Annual Shareholders Meeting – including trading update

FREIGHTWAYS
ANNUAL
SHAREHOLDERS
MEETING
26 October 2023
NZX | ASX : FRW
26 October 2023
NZX | ASX : FRW

MARK CAIRNS
Chairman
BE(Hons), BBS, MMGT, FEngNZ, CFInstD
WELCOME AND INTRODUCTION
Page 2

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Page 3
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AGENDA
Freightways Annual Shareholders Meeting
•Chairman’s Welcome & Introduction
•CEO’s Strategy and Trading Update
•Voting and Questions
•Resolutions
Page 4

FY23
HIGHLIGHTS
* GAAP – Generally Accepted Accounting Principles (IFRS-compliant) ** Non-GAAP
Page 5
29
%
REVENUE GROWTH
ACROSS FREIGHTWAYS
32
%
EXPRESS PACKAGE
& BUSINESS MAIL
REVENUE GROWTH
15
%
INFORMATION MANAGEMENT
REVENUE GROWTH
7
%
NPAT* GROWTH
ACROSS FREIGHTWAYS
15
%
ACROSS FREIGHTWAYS
EBITA** GROWTH
26
%
ACROSS FREIGHTWAYS
CASH FLOW

DIVIDEND
Dividend Policy aligned with
Capital Management Policy,
balancing a few objectives -
Final dividend19 CPS (37 CPS for the year)
Imputation credits7.39 cps (fully imputed at 28% tax rate)
Supplementary dividend3.3529 cps
Record date15 September 2023
Payment date2 October 2023
Dividend reinvestment planOffered with a discount of 2%
Page 6
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

Page 7
MARK TROUGHEAR
Chief Executive Officer
BMS, WAIKATO UNIVERSITY
STRATEGY AND TRADING UPDATE

ACTIVITIESHORIZON 1HORIZON 2HORIZON 3
BUSINESS DIVISIONEXTEND AND DEFENDGROW SCALEESTABLISH NEW LINES OF BUSINESS
EXPRESS PACKAGE
& BUSINESS MAIL
B2B
•Focus on a profitable market sharegains
•Improve the resilience of airfreight network
•Assess metropolitan“local” service levels,
infrastructure costs and pricing
B2C
•Leverage our trans-Tasman presence for
cross border eCommercecustomers
•Maintain high levels of service to be able to
commanda premium for B2C deliveries
OVERSIZE (25KG+)
•Scale Oversize revenue in NZ
•New business teams to grow Allied’s market
share in Oversize in AU
•Assess bolt-on M&A opportunities in AU
TEMPERATURE
CONTROLLED
LOGISTICS
NATIONAL DELIVERY
•Pursue market share opportunities as
newinfrastructure (trucks and depots)
comes on stream
3PL
•Utilisation of 95% in Auckland​
•Ruakura has now opened, targeting 50%
utilisation by end of FY24
SAME DAY
•Roll out of national delivery for convenience
stores ​
•Grow scale with new coolstore capacity
brought on during 2023
OUR CAPABILITIES
STRIVE FOR EFFICIENCY
NETWORK DENSITY
DELIVER RELIABLY
ALWAYS DELIVER ON TIME
LOVE OUR CUSTOMERS
SALES APPROACH & CULTURE
ACT LIKE AN ENTREPRENEUR
M&A GROWTH / INNOVATION
THREE HORIZONS OF GROWTH
We move you to a better place
Page 8

ACTIVITIESHORIZON 1HORIZON 2HORIZON 3
BUSINESS DIVISIONEXTEND AND DEFENDGROW SCALEESTABLISH NEW LINES OF BUSINESS
INFORMATION
MANAGEMENT
STORAGE
•Improvement in utilisation of existing
warehouses through market share gains
•AU boxes now >3m, strongest growth
achieved in WA (up 7% year on year)
DIGITISATION
•Large scale digital project completed in NZ
•Digital revenues in AU up 39% for year, we
will continue to target growth in AU and NZ
ECOMMERCE 3PL
•STOCKAeCommerce offering showing
strong growth. To meet demand a new 3PL
warehouse is expected to be added in June
2024
WASTE
RENEWAL
SECURE DESTRUCTION
•Paper prices likely to be more volatile in
FY24
•Continued focus on market share gains
MEDICAL WASTE
•VIC processing plant built and awaiting EPA
approval
•Target market share gains in VIC, NSW, QLD
HIGH VALUE WASTE
•Build profitability in SaveBoardafter
establishment year
•Target product destruction market
•Continue to source circular loop solutions
for hard to recycle waste
THREE HORIZONS OF GROWTH
OUR CAPABILITIES
STRIVE FOR EFFICIENCY
NETWORK DENSITY
DELIVER RELIABLY
ALWAYS DELIVER ON TIME
LOVE OUR CUSTOMERS
SALES APPROACH & CULTURE
ACT LIKE AN ENTREPRENEUR
M&A GROWTH / INNOVATION
We move you to a better place
Page 9

Sustainability – Our Key FY24 Initiatives
SDGFREIGHTWAYS KEY FY24 INITIATIVES
SDG#3
GOOD HEALTH & WELLBEING
•Health and safety in employment: Injury reduction. TRIFR continues to reduce year
on year
SDG#8
DECENT WORK & ECONOMIC GROWTH
•Our commitment is to improve Contractor earnings year on year
•L&D – We will continue to invest in training our people so 80% or more of our
promotions come from within
SDG#9
INDUSTRY, INNOVATION &
INFRASTRUCTURE
•We have a customer churn rate of <2% of revenue
•We are committed to continued growth in Horizon's 2 & 3
SDG#13
CLIMATE ACTION
•GHG emissions reduction with a target to reduce Scope 1, 2 & 3 emissions by
50%by 2035, ensuring that our contribution to Global Warming is no greater than
1.5degreesCelsius
•The average age of linehaul vehicles (in our direct control) is 4 years or less
•Commitment to assisting the development of circular re-use of waste
Page 10

TIMELINEINITIATIVECOMMENT
2023Green building specification for new buildings
Discovery being completed on specification standards for all new buildings, including:
•Solar Panels
•EV charging stations
•Reticulating storm water
•Recycled building materials
2027
Rollover current aircraft fleet to new jets that
achieve greater fuel efficiency
Currently exploring newer jet options that are more fuel efficient.
2029
100% of company cars are PHEV
or EV
Charging infrastructure and increasing supply + operating costs are currently barriers to progress.
Expect this to improve by 2025.
2030
Metro truck fleet are EV or
alternate fuel
Charging infrastructure, limited-supply and high operating costs are still barriers to progress. Funding options to
bridge additional cost of ownership being explored.
2030
Linehaul truck fleet begins to transition to alternate
fuel cell
Hydrogen fuelling infrastructure, limited-supply and high operating costs are still barriers to progress.
Funding options to bridge additional cost of ownership being explored.
Close monitoring of new technologies in terms of: capability, safety, commerciality.
2028-
2035
Light commercial fleet (vans) transitions to
alternate fuel cell
Charging infrastructure, limited-supply and high operating costs are still barriers to progress.
Funding options to bridge additional cost of ownership being explored.
Close monitoring of new van models to assess for time/weight/range capabilities – current available options are
very limited.
Contractor incomes well-aligned to be able to transition.
Page 11
Carbon Emissions Reduction –Progress Update

•In NZ, we have experienced a continuation of same-
customer decline in volumes but in AU we have
alsoseen the start of a similarslowdown in same-
customer activity;
•Both markets have seen new business gains which
are partially mitigating the underlying poor economic
conditions;
•An easing of the labour market has been observed
and we expect a lower rate of wage inflation from
the back end of FY24 when new pay rates are
applied;
•The Ruakura temperature-controlled facility has opened for
Big Chill and customers will steadily be onboarded over the
coming year;
•The delay in EPA licence for Med-X in VIC is delaying our
recovery in Waste Renewal, we now expect approval in the
new year;
•We are experiencing lower paper prices for recycled paper in
both AU and NZ;
•A cost out / re-pricing programme at SRX initiated, expected
to benefit H2.
Q1 TRADING
UPDATE
Page 12

Q1 Consolidated Performance –Unaudited
Note
Q1 FY24
$m
Q1 FY23
$m
Change
%
Operating Revenue
298.0237.425.5
EBITDA (non-GAAP)(i)
55.449.511.9
EBITA (non-GAAP)(ii)
36.534.07.4
NPATA (non-GAAP)(iii)
21.621.02.9
NPAT (GAAP)(iv)
18.419.3(4.7)
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 – Generally Accepted Accounting Principles (IFRS-compliant)
•Results in this table are after NZ IFRS16 (Leases). Refer to appendices for reconciliation to results before NZ IFRS16.
Page 13

Q1 Express Package & Business Mail –Unaudited and excludes lease accounting
Q1 FY24
$m
Q1 FY23
$m
Change
%
Operating Revenue
246.0184.833.1
EBITDA (non-GAAP)
34.431.110.6
EBITA (non-GAAP)
30.427.99.0
EBITA Margin
12.4%15.1%
Results in this table are before NZ IFRS16 (Leases) and are accordingly non-GAAP. Refer to appendices for reconciliation to results after NZ IFRS16.
NOTES
i.GAAP – Generally Accepted Accounting Principles (IFRS-compliant)
Page 14

Q1 Information Management–Unaudited and excludes lease accounting
Q1 FY24
$m
Q1 FY23
$m
Change
%
Operating Revenue
52.953.6(1.3)
EBITDA (non-GAAP)
8.49.7(13.4)
EBITA (non-GAAP)
6.47.5(14.7)
EBITA Margin
12.1%14.0%
Results in this table are before NZ IFRS16 (Leases) and are accordingly non-GAAP. Refer to appendices for reconciliation to results after NZ IFRS16.
NOTES
i.GAAP – Generally Accepted Accounting Principles (IFRS-compliant)
Page 15

99.2%
86.3%
109.8%
106.9%
107.9%
104.3%
99.3%
99.8%
103.8%
102.1%
100.6%
116.3%
101.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
12345678910111213
Matariki - Public
Holiday
%
WEEKS
Queens
Memorial
Day 2022
2023
Page 16
NZ Network Courier Item Trend For Q1, FY24 as a % Of FY23
Average 2.3%

CONCLUSION &
OUTLOOK
‒Existing customers continue to trade approximately
5% below the pcp(on average), new business has
helped close some of that gap in both NZ and AU;
‒We expect express volumes and paper pricing to
continue their current soft trend in bothNZ and AU
over the course of the short term until signs of an
economic recovery emerge;
‒The economic environment seems to be worse than
we were expecting. Whilst we will be trying to
minimise its impact and adjust our cost base in a
sustainable way, we now see a risk that EBITA will be
at or below the level of last year.
We have a highly experienced and committed
team, many of whom have been with us for
decades. Our people will continue to be our
greatest strength regardless of the economic
climate. As we enter a new year their safety and
well-being remains foremost in our minds.
‒The tight labour market has eased in NZ over the past 3
months and we now have a higher number of applicants per
role, we expect this to have a moderating effect on future
wage inflation within our businesses, with most of the
impact in FY25;
‒We continue to assess a number of M&A opportunities for fit
and value.
Page 17

QUESTIONS?
If you wish to ask a question, please simply raise your
hand.
For those joining online, select the “Q&A” tab on the right
half of your screen at anytime.
Type your question into the field and press “Send”.
Your question will be immediately submitted.
Page 18

RESOLUTIONS
•That Mark Rushworth be re-elected as a
director of Freightways
•That Peter Kean be re-elected as a director of
Freightways
•That the total quantum of the annual
directors’ fee pool be increased by $107,855
from an aggregate of $857,145 to an
aggregate of $965,000, such aggregate
amount to be divided amongst the directors
as they deem appropriate
•That the directors are authorised to fix the
Auditors’ remuneration
Page 19

Re-elected as a director of
Freightways.
Resolution 1
MARK
RUSHWORTH
Page 20

Re-elected as a director of
Freightways.
Resolution 2
PETER
KEAN
Page 21

ANNUAL DIRECTORS’
FEE POOL
Resolution 3
That the total quantum of the annual
directors’ fee pool be increased by
$107,855 from an aggregate of
$857,145 to an aggregate of
$965,000, such aggregate amount to
be divided amongst the directors as
they deem appropriate.
Page 22

AUDITORS’
REMUNERATION
That the directors are authorised to
fix the Auditors’ remuneration.
Resolution 4
Page 23

Disclaimer
READTHISPRESENTATIONWITHTHEFINANCIALSTATEMENTS
Thefinancialresultsinthispresentationshouldbereadinconjunctionwiththefinancialstatementsfortheyearended30June2023, whichcanbefoundin
theNZXpreliminaryresultsannouncement.
NOOFFERORINVESTMENTADVICE
Thispresentationis forinformationpurposesonly. It is nota productdisclosurestatement,prospectusorinvestmentstatement.Nothinginit constitutesan
invitationtosubscribeforshares,securitiesorfinancialproductsinFreightways,orinvestmentoranyotherkindofadvice.Anyinvestorshouldconsulttheir
ownprofessionaladvisorsandconducttheirownindependentinvestigationofFreightwaysandtheinformationcontainedinthispresentation,includingany
statementsrelatingtothefutureperformanceofFreightways. Theinformationinthispresentationis giveningoodfaithandhasbeenobtainedfromsources
believedtobereliableandaccurateatthedateofthispresentation.
OURNON-GAAPINFORMATION
Certainitemsoffinancialinformationincludedinthispresentationare"non-GAAP"financialmeasures. Thesenon-GAAPfinancialmeasuresdonothavea
standardisedmeaningprescribedbyNewZealandAccountingStandardsandsomaynotbecomparabletosimilarlynamedmeasurespresentedbyother
entities.FreightwaysbelievesthatthesemeasuresprovideusefulinformationinmeasuringthefinancialpositionandperformanceoftheFreightways
business. However,unduerelianceshouldnotbeplacedonnon-GAAPfinancialmeasuresincludedinthispresentation.
FORWARDLOOKINGSTATEMENTS
Thispresentationmayincludeforward‐lookingstatementsregardingfutureeventsandthefuturefinancialperformanceofFreightways. Suchforward‐looking
statementsarebasedoncurrentexpectationsandinvolverisksanduncertainties. Freightwayscautionsinvestorsnottoplaceunduerelianceonthese
forward-lookingstatements,whichreflectFreightways’viewsonlyasofthedateofthispresentation.Actualresultsmaybemateriallydifferentfromthose
statedinanyforward‐lookingstatements. Freightwaysgivesnowarrantyorrepresentationastoitsfuturefinancialperformanceoranyfuturematter.
ConsistentwiththeNZXandASXlistingrulesFreightwayswillcommunicatewiththemarketif thereisa materialchange,howeverit willnotupdatethis
presentation.
DISCLAIMER
NoneofFreightways,itsaffiliates,ortheirrespectiveadvisersorrepresentatives,giveanywarrantyorrepresentationastotheaccuracyorcompletenessof
theinformationcontainedinthispresentation,andexcludetheirliabilitytothemaximumextentpermittedbylaw.
Page 24

APPENDICES
Page 26

Financial Summary -For the Financial Year Ended 30 June 2023
Note
FY23
$m
FY22
$m
Change
%
Revenue
1,121.6
873.1
28.5
EBITDA (non-GAAP)i.
214.9
184.9
16.2
EBITA (non-GAAP)ii.
145.3
126.5
14.8
NPATA (non-GAAP)
iii.
86.6
77.7
11.5
NPAT (GAAP)
iv.
75.3
70.2
7.3
Basic EPS (cents)
43.1
42.3
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.Profit for the year attributable to shareholders.
v.GAAP – Generally Accepted Accounting Principles (IFRS-compliant)
Page 27

Express Package & Business Mail –For the financial year ended 30 June 2023
FY23
$m
FY22
$m
Change
%
Operating Revenue
911.1689.032.2
EBITDA (non-GAAP)
169.8142.219.4
EBITA (non-GAAP)
125.4107.516.7
EBITA Margin
13.8%15.6%
NPAT (GAAP)
78.170.011.6
NOTES
i.Results in this table are after NZ IFRS16 (Leases).
Page 28

Information Management –For the financial year ended 30 June 2023
FY23
$m
FY22
$m
Change
%
Operating Revenue
214.3187.114.6
EBITDA (non-GAAP)
56.455.22.1
EBITA (non-GAAP)
32.733.1(1.3)
EBITA Margin
15.3%17.7%
NPAT (GAAP)
18.018.2(1.1)
NOTES
i.Results in this table are after NZ IFRS16 (Leases).
Page 29

Appendix. unaudited
FREIGHTWAYS GROUP
Note
Q1 FY24
$M
Q1 FY24
$M
Q1 FY24
$M
Q1 FY23
$M
Q1 FY23
$M
Q1 FY23
$M
POST NZ IFRS16NZ IFRS16
ADJUSTMENT
PRE NZ IFRS16
(NON-GAAP)
POST NZ IFRS16NZ IFRS16
ADJUSTMENT
PRE NZ IFRS16
(NON-GAAP)
Operating Revenue
298.0-298.0237.4-237.4
EBITDA (non-GAAP)(i)
55.4(15.1)40.349.5(11.7)37.8
EBITA (non-GAAP)(ii)
36.5(2.5)34.034.0(2.0)32.0
NPATA (non-GAAP)(iii)
21.60.922.521.00.521.5
NPAT (GAAP)(iv)
18.40.919.319.30.519.8
Page 30

EXPRESS PACKAGE & BUSINESS MAIL
Q1 FY24
$m
Q1 FY23
$m
Change
%
Operating Revenue246.0184.833.1
EBITDA (before NZ IFRS16)34.431.110.6
Add: NZ IFRS16 adjustment9.96.944.3
EBITDA (after NZ IFRS16)44.338.016.6
EBITA (before NZ IFRS16)30.427.99.0
Add: NZ IFRS16 adjustment1.51.050.8
EBITA (after NZ IFRS16)31.928.910.5
NOTES
i.EBITDA and EBITA are non-GAAP measures
Appendix. Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited)
Page 31

INFORMATION MANAGEMENT
Q1 FY24
$m
Q1 FY23
$m
Change
%
Operating Revenue52.953.6(1.3)
EBITDA (before NZ IFRS16)8.49.7(13.4)
Add: NZ IFRS16 adjustment5.14.86.3
EBITDA (after NZ IFRS16)13.514.5(6.9)
EBITA (before NZ IFRS16)6.47.5(14.7)
Add: NZ IFRS16 adjustment1.11.010.0
EBITA (after NZ IFRS16)7.48.6(14.0)
NOTES
i.EBITDA and EBITA are non-GAAP measures
Appendix. Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited)
Page 32

FREIGHTWAYS
ANNUAL
SHAREHOLDERS
MEETING
26 October 2023
NZX | ASX : FRW
26 October 2023
NZX | ASX : FRW

---

ANNUAL SHAREHOLDERS MEETING


A. CHAIRMAN’S INTRODUCTION

Slide 1 . Freightways - 26 October 2023, Annual Shareholders
Meeting

Slide 2. Mark Cairns, Chairman

Nau mai, haere mai. Tena tatou katoa.
Good morning Ladies and Gentlemen. I am Mark Cairns, the Chairman
of Freightways.
Welcome to today’s Annual Shareholders Meeting. It’s great to be
able to be meeting in person again, and a very warm welcome to the
people joining us online also.
With us today are my fellow directors; Mark Rushworth, Peter Kean,
Abby Foote, David Gibson and Fiona Oliver. Mark and Peter are
standing for re-election and will address the meeting later today.


We will shortly be hearing from our Chief Executive, Mark Troughear.
Up on the stage, we also have our Chief Financial Officer, Stephan
Deschamps and our General Counsel and Company Secretary, Nicola
Silke. Other members of our Executive are also present in the room
today, keen to have a chat with you over a sausage roll after the
conclusion of the formal business.

Also here today are the Company’s Auditors, PricewaterhouseCoopers
and the Company’s external legal advisors, Russell McVeagh.

We have a quorum of shareholders, so I declare the meeting open.
Firstly a few housekeeping matters: The bathrooms are located in the
western foyer area – near where you entered. In the unlikely event of
an emergency, you will be required to evacuate and gather at the
assembly point outside on Reimer’s Avenue. Should this occur please
exit the room through the rear doors and follow the directions of Eden
Park staff or security. Could I request you take this opportunity to
switch your mobile phones to silent please?

Slide 3. How to ask questions

As set out in your meeting guide, any shareholder or proxy attending
the meeting or participating online, is eligible to ask a question.
Can I ask please that shareholders give their name when speaking
asking questions, and to confirm if they are a shareholder or proxy
holder. As usual, during question time, roving microphones will be
available to ensure that your questions are conveyed to everyone
present and online. Please wait for the microphone prior to asking
your question.
If you are attending online, please select the Q&A tab on the right half
of your screen anytime, then type your question into the field and press

'Send'. Please note that while you can submit questions from now on, I
will not address them until the relevant time in the meeting.

We may amalgamate questions of a similar nature. If, at the end of the
meeting, you don’t feel your question was addressed or you would like
to discuss it further, please contact us via the Investor Contact on our
website.

Should you require any assistance using the Computershare Online
Platform, you can type your query in the Q&A tab in the same manner
as typing a question and one of the Computershare team will assist with
the chat function and reply to your query. Alternatively, you can call
Computershare on 0800-650-034.

All of the resolutions put to shareholders today will be decided by way
of a poll.

The polls will be administered by our share registry and the results of
the polls will be announced via the stock exchanges after the close of
the meeting.

Slide 3. How to vote

If you are attending the meeting virtually, when asked at the relevant
time that resolutions are put, if you are eligible to vote at this meeting,
you will be able to cast your vote under the Vote tab. Once the voting
has opened, the resolutions will allow votes to be submitted. To vote,

simply select your voting direction from the options shown on screen.
You can vote for all resolutions at once or by each resolution. Your vote
has been cast when the tick appears. To change your vote, simply select
‘Change Your Vote’. You have the ability to change your vote, up until
the time I declare voting closed. In order to provide you with enough
time to vote, I will shortly open the voting for all resolutions.

Persons attending the meeting, who are not shareholders, proxy
holders or corporate representatives of a shareholder, may not vote.

I now declare voting open on all items of business. The resolutions will
now be open in the vote tab, please submit your votes at any time. I will
give you a warning before I move to close voting.

I will remind everyone again of these two processes when we come to
vote on the resolutions later in the meeting.

Slide 4. Meeting Order

I would now like to run through the structure of the meeting:

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

I will begin with procedural matters, and then summarise some of
the Company’s highlights over the last Financial Year. I will then
ask our Chief Executive Mark Troughear, to provide an overview
of the Company, update on current trading performance, and give
a commentary on our outlook for the remainder of the financial
year

Following Mark’s presentation and any questions relating to the
management of the company, I will then introduce the formal
resolutions as outlined in the Notice of Meeting.

Proxies have been appointed for the purpose of this meeting in respect
of approximately 73 million ordinary shares. As was indicated on the
proxy form, where proxy discretion has been given, as Chairman, I
intend to vote those proxies in favour of the four resolutions set out in
the Notice of Meeting. I also note that as set out in the proxy form, the
directors standing for re -election will abstain from voting discretionary
proxies in respect of their appointments. As requested by the New
Zealand Shareholders Association, we will not disclose the voting of
proxies received ahead of shareholders voting on them today.

The Financial Statements for the year ended 30 June 2023 are set out
in the Company’s Annual Report, released to shareholders in August.

I would now like to speak briefly to some of the highlights of
Freightways’ 2023 year.

Slide 5. General highlights – Financials FY2023

Despite a more challenging economic environment, I am proud to
report that the business still managed to generate a significant revenue
increase of 29% to more than $1.1 billion. A strong contributor to this
increase was our first major acquisition in the Australian parcel market
with Allied Express, but even our existing businesses increased their
revenues by more than 7%, against these headwinds, reflecting both
price increases and on-going market share gains on the back of market
leading service levels.

As was the case last year, our bottom line growth was not as fast as our
topline one. This mostly reflects the ongoing scarcity and cost of labour,
largely experienced during the first half of the year. With many
positions remaining vacant for extended periods of time, we had to
increase the use of temporary workers, at higher cost, in order to
maintain our service levels. Additionally, productivity was impacted,
requiring more staff than normal, increasing labour costs by 10%.
Earnings Before Interest Tax and Amortisation (EBITA) increased by
15%, to $145.3 million.

The acquisition of Allied Express has increased our level of debt and
hence our interest expense. Net Profit After Tax (NPAT) increased by
almost 7% to $75.3 million.

We are now seeing evidence that the labour pressure is easing, and we
are focusing this year and the next on margin restoration.

Slides 6. – Dividend

Freightways were pleased to announce a Final Dividend of 19 cents per
share, bringing the total annual dividend to 37 cents per share, stable
on the prior year. When setting the dividend, the Board is mindful both
of the expectations of our shareholders and of our balance sheet
capacity. With debt currently close to the maximum level we are
comfortable with, the Board decided to pay the Dividend at 75% of our
earnings.

To wrap up - It has been another big year. I consider the business is in
very good shape with many future opportunities. I would like to thank
our 6,000 strong team, ably led by Mark and his Management Team
who have had an unwavering focus on “Moving you to a Better Place”.

I would like to thank my fellow Directors and you our investors, for your
continued loyalty and support, particularly throughout the difficult
COVID years.

Nga mihi nui.
I will now hand over to Mark.

Slide 7. Freightways – Mark Troughear, Chief Executive Officer
B. CHIEF EXECUTIVE OFFICER’S REVIEW AND TRADING UPDATE

Thankyou Mark.

Welcome to those shareholders joining us for our 2023 ASM.

Also welcome those from the FRW team in the room, I would like to
express my thanks to you and your teams for the outstanding work you
have done over the past year.
I’ll talk to a brief summary of;
- FRW Strategy including our high level ESG goals, and
- Provide a trading update for Q1 along with some comments on
the outlook for the year ahead]

Slide 8. Freightways Growth Strategy

FRW operates a number of specialist logistics businesses which at their
core: pick-up, process and deliver collectively over 100m items per
annum
These operations span express package & business mail, temperature-
controlled distribution, information management and waste renewal.

The core capabilities that underpin our success in these markets are;
- A focus on striving for efficiency: (100m items, 500m individual
movements)

- Delivering reliably for our customers – where accuracy is
paramount
- Loving our customers – retaining their loyalty, understanding
their needs – both now and in the future, and
- Acting like entrepreneurs across all of our businesses activities,
investing money as if it were our own, constantly searching for
new horizons of growth

We consider each of these activities has 3 horizons of growth as
depicted in the table.
- The first horizon, is the base from which we established our
operations. It provides the infrastructure, customer base and
resources for our networks.
- The second, represents the activities we are rapidly scaling,
leveraging the base established in horizon 1
- Horizon 3, represents future revenue streams which we are
currently developing now, and that we expect to be material in 5
years’ time.

Slide 8. Strategy – Express Package and Business Mail
Horizon One: B2B
EXTEND AND DEFEND
• Focus on a profitable market share gains
• Improve the resilience of airfreight network
• Assess metropolitan “local” service levels, infrastructure costs
and pricing

Horizon Two: B2C
GROW SCALE
• Leverage our trans-Tasman presence for cross border
eCommerce customers
• Maintain high levels of service to be able to command a
premium for B2C deliveries

Horizon Three: Oversize
ESTABLISH NEW LINES OF BUSINESS
• Scale Oversize revenue in NZ
• New business teams to grow Allied’s market share in Oversize in
AU
• Assess bolt-on M&A opportunities in AU

Slide 8. Strategy – Temperature Controlled
[Horizon One: National Delivery
EXTEND AND DEFEND
• Pursue market share opportunities as new infrastructure (trucks
and depots) comes on stream

Horizon Two: 3PL
GROW SCALE
• Utilisation of 95% in Auckland
• Ruakura has now opened, targeting 50% utilisation by end of
FY24

Horizon Three: Same Day
ESTABLISH NEW LINES OF BUSINESS
• Roll out of national delivery for convenience stores
• Grow scale with new coolstore capacity brought on during 2023

Slide 9 Strategy – Information Management
Horizon One: Storage
EXTEND AND DEFEND
• Improvement in utilisation of existing warehouses through
market share gains
• AU boxes now >3m, strongest growth achieved in WA (up 7%
year on year)

Horizon Two: Digitisation
GROW SCALE
• Large scale digital project completed in NZ
• Digital revenues in AU up 39% for year, we will continue to
target growth in AU and NZ

Horizon Three: eCommerce 3PL
ESTABLISH NEW LINES OF BUSINESS
• STOCKA eCommerce offering showing strong growth. To meet
demand a new 3PL warehouse is expected to be added in June
2024

Slide 9 Strategy – Waste Renewal
[Horizon One: Secure Destruction
EXTEND AND DEFEND
• Paper prices likely to be more volatile in FY24
• Continued focus on market share gains

Horizon Two: Medical Waste
GROW SCALE
• VIC processing plant built and awaiting EPA approval
• Target market share gains in VIC, NSW, QLD

Horizon Three: High Value Waste
ESTABLISH NEW LINES OF BUSINESS
• Build profitability in SaveBoard after establishment year
• Target product destruction market
• Continue to source circular loop solutions for hard to recycle
waste

Slide 10 ESG Update
FRW approach to ESG is to target our work on those areas where we
and our stakeholders feel we can move the dial. The 4 SDG’s presented
on this slide are our primary areas of focus.

3. GOOD HEALTH AND WELLBEING
Health and safety in employment
• Health and safety in employment: Injury reduction. TRIFR
continues to reduce year on year.

8. DECENT WORK AND ECONOMIC GROWTH
• Our commitment is to improve Contractor earnings year on year
and ensure we lead the market with the quality of contractors
within our fleets
• L&D – We will continue to invest in training our people so 80% or
more of our promotions come from within

9. INDUSTRY, INNOVATION AND INFRASTRUCTURE
• We will target to maintain a customer churn rate of <2% of
revenue
• We are committed to continued growth in Horizon's 2 & 3

13. CLIMATE ACTION
• GHG emissions reduction with a target to reduce Scope 1, 2 & 3
emissions by 50% by 2035, ensuring that our contribution to
Global Warming is no greater than 1.5 degrees Celsius
• The average age of linehaul vehicles (in our direct control) is 4
years or less
Commitment to assisting the development of circular re-use of waste
through SRX - our waste renewal business.

Slide 11 Carbon Reduction

Slide 12. Q1 Trading Update
• In NZ, we have experienced a continuation of same-customer decline
in volumes but in AU we have also seen the start of a similar slowdown
in same-customer activity;
• Both markets have seen new business gains which are partially
mitigating the underlying poor economic conditions;
• An easing of the labour market has been observed and we expect a
lower rate of wage inflation from the back end of FY24 when new pay
rates are applied;
• The Ruakura temperature-controlled facility has opened for Big Chill
and customers will steadily be onboarded over the coming year;
• The delay in EPA licence for Med-X in VIC is delaying our recovery in
Waste Renewal, we now expect approval in the new year;
• We are experiencing lower paper prices for recycled paper in both AU
and NZ;
• A cost out / re-pricing programme at SRX initiated, expected to benefit
H2.

Slide 13 Consolidated Trading Performance - Q1 Unaudited and includes
lease accounting
- The 1
st
quarter of FY23 saw revenue up 25.5% to $298m, EBITDA up
11.9% to $55.4m and EBITA up 7.4% to 36.5m on the pcp
- NPAT was down on the pcp due to higher debt and interest rates as
well as an increase in amortisation costs
The key features of the trading result were:

- Higher revenue – driven by the addition of Allied Express to the group,
market share gains in most businesses and price increases
implemented in July
- Labour costs were also materially higher reflecting the tight labour
conditions that exist on both sides of the Tasman, increases in
minimum wage driving up the entry rates as well as additional sick
leave provisions

Slide 14 Q1 Express Package & Business Mail Unaudited and excludes
lease accounting
- The 1
st
quarter of FY23 saw revenue up 33%, EBITDA up 10.6% and
EBITA up 9% on the pcp

Slide 15 Q1 Information Management – Unaudited and excludes lease
accounting
- The 1
st
quarter of FY23 saw revenue down 1.3%, EBITDA down 13.4%
and EBITA down 14.7% on the pcp
- Our storage businesses have demonstrated solid growth in the first
quarter however the recovery for MDX which was expected at the end
of the first quarter with the impending EPA approval for our Victorian
medical waste facility has been delayed until early 2024.
- We are also experiencing lower paper prices in both NZ and AU

Slide 16 NZ Network Courier Item Trend For Q1, FY24 as a % Of FY23
The graph illustrates the growth in items for our NZ Network Express
Package businesses (consistent with previous presentations) over the first
quarter of FY24.
The graph shows weekly item growth v the corresponding week last year
and averages 2.3% over the period. A proportion of that growth represents
smaller items from new cross border eCommerce customers which travel
through the network at a lower price per item than our average.
Slide 17. Outlook
- Existing customers continue to trade approximately 5% below the pcp
(on average), new business has helped close some of that gap in both
NZ and AU;
- We expect express volumes and paper pricing to continue their
current soft trend in both NZ and AU over the course of the short term
until signs of an economic recovery emerge;
- The economic environment seems to be worse than we were
expecting. Whilst we will be trying to minimise its impact and adjust
our cost base in a sustainable way, we now see a risk that EBITA will
be at or below the level of last year.
- The tight labour market has eased in NZ over the past 3 months and
we now have a higher number of applicants per role, we expect this to
have a moderating effect on future wage inflation within our
businesses, with most of the impact in FY25;
- We continue to assess a number of M&A opportunities for fit and
value.

- I’d like to once again thank the experienced and committed teams of
people who continue to be our greatest strength, their safety and well-
being remains foremost in our minds.

ENDS