Mainfreight Investor Day / Market Update

M A I N F R E I G H T L I M I T E D

Mainfreight Lane | off Saleyards Road | Otahuhu 1062 | New Zealand
Tel +64 9 259 5500 | Fax +64 9 270 7400
PO Box 14-038 | Panmure | Auckland 1741 | New Zealand


Supporters of
MAINFREIGHT – GLOBAL LOGISTICS


NZX MARKET RELEASE


21 October 2022


MAINFREIGHT LIMITED – INVESTOR DAY / MARKET UPDATE


Mainfreight Limited (NZX: MFT) has included a market update in its Investor Day
presentation given by the Group Managing Director and Executives this morning.

The market update covers 26 weeks of trading, and is an estimate provided in advance
of the F23 half-year results to 30 September 2022, which will be released on Thursday,
10 November 2022.

• Estimated revenue for the 26 weeks has improved. 32.5% to $3.01 billion
• Estimated profit before tax for the 26 weeks has improved 65.8% to $301.7 million

Full details are provided in the accompanying Investor Day presentation pack.


Tim Williams
Group Chief Financial Officer
T: +64 9 259 5510
E: tim@mainfreight.com



Mainfreight Limited
2 Railway Lane, Otahuhu, Auckland 1062
PO Box 14038, Panmure, Auckland 1741

---

MAINFREIGHT: INVESTOR DAY, HOBSONVILLE
21 OCTOBER 2022

Agenda
•9.00 amWelcomeDon Braid
•9.05 amNew ZealandCarl George
•9.20 amEuropeBen Fitts
•9.35 amAustraliaRodd Morgan
•9.50 amAmericasJason Braid
•10.05 amAsiaCary Chung
•10.20 amMorning tea
•10.50 amTechnologyJohn Eshuis
•11.05 amE.S.G.Martin Devereux/Shaun Morrow
•11.20 amFinancial OverviewTim Williams
•11.35 amGroup Summary| Q&ADon Braid
•12.00 noonWrap up and view from the balcony

Tauranga
Auckland
Thames
Napier
Wellington
Nelson
Masterton
Gisborne
Whangarei
Hamilton
Rotorua
Taupo
New Plymouth
Palmerston North
Whanganui
Blenheim
Christchurch
Greymouth
Ashburton
Timaru
Oamaru
Invercargill
Cromwell
Gore
Dunedin
Levin
Kaitaia
Whakatane
Balclutha
New Zealand
Carl George
2,940 Team
88Branches/ 28Locations
NZ $645M / 29.6% Revenue(6 months)
NZ $75M / 55.2%P.B.T. (6 months)

Current Trading/Outlook
•General–Trading through to September has shown good momentum.All divisions trading
ahead YTD. Traditional peak season planning completed.
•Transport–Consistent tonnages YTD –strong sales pipelines and tender opportunities.
Introduction of two new start up branches this year. Quality levels improved year-on-year.
•Air and Ocean –Strong trading YTD. New business gains helping offset the expected global
shipping rate re-set. Focus is on strong rate and capacity management as supply chains re-
adjust to changing consumer demand. Ocean rate reductions minimal in comparison to Trans-
Pacific East Bound (TPEB).
•Warehousing–High utilisation from a traditional JIT to a JIC model. Activity levels improving as
we head into peak season. Significant capacity coming on-line in second quarter 2023. Strong
sales pipeline and market opportunities in front of us.

•Closer to our customers
•Direct inbound / outbound
services
•Later pick ups/earlier deliveries
•Increased exposure to a growing
catchment of Auckland
•Release valve of volume on our
South Auckland branches
•Costs
Hobsonville –Why are we here?

FavonaRoad
40,000m2 Warehouse
June 2023
2Home Auckland
22,000m2 Cross-Dock / WH
End Loading
June 2024
Alderman Place
Specialised Wharf / Tankers
/ CFS on Rail
Late 2023
Beach Road
20,000m2 Specialist DG WH
May 2024
O’RorkeRoad
21,000 Cross-Dock
Late 2025
Hugo Johnson
18,000m2 Cross-Dock
Oct 2023
NZ Property
planned Capex
2023-2024
$203m
Property and Network Development

Key Initiatives/Opportunities and Challenges
Transport
•Continued network development
•Focus on additional future rail siding capacity and increased use
of coastal shipping services
•Expansion of our home delivery network –M2Home
•Introduction of electric trucks to our fleet –10 by first quarter
2023
•Emission reporting capability
•Development of national driver academy
•Consideration for first chilled transport cross-dock
Warehousing
•Construction of our largest warehouse in NZ –40,000m2 /
52,000 plts / 6 Hectares
•Plans completed for significant Dangerous Goods (MHF)
20,000m2 in Auckland
•Increased presence in brown/white/electronics verticals
•Introduction of automation in 2023
Air & Ocean
•Continued global branch network development helping open
new markets. Developing more long-haul air/deep sea markets
•Consistent growth of our Mainfreight to Mainfreight (1MF)
consolidated freight services in both Sea LCL (Less than
Container Load) and Air (Consolidated Dry and Perishable)
•Increasing the end-to-end depth of our perishable offering, on-
going development in our pharmaceuticals and wine verticals
•Planned branch network growth NZ
Challenges
•Capacity –all products including availability of new equipment
•Property development –speed of completion
•Owner drivers –team growth
•Inventory levels and customers unpredictable sales volume
forecasts. Reviewing of contractual arrangements

Europe
Ben Fitts
3,353 Team
47Branches/ 10Countries
€331M/ 27.2% Revenue(6 months)
€23.6M / 87.6%P.B.T. (6 months)

Current Trading/Outlook
•General -Good momentum through the first six months. Each division trading ahead with
improved RoR. Inflation and high energy process a cloud on the horizon.Ample opportunity for
growth in all countries.
•Transport -Volumes consistent YTD. New branches in Tilburg and Rotterdam to ease pressure on
‘s-Heerenbergbranch. Improved performance in Belgium. Export freight and sales growth in
regional branches a priority.
•Warehousing -Above optimum utilisation as inventory is replenished and safety stock built.
Balancing supply, end customer demand and product quality a challenge for many customers.
Short term overflow storage capacity scarce. Securing long term additional capacity in NL, BE
and RO (101,000m2).
•Air & Ocean -Strong trading YTD. Asia-Europe Ocean rates decreasing significantly, rate and
contract management important. Focus on MFT-MFT consolgrowth for air and sea. Sales
pipeline healthy and key to offset potential volume reductions via new customer gains.

Transport :
•Waddinxveen (3
rd
Dutch Branch) January 2023
•‘s-Heerenberg (NL), 22,000m2, late 2024
•Paris: land sought for cross-dock
Warehousing:
•Born (NL) 56,000m2 (mid 2024)
•Ploiesti (RO) 10,000m2 extension (mid 2023)
•Oostende (BE) rebuild (late 2024)
•UK2 mid 2024
Air & Ocean:
•Verona (IT) 2022
•Madrid (ES) 2022
•Munich (DE) 2022
Property and Network Development
Born
Ploesti WHS, Romania
‘s-Heerenberg
TPT, Netherlands
Ploesti WH,
Romania
Oostende WH,
Belgium
Born WH,
Netherlands

Key Initiatives/Opportunities and Challenges
Transport
•Set Benelux network for growth; ‘s-Heerenberg(NL);
Waddinxveen(NL), Belgium to follow (3
rd
branch)
•Raising standards across all aspects of the business –
branch audits implemented
•Trialing MAN e-trucks in Tilburg to meet 2025 zero
emission delivery target, carbon emission reporting,
alternative fuel
Warehousing
•Additional capacity; Netherlands 56,000m2 (June
‘24), Belgium 35,000m2 (mid ‘25), Romania 10,000m2
(June ‘23)
•Targeting medium size customers; 2,000 –10,000
pallets, increased freight into our network
•Global network customers driving growth in the UK
Air & Ocean
•Network development: 17 branches total by year end
•3rd Dutch branch in ’23. Ireland, additional DE and UK
branches in ’24, Nordics and Romania on the radar for
‘25
•1MF air and sea freight consolidation growth
Challenges
•Capacity shortages (drivers, people, equipment,
warehouses) and rising costs
•Scarcity of land for new development in NL
•Public sentiment toward ‘Big Box’ warehouses (NL)

Australia
Rodd Morgan
2,534 Team
71Branches/ 21Locations
AU $698M / 33.0% Revenue(6 months)
AU $63M / 42.2%P.B.T. (6 months)

Australia
Network Expansion
Branches 71 →98
Locations 21 →35
A&O Presence 14 →23
Warehousing space 233,989m²→318,320m²
(36%, within 12 months)
32property projects underway currently

Current Trading/Outlook
•Strong –goodcustomer mix, sustainable, trading well, with growth potential
•Resilient economy but 6 interest rate rises will bite –expect pcpcomparisons to tighten
•Managing costs, margins & cash collection by branch
•Warehousing utilisation acceptable & wharf business making good profit progress
•Large sales team fully mobilised in the market with a good pipeline of future
salespeople & customers
•Growing reputation in key industries –construction, medical/healthcare, food
(including perishables), beverages (wine, liquor), chemicals, retail & agriculture
•Emerging opportunities in mining, electronics, automotive and marine segments

Transport
•Development of future branch manager pipeline to fuel our growth is a key focus
•Network expansion helps our quality –95% delivered on our trucks
•Building design & technologies evolving –rear loading, 4 sided docks
Warehousing
•Steadily improving RoR& profit per square metre
•New purpose-built warehouses imminent Adl, Syd, Mel, per-totaling 116,000m2 –all outbound freight
via Mainfreight Transport
•Better efficiencies from AMR & automated sortation technologies -increase pick efficiency, accuracy &
throughput with less people.
Air & Ocean
•South bound ocean rates ex US & eastbound on TransTasmanhave reduced but not as much as Europe
to Asia & China to USA
Key Initiatives/Opportunities and Challenges

Continued...
•Developing long-haul exports and consolidations across A&O a priority
•Infrastructure/network and market penetration providing growth opportunities
•Our domestic network development is helping increase our regional A&O growth –
exports/imports
•Customer verticals of food/beverage/DIY assisting volume increases
•Strong focus on margin enhancement
Key Initiatives/Opportunities and Challenges

Seattle (4)
Portland (1)
Salt Lake City (2)
San Francisco (2)
Los Angeles (6)
Moreno Valley (1)
San Diego (2)
Phoenix (2)
Northlake (1)
Laredo (1)
McAllen (1)
Houston (3)
Dallas (5)
Miami (3)
Orlando (1)
Charleston (1)
Atlanta (4)
Charlotte (3)
Norfolk (1)
Baltimore (1)
Philadelphia (1)
Newark (5)
Hartford (2)
Boston (3)
Albany (2)
Toronto (4)
Lehigh Valley (1)
Indianapolis (1)
Chicago (6)
Milwaukee (2)
Minneapolis (1)
Detroit (1)
Columbus (1)
Cleveland (1)
Queretaro (1)
Mexico City (1)
Not Pictured:
Santiago, Chile (1)
Mainfreight
CaroTrans
Mainfreight & CaroTrans
U N I T E D S T A T E S
C A N A D A
M E X I C O
Vancouver
(1)
Americas
Jason Braid
1,770 Team
80 Branches/ 4 Countries
US $563M / 27.7% Revenue(6 months)
US $59M / 69.0%P.B.T. (6 months)

Page 18
Current Trading/Outlook
•RoR:10.4% up from 7.9% last year
•All divisions contributing positively to year-on-year growth
•A&Ovolumes remain strong and ahead of last year
•Air import volumes down on back of fewer charter flights
•Increasing growth and volumes from everyday true airfreight customers
•Branches within the larger cities are performing well
•Work needed in some of our smaller branches and cities
•Strong pipelines and new customer gains continue across all divisions

Page 19
Property and Network Development
Northlake, TX
Future Cross Dock
•Purpose built LTL cross-docks underway in Dallas & Chicago
•Land purchase for second LTL cross-dock in Chicago area
•Larger purpose-built warehouses at 50k sq meters minimum
•Intensification of branch network for all products
•Canada for both A&O & CaroTrans
•Smaller USA cities are areas of significant growth opportunity
•Transborder opportunities for Transport -especially USA/Mexico
•Port drayage operations in Houston, Chicago, Newark &
Charlotte
•New Airfreight facilities with chillers to assist with perishable &
pharmaceutical growth
•Continued focus in growing our owner driver fleet

Page 20
Dallas Heat Map
Flower Mound
Dallas
Northlake
Pickups
Deliveries
Current Branch
Future Branch

Page 21
Chicago Heat Map
Joilet
West Chicago
Franklin Park
Chicago
Pickups
Deliveries
Current Branch
Future Branch

Page 22
•Numerous customer conversion opportunities across our supply chain
•New LTL cross-docks bring efficiencies and reputations to and for our business
•Change from ‘Freight Forwarder’ to ‘LTL Carrier’ opens domestic growth opportunities
•Improving LTL line-haul utilisation (currently at 63%)
•Volume growth on trade lanes outside of TPEB will continue
•Capacity availability in ocean freight is allowing for customer growth
•Relationships and negotiations with shipping lines assisting in rate negotiations
Key Initiatives/Opportunities and Challenges

Page 23
•A&O consolidation growth remains key area of focus
•CaroTransperformance pleasing in this segment
•Strong customer demand is driving us to open larger and new warehouses
•Fluctuating customer inventory levels addressed by stronger Service Level Agreements
•Optimistic about growth opportunities across core customer verticals
•Not immune to A&O trade and rate decline
•Offset by ongoing growth in all segments and across a variety of trade lanes
Key Initiatives/Opportunities and Challenges Cont...

Taipei
Ningbo
Shanghai
Xiamen
Shenzen
Hong Kong
Qingdao
Japan
Tianjin
Thailand
Singapore
Beijing
Khaosiung
Guangzhou
Vietnam
Malaysia
Korea
Indonesia
India
Asia
Cary Chung
520 Team
29 Branches/ 10Countries
US $100M / 9.1% Revenue(6 months)
US $16M / 37.7%P.B.T. (6 months)

Page 25
Current Trading/Outlook
•Revenue YTD is US$100M –down (9.1%) –Rate reduction impact
•PBT is US$15.8M –up 37.7% –Margins improving via in-country sales and service
additions
•Airfreight exports remain challenging from Hong Kong and China due to ongoing
restrictions in China
•Ocean exports also soften however offering more value-added local services
•In-country growth especially inKorea, Japan, Malaysia, Hong Kong and Thailand
•Investment –Intensifying branch network within each country
•Warehousing solutions underway

Page 26
Network Development
•A&O –5 additional branches across China, Thailand, Taiwan and Korea in the next FY
and adding our 11th country “India” by Q3 2023
•Warehousing –4 new warehousing sites in Japan, Malaysia, Thailand and Vietnam
•Intercompany network focus is our priority
•Develop our commercial sales team across Asian countries with a strong focus on
food and beverage, healthcare, hi-tech and perishables
•Greater focus on our imports where we can provide additional value-added services
to compliment our A&O network

Page 27
Key Initiatives/Opportunities and Challenges
•Our market development is stronger across the Asian region
•Cross-selling across our products
•Increasing the number of new customers
•Increasing the number of transactions and modes per customers (both new and
existing)
•Regional sales office across the 2nd and 3rd tier cities –Asian region including China
•Improving relationships with A&O carriers –rate negotiations benefiting
•Less reliance on China, growing Asian network
•Building European trade flows
•Less reliance on Trans-Pacific

Technology
John Eshuis

Technology
NZ Live
and Back
Up Data
Centers
USA Live
and Back
Up Data
Centers
EU Live
and Back
Up Data
Centers
Azure Cloud supporting
global applications where
appropriate

Infrastructure
•Microsoft
•HP Equipment
•Cisco/Webex networking & collaboration
•Palo Alto
•Live and Back Up environments aligned globally
Operating Systems

Transport
•Bespoke product in NZ, Australia and Americas
•Off-the-shelf product in Europe
•Zebra mobile devices for drivers and team
•High customer integration via EDI and customer portal Mainchain
Operating Systems

Warehousing
•Bespoke product in NZ, Australia, Asia and Americas
•Off the shelf product in Europe
•Mobile and Voice Picking technology well entrenched
•High customer integration through EDI and customer portal
Mainchain
•Automation & Mechanisationbuilding
•High business continuity requirement
Operating Systems

Air and Ocean
•Off the shelf product Cargowise by WiseTech
•Strong global experience in the product
•Internal capabilities in building supporting functionality
•Bespoke product for CaroTransUSA
Customer Tools
•Bespoke single global solution : Mainchain
•Strong analytics capability : Maintel
•Global Emission Reporting capability
Operating Systems

Our people are our best defence!
•Awareness and education
Cyber Roadmap
•Mitigating risks and implementing our cyber initiatives
•We employ a threat-based defence approach
Cyber Security

Looking Ahead
Assess
Test
Track
Adopt
Maintel
Webex
Real Time
Emission
365
Microservices
Facial
Recognition
Robotics
GPS Tracking
Contextual
Data
Machine
Learning
RFID
Big Data
Blockchain
AI
Data
Consolidators

ENVIRONMENT/SOCIAL/GOVERNANCE
Martin Devereux / Shaun Morrow

Sustainability -Environmental
•Emissions –Direct / Indirect
•36,063 / 1,644,036 tonnes CO2e respectively
•Targets, Intensity measures and continuous improvement
•Drops in all 5 intensity measures
•Carbon Emissions Reporting for Customers
•Initiatives being taken:
•Transport –Electric vehicles (10+)
•Air & Ocean –CMA. Biofuel option
•Infrastructure –Water, solar, handling equipment
•Over 3000kW in Solar Generation with another
3000kW planned over the next 12 months
•Waste Management –Circular solutions

Sustainability -Social
•Promotion from within –global career paths
•Training programs driving culture, safety and leadership in every region
•Induction courses
•Easy to Do Business With courses
•Safety courses and well-being forums/initiatives
•Leadership Training
•Outward Bound (Global program returns)
•Mainfreight Development Program (university graduates/school leavers)
•Competitive talent market. Fewer graduating and fewer applications
•Decentralised approach to recruitment driven at branch level
•Duffy Books in Homes/Life Education Trust/ IDEA Days/Beach clean-ups/Foodbanks

Sustainability –Social
Team Numbers as
at 30/09/22
THIS YEARLAST YEAR
MaleFemaleMale Female
New Zealand294078%22%78%22%
Australia253473%27%72%28%
Europe335375%25%73%27%
Americas177066%34%68%32%
Asia52034%66%42%58%
Total Group1111772%28%73%27%
•Of our 315 branches, 57 are managed by females. More work to do to increase this number
and the number of women in senior roles.
•September 2022 Outward Bound program saw 5 females attend alongside 9 men.

Sustainability -Social
•Health & Safety -key focus across all regions
•Global Notifiable Incidents –2022 Financial Year: 29 incidents
September YTD: 16 incidents
•Global Near Misses -2022 Financial Year: 188 incidents
September YTD: 124 incidents
•Measure by branch, by region. Share lessons/learnings globally
•Safety initiatives:
•Intensive training programs
•Fatigue protection devices (In-cab cameras / Vibration kits)
•Pedestrian detection devices and height cameras/sensors –handling equipment

Sustainability Overview -Governance
•Global Reporting Initiative (GRI)
•ISO 14064-1: 2018 (GHG Reporting)
•Climate Related Financial Disclosures
•Other Corporate Governance:
https://www.mainfreight.com/global/en-nz/investor/corporate-governance

Financial Overview
Tim Williams
Half Year Expectations Totals:
•Revenue $3.01B 32.5%
•PBT $301.7M 65.8%
•NPAT$217.0M 65.9%

FINANCIAL OVERVIEW –Half Year Expectations
Revenue:$ 1,123.0 million25.6%
PBT:$ 110.2 million51.1%
Revenue:$ 354.8 million34.1%
PBT:$ 29.1 million31.2%
Revenue:$ 1,535.4 million37.7%
PBT:$ 162.4 million86.9%
WAREHOUSING
AIR & OCEAN
TRANSPORT

Trading Update: Estimated Revenue
NZ$000THIS YEARLAST YEARVAR %
New ZealandNZ$645,841498,44729.6%

AustraliaAU$
698,284525,04033.0%

AmericasUS$
563,471441,39827.7%

Europe
EU€
331,211260,43227.2%

AsiaUS$
100,349110,353
(9.1%)

GroupNZ$3,013,2892,274,38632.5%
*

August actuals plus September “weeklies”
26 weeks of trading (1 Apr to 30 Sep)
*
Excluding FX: 26.8% over last year

Trading Update: Estimated PBT*
NZ$000THIS YEARLAST YEARVAR %
New ZealandNZ$74,61448,07155.2%

AustraliaAU$
63,32044,51842.2%

AmericasUS$
58,87334,82769.0%

Europe
EU€
23,58012,56887.6%

AsiaUS$
15,83111,50037.7%*

GroupNZ$301,687181,98665.8%#

* Asia gross margins improved significantly
#
Excluding FX: 57.8% over last year
August actuals plus September “weeklies”
26 weeks of trading (1 Apr to 30 Sep)

•September 5 week month PBT 35.6% (A&O27.4%)
•September 5 week month Revenue 14.0% (A&O3.0%)
•Bonus accrual increased proportionally with PBT growth
•A&O volumes 4.6%(Air 9.5%, Ocean 1.5%)
•1
st
quarter 0.8% / 2
nd
quarter 7.4%
•Transfer back to sea freight from air
•Mostly relates to TPEB
•Warehouse footprint. Next two years increase the footprint 37%
FINANCIAL OVERVIEW –Comparisons

•Resilience from our suite of services to volatile economic environment
•Net debt $26.0 million
•Capital Expenditure:
•Detailed update at half year 10 November 2022
•Commencing property investment Americas and Europe
•Next trading update given start of February (43 weeks)
FINANCIAL OVERVIEW –Commentary