Half Year Results to 31 December 2022 and Interim Dividend

Results for announcement to the market
Name of issuer FREIGHTWAYS LIMITED
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$552,082 24.9%
Total Revenue $552,082 24.9%
Net profit/(loss) from
continuing operations
$45,187 3.5%
Total net profit/(loss) $45,187 3.5%
Interim Dividend
Amount per Quoted Equity
Security
$0.25000000
Imputed amount per Quoted
Equity Security
$0.07000000
Record Date 10 March 2023
Dividend Payment Date 3 April 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$(1.09) $(0.80)
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

20 February 2023

Unaudited financial statements accompany this announcement.

---

FREIGHTWAYS LIMITED














Half Year Report
December 2022

Note: EBITA is a non-GAAP (Generally Accepted Accounting Principles) measure. Refer to the Income Statement and
Note 3 within the financial statements in the following pages for a reconciliation from EBITA to NPAT. NPAT is GAAP
compliant.


1
HALF YEAR REVIEW
From the Chairman and Chief Executive Officer


Freightways’ half year result benefited from its diversification across our 4 key pick up, process and delivery
activities and 2 geographies despite an environment of higher interest rates, slower growth and higher labour
costs. The first half of this financial year has delivered pleasing overall top-line revenue growth of 25% and
NPAT growth of 3.5%. This represents an EBITA growth of 8%. We are also pleased that this was achieved
whilst retaining our focus on the health and safety of our people and despite the challenge posed by a tight
labour market and the increased use of temporary labour over the past 6 months.
Express Package delivered a steady NZ result against the prior comparable period (pcp) in 2022, which
featured exceptional, covid-related pre-Xmas courier volumes. The ability to improve the per item pricing and
to carefully manage costs assisted NZ while the addition of Allied Express (AEX) to the group provided a
strong contribution and a platform for growth in Australia.
AEX joined the group at the start of Q2 and has enjoyed strong growth in the Australian market by increasing
its market share as a result of its compelling service proposition. Despite taking on additional warehouse space
to boost capacity for future growth, AEX improved its financial performance by focusing on operating
efficiencies and is ready to leverage both organic and inorganic growth opportunities.
The Information Management and Waste Renewal division rebounded well in core information management
services but was hampered by a decline in medical waste volume and pricing along with a higher operating
cost base (which included costs related to a number of initiatives to grow our platform for the longer term).
The decline in Information Management earnings was exclusively attributable to these factors. Our focus over
the next 6 months is to complete these growth-related IT and facility projects, increase our market share and
drive cost efficiencies through the fleet.
Freightways is well positioned to take advantage of the opportunities that are in front of us with loyal
customers, high-performing businesses, a disciplined balance sheet management as well as experienced and
adaptable customer-focused teams.
The Directors have declared an interim dividend of 18 cents per share, fully imputed at a tax rate of 28%, in
line with the pcp interim dividend. This represents a payout of approximately $32 million, also in line with the
pcp. The dividend will be paid on 3 April 2023. The record date for determination of entitlements to the
dividend is 10 March 2023. The Directors have determined that the Freightways Dividend Reinvestment Plan
(DRP) will be offered for the above interim dividend at a 2% discount.
Divisional performance
Each division’s key features are listed below.
Express Package (EP) & Business Mail
• Revenue for the EP division grew by 28% compared to the pcp aided by the addition of AEX to the
business at the start of Q2.
• EBITA grew by 19%, supported by a strong performance from AEX and more modest activity in NZ.
• Average daily volume for the NZ courier businesses was 1.3% below the pcp (allowing for the additional
public holiday in H1). As signalled in our 1
st
quarter trading update, we expected Q2 volumes in NZ to fall
short of the very strong pcp which was driven by significant eCommerce activity after the various
lockdowns of 2022.

Note: EBITA is a non-GAAP (Generally Accepted Accounting Principles) measure. Refer to the Income Statement and
Note 3 within the financial statements in the following pages for a reconciliation from EBITA to NPAT. NPAT is GAAP
compliant.

2
• The proportion of Business to Customer (B2C) deliveries in NZ was 21% for the half with Pricing For
Effort (PFE) averaging $1.53 per item over the period. B2C volume has abated from its post-lockdown
highs and we expect it to track more predictably than it has over the past 2 years.
• AEX contributed $68.1m in revenue over the period and $4.9m in NPAT. Their volumes remained robust
through the peak period and we observe that the trading environment in Australia for our sector seems
more resilient than in NZ.
• Big Chill Transport grew by 5% over the period (with fuel recovery revenue also at higher levels than in
the pcp and neutral to margins). Third Party Logistics (3PL) revenue was flat given the already high levels
of utilisation within the Highbrook facility and we eagerly await the opening of new capacity at Ruakura
in late 2023.
• DX Mail revenue was up 13% on the pcp reflecting a return to normal activity for most businesses
compared to the pcp.
• Labour costs increases were the key cost feature in H1 as the pressure of a very tight labour market resulted
in higher wage rates for drivers and depot teams in particular, as well as additional costs related to
temporary labour. While we have noted a slight improvement in the number and quality of new job
applicants in recent months, the market still remains challenging.

Information Management & Waste Renewal
• Information Management returned to higher levels of activity without the disruptions of lockdowns,
delivering a revenue growth of 15% for the half.
• EBITA was impacted, however, by the performance of the medical waste business, which resulted in a
decline in divisional EBITA of $4m for the period.
• The decline in medical waste revenue was slightly larger than we expected (due to a reduction in
collections of PPE, vaccines and testing kits from public & private health and aged care facilities) and that,
along with a significantly higher cost of operating (driver and fleet costs), led to a decline in earnings in
the medical waste portion of the business. We expect medical waste revenue of approximately $20m for
the full year, an overall decline of $6m for FY22, before resuming growth in FY24. We have also invested
in the operating and IT platform during the half with new IT capability and the preparation of a new
processing facility in Victoria resulting in $1.2m of additional cost during the half. We expect a similar
impact in H2 before returning to normal margins in FY24.
• Digitalisation revenue grew in the half by 24% and we expect a strong full year performance with the
expectation of a number of large jobs over the remainder of the year on both sides of the Tasman.
• Our Litsupport business, which provides print and eDiscovery services to the legal and government sectors
in Australia, grew by 7% for the first half. A gradual return to customers working back in the office
environment assisted growth. Document destruction volumes recovered strongly compared to the pcp in
both NZ and Australia and were supported by steady paper pricing during the half.

Disciplined Balance Sheet management
Capital expenditure for FY23 is forecast to be in a range of $28-30 million and covering a number of IT
development projects, the part payment for the A$10m automated freight sort system in Sydney, a medical
waste plant, and the replacement of vehicles and freight handling equipment. We remain committed to a solid
investment-grade credit profile and will continue to manage our balance sheet accordingly. This has led to the
decision to re-open the Dividend Reinvestment Plan for the Half-Year dividend.

Note: EBITA is a non-GAAP (Generally Accepted Accounting Principles) measure. Refer to the Income Statement and
Note 3 within the financial statements in the following pages for a reconciliation from EBITA to NPAT. NPAT is GAAP
compliant.

3
Outlook
Whilst the economic climate will be a tougher one to operate in in the near term, we remain positive about the
resilience of our business model, given its diversification across a number of segments and geographies.
Our NZ Express Package businesses will respond by driving efficiency and implementing pricing initiatives
to mitigate the decline we are seeing in volume and increase in labour cost. We have also invested in the
resources to successfully grow our KiwiOversize business in NZ and AEX in Australia.
In Information Management and Waste Renewal we expect to continue to grow our horizon two digitalisation
business and continue to foster our emerging (horizon 3) Stocka and SaveBoard investments while
implementing a number of business growth and improvement initiatives for medical waste.
Across both divisions we will continue to support our existing customers and help manage activity with them
closely as well as seek out profitable market share opportunities.
In the short term we are cautious about the impact of a slowing economy, in NZ in particular, 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. We will do so whilst monitoring costs closely
and acting quickly if we see additional pressure on our margins.
The company will continue to consider acquisition opportunities that are complementary to our
existing operations and capabilities and are considered accretive to our shareholders.
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 Cairns Mark Troughear
Chairman Chief Executive Officer

20 February 2023

Independent auditor’s review report
To the shareholders of Freightways Limited
Report on the consolidated financial statements
Our conclusion
We have reviewed the consolidated financial statements of Freightways Limited (the Company) and its
subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 December 2022,
and the consolidated income statement, the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the six
month period ended on that date, and significant accounting policies and other explanatory
information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated financial statements of the Group do not present fairly, in all material
respects, the financial position of the Group as at 31 December 2022, and its financial performance
and cash flows for the six month then ended, in accordance with International Accounting Standard 34
Interim Financial Reporting(IAS 34) and New ZealandEquivalent to International Accounting
Standard 34Interim Financial Reporting(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised)Review of Financial Statements Performedby the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibilities are further described in theAuditor’s responsibilitiesfor
the review of the consolidatedfinancial statementssection of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements.
Certain partners and employees of our firm may deal with the Group on normal terms within the
ordinary course of trading activities of the Group. The provision of these other services and
relationships have not impaired our independence as auditor of the Group.
Other than as disclosed above, we have no relationship with, or interests in, the Group.
Responsibilitiesof Directors’for theconsolidatedfinancial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated financial statements in accordance with IAS 34 and NZ IAS 34 and
for such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of the consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s responsibilities for the review of the consolidated financial statements
Our responsibility is to express a conclusion on the consolidated financial statements based on our
review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention
that causes us to believe that the consolidated financial statements, taken as a whole, are not
prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of consolidated financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000,www.pwc.co.nz

The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing and International Standards on
Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these consolidated financial
statements.
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been
undertaken so that we might state those matters which we are required to state to them in our review
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Shareholders, as a body, for our review procedures, for this
report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Keren
Blakey.
For and on behalf of:
Chartered AccountantsAuckland
20 February 2023
PwC2

6

FREIGHTWAYS LIMITED
CONSOLIDATED INCOME STATEMENT
for the half year ended 31 December 2022 (unaudited)



Note
6 mths
ended
31 Dec 2022
$000
6 mths
ended
31 Dec 2021
$000
Variance
%

Operating revenue
3 & 4
552,082 441,985 24.9%




Transport and logistics expenses

(231,555) (173,419) 33.5%
Employee benefits expenses

(149,807) (126,362) 18.6%
Occupancy expenses

(3,592) (3,310) 8.5%
General and administrative expenses

(53,407) (36,566) 46.1%
Depreciation and software amortisation

(33,346) (27,883) 19.6%
Amortisation of intangibles

(4,981) (3,861) 29.0%
Operating profit before interest and income tax
3
75,394 70,584 6.8%
Net interest and finance costs

(13,110) (10,068) 30.2%
Profit before income tax

62,284 60,516 2.9%
Income tax

(17,097) (16,846) 1.5%
Profit for the period

45,187 43,670 3.5%



Profit for the period attributable to:


Owners of the parent

45,112 43,625 3.4%
Non-controlling interests

75 45 66.7%


45,187 43,670 3.5%



Earnings per share for the period:


Basic earnings per share (cents)

26.3 26.4
Diluted earnings per share (cents)

26.3 26.3







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 2022 (unaudited)



Note
6 mths ended
31 Dec 2022
$000
6 mths ended
31 Dec 2021
$000

Profit for the period

45,187 43,670

Other comprehensive income


Items that may be reclassified subsequently to profit or loss:


Exchange differences on translation of foreign operations
5
(9,506) (554)
Cash flow hedges taken directly to equity, net of tax

23 1,490
Total other comprehensive income after income tax (9,483) 936

Total comprehensive income for the period

35,704 44,606



Total comprehensive income for the period is attributable to:


Owners of the parent

35,629 44,561
Non-controlling interests

75 45


35,704 44,606





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

8
FREIGHTWAYS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year ended 31 December 2022 (unaudited)


Note
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 2022 184,349 173,879 2,178 (4,026) 234 356,614
Profit for the period - 45,112 - - 75 45,187
Exchange differences on translation of foreign operations - - - (9,506) - (9,506)
Cash flow hedges taken directly to equity, net of tax - - 23 - - 23
Total Comprehensive Income - 45,112 23 (9,506) 75 35,704
Dividend payments - (31,527) - - - (31,527)
Shares issued 5 & 9 112,851 - - - - 112,851
Balance at 31 December 2022 297,200 187,464 2,201 (13,532) 309 473,642

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
- (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

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

9
FREIGHTWAYS LIMITED
CONSOLIDATED BALANCE SHEET
as at 31 December 2022 (unaudited)














Notes
As at
31 Dec 2022
$000
As at
31 Dec 2021
$000
As at
30 Jun 2022
$000
Current assets
Cash and cash equivalents 65,188 28,815 24,137
Trade and other receivables 156,439 130,822 127,072
Inventories 9,979 8,248 8,674
Contract assets 1,585 1,381 1,332
Derivative financial instruments 828 - 963
Total current assets 234,019 169,266 162,178

Non-current assets
Trade receivables and other non-current assets 6,182 4,209 6,070
Property, plant and equipment 145,419 128,719 134,180
Right-of-use assets 311,974 261,789 271,020
Intangible assets 9 680,937 499,942 501,668
Derivative financial instruments 2,229 622 2,061
Investment in associates and joint venture 12,088 9,899 11,407
Total non-current assets 1,158,829 905,180 926,406
Total assets 1,392,848 1,074,446 1,088,584

Current liabilities
Trade and other payables 139,414 167,598 172,822
Borrowings 6 71,001 - -
Lease liabilities 40,403 31,276 34,735
Income tax payable 15,312 5,389 7,209
Provisions 2,232 1,647 1,550
Derivative financial instruments - 213 -
Contract liability 15,382 14,740 15,876
Total current liabilities 283,744 220,863 232,192

Non-current liabilities
Trade and other payables 3,709 3,792 3,709
Borrowings 6 252,407 182,160 176,210
Deferred tax liability 57,924 38,470 37,087
Provisions 9,812 6,999 7,382
Lease liabilities 311,610 267,995 275,390
Total non-current liabilities 635,462 499,416 499,778
Total liabilities 919,206 720,279 731,970
NET ASSETS 473,642 354,167 356,614

EQUITY
Contributed equity 5 297,200 183,872 184,349
Retained earnings 187,464 177,306 173,939
Cash flow hedge reserve 2,201 295 2,178
Foreign currency translation reserve (13,532) (7,499) (4,087)
473,333 353,974 356,379
Non-controlling interests 309 193 235
TOTAL EQUITY 473,642 354,167 356,614




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 2022 (unaudited)









Note
6 mths
ended
31 Dec 2022
$000
6 mths
ended
31 Dec 2021
$000


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


Receipts from customers

542,542 421,147
Payments to suppliers and employees

(428,816) (332,176)
Cash generated from operations

113,726 88,971
Interest received

365 14
Interest and other costs of finance paid

(13,475) (9,718)
Income taxes paid

(20,833) (23,301)
Net cash inflows from operating activities

79,783 55,966



Cash flows from investing activities


Payments for property, plant & equipment

(15,125) (6,800)
Payments for software

(1,442) (2,099)
Proceeds from disposal of property, plant & equipment

430 157
Payments for businesses acquired (net of cash acquired) * 9 (128,472) (12,070)
Payments for investment in associates

- (910)
Receipts from joint venture

1,686 766
Cash flows from other investing activities

(500) (117)
Net cash outflows from investing activities

(143,423) (21,073)



Cash flows from financing activities


Dividends paid

(31,527) (29,833)
Increase (decrease) in bank borrowings

154,240 19,472
Proceeds from issue of ordinary shares

- 318
Principal elements of lease payments

(19,926) (15,867)
Net cash inflow (outflows) from financing activities

102,787 (25,910)



Net increase in cash and cash equivalents

39,147 8,983
Cash and cash equivalents at the beginning of the period

24,137 19,940
Exchange rate adjustments

1,904 (108)
Cash and cash equivalents at the end of the period

65,188 28,815

* Significant non-cash investing and financing activities that related to the consideration paid in the business
combination of Allied Express Transport Pty Ltd and settled through Freightways shares and the issue of a
promissory note, are disclosed in note 9.


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 2022 (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 2022.

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


2. Significant Accounting Policies

The accounting policies and methods of computation are consistent with those used in the most recent annual
report.


3. 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, express freight, refrigerated transport, point-to-point courier and
postal services.

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

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 2022 (unaudited)


12
(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 2022


Sales to external customers 448,611 103,471 - - 552,082
Inter-segment sales 1,651 164 3,960 (5,775) -
Total revenue 450,262 103,635 3,960 (5,775) 552,082

Operating profit (loss) before
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 92,131 26,270 (4,680) - 113,721
Depreciation and software
amortisation (20,722) (11,833) (791) - (33,346)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles 71,409 14,437 (5,471) - 80,375
Amortisation of intangibles,
excluding software amortisation (3,801) (1,180) - - (4,981)
Operating profit (loss) before
interest and income tax 67,608 13,257 (5,471) - 75,394
Net interest and finance costs (3,982) (2,323) (6,805) - (13,110)
Profit (loss) before income tax 63,626 10,934 (12,276) - 62,284
Income tax (17,353) (3,384) 3,640 - (17,097)
Profit (loss) for the period
attributable to the shareholders 46,273 7,550 (8,636) - 45,187

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


13
Segment Reporting (continued)

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 2022 (unaudited)


14
4. 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 2022
$000 $000 $000 $000 $000 $000
Revenue from external
customers
421,067 27,544 32,556 43,881 27,034 552,082
Timing of revenue
recognition:

At a point in time - 1,383 - 13,725 9,504 24,612
Over time 421,067 26,161 32,556 30,156 17,530 527,470
421,067 27,544 32,556 43,881 27,034 552,082

Half year ended
31 December 2021

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


5. Equity

Contributed equity

Fully paid ordinary shares
As at 31 December 2022, there were 177,431,358 fully paid ordinary shares on issue (2021: 165,803,446).
All fully paid ordinary shares have equal voting rights and share equally in dividends and surplus on winding
up.

Share rights
On 16 September 2022, 127,565 share rights vested upon achievement of certain financial hurdles set by the
Board and each of the share rights converted to one Freightways fully paid ordinary share (2021: Nil). The
issue price per share was $8.06 (2021: Nil).

On 21 September 2022, 46,839 share rights were redeemed and cancelled (2021: Nil).

As at 31 December 2022, there were 239,846 share rights on issue (2021: 402,638). Share rights do not
carry a dividend entitlement and are non-transferable.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


15

Employee share plan
On 5 December 2022, the Company issued 65,000 fully paid ordinary shares at $9.16 each to Freightways
Trustee Company Limited, as Trustee for the Freightways Employee Share Plan (2021: 65,000 fully paid
ordinary shares at $11.49 each). In total, participating employees were provided with interest-free loans of
$0.6 million to fund their purchase of the shares in the Share Plan (2021: $0.7 million). The loans are
repayable over three years and repayment commenced in December 2022.

Issue of fully paid ordinary shares
On 30 September 2022, the company issued 11,435,347 fully paid ordinary shares as part of a
placement to the vendors of Allied Express Transport Pty Ltd (AEX) in connection with the
acquisition of AEX by the Group. (Refer Note 9)

Exchange differences on translation of foreign operations
Exchange differences on translation of foreign operations comprise all foreign exchange differences
arising from the translation of the financial statement of foreign operations into New Zealand
dollars. The increase from the prior comparative period reflects:
• increased value of foreign operations and balance sheet following the acquisition of AEX (refer
Note 9 for fair value of assets and liabilities arising from the AEX acquisition); and
• a change in the NZD:AUD closing exchange rate from 1:0.9031 at 30 June 2022 to 1:0.9366 at
31 December 2022.


6. Borrowings

As at 31 December 2022, the Group’s debt facilities with its banking syndicate comprised NZ$150 million
and A$150 million (2021: NZ$150 million and A$80 million), of which NZ$110 million and A$80.7 million
(2021: NZ$71 million and A$35.2 million) had been drawn, respectively.

The Group has 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$100 million were
drawn as at 31 December 2022 (2021: NZ$20 million and A$50 million).

The Group had an undrawn bank overdraft facility of NZ$8 million available (2021: NZ$8 million).

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



7. 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.


Purchases from entities controlled by key management personnel: The Group leases a property, on
normal commercial terms, from an entity that is controlled by a member of the Group’s key management
personnel.

Intercompany loan: An intercompany promissory note of $14.5 million and intercompany receivable which
arose on the acquisition of AEX, exists between IMS Group Australia Pty Ltd (IMS) and Allied Express
Transport Pty Ltd (AEX). The receivable and promissory note are eliminated in the consolidated financial
statements of Freightways. (refer to Note 9).

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


16

Payments to associates: During the period, the following transactions occurred with Sweetspot Goup
Limited (GSS), an entity incorporated in New Zealand and is 33.3% owned by the Group:

Payments to joint venture: During the period, the Group paid Parcelair Limited $8.5 million (2021: $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 2022
in respect of the half year) to key management, which includes senior executives of the Group and non-
executive independent directors, is as follows:


Short-term employee benefits paid during the period are lower than the prior comparative period (pcp) due
predominantly to:
• a higher number of partly-paid shares vesting in the pcp upon achievement of agreed performance targets
in accordance with the terms of the Freightways Senior Executives Performance Share Plan; and

• short-term incentives paid to key management during the pcp were higher due to achievement of
predetermined company profit levels and individual performance objectives.



8. 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 2022 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 2022.

In the period to 31 December 2022 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.

Group
2022
$000
2021
$000
Sale of courier services to GSS 6,954 8,483
Purchase of goods and services from GSS 914 800
Receivables from GSS at end of period 1,808 2,251
Payables to GSS at end of period 137 159

2022
$000
2021
$000
Short-term employee benefits 4,980 7,126
Share-based payments 189 554

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


17

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.

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 2022.

There have been no reclassifications of financial assets and finance liabilities since 30 June 2022.

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


9. Business Combinations

Acquisition of Allied Express Transport Pty Ltd (AEX)

Effective 30 September 2022, the Group acquired 100% of AEX, a company operating in Australia in the
courier and express freight market for total consideration of $216.2 million. The consideration comprises of
cash payment of $88.1 million, issue of Freightways shares of $112.1 million, promissory note of $14.5
million and an estimated completion adjustment of $1.6 million. A$50 million of the shares issued to the
vendors are subject to an escrow on sale for a period of 12 months from 30 September 2022 and A$25 million
of those shares will then remain subject to an escrow on sale for a further period of 12 months thereafter.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


18

Included in AEX at the time of the acquisition was a shareholder loan of $14.5 million receivable by AEX
from the vendor. Concurrent with the acquisition, this receivable of $14.5 million in AEX was satisfied
through the issue of a promissory note (non-cash) from IMS Group Australia Pty Ltd (IMS), a Freightways
subsidiary, to AEX. This obligation is now within the Freightways Group and is reflected in the respective
Group legal entities of AEX and IMS. The receivable and promissory note are eliminated in the consolidated
financial statements of Freightways.

AEX operates within the Group’s express package & business mail division.

The contribution of AEX to the Group results for the half year ended 31 December 2022 was revenue of
$68.1 million and net profit after tax of $4.9 million. If this acquisition had occurred at the beginning of the
half year, the contribution to revenue and net profit after tax for the period is estimated at $130.2 million and
$9.9 million, respectively.

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

Preliminary
Purchase consideration $000
Cash paid during the period 88,070
Issue of Freightways shares 112,066
Promissory note 14,472
Estimated completion adjustment 1,568
Total purchase consideration 216,176

Fair value of assets and liabilities arising from the acquisition
Cash and cash equivalents 18,512
Trade and other receivables 24,460
Intercompany receivable 14,472
Plant and equipment 8,416
Right-of-use assets 12,791
Software 1,931
Brand name 30,654
Customer relationships 54,739
Non-compete agreement 3,141
Goodwill 107,793
Trade and other payables (20,324)
Income tax payable (2,053)
Deferred tax liability (25,565)
Lease liabilities (12,791)
216,176

The goodwill of $107.8 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 Australian courier and
express freight market.

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 half year end. Plant and
equipment, software, customer relationships, brand name, non-compete agreement, other payables and
income tax payable 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.

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


19
Other acquisition

During the period, the Group acquired a small IT asset disposal and recycling services business in Australia
for $2.7 million. This business operates with the Group’s information management division.

Prior period acquisition – 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 per year, same-day fresh and frozen delivery to convenience outlets in
New Zealand and businesses across Auckland. This acquired business operates within the Group’s express
package & business mail operating segment.

As at 31 December 2022, the estimated discounted future earn-out payment for the acquisition of PP was
$3.7 million (30 June 2022: $3.7 million). This represents no change in the estimated undiscounted future
earn-out 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 non-current trade and other payables in the balance sheet.

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

On 1 April 2020, the Group acquired 100% of BCD, a company operating in the New Zealand temperature-
controlled transport and facilities market, for an initial consideration of $114.6 million and future contingent
consideration representing approximately 20% of BCD Enterprise Value as at 30 June 2022.

At 30 June 2022 the estimated discounted future contingent consideration for the acquisition of BCD was
$56.2 million and this was paid in August 2022.

Reconciliation of payments for businesses acquired

$000
Cash paid for the acquisition of AEX 88,070
Cash paid for contingent consideration for the acquisition of BCD 56,162
Cash paid for other acquisitions during the period 2,752
Cash acquired from acquisition of AEX (18,512)
Payments for businesses acquired (net of cash acquired) 128,472

Intangible assets

Intangible assets have increased by $179.3 million. This increase reflects intangible assets arising from the
acquisition of AEX totalling $198.3 million, partially offset by amortisation expense during the period and
the impact of foreign exchange differences on translation of intangible assets denominated in AUD.


10. Climate Change

The acquisition of AEX is expected to increase the Group’s emissions from the combustion of transport fuel.
There have been no other changes to the Group’s climate change risk since 30 June 2022.


11. Capital Commitments and Contingent Liabilities

As at 31 December 2022, the Group had capital commitments to purchase equipment of $7.8 million (2021:
$2.4 million).

FREIGHTWAYS LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2022 (unaudited)


20
As at 31 December 2022, the Group had outstanding letters of credit and bank guarantees issued by its lenders
totalling approximately $12.7 million (2021: $4.7 million). The letters of credit and bank guarantees
predominantly relate to security given to various landlords in respect of leased operating facilities.

There were no other contingent liabilities as at 31 December 2022 (2021: nil).


12. Net Tangible Assets per security

Net tangible assets (liabilities) per security at 31 December 2022 was ($1.09) (2021: ($0.80)).


13. Post Balance Date Events

Dividend declared

On 20 February 2023, the Directors declared a fully imputed interim dividend of 18 cents per share
(approximately $32 million) in respect of the year ended 30 June 2023. The dividend will be paid on 3 April
2023. The record date for determination of entitlements to the dividend is 10 March 2023. 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 be offered for this dividend and a notice to shareholders
inviting their participation will be sent out in due course.

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

---

DRIVING GROWTH RESPONSIBLY
FREIGHTWAYS
FY23 H1 RESULTS
20 FEBRUARY 2023 | NZX FRE

Read this presentationwiththe financialstatements
Thefinancialresultsinthis presentation shouldbereadinconjunction with thefinancialstatementsfortheyearended30June2022, which canbe foundintheNZXpreliminaryresults
announcement.
Noofferorinvestmentadvice
Thispresentationis forinformationpurposesonly. It isnota productdisclosure statement, prospectusorinvestmentstatement. Nothingin itconstitutesan invitationtosubscribefor
shares,securitiesorfinancialproductsinFreightways, orinvestmentoranyotherkindofadvice. Anyinvestor should consulttheirown professionaladvisorsand conducttheirown
independentinvestigation of Freightwaysandthe informationcontained inthis presentation,includinganystatementsrelatingtothe futureperformanceof Freightways.The
informationinthis presentationis giveningoodfaithand hasbeenobtained from sourcesbelievedtobereliableandaccurate atthe date of this presentation.
Our non-GAAPinformation
Certainitems offinancialinformationincludedinthis presentationare"non-GAAP"financialmeasures. Thesenon-GAAPfinancialmeasuresdonothavea standardisedmeaning
prescribedbyNewZealandAccounting Standardsandsomaynotbecomparabletosimilarlynamedmeasurespresentedbyother entities.Freightwaysbelievesthat thesemeasures
provideusefulinformationinmeasuringthefinancialpositionand performanceof the Freightways business.However,unduerelianceshould notbeplacedonnon-GAAPfinancial
measures includedinthis presentation.
Forward looking statements
T
hispresentationmayincludeforward
-l
ooking statementsregardingfutureeventsandthefuturefinancialperformanceof Freightways.Such forward
-l
ooking statementsarebasedon
currentexpectationsandinvolverisksanduncertainties. Freightwayscautionsinvestors not toplaceunduerelianceon theseforward-looking statements,which reflectFreightways’
viewsonlyasof the dateofthis presentation.Actualresultsmaybemateriallydifferentfrom those statedinanyforward
-
lookingstatements.Freightways givesnowarrantyor
representationasto itsfuturefinancial performanceorany futurematter. Consistent with theNZXandASX listingrulesFreightwayswillcommunicatewith themarketif thereisa
materialchange,howeverit willnotupdatethis presentation.
D
isclaimer
None of Freightways, itsaffiliates,ortheirrespectiveadvisersorrepresentatives, giveanywarrantyor representationasto theaccuracyorcompleteness of theinformation contained
inthis presentation,and excludetheirliabilityto themaximumextentpermittedbylaw.
Disclaimer
Freightways FY23 H1 Results Presentation
2

AgendaPresenters
Mark Troughear
Chief Executive
Stephan Deschamps
Chief Financial Officer
Neil Wilson
General Manager
Steve Wells
General Manager of Express Package
1.Introduction and Highlights
2.Financial Summary
3.Business Performance
4.Outlook
5.Appendices
Freightways FY23 H1 Results Presentation
3

FY23 H1 HIGHLIGHTS:
REVENUE
GROWTH
ACROSS
FREIGHTWAYS
25
%
REVENUE
GROWTH
EXPRESS
PACKAGE
28
%
REVENUE
GROWTH
INFORMATION
MANAGEMENT
15
%
EBITA GROWTH
8
%
ACROSS
FREIGHTWAYS
ACROSS
FREIGHTWAYS
CASH FLOWS FROM
OPERATIONS
28
%
Freightways FY23 H1 Results Presentation
NPAT GROWTH
3.5
%
ACROSS
FREIGHTWAYS
4

H1
PERFORMANCE
Freightways FY23 H1 Results Presentation
5

FY23 H1 Consolidated Performance
Note
H1 FY23
$m
H1 FY22
$m
Change
%
Operating Revenue
552.1442.024.9
EBITDA (non-GAAP)(i)
113.7102.311.1
EBITA (non-GAAP)(ii)
80.474.48.0
NPATA (non-GAAP)(iii)
50.247.55.5
NPAT (GAAP)(iv)
45.243.73.5
Basic Earnings Per Share (cents)
26.326.4
NOTES
i.Operating profit before 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
•GAAP – Ge
nerally Accepted Accounting Principles (IFRS-compliant)
•Results in this table are unaudited and after NZ IFRS16 (Leases). Refer to appendices for reconciliation to results
b
efore NZ IFRS16.
•Revenue growth of 25% supported by growth across
both EP&BM 28%and IM 15%divisions
•Successful integration of Allied Express (“Allied”)
f
rom Q2 FY23
•EBITA growth of 8% (Q
2 EBITA growth of 8%)
•$112m of shares issued as part of consideration for
A
llied acquisition
•Amortisation increased 29% and interest expense
i
ncreased 30%
Freightways FY23 H1 Results Presentation
6

FY23 H1 Express Package & Business Mail
Highlights
H1 FY23
$m
H1 FY22
$m
Change
%
Operating Revenue
450.3351.128.2
EBITDA (non-GAAP)
92.176.320.8
EBITA (non-GAAP)
71.459.819.3
EBITA Margin
15.9%17.0%
NPAT (GAAP)
46.339.317.8
•Results in this table are unaudited and after NZ IFRS16 (Leases). Refer to
appendices for reconciliation to results before NZ IFRS16.
•GAAP – Ge
nerally Accepted Accounting Principles (IFRS-compliant)
Freightways FY23 H1 Results Presentation
•EP Network courier volumes were largely as expected for Q2
‒Volume for the half was down 2% on the pcp(*
1.3% adjusting for
the additional holiday) however corresponding pcphad extremely
high volume in the last 15 weeks of the calendar year
‒Market share gains of 2% helped offset volume declines
•EP division revenue up 9% ex Allied, up 29% including A
llied’s
contribution over 3 months
‒Courier (GRI) pricing improvement of 6%
•EP EBITA up 19% (including 3 months of contribution from Allied)
‒Labour costs continue to be a feature, up 7.2% on the pcp
(e
xcluding Allied)
‒In NZ we expect it will take 2 years to revert to our usual labour
co
stto revenue ratios
•Strong service performance by all EP businesses over the Xmas peak
‒Transit reports show strong performance relative to competitors
•Slight easing of labour market although quality labour is still more
e
xpensive and in high demand, especially for truck drivers and IT staff
7

•Strong financial performance over the quarter –
contributed revenue of $68mand NPAT of $4.9min Q2
•Volumes and revenuea
re steady– no material sign of
declining volume in aggregate
•Benefits of scale through larger depots
‒Added 17,000m2 permanent capacity across: VIC |
W
A | SA | NSWto cater for current and planned
volume growth
‒Moved into a new NSW facility during Q2 with
20,
000m2 of operational space,automation
expected to be delivered and commissioned by
late 2023
•Intangible assets arising from the acquisition of $196m
;
amortisation A$5.7m per annum
FY23 H1 Express Package & Business Mail
Allied Express
Freightways FY23 H1 Results Presentation
8

FY23 H1 Information Management and Waste Renewal
Highlights
H1 FY23
$m
H1 FY22
$m
Change
%
Operating Revenue
103.690.0
15.1
EBITDA (non-GAAP)
26.329.3
(10.3)
EBITA (non-GAAP)
14.418.6
(22.5)
EBITA Margin
13.9%20.7%
NPAT (GAAP)
7.610.6
(28.9)
•IM Revenue up 15% (FX, recovery of activity in TIMG NZ and AU)
‒Strong growth in digitisation, up 24% on pcp
‒Return of service work for media and documents
‒Stronger destruction revenues assisted by better paper price
s
tability
‒Litsupportr
evenues improving with less WHF in AU, up 8% on
pcp
‒Medical waste revenue down $3m on the pcp
•IM EBITA down 23%, $4.2m
‒Revenue decline in Med-X
and higher operating costs in waste
renewal
‒Increased cost of fleet in H1 $1.0m
‒Increased investment in infrastructure – V
IC processing, NSW
eWasteand IT combined $1.2m
Freightways FY23 H1 Results Presentation
•Results in this table are unaudited and after NZ IFRS16 (Leases). Refer to
appendices for reconciliation to results before NZ IFRS16.
•GAAP – Ge
nerally Accepted Accounting Principles (IFRS-compliant)
9

H1
CAPITAL
MANAGEMENT &
DIVIDEND POLICY
Freightways FY23 H1 Results Presentation
10

Capital Management and Dividend Policy
CAPITAL MANAGEMENT PRINCIPLES
•Targeting solid Investment Grade credit profile, at a
l
evel that minimises the cost of capital.
•NetD
ebt / EBITDA between 2x and 3x
DIVIDEND POLICY
•Dividend Policy aligned with Capital Management
P
olicy, balancing a number of objectives:
1.The setting of the dividend is s
ubordinatedto
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
e
xpects to be sustainable in the medium term
3.Subject to the first two principles, the Board
wi
ll aim to pay 75% to 80% of the NPATA
adjusted for significant one-o ffs
INTERIM DIVIDEND18 CPS
IMPUTATION CREDITS
7.00 CPS (FULLY IMPUTED AT 28%
TAX RATE)
SUPPLEMENTARY DIVIDEND3.1765 CPS
RECORD DATE10 MARCH 2023
PAYMENT DATE3 APRIL 2023
DIVIDEND REINVESTMENT
PLAN
OFFERED WITH A
DISCOUNT OF 2%
Freightways FY23 H1 Results Presentation
11

STRATEGY
UPDATE
Freightways FY23 H1 Results Presentation
12

3 HORIZONS
OF GROWTH
Freightways FY23 H1 Results Presentation
13

GROW SCALE
•Continue tomak
e
improvements to
PFE($1.53per item
in H1)
•Opportunity for
further gains as this
market grows and
as we attract niches
of B2C who value a
superior service
proposition
Horizon 1: B2B
EXTEND AND DEFEND
•Focus on a
p
rofitable market
sharegains
•Manage direct costs
in
line with volume
•Assessp
ricing
opportunities
Horizon 2: B2C
ESTABLISH NEW LINES
OF BUSINESS
•Launch of Kiwi
Ex
press Oversize
service in 2022
•Leverage the Allied
fo
otprint through
market share
gainsand bolt on
M&A
Horizon 3: Oversize
Express Package & Business Mail
Freightways FY23 H1 Results Presentation
14

GROW SCALE
•Utilisation of 95% in
Auckland​
•Ruakurae
xpected
to come online in
late 2023
Horizon 1:
National Delivery
EXTEND AND DEFEND
•Constraints of
drivers and trucks
expected to ease by
June 2023
Horizon 2: 3PL
ESTABLISH NEW LINES
OF BUSINESS
•Roll out of national
delivery for
convenience stores ​
•Leverage the Big Chill
Distribution network
in Auckland,
Wellington and
Christchurch
Horizon 3: Same Day
Temperature Controlled Logistics
Freightways FY23 H1 Results Presentation
15

GROW SCALE
•Strong pipeline of
digitalisation
opportunities. Large
scale government
project in NZ will
benefit H2 margins
Horizon 1: Storage
EXTEND AND DEFEND
•Improvement in
utilisation of
existing warehouses
through market
share gains
•AU boxes now >3m
Horizon 2:
Digitisation
ESTABLISH NEW LINES
OF BUSINESS
•Scale STOCKA NZ –
an offering for SME’s
who require
eCommerce
fulfilment by
leveraging existing
facilities, systems
and teams
Horizon 3:
eCommerce 3PL
Information Management
Freightways FY23 H1 Results Presentation
16

GROW SCALE
•Commission the
processing footprint
in VIC (3000
tonnesp.a.).​
•Target market share
gains
•Reduce fleet costs
Horizon 1:
Secure Destruction
EXTEND AND DEFEND
•Build density using
e
xisting networks to
maintain the lowest
activity cost in the
market​
•Focus on market
s
hare gains​
•Rebounded strongly
a
fter lockdowns of
FY22
Horizon 2:
Medical Wastes
ESTABLISH NEW LINES
OF BUSINESS
•Establishment of
Sa
veBoardin NSW
and plans developed
for VIC and QLD. Still
cashflow negative as
scale builds.
•New e
Wastesite in
NSW established in
December
complemented by
acquisition of small
data destruction
processor
Horizon 3:
High Value Waste
Waste Renewal
Freightways FY23 H1 Results Presentation
17

M&A Growth
RECENT ACQUISITIONSACQUISITION STRATEGY
Targets: e
stablished / profitable, well managed and growing
businesses with immediate EPS impact
Size: bo
lt-on acquisitions through to larger opportunities
Geography: A
ustralia and New Zealand
Method: D
isciplined adherence to investment criteria
Access new customer
segments that have the
same resilient
characteristics as our
core industry focus
Seek acquisitions that
will increase our size,
capability and capacity
across existing business
units
Strong beachhead
market entry into the
Australian EPBM market
Earnings accretive
acquisitions with
achievable synergies and
well-understood
integration costs
FEATURES OF ACQUISITIONS UNDER CONSIDERATION
(2020, NZ)
(2022, AU)
(2021, NZ)
Entry point to the Australian
market for EPBM
Platform for growth in the
O
versize category of the
Australian express market
Complements successful
a
cquisition of Big Chill to
expand same-day and
overnight temperature-
controlled delivery niche
Expansion into refrigerated
l
ogistics to provide short and
long-termgrowth
opportunities, while further
diversifying earnings base
Freightways FY23 H1 Results Presentation
18

OUTLOOK
Freightways FY23 H1 Results Presentation
19

Outlook
•The economic climate will be a tougher one to operate in over the near term, but we
are positive about the diversification and resilience our business model offers
•Our NZ Express Package businesses will use efficiency and pricing levers to manage
any decline in volume
•With the acquisition of Allied, we now have a strong platform in Australia, which we
can leverage. There are opportunities for both organic and acquisition-related growth
•In Information Management we will im
proveour performancein medical waste and
continue to scale our horizon 2 and 3 initiatives(Digitalisation, Stocka and SaveBoard)
•Retainingour existing customers and seeking out profitable new business will be a
feature for all our businesses
•In the short term we are cautious about the impact of a slowinge
conomyparticularly
in NZ and we will continue to review the portfolio of services we provide with a view
todelivering superior long-term valueto shareholders through short, medium and
long-terminitiatives. We will do so whilst monitoring costs closely and acting quickly if
we see additional pressure on our margins
Focus on
controlling
variable costs in
NZ over the next
6 months
Continue to
scale our
horizon 2 and 3
activities
Number of
opportunities
for M&A being
explored
Freightways FY23 H1 Results Presentation
20

QUESTIONS
Freightways FY23 H1 Results Presentation
21

APPENDICES
Freightways FY23 H1 Results Presentation
22

Sustainability
Key Measures for Freightways
Freightways FY23 H1 Results Presentation
3. GOOD HEALTH AND WELLBEING
•Health and safety in employment – targeting a 10 reduction in
TRIFR.
•Deployment of advanced in cab road safety technology in linehaul
vehicles
•Employee wellness programme and mental health awareness
training rolled out to all management staff
8. DECENT WORK AND ECONOMIC GROWTH
•Introduction of literacy and numeracy training to operational teams
•Professional development and management/leadership training
implemented
•Rewarding contractors for their efforts through PFE
9. INDUSTRY, INNOVATION AND INFRASTRUCTURE
•Continual strengthening of reliable networks – t
hrough expanded
air, road and depots networks
•Horizon 2 and 3 opportunities developed through The Startery
1
3. CLIMATE ACTION
•GHG Emissions reduction with a target to reduce scope 1, 2 & 3
emissions by 50% by 2035
•Reducing plastic usage and waste by 75% through our EP Brands
16. PEACE, JUSTICE AND STRONG INSTITUTIONS
•Ethics and integrity
•Transparency
23

NOTES
i.Operating profit before 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
G
AAP – Generally Accepted Accounting Principles
FREIGHTWAYS GROUP
Note
H1 FY23
$m
H1 FY23
$m
H1 FY23
$m
H1 FY22
$m
H1 FY22
$m
H1 FY22
$m
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Operating Revenue
552.1-552.1442.0-442.0
EBITDA (non-GAAP)(i)
113.7(25.6)88.1102.3(20.9)81.4
EBITA (non-GAAP)(ii)
80.4(4.4)76.074.4(3.5)71.0
NPATA (non-GAAP)(iii)
50.21.451.647.51.348.9
N PAT(iv)45.21.446.643.71.345.0
Appendix
Reconciliation of Post-NZ IFRS16 to Pre-NZ IFRS16 (Unaudited)
Freightways FY23 H1 Results Presentation
24

Appendix
Reconciliation of Post-NZ IFRS16 to Pre-NZ IFRS16 (Unaudited)
EXPRESS PACKAGE & BUSINESS MAIL
HY23
$m
HY22
$m
Change
%
Operating Revenue450.3351.128.2
EBITDA (after NZ IFRS16)92.176.320.8
Less: NZ IFRS16 adjustment(16.1)(12.4)29.5
EBITDA (before NZ IFRS16)76.063.919.1
EBITA (after NZ IFRS16)71.459.819.3
Less: NZ IFRS16 adjustment(2.4)(1.9)26.2
EBITA (before NZ IFRS16)69.057.919.1
NOTES
EBITDA and EBITA are non-GAAP measures
Freightways FY23 H1 Results Presentation
25

INFORMATION MANAGEMENT & WASTE RENEWAL
HY
23
$m
HY22
$m
Change
%
Operating Revenue103.690.015.1
EBITDA (after NZ IFRS16)26.329.3(10.3)
Less: NZ IFRS16 adjustment(9.4)(8.4)12.4
EBITDA (before NZ IFRS16)16.920.9(19.4)
EBITA (after NZ IFRS16)14.418.6(22.5)
Less: NZ IFRS16 adjustment(1.9)(1.6)21.7
EBITA (before NZ IFRS16)12.517.0(26.6)
NOTES
EBITDA and EBITA are non-GAAP measures
Appendix
Reconciliation of Post-NZ IFRS16 to Pre-NZ IFRS16 (Unaudited)
Freightways FY23 H1 Results Presentation
26

---

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 X
Record date 10 March 2023
Ex-Date (one business day before the
Record Date)
9 March 2023
Payment date (and allotment date for
DRP)
3 April 2023
Total monies associated with the
distribution
1

$31,938,000
Source of distribution (for example,
retained earnings)
Current earnings for the year ending 30 June 2023
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)
2%
Start date and end date for
determining market price for DRP
13 March 2023 17 March 2023
Date strike price to be announced (if
not available at this time)
20 March 2023
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New issue
DRP strike price per financial product
TBA
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
5:00pm on 13 March 2023
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

20 February 2023