Half Year Results to 31 December 2023 and Interim Dividend

Results for announcement to the market
Name of issuer FREIGHTWAYS GROUP LIMITED
Reporting Period 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$620,693 12.4%
Total Revenue $620,693 12.4%
Net profit/(loss) from
continuing operations
$40,880 (9.5%)
Total net profit/(loss) $40,880 (9.5%)
Interim Dividend
Amount per Quoted Equity
Security
$0.25000000
Imputed amount per Quoted
Equity Security
$0.07000000
Record Date 8 March 2024
Dividend Payment Date 2 April 2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$(0.94) $(1.09)
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

19 February 2024

Unaudited financial statements accompany this announcement.

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FREIGHTWAYS
A PLATFORM FOR GROWTH
19 FEBRUARY 2024
NZX | ASX FRW
HY24 RESULT

Readthispresentationwiththefinancialstatements
Thefinancialresultsinthispresentationshouldbereadinconjunctionwiththefinancialstatementsforthehalfyearended31December2023, whichcanbefoundinthe
FreightwayshalfyearresultsannouncementavailableontheNZXandASXplatforms.
Noofferorinvestmentadvice
Thispresentationisforinformationpurposesonly. It isnota productdisclosurestatement,prospectusorinvestmentstatement. Nothinginit constitutesaninvitationto
subscribeforshares,securitiesorfinancialproductsinFreightways,orfinancialproduct,legal,financial,investment,taxoranyotheradviceora recommendation. Any
investorshouldconsulttheirownprofessionaladvisorsandconducttheirownindependentinvestigationofFreightwaysandtheinformationcontainedinthis
presentation,includinganystatementsrelatingtothefutureperformanceofFreightways. Theinformationinthispresentationis giveningoodfaithandhasbeenobtained
fromsourcesbelievedtobereliableandaccurateatthedateofthispresentation.
Ournon-GAAPinformation
Certainitemsoffinancialinformationincludedinthispresentationare"non-GAAP"financialmeasures.Thesenon-GAAPfinancialmeasuresdonothavea standardised
meaningprescribedbyNewZealandAccountingStandardsandsomaynotbecomparabletosimilarlynamedmeasurespresentedbyotherentities. Freightwaysbelieves
thatthesemeasuresprovideusefulinformationinmeasuringthefinancialpositionandperformanceoftheFreightwaysbusiness. However,unduerelianceshouldnotbe
placedonnon-GAAPfinancialmeasuresincludedinthispresentation.
Forwardlookingstatements
Thispresentationmayincludeforward‐lookingstatementsregardingfutureeventsandthefuturefinancialperformanceofFreightways. Suchforward‐lookingstatements
arebasedoncurrentexpectationsandinvolverisksanduncertainties. Freightwayscautionsinvestorsnottoplaceunduerelianceontheseforward-lookingstatements,
whichreflectFreightways’viewsonlyasofthedateofthispresentation.Actualresultsmaybemateriallydifferentfromthosestatedinanyforward‐looking
statements. Freightwaysgivesnowarrantyorrepresentationastoitsfuturefinancialperformanceoranyfuturematter. Theinformationinthispresentationis currentat
thedateofthispresentation,unlessotherwisestated. Freightwaysisnotunderanyobligationtoupdatethispresentationafteritsrelease,whetherasa resultofnew
information,futureeventsorotherwise.
Disclaimer
NoneofFreightways,itsaffiliates,ortheirrespectiveadvisersorrepresentatives,giveanywarrantyorrepresentationastotheaccuracyorcompletenessofthe
informationcontainedinthispresentation,andexcludetheirliabilitytothemaximumextentpermittedbylaw.
| FREIGHTWAYS HY24 RESULTS PRESENTATION
2
Disclaimer

Slide
1. Introduction
4
2. Financial Summary
Capital Management
6
3. Divisional Performance
10
4. Business Strategy
15
5. Outlook
19
6. Appendices
22
| FREIGHTWAYS HY24 RESULTS PRESENTATION
3
ContentsPresenters
STEPHAN DESCHAMPS
Chief Financial Officer
MARK TROUGHEAR
Chief Executive Officer
NEIL WILSON
General Manager
STEVE WELLS
General Manager of Express Package

Our Four Lines of Business
•Physical storage and
information management
services
•Suite of digitalisation services
•eCommerce 3PL
•Refrigerated national transport
•Temperature controlled 3PL
•Same day refrigerated delivery
EXPRESS PACKAGE &
BUSINESS MAIL
•B2B - overnight national
network delivery - courier and
mail
•B2C - overnight and economy
delivery - courier and mail
•Oversize parcels
WASTE RENEWAL
•Document Destruction
•Medical waste collection and
processing
•Product destruction & renewal
TEMPERATURE
CONTROLLED
INFORMATION
MANAGEMENT
OVERVIEW
BRANDS
BUSINESS MODEL
PICK UPPROCESSDELIVER
| FREIGHTWAYS HY24 RESULTS PRESENTATION
4
EP & BM HY24 revenue: $515mIM HY24 revenue: $106m

Our Trans-Tasman Footprint
Legend
Darwin
Perth
Adelaide
Melbourne
Hobart
Canberra
Sydney
Brisbane
Townsville
Tauranga
Rotorua
Hawke's Bay
Palmerston North
Taupo
Wellington
Christchurch
Timaru
Dunedin
Whangarei
Hamilton / Putaruru
New Plymouth
Whanganui
Nelson / Blenheim
Central Otago / Cromwell
Invercargill
Auckland / North Shore
Network Courier
Point-to-point
Temperature Controlled
Business Mail
Support
Information Management
Waste Renewal
Increasingly, business for FRW Group is about mapping growth across two complementary
Trans-Tasman markets, strengthening FRW’s portfolio diversification
AUSTRALIA (35% Revenue)NEW ZEALAND (65% Revenue)
| FREIGHTWAYS HY24 RESULTS PRESENTATION
5

Financial Summary and
Capital Management
| FREIGHTWAYS HY24 RESULTS PRESENTATION
6
FREIGHTWAYS HY24 RESULT

| FREIGHTWAYS HY24 RESULTS PRESENTATION
7
HY24 Group Highlights
1
NOTES
1.Metrics shown relative to pcp
2.Non-GAAP measure
3.GAAP (Generally Accepted Accounting Practice), IFRS-compliant measure
12.4%
Revenue Growth
Across Freightways
0.5%
EBITA
2
Growth
Across Freightways
9.5%
NPAT
3
Growth
Across Freightways
18c
Dividend (same as HY23)

Note
HY24
$m
HY23
$m
Change
%
Operating Revenue
620.7552.112.4
EBITDA (non-GAAP)1
119.5113.75.1
EBITA (non-GAAP)2
80.880.40.5
NPATA (non-GAAP)3
47.350.2(5.8)
NPAT (GAAP)4, 5
40.945.2(9.5)
Basic Earnings Per Share (cents)
2326.3
NOTES
•Results in this table are unaudited and after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16.
•Pcp includes 3 months Allied contribution only
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
3.Net profit after tax before amortisation
4.Net profit after tax
5.GAAP (Generally Accepted Accounting Practice), IFRS-compliant measure
HY24 PERFORMANCE OVERVIEW
•Revenuegrowthof12.4% supportedbygrowthacross bothEPBM of
14.8% andIMof 2%
•Solid performances for Allied Express, Network Couriers and
Information Managementin HY24
−The NZ and AU markets have remained stable in the three months
since our 1Q24 update. Activity remains broadly in line with 1Q24
trends
•EBITAis flat on the pcp, with NPAT impacted by increasedamortisation to
$6.4mandinterest expense to$17.2m
•Labour markets have continued to slowly ease over the quarter
•Shred-X impacted bylower paper prices and the delayed consenting of
Medical Waste license in Victoria
•Big Chill has been more heavily impacted by the economic cycle
andcontinues to experience lower same-customer volumes
−New Ruakurafacility opened in October andutilisation has been
growing pleasingly
| FREIGHTWAYS HY24 RESULTS PRESENTATION
8
HY24 Consolidated Performance

CAPITAL MANAGEMENT PRINCIPLES
•Targeting solid Investment Grade credit profile, at a level that minimises
the cost of capital
•Net Debt / EBITDA between 2.0x and 3.0x post IFRS16
DIVIDEND POLICY
•Dividend Policy aligned with Capital Management Policy, balancing
several objectives:
−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
−The dividend is set at a level that the Board expects to be
sustainable in the medium term
−Subject to the first two principles, the Board will aim to pay 75% to
80% of the NPATA adjusted for significant one-offs
| FREIGHTWAYS HY24 RESULTS PRESENTATION
9
INTERIM DIVIDEND | 18 CPS (= pcp)
Imputation credits
7.00 cps
(fully imputed in NZ at 28% tax rate)
Supplementary dividend3.176 cps
Record date8 March 2024
Payment date2 April 2024
Dividend Reinvestment
Plan
Not operating for this dividend
Capital Management and Dividend Policy

Divisional Performance
FREIGHTWAYS HY24 RESULT
| FREIGHTWAYS HY24 RESULTS PRESENTATION
10

•EPBM divisional revenue up 15% on the pcp(including Allied’s
contribution)
•EPBM EBITA is flat on pcp
•Labour markets have loosened with no material vacancies in any
business and a larger pool of candidates to select from
•Strong service performance by all EPBM businesses has continued to be
a differentiator aiding market share gains
•EBITA margin impacted by Allied Express operating at a lower margin
than the NZ EP businesses and the lower profitability of Big Chill
| FREIGHTWAYS HY24 RESULTS PRESENTATION
11
Note
HY24
$m
HY23
$m
Change
%
Operating Revenue
517.1450.314.8
EBITDA (non-GAAP)1
97.092.15.3
EBITA (non-GAAP)2
71.471.40.1
EBITA Margin3
13.9%15.9%
NPAT (GAAP)4, 5
43.846.3(5.3)
NOTES
•Results in this table are unaudited and after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16.
•Pcp includes 3 months Allied contribution only
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
3.Net profit after tax before amortisation
4.Net profit after tax
5.GAAP (Generally Accepted Accounting Practice), IFRS-compliant measure
HY24 Express Package and Business Mail

NEW ZEALAND
•NZ Network volume for HY24 was up 1.8% on the
pcp(including lower priced eCommerce,
equivalent to 3% of volume)
•NZ Network market share gains of 4% helped
offset organic volume declines
•Countdown has now fully exited the business
(from September)
•Big Chill Transport revenue is down 6%due to
lower same customer activity
•Big Chill's new Ruakura facility is growing
itsutilisationand we expect to be achieving
breakeven by Q1 FY25
•Oversize revenue now at a ~$5m p.a. run rate
AUSTRALIA
•Allied has performed well over the half. While same-
customer volumes are down slightly, Allied has done
well to win new business to grow revenue over the
period
•The NSW automation facility was commissioned in Q2
and assisted over the peak November and December
months to manage volumes with ease and very good
service performance
•The Victorian automation project has commenced in
February and is expected to be completed by the end
of FY24
•New business team actively targeting market share
opportunities.
HY24 Trans-Tasman Express Package & Business Mail
| FREIGHTWAYS HY24 RESULTS PRESENTATION
12

NZ Network Courier Item Trend For HY24
[As a % of HY23]
| FREIGHTWAYS HY24 RESULTS PRESENTATION
13
VOLUME
WEEKS
Volume is
up 1.8% for
the half
year

| FREIGHTWAYS HY24 RESULTS PRESENTATION
14
Note
HY24
$m
HY23
$m
Change
%
Operating Revenue
105.7103.62.0
EBITDA (non-GAAP)1
27.926.36.2
EBITA (non-GAAP)2
15.414.47.0
EBITA Margin3
14.6%14.0%-
NPAT (GAAP)4, 5
8.37.69.7
•TIMG (AU & NZ) revenue is up 4% overall (measured in the
functional currency of the entities) – key contributors are
digitalisation revenue and Stocka(new eCommerce 3PL start up)
with 22% and 44% revenue growth respectively on pcp
−TIMG AU performing well with digitalisation services growing
well andorganic growth in storage revenue of 5% on the pcp
•Waste Renewal revenue was up 2%
•Stronger destruction revenues in both NZ and AU reflecting our
strong positioning in both geographies
•Paper prices appear at this stage to have stabilised – if paper prices
stay at the current level the full year impact will be negative $2.7m
•LitSupportrevenue is now consistent and finished the half up 4%
on pcp
•The Victorian facility for Med-X has been through public notification
and is expected to commence operations by Q4 2024
NOTES
•Results in this table are unaudited and after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16.
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
3.Net profit after tax before amortisation
4.Net profit after tax
5.GAAP (Generally Accepted Accounting Practice), IFRS-compliant measure
HY24 Information Management and Waste Renewal
0
2
4
6
8
10
12
H1 FY21H1 FY22H1 FY23H1 FY24
HY24 DIGITAL REVENUE AU & NZ
Revenue
$m

Strategy Update
| FREIGHTWAYS HY24 RESULTS PRESENTATION
15
FREIGHTWAYS HY24 RESULT

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
HORIZON 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
•Acquired First Global in
November to provide a cross
border eCommerce capability
•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’smarket 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, and
we are building utilisation
SAME DAY
•Roll out of national delivery for
convenience stores ​
•Grow scale with new capacity
brought on during calendar year
2023
| FREIGHTWAYS HY24 RESULTS PRESENTATION
16
Three Horizons of Growth

| FREIGHTWAYS HY24 RESULTS PRESENTATION
17
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 3.1m, strongest
growth coming from medical and
government sectors (close
alignment to digitalisation
opportunities)
DIGITISATION
•Digital revenues up 19% and 31%
for TIMG AU and NZ respectively
•Existing key work streams in AU
expected to continue for at least 4
years
•Strong pipeline of further
opportunities in both countries
ECOMMERCE 3PL
•STOCKAeCommerce offering
showing strong growth, current
revenue run rate of $2.5mp.a.
exploiting unutilised warehouse
space in NZ
WASTE RENEWAL
SECURE DESTRUCTION
•Implementing new pricing
strategies to improve margin
•Continued focus on market share
gains
MEDICAL WASTE
•VIC processing plant expected to
be operational by Q4
•Target market share gains in VIC,
NSW, QLD
HIGH VALUE WASTE
•Build profitability in SaveBoard
after establishment year
•Target product destruction market
•Continue to source circular loop
solutions for hard to recycle waste
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

Target characteristics:
Established / profitable, well-managed and growing businesses
Earnings accretive acquisitions with achievable synergies and well-understood
integration costs
Strategic rationale:
Access new customer segments that we can grow earnings from, using our
core capabilities
Increase our size, capability and capacity across existing business units
Size: Bolt on acquisitions that complement existing business divisions through
to larger opportunities
Geography: Australia and New Zealand
Method: Disciplined adherence to deriving value
| FREIGHTWAYS HY24 RESULTS PRESENTATION
18
Revenue and EBITA are up under Freightways ownership
Significant investments made in automation and new or
expanded facilities in Sydney, Melbourne, Perth, Adelaide and
Brisbane (new build to be completed by July 2024)
Assisted launch of Freightways’ Kiwi Express Oversize service
in NZ
Acquisition Strategy & Investment Criteria
Disciplined Approach to M&A

Outlook
| FREIGHTWAYS HY24 RESULTS PRESENTATION
19
FREIGHTWAYS HY24 RESULT

| FREIGHTWAYS HY24 RESULTS PRESENTATION
20
•Volumes have remained stable in Australia and New Zealand and will continue to be subject to the
economic environment in both countries
•Labour markets have eased and we expect labour rate increases to normalise in FY25
•Focus will be on restoring margins for both divisions in FY25 and FY26 as those labour rates ease and
modest organic growth occurs
•Our Victorian Med-X facility is expected to be operational from Q4
•We expect to continue to grow utilisation at the Ruakurafacility through FY24 such that we are
breakeven by Q1 FY25 and generate positive returns in FY25 onward
•Paper pricing has stabilised and has recovered slightly from the lows seen in Q1
•Full Year Capex expected to be $35m including the second automated sortation system at Allied in
Victoria
•We continue to take a disciplined approach to M&A and are leveraging our strong platform in Australia
to assess acquisition opportunities
Stable volumes
likely to continue
despite tough
economic
conditions
Focus on
restoring
margins
Disciplined
M&A
approach, with
opportunities
being explored
Outlook

Questions
| FREIGHTWAYS HY24 RESULTS PRESENTATION
21
FREIGHTWAYS HY24 RESULT

Appendices
| FREIGHTWAYS HY24 RESULTS PRESENTATION
22
FREIGHTWAYS HY24 RESULT

FREIGHTWAYS GROUPHY24 ($m)HY23 ($m)
Notes
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Operating Revenue
620.7-620.7552.1-552.1
EBITDA (non-GAAP)1
119.5(31.6)87.9113.7(25.6)88.1
EBITA (non-GAAP)2
80.8(5.7)75.080.4(4.4)76.0
NPATA (non-GAAP)3
47.31.849.150.21.451.6
NPAT (GAAP)4, 5
40.91.842.745.21.446.6
24 | FREIGHTWAYS HY24 RESULTS PRESENTATION
NOTES
•Results in this table are unaudited
•Pcpincludes 3 months Allied contribution only
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
3.Net profit after tax before amortisation
4.Net profit after tax
5.GAAP (Generally Accepted Accounting Practice), IFRS-compliant measure
Appendix – Reconciliation of post-IFRS16 to pre-IFRS16
(unaudited)

EXPRESS PACKAGE & BUSINESS MAILNotesHY24 ($m)HY23 ($m)Change (%)
Operating Revenue
517.1450.314.8
EBITDA (after NZ IFRS16)
197.092.15.3
Less: NZ IFRS16 adjustment
(20.9)(16.1)30.4
EBITDA (before NZ IFRS16)
76.076.1(0.1)
EBITA (after NZ IFRS16)
271.471.40.1
Less: NZ IFRS16 adjustment
(3.5)(2.4)45.0
EBITA (before NZ IFRS16)
68.069.0(1.5)
Appendix – Reconciliation of post-IFRS16 to pre-IFRS16
(unaudited)
25 | FREIGHTWAYS HY24 RESULTS PRESENTATION
NOTES
•Results in this table are unaudited
•Pcpincludes 3 months Allied contribution only
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation

Appendix – Reconciliation of post-IFRS16 to pre-IFRS16
(unaudited)
26 | FREIGHTWAYS HY24 RESULTS PRESENTATION
NOTES
•Results in this table are unaudited
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
INFORMATION MANAGEMENT & WASTE
RENEWAL
NotesHY24 ($m)HY23 ($m)Change (%)
Operating Revenue
105.7103.62.0
EBITDA (after NZ IFRS16)
1
27.926.36.2
Less: NZ IFRS16 adjustment
(10.6)(9.4)11.9
EBITDA (before NZ IFRS16)
17.316.83.0
EBITA (after NZ IFRS16)
2
15.414.47.0
Less: NZ IFRS16 adjustment
(2.2)(1.9)15.2
EBITA (before NZ IFRS16)
13.212.55.7

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Section 1: Issuer information
Name of issuer Freightways Group Limited
Financial product name/description Fully Paid Ordinary Shares
NZX ticker code FRW
ISIN (If unknown, check on NZX
website)
NZFREE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 8 March 2024
Ex-Date (one business day before the
Record Date)
7 March 2024
Payment date (and allotment date for
DRP)
2 April 2024
Total monies associated with the
distribution
1

$32,168,000
Source of distribution (for example,
retained earnings)
Retained earnings
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
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
6

28%

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.

Imputation tax credits per financial
product
$0.07000000
Resident Withholding Tax per
financial product
$0.01250000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

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

19 February 2024

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FREIGHTWAYS GROUP LIMITED














Half Year Report
December 2023

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

It is more of the same in this half year, as conditions remained relatively consistent with those experienced before
the Q1 trading update provided at the Annual Shareholders Meeting in October.
The half year result reflected the general state of the economies of both NZ and Australia (AU), with volumes
marginally up on the prior comparative period (pcp) in Express Package (EP), with positive market share gains
offset by continued lower same-customer volumes. Information Management (IM) provided a small improvement
on the pcp with a number of profit improvement initiatives in Waste Renewal gaining traction and good
performances in digitalisation and AU storage utilisation.
Top-line revenue growth for the half year of 12.4% was mainly driven by Allied Express (AEX) in Australia. Flat
earnings before interest, tax and amortisation (EBITA) reflected the flow through of higher labour costs, Big
Chill’s rent (Ruakura) and a slow-down of some of our customers, especially in temperature-controlled transport
in the half. The decline in net profit after tax (NPAT) of 9.5% was a result of higher interest costs of $4m and
higher amortisation, following the recent acquisition of AEX.
NZ network couriers delivered a steady result against the pcp, with volumes up 1.8% on the pcp, aided by a
contribution (of around 3% of total volumes) from international inbound eCommerce. Same-customer volumes
continued at a similar rate to Q1 with an approximate 5% decline on the pcp whilst market share gains provided
the growth.
AEX have grown their revenue, again as a result of market share gains. The New South Wales automated sortation
system was successfully commissioned, helping to deliver a smooth performance over the peak November /
December months.
The Information Management and Waste Renewal division slightly improved profitability in the half with a
number of price and cost saving initiatives beginning to gain traction. Paper prices stabilised and then showed a
small recovery in Q2. The Medical Waste facility in Victoria is now expected to be operational in Q4 after a
number of frustrating consenting delays.
We expect that FY24 will reflect the tail of much higher-than-average labour cost increases, as a result of very
tight labour markets in both NZ and Australia, as well as of a muted organic growth profile in most areas in which
we pick up, process and deliver.
Freightways is well positioned to take advantage of the opportunities that are in front of us with loyal customers,
high-performing businesses, disciplined balance sheet management as well as experienced and adaptable
customer-focused teams. Our focus will be on restoring margins in FY25 and FY26 with labour markets appearing
to return to normal levels and Temperature Controlled Logistics and Waste Renewal both well-resourced for
growth.
The Directors have declared an interim dividend of 18 cents per share, fully imputed in New Zealand 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 2 April 2024. The record date for determination of entitlements to the
dividend is 8 March 2024.

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
Divisional performance
Each division’s key features are listed below.
Express Package (EP) & Business Mail
• Revenue for the EP division grew by 15% compared to the pcp thanks to the contribution of AEX to the
business division.
• EBITA was flat on the pcp, a solid performance from AEX and NZ network couriers was offset by lower
margins at Big Chill as they take on the rent cost for Ruakura and same-customer volumes were down by 6%.
• Average daily volume for NZ network couriers was 1.8% above the pcp.
• The proportion of Business to Customer (B2C) deliveries in NZ was 21% for the half with Pricing For Effort
(PFE) averaging $1.62 per item over the period.
• AEX contributed c. NZ$137m in revenue over the period. 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’s transport revenue declined by 6% over the period. Utilisation in the new 3PL facility at Ruakura
was 48% at the end of the half year and is forecast to increase to 70% by the end of the full year.
• EBITA margin impacted by AEX operating at a lower margin than the NZ EP businesses and the lower
profitability of Big Chill.
• DX Mail revenue was up 5% on the pcp, largely reflecting pricing improvements in the half year.
• Labour costs are now moderating from the double-digit growth we had experienced in the previous year and
we expect FY25 to return to normal levels of increase to retain and attract talent.

Information Management & Waste Renewal
• Information Management revenue grew by 2% with digitalisation revenue growing by 22% over the pcp.
• Stronger destruction revenues in both NZ and AU reflecting our strong positioning in both geographies.
• Paper prices appear at this stage to have stabilised – we expect the full year impact of lower pricing will be
negative $2.7m (with 75% of that within H1).
• LitSupport revenues are now consistent and finished the half up 4% on pcp.
• The Victorian facility for Med-X has been through public notification and is expected to commence operations
by Q4 FY24.
• EBITA improved by $1m with most gains made in Australia.

Disciplined Balance Sheet management
Capital expenditure for FY24 is forecast to be lower than initially budgeted at $35m for the year. We remain
committed to a solid investment-grade credit profile and will continue to manage our balance sheet accordingly.
Our gearing is expected to remain in the top half of our target range by the end of the year.

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.
• Volumes have remained stable in Australia and New Zealand but will continue to be subject to the
economic environment in both countries
• Labour markets have eased, particularly in NZ and we expect labour rate increases to normalise in
FY25
• Our Victorian Med-X facility is expected to be operational from Q4
• We expect to continue to grow utilisation at the Ruakura facility through FY24 such that we are
breakeven by Q1 FY25 and generate positive returns from then on
• Paper pricing has stabilised and has recovered slightly from the lows seen in Q1
• Full year capital expenditure is expected to be $35m including the second automated sortation system at
AEX in Victoria
• Our focus will be on restoring margins for both divisions in FY25 and FY26 as labour rates ease and
modest organic growth occurs
• The Group 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.







Mark Cairns Mark Troughear
Chairman Chief Executive Officer

19 February 2024

4

5

6

FREIGHTWAYS GROUP LIMITED
CONSOLIDATED INCOME STATEMENT
for the half year ended 31 December 2023 (unaudited)



Note
6 mths
ended
31 Dec 2023
$000
6 mths
ended
31 Dec 2022
$000
Variance
%

Operating revenue
3 & 4
620,693 552,082 12.4%




Transport and logistics expenses

(273,070) (231,555) 17.9%
Employee benefits expenses

(171,252) (149,807) 14.3%
Occupancy expenses

(3,035) (3,592) (15.5%)
General and administrative expenses

(53,832) (53,407) 0.8%
Depreciation and software amortisation

(38,734) (33,346) 16.2%
Amortisation of intangibles

(6,401) (4,981) 28.5%
Operating profit before interest and income tax
3
74,369 75,394 (1.4%)
Net interest and finance costs

(17,173) (13,110) 31.0%
Profit before income tax

57,196 62,284 (8.2%)
Income tax

(16,316) (17,097) (4.6%)
Profit for the period

40,880 45,187 (9.5%)



Profit for the period attributable to:


Owners of the parent

40,802 45,112 (9.6%)
Non-controlling interests

78 75 4.0%


40,880 45,187 (9.5%)



Earnings per share for the period:


Basic earnings per share (cents)

23.0 26.3
Diluted earnings per share (cents)

23.0 26.3







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

7


FREIGHTWAYS GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half year ended 31 December 2023 (unaudited)



Note
6 mths ended
31 Dec 2023
$000
6 mths ended
31 Dec 2022
$000

Profit for the period

40,880 45,187

Other comprehensive income


Items that may be reclassified subsequently to profit or loss:


Exchange differences on translation of foreign operations
5
(2,067) (9,506)
Cash flow hedges taken directly to equity, net of tax

(1,533) 23
Total other comprehensive income after income tax (3,600) (9,483)

Total comprehensive income for the period

37,280 35,704



Total comprehensive income for the period is attributable to:


Owners of the parent

37,202 35,629
Non-controlling interests

78 75


37,280 35,704





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

8
FREIGHTWAYS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year ended 31 December 2023 (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 2023 298,075 185,618 2,404 (9,883) 388 476,602
Profit for the period - 40,802 - - 78 40,880
Exchange differences on translation of foreign operations - - - (2,067) - (2,067)
Cash flow hedges taken directly to equity, net of tax - - (1,533) - - (1,533)
Total Comprehensive Income - 40,802 (1,533) (2,067) 78 37,280
Dividend payments - (33,884) - - - (33,884)
Shares issued 5 9,673 - - - - 9,673
Balance at 31 December 2023 307,748 192,536 871 (11,950) 466 489,671

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 112,851 - - - - 112,851
Balance at 31 December 2022 297,200 187,464 2,201 (13,532) 309 473,642

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

9
FREIGHTWAYS GROUP LIMITED
CONSOLIDATED BALANCE SHEET
as at 31 December 2023 (unaudited)


Notes
As at
31 Dec 2023
$000
As at
31 Dec 2022
$000
As at
30 Jun 2023
$000
(Audited)
Current assets
Cash and cash equivalents 34,089 65,188 44,485
Trade and other receivables 173,007 156,439 150,434
Inventories 10,554 9,979 9,650
Contract assets 1,769 1,585 1,875
Derivative financial instruments 340 828 1,126
Total current assets 219,759 234,019 207,570

Non-current assets
Trade receivables and other non-current assets 7,644 6,182 5,999
Property, plant and equipment 153,335 145,419 155,200
Right-of-use assets 355,278 311,974 315,536
Intangible assets 671,209 680,937 677,639
Derivative financial instruments 895 2,229 2,212
Investment in associates and joint venture 13,990 12,088 12,480
Total non-current assets 1,202,351 1,158,829 1,169,066
Total assets 1,422,110 1,392,848 1,376,636

Current liabilities
Trade and other payables 146,012 139,414 138,602
Borrowings 6 - 71,001 -
Lease liabilities 48,777 40,403 44,774
Income tax payable 18,550 15,312 16,807
Provisions 3,704 2,232 3,552
Contract liability 13,790 15,382 14,407
Total current liabilities 230,833 283,744 218,142

Non-current liabilities
Trade and other payables 2,000 3,709 4,159
Borrowings 6 285,706 252,407 297,194
Deferred tax liability 52,366 57,924 56,824
Provisions 10,530 9,812 10,216
Lease liabilities 350,977 311,610 313,499
Derivative financial instruments 27 - -
Total non-current liabilities 701,606 635,462 681,892
Total liabilities 932,439 919,206 900,034
NET ASSETS 489,671 473,642 476,602

EQUITY
Contributed equity 5 307,748 297,200 298,075
Retained earnings 192,536 187,464 185,618
Cash flow hedge reserve 871 2,201 2,404
Foreign currency translation reserve (11,950) (13,532) (9,883)
489,205 473,333 476,214
Non-controlling interests 466 309 388
TOTAL EQUITY 489,671 473,642 476,602



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

10
FREIGHTWAYS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half year ended 31 December 2023 (unaudited)


Note
6 mths
ended
31 Dec 2023
$000
6 mths
ended
31 Dec 2022
$000


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


Receipts from customers

595,143 542,542
Payments to suppliers and employees

(502,987) (428,816)
Cash generated from operations

92,156 113,726
Interest received

488 365
Interest and other costs of finance paid

(17,661) (13,475)
Income taxes paid

(16,649) (20,833)
Net cash inflows from operating activities

58,334 79,783



Cash flows from investing activities


Payments for property, plant & equipment

(9,325) (15,125)
Payments for software

(1,233) (1,442)
Proceeds from disposal of property, plant & equipment

207 430
Net cash acquired from business combinations 9 102 (128,472)
Receipts from joint venture

- 1,686
Cash flows from other investing activities

- (500)
Net cash outflows from investing activities

(10,249) (143,423)



Cash flows from financing activities


Dividends paid

(25,012) (31,527)
(Decrease) increase in bank borrowings

(9,585) 154,240
Principal elements of lease payments

(23,696) (19,926)
Net cash (outflows)/inflows from financing activities

(58,293) 102,787



Net (decrease) increase in cash and cash equivalents

(10,208) 39,147
Cash and cash equivalents at the beginning of the period

44,485 24,137
Exchange rate adjustments

(188) 1,904
Cash and cash equivalents at the end of the period

34,089 65,188




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

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)

11

1. Basis of Preparation

The interim financial statements are those of Freightways Group 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 2023.

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

The Group has negative working capital of $11.1 million. This is largely due to contract liability for deferred
revenue (prepaid ticket liability) which is classified as a current liability (June 2023: $10.6 million due to
contract liability; Dec 2022: $49.7 million due to contract liability and bank borrowings of $71 million
repayable within 12-months).


2. Material Accounting P olicy Information

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. This segment also
comprises secure handling, treatment and disposal of clinical waste, waste renewal, and related services.

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

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)


12
The Group has no individual customer that represents more than 4% of external sales revenue.

(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 2023


Sales to external customers 515,118 105,575 - - 620,693
Inter-segment sales 1,986 155 3,009 (5,150) -
Total revenue 517,104 105,730 3,009 (5,150) 620,693

Operating profit (loss) before
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 96,974 27,897 (5,367) - 119,504
Depreciation and software
amortisation (25,529) (12,450) (755) - (38,734)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles 71,445 15,447 (6,122) - 80,770
Amortisation of intangibles,
excluding software amortisation (5,240) (1,161) - - (6,401)
Operating profit (loss) before
interest and income tax 66,205 14,286 (6,122) - 74,369
Net interest and finance costs (5,303) (2,597) (9,273) - (17,173)
Profit (loss) before income tax 60,902 11,689 (15,395) - 57,196
Income tax (17,104) (3,403) 4,191 - (16,316)
Profit (loss) for the period
attributable to the shareholders 43,798 8,286 (11,204) - 40,880

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (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 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 GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (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 and
Refrigerated
Transport &
Storage
Postal Storage &
Handling
Destruction
Activities
Other
including
Digital
Services
Total
Half year ended
31 December 2023
$000 $000 $000 $000 $000 $000
Revenue from external
customers
486,153 28,965 33,972 47,336 24,267 620,693
Timing of revenue
recognition:

At a point in time - 1,559 - 13,922 4,203 19,684
Over time 486,153 27,406 33,972 33,414 20,064 601,009
486,153 28,965 33,972 47,336 24,267 620,693

Half year ended
31 December 2022

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


5. Equity

Contributed equity

Fully paid ordinary shares
As at 31 December 2023, there were 178,712,819 fully paid ordinary shares on issue (2022: 177,431,358).
All fully paid ordinary shares have equal voting rights and share equally in dividends and surplus on winding
up.

Dividend Reinvestment Plan
On 2 October 2023, the Company issued 1,054,748 fully paid ordinary shares at $8.4115 under the
Freightways dividend reinvestment plan (2022: Nil).

Share rights
On 20 October 2023, 136,713 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 (2022: 127,565).
The issue price per share was $7.38 (2022: $8.06).

On 20 October 2023, 13,717 share rights were redeemed and cancelled (2022: 46,839).

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)


15
As at 31 December 2023, there were 241,576 share rights on issue (2022: 239,846). Share rights do not
carry a dividend entitlement and are non-transferable.


Employee share plan
On 1 December 2023, the Company issued 90,000 fully paid ordinary shares at $6.85 each to Freightways
Trustee Company Limited, as Trustee for the Freightways Employee Share Plan (2022: 65,000 fully paid
ordinary shares at $9.16 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 (2022: $0.6 million). The loans are
repayable over three years and repayment commenced in December 2023.

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.


6. Borrowings

As at 31 December 2023, the Group’s debt facilities with its banking syndicate comprised NZ$150 million
and A$80 million (2022: NZ$150 million and A$150 million), of which NZ$109 million and A$45.2 million
(2022: NZ$110 million and A$80.7 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 2023 (2022: NZ$20 million and A$100 million).

The Group had an undrawn bank overdraft facility of NZ$8 million available (2022: 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 McDowell Properties Pty Ltd, an entity that is controlled by a member of the
Group’s key management personnel. During the period, the Group paid lease of $0.1 million (2022: $0.1
million) to McDowell Properties Pty Ltd.

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

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)


16
Payments to associates: During the period, the following transactions occurred with Sweetspot Group
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 $7.4 million (2022: $8.5
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 2023
in respect of the half year) to key management, which includes senior executives of the Group and non-
executive independent directors, is as follows:



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 2023 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 2023.

In the period to 31 December 2023 there were no significant changes in the business or economic
circumstances that affect the fair value of the Group’s financial assets and financial liabilities.

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

Level 1 - Quoted prices (adjusted) in active markets for identical assets or liabilities at the reporting date. A
market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis.


Level 2 - Inputs that are observable for the asset or liability, either directly (i.e., as prices; other than quoted
prices referred to in Level 1 above) or indirectly (i.e., derived from prices). The fair value of
financial instruments that are not traded in an active market (for example, over-the-counter
derivatives and US Private Placement (USPP)) is determined by using valuation techniques. These
valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on entity specific estimates. If all significant inputs required to fair value an
instrument are observable, the fair value of an instrument is included in Level 2.
Group
2023
$000
2022
$000
Sale of courier services to GSS 6,653 6,954
Purchase of goods and services from GSS 1,088 914
Receivables from GSS at end of period 1,738 1,808
Payables to GSS at end of period - 137

2023
$000
2022
$000
Short-term employee benefits 6,272 4,980
Share-based payments 200 189

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)


17
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 2023.

There have been no reclassifications of financial assets and finance liabilities since 30 June 2023.

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 during the period
Effective 1 November 2023, the Group acquired the business and assets of First Global Logistics, an end-to-
end international e-commerce logistics business in New Zealand for total consideration of $5.9 million. The
consideration comprises a $3.9 million non-cash settlement of trade payables between the Group and the
acquiree and a future earn-out of up to $2 million payable at the end of the 2025 financial year. The acquired
business expands the Group’s international e-commerce logistics know-how and operates within the Group’s
express package division.

Prior period acquisition – 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 $215.3 million. The consideration comprises a
cash payment of $88.1 million, issue of Freightways shares of $112.1 million, promissory note of $14.5
million and a completion adjustment of $0.7 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. The
completion adjustment of $0.7 million was paid during the half year ended 31 December 2023.

The fair value of certain assets and liabilities arising from the acquisition had previously been determined on
a provisional basis, pending confirmation of certain determinants and finalisation of independent valuations.

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)


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The fair value of assets acquired and liabilities assumed were subsequently finalised within 12 months from
the acquisition date. There was a minor adjustment to deferred tax recognised in the current period.

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 days 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 2023, the estimated discounted future earn-out payment for the acquisition of PP was
$3.7 million (30 June 2023: $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 current trade and other payables in the balance sheet.

Reconciliation of payments for businesses acquired

$000
Cash paid for completion adjustment for the acquisition of AEX 671
Cash acquired from acquisition (773)
Payments for businesses acquired, net of cash acquired (102)


10. Climate Change

Risks especially those associated with climate change are reviewed on a regular basis. There is no material
change to the Group’s climate change risk since 30 June 2023.


11. Capital Commitments and Contingent Liabilities

As at 31 December 2023, the Group had capital commitments to purchase equipment of $10.5 million ( 2022:
$7.8 million).

As at 31 December 2023, the Group had outstanding letters of credit and bank guarantees issued by its lenders
totalling approximately $14.1 million (2022: $12.7 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 2023 (2022: nil).


12. Net Tangible Assets per security

Net tangible assets (liabilities) per security at 31 December 2023 was ($0.94) (2022: ($1.09)).

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2023 (unaudited)


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13. Post Balance Date Events

Dividend declared

On 19 February 2024, the Directors declared a fully imputed interim dividend of 18 cents per share
(approximately $32.2 million) in respect of the year ended 30 June 2024. The dividend will be paid on 2
April 2024. The record date for determination of entitlements to the dividend is 8 March 2024. A
supplementary dividend of 3.18 cents per share will be paid to overseas shareholders when the interim
dividend is paid. The Freightways Dividend Reinvestment Plan will not operate for this dividend.

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