%
JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC
HY22 Results Presentation
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16

Alert Level 4
1
3
2
4
5
Express Package
B2B ITEM GROWTH 2021 VS 2019
NOTES
1.NZ Moves to AL4 17 August 2021
2.NZ Moves to AL3 except AKL/NTH 31 August 2021
3.NTH Moves to AL3 2 September 2021
4.NZ Moves to AL2 7 September 2021
5.AKL Moves to AL3 21 September 2021
4
5
16%
3%
0%
14%
8%
6%
9%
-27%
-3%
6%
6%
5%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC
21 v 19
HY22 Results Presentation
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17

EP Total Item Growth YoY
(NETWORK COURIERS ONLY)
-60%
-40%
-20%
0%
20%
40%
60%
Wk 27Wk 28Wk 29Wk 30Wk 31Wk 32Wk 33Wk 34Wk 35Wk 36Wk 37Wk 38Wk 39Wk 40Wk 41Wk 42Wk 43Wk 44Wk 45Wk 46Wk 47Wk 48Wk 49Wk 50Wk 51Wk 52
JulAugSepOctNovDec
Items: YoY Growth
2021 v 20202021 v 2019
HY22 Results Presentation
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18

BUSINESS
Neil Wilson | General Manager
HY22 Results Presentation
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19

DESPITE COVID IMPACTS AND DECLINING OVERALL MARKET
VOLUMES DX MAIL CONTINUES TO GROW
Increased market share by offering premium postal delivery services
and expanding breadth of services. 6% of first half revenue for DX
generated from new business.
Develop and enhance digital product suite.
Review and introduce business efficiencies – digitisation and
automation.
Continue to implement pricing strategies reflective of service level and
effort. 5.5% pricing improvement in first half result.
Business Mail Highlights
0%
1%
2%
3%
4%
5%
6%
7%
July to Dec 2019July to Dec 2020July to Dec 2021
Cumulative % growth
3 Year First Half Delivery Growth in DX Mail Network
HY22 Results Presentation
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20

INFORMATION
Mark Troughear | Chief Executive
Neil Wilson | General Manager
HY22 Results Presentation
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POSITIONING FOR DIGITAL GROWTH
Scanning and digitalisation revenues during period were strong, up
39% on the pcp. Both NZ and AU have secured large government
projects which are expected to deliver $10m incremental revenue in
FY22 and $21m in FY23.
Partially offset by Covid related delays to key E Discovery projects
caused by law firms in AU working from home. Expect strong growth in
FY23 as inevitable catch up occurs.
High cyber security compliance has been a key component to
successful digital growth achieved and in pipeline.
=15%
DIGITAL REVENUE
of Total TIMG Revenue
Information Management Highlights
Jul-19
Aug-19Sep-19
Oct-19
Nov-19Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20Sep-20
Oct-20
Nov-20Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21Sep-21
Oct-21
Nov-21Dec-21
Digital Revenue TIMG NZ & AU
Digital RevenueE Discovery Revenue
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STORAGE REVENUES RESILIENT, ACTIVITY COVID IMPACTED
~80% of document and media business relates to physical storage which
provides sticky annuity revenues. Physical storage revenues have not been
impacted by Covid.
Activity revenue has been impacted bycustomers workingfrom home.
Activity revenue overall was flat on the pcp however still down 20% on pre
covid levels.
Sales efforts remain focussedin areas of lowest utilisation (NSW and WA).
TIMG are scaling a new E Commerce 3PL product (Stocka) developed via
the Freightways innovation hub (The Startery). Strong initial demand tracking
towards $1m in incremental revenue for first year.
Information Management Highlights
Jul - Dec 19Jul - Dec 20Jul - Dec 21
Activity Revenue TIMG NZ & AU
Media ActivityDocument Activity
HY22 Results Presentation
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Jul - Dec 19Jul - Dec 20Jul - Dec 21
Storage Revenue TIMG NZ & AU
Media Storage RevenueDocument Storage Revenue

WASTE
Mark Troughear | Chief Executive Officer
Neil Wilson | General Manager
HY22 Results Presentation
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Liquid
Paper
Board
MEDICAL
WASTE
PAPER
E-WASTE
PRODUCT
DESTRUCTION
SOFT
PLASTICS
FOOD
WASTE
TEXTILES
Current StateFuture Strategy
RECYLING/ PRODUCT RENEWAL
INTEGRATED LOGISTICS COLLECTION SERVICE
AUTOMATED CUSTOMER REPORTING – TONNES DIVERTED, CO2, RENEWAL, PRODUCTS PROCESSED
Waste Renewal Growth
POSITIONING FOR A SUSTAINABLE FUTURE
LIQUID PAPER
BOARD
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Growth over H1 was strong as a result of new business gains, solid organic
volume and strong pricing. This continues the momentum built up over the
previous financial year.
While we expect some pricing tomoderate in H2 as supply and demand
normalise, FY22 revenue should exceed $20m representing growth of
around 700% since inception in FY18.
Additional processing capacity will be added in NSW during FY22 to cater to
growth and to improve operational efficiencies.
Medical Waste Highlights
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
FY18FY19FY20FY21FY22
$$
Med-X Revenue Growth FY18-FY22
H1H2
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ESG Update
KEY AREAS OF FOCUS
3. GOOD HEALTH AND WELLBEING
A strong focus on injury reduction, effective rehabilitationand mental wellbeing.
8. DECENT WORK AND ECONOMIC GROWTH
Providing opportunities for career advancement and earnings improvement for our staff and contractors.
9. INDUSTRY, INNOVATION AND INFRASTRUCTURE
Development of horizon 2 and 3 services which provide solutions to customers, grow our revenues and provide opportunities forour people.
13. CLIMATE ACTION
Reduction of plastic packaging waste by 70% over the coming year throughout ourExpress Package businesses.
Established a science-based target to reduce carbon emissions by 50% by 2035.
16. PEACE, JUSTICE AND STRONG INSTITUTIONS
Introduction of a Modern Slavery policy and improved disclosures on sustainability through TCFD adoption and annual Sustainability Reports.
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At the end of March, Mark Verbiest will step down as chair and retire from the board as part of our director succession programme. Mark has served as a director of Freightways
since 2010 and as Chair since 2018.
Mark Cairns will take up the role of Chair. Mark has significant transport experience having been CEOat Port of Tauranga for over 16 years. Mark is also a director of Sanford
and Meridian.
David Gibson also joins the Board effective from 1 April 2022. David has extensive capital markets experience with Deutshe Bank and Deutsche Craigs and is a director of
Goodman Property, TrustPower and NZME Limited.
DIRECTOR CHANGES
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Mark Verbiest
FRE Chairman 2018 to March 2022
Mark Cairns
FRE Chairman from April 2022

Mark Troughear | Chief Executive Officer
OUTLOOK &
HY22 Results Presentation
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Q2 deliveredstrongvolumegrowthafterthelockdownsof AugustandSeptember.
Weexpectthattheimpactof Covid-19willcontinuein thisfinancialyearthrough:
‒Highervolumesof homedelivery(B2C)in periodsof increasedin-homeisolation,
‒Potentialrestrictionsto eitherourcustomer'sbusinessesorourownnetworksasOmicronforcesworkersintoisolating,allin thecontextof a verytightlabourmarket
Wewillcontinueto targetrevenueandearningsgrowthin FY22andwehaveplansin placeto adaptto:
‒A tightlabourmarketputtingupwardpressureonlabourcosts,
‒Theimpactof Omicronin AU& NZ,
‒A constrainedsupplychainwhichcouldcontinueto disrupttheflowof goodscomingin NZandultimatelyimpactthevolumeswereceivefromourcustomers.
Wewillcontinueto reviewtheportfolioof servicesweprovidewitha viewto deliveringsuperiorlong-termvalueto shareholdersthroughshort,mediumandlong-terminitiatives.
Thecompanywillcontinueto consideracquisitionopportunitiesthatarecomplementaryto ourexistingoperationsandcapabilities.
Outlook
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TodateFY22hasbeen"ahalfoftwoquarters"withthefirstquarterimpactedbylockdownsandthe2ndquarterreflectinghigherlevelsofresidentialexpresspackagedelivery
andstrongmedicalwastegrowth.
Whiletheshorttermstillhasa levelofuncertaintyduetotheimpactofCovid,Freightwaysis confidentintheunderlyingdemandforourexpresspackageandtemperature-
controlledservicesandasa resultwillinvestin additionalfacilitiesto takeadvantageof thatgrowth.
Weareexcitedbytheopportunitieswehaveto continueto growourbusinessesandwhereappropriatebuilda 2ndor3rdhorizonof growthoverourcoreservices.
Conclusion
“The Freightways Directors and Management team would like to thank all of our people across New Zealand and
Australia for their contribution to the business and to our customers”
HY22 Results Presentation
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APPENDICIES
HY22 Results Presentation
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32

Slide
33
FREIGHTWAYS GROUP
HY22
$m
HY21
$m
Change
%
Operating Revenue442.0410.37.7
EBITDA102.380.027.9
Add back: Change in fair value of contingent consideration – BCD-19.2(100)
Less: NZ IFRS16 adjustment(20.8)(21.6)(3.3)
EBITDA (before NZ IFRS16 and change in fair value of contingent
consideration – BCD)
81.577.64.9
EBITA74.451.345.2
Add back: Change in fair value of contingent consideration – BCD-19.2(100)
Less: NZ IFRS16 adjustment(3.5)(3.6)(3.0)
EBITA (before NZ IFRS16 and change in fair value of contingent
consideration – BCD)
70.966.96.1
APPENDIX:
RECONCILIATION OF POST-NZ IFRS16 to PRE-NZ IFRS16 FOR THE SIX MONTHS ENDED 31 DECEMBER 2021 (UNAUDITED)
HY22 Results Presentation

EXPRESS PACKAGE & BUSINESS MAIL
HY22
$m
HY21
$m
Change
%
Operating Revenue351.1327.77.2
EBITDA (after NZ IFRS16)76.373.93.3
Less: NZ IFRS16 adjustment(12.4)(12.7)(2.3)
EBITDA (before NZ IFRS16)63.961.24.4
EBITA (after NZ IFRS16)59.856.95.1
Less: NZ IFRS16 adjustment(1.9)(1.7)11.8
EBITA (before NZ IFRS16)57.955.24.9
APPENDIX:
RECONCILIATION OF POST-NZ IFRS16 TO PRE-NZ IFRS16 (UNAUDITED)
HY22 Results Presentation
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34

INFORMATION MANAGEMENT
HY22
$m
HY21
$m
Change
%
Operating Revenue90.084.96.0
EBITDA (after NZ IFRS16)29.326.510.6
Less: NZ IFRS16 adjustment(8.4)(8.7)(4.4)
EBITDA (before NZ IFRS16)20.917.817.9
EBITA (after NZ IFRS16)18.615.619.3
Less: NZ IFRS16 adjustment(1.6)(1.9)(17.1)
EBITA (before NZ IFRS16)17.013.724.3
APPENDIX:
RECONCILIATION OF POST-NZ IFRS16 TO PRE-NZ IFRS16 (UNAUDITED)
HY22 Results Presentation
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HY22 Results Presentation
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