Annual Shareholders Meeting – including trading update

23 October 2024
Freightways Annual Shareholders
Meeting Presentation
Mark Cairns
Chairman
Mark Troughear
Chief Executive
Presenters:

Mark Cairns
Chairman
Chairman’s Address
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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ANNUAL SHAREHOLDERS MEETING | FREIGHTWAYS
Agenda
1.Procedural Matters
2.Chairman’s Review
3.CEO’s Strategy and Trading Update
4.Questions
5.Resolutions
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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4

ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Shareholder & Proxy Holders
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5

•The economic environment has been challenging in NZ and to a
lesser extent Australia
•In that context the result is seen as resilient with a broad based
same-customer decline in activity offset by;
‒Revenue growth – especially in Australia bolstered by
the performance of Allied, and
‒Market share gains achieved in all of our businesses
•Labour markets were tight through the first half of FY24 but
had eased and largely returned to normal by the end of the
year
•During the year there was investment in;
‒Two oversize sortation systems for Allied Express,
‒A medical waste processing facility for Med-X in
Victoria, and
‒A new Big Chill 3 PL site at Ruakura
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
6
FY24 Performance

Revenue Growth
7.8%
EBITA* Growth
2.5%
NPAT Growth
(5.8%)
* Non-GAAP (Generally Accepted Accounting Principles)
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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FY24 Group Highlights

cps - Cents Per Share
2024
2.7x
2023
2.8x
Net Debt | EBITDA
Dividend
FY24
37cps
FY23
37cps
post IFRS16
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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Gearing and Dividend FY24

•FRW released our first Climate Related Disclosure
statement a few days ago, following 4 years reporting
under the TCFD framework.
•This is a complex piece of work for a business structured
as we are, with relatively autonomous business units and
lean corporate teams. We are doing a lot of work to ensure
the quality of the way we capture and report emissions as
well as transition to a less GHG-intensive way of
operating.
•The majority of our emissions are linked to the vans and
trucks operated by our contractors. Key for us is to
understand in detail the economics of different
technologies available to them, and to provide the right
remuneration, support and incentives to support their
transition to lower emission vehicles.
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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Climate Related Disclosures

Mark Rushworth
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Retiring from the Freightways Board of Directors
10

YEARS
Keeping New Zealand
Business Moving
Since 1964

Mark Troughear
Chief Executive Officer
Strategy &
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Trading Update
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Express Package
•B2B - national delivery
•B2C - courier and mail
•Oversize parcels
1.Project Evolve: deliver a
pricing and billing platform to
enable pricing for effort for
local and other underpriced
items
2.Scale Oversize revenue in NZ
and AU
Temperature Controlled
•Refrigerated national transport
•Temperature controlled 3PL
•Same day refrigerated delivery
1.Implementation of a new
Transport Management
System will provide improved
visibility and performance
data for customers
2.Demand for Ruakura 3PL
services has exceed
expectations, objective is to
scale to 95% utilisation by the
end of FY25
Waste Renewal
•Document Destruction
•Medical Waste
•High-Value Waste Recycling
1.VIC processing plant will drive
growth and be profitable in
FY25
2.Continue to source circular
loop solutions for hard to
recycle waste
Information Management
•Document Destruction
•Digitalisation
•E-Commerce 3PL
1.Drive market share gains in
storage driven by cross-
selling from Digitalisation
2.New 2-year A$15m
digitisation project underway
with a strong pipeline of
project and annuity
opportunities in both AU and
NZ
Three Horizons of Growth
Key Strategic Initiatives
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
SDG3
Good Health & Wellbeing
•Maintain high standards of
Health & Safety in
employment
•Target Injury Reduction year on
year with a focus on critical
risks
SDG8
Decent Work & Economic
Growth
•Our commitment is to improve
contractor return year on year
•Learning & Development. We
will continue to invest in
training our people so 80% or
more of our promotions come
from within.
SDG 13
Climate Action
•GHG Emissions. We are
committed to reduce our
emissions over time for Scope
1, 2 and 3.
•The average age of linehaul
vehicles within our direct
control is four years or less.
•Committed to assist in the
development of the circular
use of waste.
SDG 9
Industry, Innovation &
Infrastructure
•We aim to have a customer
churn of less than 2% of
revenue.
•We are committed to
continued growth over three
horizons.
Our ESG Update
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Q1 Trading Update
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Q1
Consolidated Performance - Unaudited
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Notes
Q1 FY25
$m
Q1 FY24
$m
Change
%
Operating Revenue
319.6298.07.2
EBITDA (non-GAAP)1
61.555.411.0
E B I TA ( n o n-GAAP)2
39.636.58.5
N PAT3
19.018.34.1
Notes:
•Results in this table are 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
•Revenue growth – driven by market share and
price given subdued same-customer activity
•Yet to see any green-shoots in the NZ economy but
things have not worsened for us
•Positive improvement in margin across the both
divisions v the pcp
•Labour costs = up 3.5% for the year across FRW
•Corporate costs higher – mostly related to one-
offs and CRD consultancy
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Notes
Q1 FY25
$m
Q1 FY24
$m
Change
%
Operating Revenue
262.4246.06.7
EBITDA (non-GAAP)1
37.834.49.9
E B I TA ( n o n-GAAP)2
33.430.49.9
EBITA Margin
12.7%12.4%
Notes:
•Results in this table are before adjustments for NZ IFRS16 (Leases).
•Refer to appendices for reconciliation to results after NZ IFRS16.
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
•EPNZ performance commendable in depressed
economic conditions
•Initiatives around efficiency, price & market share
gains have driven performance
•Price up circa 5% in NZ EP
•Item count v LYR is flat for Q1 (excluding Temu)
•Allied benefitting from continued growth and
efficiency from sortation
•Big Chill delivered revenue and earnings growth via
3PL, transport still flat
•Project Evolve (billing and courier pay system
renewal) cost $750k in Q1
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Q1
Express Package & Business Mail - Unaudited
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Notes
Q1 FY25
$m
Q1 FY24
$m
Change
%
Operating Revenue
58.552.910.6
EBITDA (non-GAAP)1
10.08.419.0
E B I TA ( n o n-GAAP)2
7.86.421.9
EBITA Margin
13.3%12.1%
Notes:
•Results in this table are before adjustments for NZ IFRS16 (Leases).
•Refer to appendices for reconciliation to results after NZ IFRS16.
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
•A positive Med-X performance has assisted the IM
division (versus a weaker pcp)
•Med-X VIC plant up and running and producing
small profit
•Paper prices are stable on the pcp
•Digitisation work flowing through as expected
•Q1 FY24 had the headwind of the residual of a
large NZ digitalisation project
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Q1
Information Management - Unaudited
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FY25
Outlook
•The economic climate is clearly still tough in NZ - we expect H1 to remain
subdued and we are hopeful of a return to modest organic growth in H2 (aided
by OCR drops, some sectors overlapping a soft pcp)
•AU is slightly more buoyant, but with no OCR cuts expected before Christmas
•Our focus is on restoring margins for both divisions in FY25 and FY26 as
modest organic growth occurs. Progress has already been made in Q1 FY25
•Pleased with investments made in FY24 – Big Chill (Ruakura), MDX (Victoria),
Allied (NSW and VIC sortation systems) – that will all yield benefits in FY25
•Active M&A pipeline of synergistic and complementary opportunities
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Volumes expected to
remain stable despite
tough economic
conditions.
Disciplined M&A
approach, with
opportunities being
explored.
Focus on
restoring margins.
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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 any time.
Type your question into the field and press “Send”.
Your question will be immediately submitted.
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Questions
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
1.That Mark Cairns be re-elected as a director of Freightways
2.That Abigail Foote be re-elected as a director of Freightways
3.That Fiona Oliver be re-elected as a director of Freightways
4.That the directors are authorised to fix the Auditors’ remuneration
Resolutions
22

1. Mark Cairns
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Re-elected as a Director of Freightways
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2. Abby Foote
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Re-elected as a Director of Freightways
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3. Fiona Oliver
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Re-elected as a Director of Freightways
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
That the directors are authorised to fix
the Auditors’ remuneration
4. Auditors
Remuneration
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Questions or Other Business
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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Thank you.
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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Read this presentation with the financial statements: The financial results in this presentation should be read in conjunction with the
financial statements for the full year ended 30 June 2024, which can be found in the Freightways full year results announcement available
on the NZX and ASX platforms.
No offer or investment advice: This presentation is for information purposes only. It is not a product disclosure statement, prospectus or
investment statement. Nothing in it constitutes an invitation to subscribe for shares, securities or financial products in Freightways, or
financial product, legal, financial, investment, tax or any other advice or a recommendation. Any investor should consult their own
professional advisors and conduct their own independent investigation of Freightways and the information contained in this presentation,
including any statements relating to the future performance of Freightways. The information in this presentation is given in good faith and
has been obtained from sources believed to be reliable and accurate at the date of this presentation.
Our non-GAAP information: Certain items of financial information included in this presentation are "non-GAAP" financial measures. These
non-GAAP financial measures do not have a standardised meaning prescribed by New Zealand Accounting Standards and so may not be
comparable to similarly named measures presented by other entities. Freightways believes that these measures provide useful
information in measuring the financial position and performance of the Freightways business. However, undue reliance should not be
placed on non-GAAP financial measures included in this presentation.
Forward looking statements: This presentation may include forward‐looking statements regarding future events and the future financial
performance of Freightways. Such forward‐looking statements are based on current expectations and involve risks and uncertainties.
Freightways cautions investors not to place undue reliance on these forward-looking statements, which reflect Freightways’ views only as
of the date of this presentation. Actual results may be materially different from those stated in any forward‐looking
statements. Freightways gives no warranty or representation as to its future financial performance or any future matter. The information in
this presentation is current at the date of this presentation, unless otherwise stated. Freightways is not under any obligation to update this
presentation after its release, whether as a result of new information, future events or otherwise.
Disclaimer: None of Freightways, its affiliates, or their respective advisers or representatives, give any warranty or representation as to the
accuracy or completeness of the information contained in this presentation, and exclude their liability to the maximum extent permitted by
law.
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Disclaimer
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Appendices
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Group Financial Summary – For the Financial Year Ended 30 June 2024
Notes
FY24
$m
FY23
$m
Change
%
Operating Revenue
1,209.21,121.67.8
EBITDA (non-GAAP)1
229.1214.96.6
E B I TA ( n o n-GAAP)2
149.0145.32.5
NPATA (non-GAAP)3
83.686.6(3.5)
N PAT4
70.975.3(5.8)
Basic Earnings Per Share (cents)
39.843.1(7.7)
Notes:
•Results in this table are after NZ IFRS16 (Leases).
•Pcp includes 9 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
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Express Package & Business Mail – For the Financial Year Ended 30 June 2024
FY24
$m
FY23
$m
Change
%
Operating Revenue
999.1911.19.7
EBITDA (non-GAAP)
181.9169.87.1
EBITA (non-GAAP)
128.4125.42.4
NPAT
76.678.1(1.9)
Notes:
•Results in this table are after NZ IFRS16 (Leases).
•Pcp includes 9 months Allied contribution only
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Information Management – For the Financial Year Ended 30 June 2024
FY24
$m
FY23
$m
Change
%
Operating Revenue
214.4214.3-
EBITDA (non-GAAP)
57.556.42.0
EBITA (non-GAAP)
32.332.7(1.2)
NPAT
17.718.0(1.7)
Notes:
•Results in this table are after NZ IFRS16 (Leases).
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ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Reconciliation of Post-NZ IFRS16 to Pre-NZ IFRS16 (Unaudited)
Freightways Group
Freightways Group
Q1 FY25
$M
Q1 FY25
$M
Q1 FY25
$M
Q1 FY24
$M
Q1 FY24
$M
Q1 FY24
$M
POST NZ
IFRS16
NZ IFRS16
ADJUSTMENT
PRE NZ IFRS16
(NON-GAAP)
POST NZ
IFRS16
NZ IFRS16
ADJUSTMENT
PRE NZ IFRS16
(NON-GAAP)
Operating Revenue319.6-319.6
298.0-298.0
EBITDA (non-GAAP)61.5 (17.9)43.6
55.4(15.1)40.3
E B I TA ( n o n-GAAP)39.6 (3.0)36.6
36.5(2.5)34.0
NPATA (non-GAAP)22.1 0.8 22.9
21.60.922.5
NPAT (GAAP)
19.0 0.8 19.8
18.30.919.2
Notes:
•EBITDA, EBITA and NPATA are non-GAAP measures
34

Express Package & Business Mail
Q1 FY25
$m
Q1 FY24
$m
Change
%
Operating Revenue262.4246.06.7
EBITDA (before NZ IFRS16)37.834.49.9
Add: NZ IFRS16 adjustment12.59.926.3
EBITDA (after NZ IFRS16)50.344.313.5
EBITA (before NZ IFRS16)33.430.49.9
Add: NZ IFRS16 adjustment1.81.520.0
EBITA (after NZ IFRS16)35.231.910.3
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Notes:
•EBITDA and EBITA are non-GAAP measures
Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited)
Express Package & Business Mail
35

Information Management
Q1 FY25
$m
Q1 FY24
$m
Change
%
Operating Revenue58.552.910.6
EBITDA (before NZ IFRS16)10.08.419.0
Add: NZ IFRS16 adjustment5.35.13.9
EBITDA (after NZ IFRS16)15.313.513.3
EBITA (before NZ IFRS16)7.86.421.9
Add: NZ IFRS16 adjustment1.11.010.0
EBITA (after NZ IFRS16)8.97.420.3
ANNUAL SHAREHOLDERS MEETING 2024 | FREIGHTWAYS
Notes:
•EBITDA and EBITA are non-GAAP measures
Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited)
Information Management
36

23 October 2024
Freightways Annual Shareholders
Meeting Presentation
Mark Cairns
Chairman
Mark Troughear
Chief Executive
Presenters:

---

ANNUAL SHAREHOLDERS MEETING


A. CHAIRMAN’S INTRODUCTION

Slide 1. Freightways - 23 October 2024, Annual Shareholders Meeting

Slide 2. Mark Cairns, Chairman

Nau mai, haere mai. Tena tatou katoa.
Good morning Ladies and Gentlemen. I am Mark Cairns, Chair at
Freightways and it’s my pleasure to welcome you to our 2024 Annual
Shareholders Meeting. It’s great to see you again and a warm welcome to
those people joining us online also.

With us today, are my fellow directors; Mark Rushworth, Peter Kean, Abby
Foote, David Gibson and Fiona Oliver. Abby, Fiona and I are standing for re-
election and will address the meeting later today.

We will shortly be hearing from our Chief Executive, Mark Troughear. Also
on the stage, we 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 and happy to chat with
you over a sausage roll after the conclusion of the formal business this
morning.

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

We have a quorum of shareholders, so I declare the meeting open.

Firstly a few housekeeping matters:
The bathrooms are located on the first floor atrium.
In the unlikely event of an emergency, please evacuate immediately through
the fire exit doors and gather at the assembly point in the carpark behind
this building. Could I request that you take this opportunity to switch your
mobile phones off, or onto silent please? Lastly, I note that we will be
making an audio recording of the meeting which will be made available on
the Freightways website.

Slide 3. Agenda

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

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 give an overview of the Company, update on
strategy and current trading performance, and provide 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.

The Financial Statements for the year ended 30 June 2024 are set out in the
Company’s Annual Report, released to shareholders in August. The

Company also released its first Climate-Related Disclosures earlier this
week, for the year ended 30 June 2024.
Slide 4. 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 or asking
questions, and to confirm if they are a shareholder or proxy holder. Roving
microphones will be available. Please wait for the microphone prior to
asking your question to ensure that your questions are conveyed to
everyone present and also to those shareholders online.

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 that 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 reply to your

query via the chat function. Alternatively, you can call Computershare on
0800-650-034.

Slide 5. How to Vote

As usual, all of the resolutions put to shareholders today will be decided by
way of a poll and the polls will be administered by our share registry,
Computershare. The results of the polls will be announced via the stock
exchanges after the close of the meeting.

If you are attending the meeting virtually and eligible to vote at this meeting,
you will be able to cast your vote under the Vote tab when the resolutions
are put. 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 the 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.

I would now like to speak briefly to some of the highlights of Freightways’
2024 year.

Slide 6. FY24 Performance

I think most people will agree, that the last year has been a challenging one
against many economic headwinds. Against this backdrop, I am immensely
proud of what our Freightways teams have achieved.

The macro-economic context, particularly in New Zealand, has seen a
significant number of companies retrenching and business activity well
below the previous year. Many sectors of the economy have been
significantly impacted, but the diversification of our businesses has proven
its worth, allowing us to achieve solid revenue growth. Australia has fared
slightly better than New Zealand and it has been pleasing to see the benefits
of our growing geographical diversification, where 35% of our revenue is
now generated in Australia.

Labour shortages continued to impact early in the year, with almost double-
digit labour cost increases for the second year running. The good news is
that this trend has now eased, and we are finding it considerably easier to
recruit for open positions, and the wage pressure has returned to historical
levels.

We have continued to invest in our operations:

- We commissioned two state of the art sortation systems at Allied
Express - in Melbourne and Sydney, that will allow us to manage
significantly larger volumes at greater levels of productivity.
- After many months of delays, we finally received the approval to
operate our Medical Waste facility in Victoria
- And we also opened our new temperature controlled 3rd Party
Logistics, or 3PL, facility for Big Chill, in Ruakura, Hamilton.

These investments position our businesses well, to benefit from any
economic recovery in the future.

Slide 7. General highlights – Financials FY2024

As previously mentioned, in a difficult macro-economic environment,
especially in New Zealand, we achieved a solid 8% growth in revenue to $1.2
billion.
This reflects a full year of our latest Australian acquisition, Allied Express,
but also the growth of our Express Package businesses, driven by price
increases and market share gains.

Our Earnings before Interest, Tax and Amortisation, or EBITA, grew at a
slower pace, to $149 million, representing a 2.5% increase. Two main factors
influenced this:
1. Labour costs increased by more than 9% in FY24,
2. And secondly, the impact of our investments were expensed on the
cost line, whilst the full revenue impact will only be captured in the coming
financial year. Our new Temperature Controlled 3PL facility in Ruakura

opened in last October and was a net cost during the year. Our new medical
waste treatment facility in Victoria was also impacted by delays in receiving
the EPA license but is now fully operational.

Finally, our net profit was down 6% to $70.1 million, with our interest
expense increasing during the year largely due to increased lease liabilities.
Our businesses are well positioned to benefit from the economic recovery
we expect to see in New Zealand, along with our continued focus on winning
new business at sustainable pricing.

Slides 8. – Gearing and Dividend FY24
Reflecting these results, we declared 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 cognizant of the expectations
of our shareholders and also of our balance sheet capacity. With debt
currently close to the maximum level we are comfortable with, the Board
decided to declare the Dividend at 75% of our earnings.


Slides 9. – Climate Related Disclosures (CRD)

Freightways has just released its FY24 Climate Related Disclosure statement.
A significant amount of work has gone into this document after four years
reporting under the Taskforce on Climate-Related Financial Disclosures or
TCFD framework. The cost and effort required is not insignificant for
Freightways, which operates a number of businesses, in different
geographies, with lean corporate teams.

We are committed to continuing to work on ensuring the quality of our
reporting, and more importantly ensuring that we support our contractors,
who generate the majority of our emissions, to transition to lower emission
vehicles.


Slide 10. Retirement of Mark Rushworth

Mark Rushworth will retire as a director with effect from the end of this
meeting after nine years on the Board. I wish to personally acknowledge and
thank Mark for his time and commitment to Freightways. Mark joined our
board in September of 2015. Back then, Freightways had revenues of $505
million and EBITA of $88m. As Mark is retiring, the company has grown its
revenues by 2.4 times whilst the EBITA has increased by 1.7 times, with
Market Capitalisation almost doubling, and the share price increasing from
$5.27 to last night’s close of $9.75.


Slides 11 & 12. – NZ Couriers 60 Years

This November, New Zealand Couriers will have been delivering for Kiwi
businesses for 60 years. A remarkable journey that began on November 5th,
1964. Evolving from modest beginnings with just two vans, to now being
New Zealand’s leading courier company, a part of publicly owned Kiwi
powerhouse Freightways, and with a team of over 1,500 committed logistics
professionals with branches nation-wide.

A business that continues to thrive and lead the way in a world increasingly
impacted by eCommerce. Sixty years of dedication and growth in the
courier industry!

I will now hand over to your Chief Executive, Mark Troughear.

Nga mihi nui.

Slide 13. Freightways – Mark Troughear, Chief Executive Officer

B. CHIEF EXECUTIVE OFFICER’S REVIEW AND TRADING UPDATE

Thank you Mark.

Welcome to those shareholders joining us for our 2024 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,
- Provide a trading update for Q1, and
- Close with some comments on the outlook for the year ahead

Slide 14. Three Horizons of Growth – Key Strategic Initiatives

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 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.

Express Package and Business Mail:
1. Project Evolve: deliver a pricing and billing platform to enable
pricing for effort for local and other underpriced items
2. Scale Oversize revenue in NZ and AU

Temperature Controlled:
1. Implementation of a new Transport Management System will
provide improved visibility and performance data for customers
2. Demand for Ruakura 3PL services has exceed expectations,
objective is to scale to 95% utilisation by the end of FY25

Information Management:
1. Drive market share gains in storage driven by cross-selling from
Digitalisation
2. New 2-year A$15m digitisation project underway with a strong
pipeline of project and annuity opportunities in both AU and NZ

Waste Renewal:
1. VIC processing plant will drive growth and be profitable in FY25

2. Continue to source circular loop solutions for hard to recycle
waste

Slide 15. Our 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.

SDG 3. GOOD HEALTH AND WELLBEING
- Maintain high standards of Health & Safety in employment
- Target Injury Reduction year on year with a focus on critical risks

SDG 8. DECENT WORK AND ECONOMIC GROWTH
- Our commitment is to improve contractor return year on year
- Learning & Development. We will continue to invest in training our
people so 80% or more of our promotions come from within.

SDG 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE
- We aim to have a customer churn of less than 2% of revenue.
- We are committed to continued growth over three horizons.

SDG 13. CLIMATE ACTION
- GHG Emissions. We are committed to reduce our emissions over time
for Scope 1, 2 and 3.
- The average age of linehaul vehicles within our direct control is four
years or less.

- Committed to assist in the development of the circular use of waste.



Slide 16. Q1 Trading Update Cover

Slide 17. Consolidated Trading Performance - Q1 Unaudited and
includes lease accounting

- Revenue growth – driven by market share and price given subdued
same-customer activity
- Yet to see any green-shoots in the NZ economy but things have not
worsened for us
- Positive improvement in margin across both divisions v the pcp
- Labour costs = up 3.5% for the year across FRW
- Corporate costs higher – mostly related to one-offs and CRD
consultancy

Slide 18. Q1 Express Package & Business Mail Unaudited and excludes
lease accounting
- EPNZ performance commendable in depressed economic conditions
- Initiatives around efficiency, price & market share gains have driven
performance
- Price up circa 5% in NZ EP
- Item count v LYR is flat for Q1 (excluding Temu)
- Allied benefitting from continued growth and efficiency from sortation
- Big Chill delivered revenue and earnings growth via 3PL, transport still
flat
- Project Evolve (billing and courier pay system renewal) cost $750k in
Q1.

Slide 19. Q1 Information Management – Unaudited and excludes lease
accounting
- A positive Med-X performance has assisted the IM division (versus a
weaker pcp)
- Med-X VIC plant up and running and producing small profit
- Paper prices are stable on the pcp
- Digitisation work flowing through as expected
- Q1 FY24 had the headwind of the residual of a large NZ digitalisation
project

Slide 20. Outlook

- The economic climate is clearly still tough in NZ - we expect H1 to
remain subdued and we are hopeful of a return to modest organic
growth in H2 (aided by OCR drops, some sectors overlapping a soft
pcp)
- AU is slightly more buoyant, but with no OCR cuts expected before
Christmas
- Our focus is on restoring margins for both divisions in FY25 and FY26
as modest organic growth occurs. Progress has already been made in
Q1 FY25
- Pleased with investments made in FY24 – Big Chill (Ruakura), MDX
(Victoria), Allied (NSW and VIC sortation systems) – that will all yield
benefits in FY25
- Active M&A pipeline of synergistic and complementary opportunities

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.
Finally in closing I would like to acknowledge two of the FRW family who are
moving on this year; I’d like to extend Management's congratulations and
thanks to Mark Rushworth for his fine term at FRW as a Director.

I would also like to thank and acknowledge Devon Buckingham. Devon
retires this Xmas after nearly 3 decades at FRW. Devon’s is one of the
characters of FRW that makes working here a delight and has a management
style that makes him at ease with all that he comes into contact with. He
has run the cutter at NZC for the last 6 years and has most definitely moved
the business to a better place. We thank Devon and we know he won’t be a
stranger to his friends throughout FRW.

(Back to Mark Cairns)

SLIDE 28. Ngā mihi nui (thank you)

Well, that brings to an end this year’s annual meeting.

To wrap up – This has been a solid year for Freightways, in a relatively
difficult economic environment. We have continued to invest in the
business, and I am confident that we are well positioned to deliver strong
results as the economies in New Zealand and Australia recover.

I would now like to thank; my fellow Directors, our Chief Executive Mark and
his Management Team, who have ably led our 6000 strong team, with an
unwavering focus on “Moving you to a Better Place”.
But particularly, I would like to thank you, our shareholders for your belief
and support of our Company.
I now declare the meeting closed and invite you to share some refreshments
with the Board and Executive.

Nga mihi nui.

ENDS