Full Year Results to 30 June 2026 and Final Dividend

Freightways FY26 Results
Monday, 17 August 2026
FRW: NZX | ASX

Disclaimer
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 2026, 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.
Freightways FY26 Results | Slide 2

Presenters and Agenda
Slide 3
Mark Troughear
Chief Executive Officer
Overview, Divisional Performance,
and Outlook
Stephan Deschamps
Chief Financial Officer
Financial Summary
and Capital Management
Aaron Stubbing
General Manager, Express
Package
NZ Express Package
Neil Wilson
General Manager,
Freightways
AU Express Package & Information Management
Freightways FY26 Results | Slide 3

Overview
Freightways FY26 Results | Slide 4
•Our businesses have remained resilient in a complex economic
environment. Activity levels lifted in Q2 and Q3 across most lines
of business, but then quickly fell as higher fuel prices impacted
consumer demand. We promptly adjusted our fuel recovery
mechanisms
•The focus on improving margins remains intact, and it is pleasing
to see progress across a range of our businesses. We are also
focused on improving those that are lagging
•Economy services continued to enjoy higher demand than higher
priced premium services
•The Australian EP businesses continued their impressive
contribution with Allied performing particularly well and VTFE
contributing 5 months of earnings
•Balance sheet in the mid-range of policy post the VTFE
acquisition

Stephan Deschamps | Chief Financial Officer
Financial Summary and
Capital Management
Freightways FY26 Results | Slide 5

Note:
•*Non-GAAP (Generally Accepted Accounting Principles)
• cps – cents per share
Financial Highlights
Revenue
13.5%
to $1,463.6m
* EBITA growth
14.6%
to $181.6m
NPAT grow th
17.3%
to $94m
* EBITA margin
12.4%
from 12.3% FY25
Basic earnings
per share
17.2%
to 52.4cps
Net Debt/
EBITDA
2.4X
Cash Generated
From Operations
14.9%
to $279.4m
Dividend
(FY)
12.5%
to 45c ( 40c in FY25)
Freightways FY26 Results | Slide 6

Australia Growing as a Contributor to Group Results
Freightways FY26 Results | Slide 7
NZ
62%
AU
38%
EBITA FY26
NZ
66%
AU
34%
EBITA FY25
NZ
61%
AU
39%
Revenue FY26
NZ
64%
AU
36%
Revenue FY25

Notes
FY26
$m
FY25
$m
Change
%
Operating Revenue
1,463.61,289.613.5
EBITA (non-GAAP)1
181.6158.414.6
EBITA margin
12.4%12.3%
NPAT2
94.080.117.3
NPAT margin
6.4%6.2%
Basic Earnings Per Share (cents)
52.444.717.2
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 and amortisation
2. Net profit after tax
Things Were Going Better Until...
FY26 Performance Overview:
•Clear signs of recovery in Q2 and Q3, abruptly
halted by the war in the Middle East
•Current demand has not returned to pre-
Middle East war levels
•More modest inflationary pressure in our cost
base
•Slight margin improvement continues
Freightways FY26 Results | Slide 8

2.00
2.20
2.40
2.60
2.80
3.00
3.20
3.40
Jul-25
Aug-25
Sept-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
NZ 1y Bond Yield
3.0
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
4.8
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Apr-25
Jun-25
Aug-25
Oct-25
Dec-25
Feb-26
Apr-26
Jun-26
AU 2y Bond Yield
External Economic Drivers Brought Recovery to a Halt
Freightways FY26 Results | Slide 9
100
150
200
250
300
350
400
Diesel Prices NZ
(NZD c/l)

0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
20,000
40,000
60,000
80,000
100,000
*FY20*FY21*FY22FY23FY24FY25FY26
$000
Net Profit After Tax
NPATNPAT Margin
Further Margin Improvement Across
The Group
Note:
* For consistent comparison, EBITA and NPAT for FY20, FY21 and FY22 on this page exclude net non-recurring
expenses of approximately $9m, $23m and $4m, respectively. The non-recurring expenses include items such as
change in fair value of contingent considerations (earn-out accruals), impairment of intangible assets and inventory
write-down.
Margin performance:
•Focus on margin continues, with
many businesses showing
improvement
•Post Haste, DX and Allied
Expressparticularly strong in EP,
and TIMG NZ also showing good
progress
•Shred-X improved over last year
and should continue to strengthen
margins as their reset is largely
complete
•BCD remains impacted by the
economic environment and the
state of the Hospitality sector
0.0%
5.0%
10.0%
15.0%
20.0%
-
50,000
100,000
150,000
200,000
*FY20*FY21*FY22FY23FY24FY25FY26
$000
Earning Before Interest, Tax & Amortisation
EBITAEBITA Margin
Freightways FY26 Results | Slide 10

Leverage Reflects Acquisition Of VTFE From Feb 26
Note:
For consistent comparison, EBITDA for FY20, FY21 and FY22 in the graph above exclude net non-recurring expenses of approximately $9m, $23m and $4m, respectively.
The non-recurring expenses include items such as change in fair value of contingent considerations (earn-out accruals), impairment of intangible assets and inventory write-down.
0%
10%
20%
30%
40%
50%
60%
70%
FY20FY21FY22FY23FY24FY25FY26
Gearing (Net Debt / Equity)
Excluding lease liabilitiesIncluding lease liabilities
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
FY20FY21FY22FY23FY24FY25FY26
Times
Net Debt to EBITDA
Net debt to EBITDA (post IFRS16)Net debt to EBITDA (pre IFRS16)
Freightways FY26 Results | Slide 11

Notes:
•cps = Cents Per Share - Final dividend of 24cps, fully imputed in NZ, 49% franked in Australia
FY26 Dividend Increases By 12.5%
post IFRS16
FY26 Final
Dividend
24 cps
(FY 45cps)
FY25 Final
Dividend
21cps
(FY 40cps)
Freightways FY26 Results | Slide 12
0
5
10
15
20
25
30
35
40
45
50
20042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026
Dividends (cps)

Mark Troughear | Chief Executive Officer
Aaron Stubbing | General Manager, Express Package
Neil Wilson | General Manager, Freightways
Divisional Performance
Express Package & Business Mail
Freightways FY26 Results | Slide 13

Notes
FY26
$m
FY25
$m
Change
%
Operating Revenue
1,235.21,061.016.4
EBITA (non-GAAP)1
168.1143.317.3
EBITA margin
13.6%13.5%
NPAT2
102.186.717.8
Notes:
•Results in this table are after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16
•VTFE contributed $40m of revenue and $1.7m of NPAT (NZD)

1.Operating profit before interest, tax and amortisation
2.Net profit after tax
FY26 Express Package &
Business Mail
FY26 Performance Overview:
•Revenue growth driven by:
>Same-customer growth
>Net market share gains
>Price increases executed at the start of
the FY
>5 months of VTFE contribution
c.NZ$40m
•Allied, Post Haste and DX Mail all recorded
strong revenue and EBIT growth reflecting
strong momentum in their respective niches
•Overnight airfreight and point to point had
lower demand during the year (premium
services) but volume was generally picked up
in our economy services
•Big Chill had a positive Q2 and 3 before the
impact of higher fuel prices took toll on
consumer demand
•Higher fuel costs in FY26 impacted margins in
March and April as fuel prices rose
Freightways FY26 Results | Slide 14

•Item growth of 5.1%
>3.6% from net market share gains
(wins – losses)
>Same customer volumes were
positive for 3 quarters but fell to -1.2%
in Q4.
•A cost-conscious market has
supported growth in economy at the
expense of premium services
•Key Sector Trends (item change YoY)
>eCommerce sector: +73%
>Retail sector: (-5%)
>Manufacturing sector: Flat
>Health sector: +15%
•eCommerce volumes have moderated
over the last 2 months
FY26 NZ Network Items v pcp
5.1%
FY26 NZ Express Package Network Volume
Freightways FY26 Results | Slide 15
New Zealand
-3
-2
-1
0
1
2
3
4
5
6
7
Q1 FY26Q2 FY26Q3 FY26Q4 FY26
%
Express Package Item Growth YoY
Net Market Share GainsSame Customer

FY26 Temperature Controlled Volume
•Item growth of 3% from net market share gains
(wins – losses)
•Same customer volumes increased by 1% for full
year compared to prior year, but fell in Q4
•This business remains sensitive to the economic
environment due to the nature of the products that
we are distributing
•Overall 3PL warehouse utilisation sitting at 87%
nationwide. Continuing to assess best location for
expansion capacity
•Focus on route profitability and minimising flow
imbalances
•Introduction of the New Plymouth branch to the
Transport network supported a significant new
business gain of $1.8m. Further regional
expansion being considered
Freightways FY26 Results | Slide 16

•Item growth of 20%
>2% from net market share gains (wins
– losses)
>Same customer volumes increased
by 18%
•Additional capacity in VIC assisted
managing increased volume
•Allied’s big and bulky B2C niche
benefited from share of wallet growth
during FY26
•Over the last 6 weeks, we have seen
some softening of demand from some
of our larger B2C customers as well as
from B2B segments such as
construction
20%
FY26 Allied Express Network
Items v pcp
FY26 Allied Express Package Volume
Freightways FY26 Results | Slide 17
Australia
0
5
10
15
20
25
30
Q1 FY26Q2 FY26Q3 FY26Q4 FY26
%
Allied Express Item Growth YoY
Net Market Share GainsSame Customer

Air Network Update
•Airwork, our JV partner in Parcelair, was placed in
receivership in July 2025
•The business has continued to operate as a going concern
while the receivers worked through a sale process
•Both Airwork and Texel (our other air network supplier)
performed well in terms of scheduled reliability throughout
FY26
•We expect to maintain continuity of service regardless of the
future supplier of air network services
•We expect that by the end of 2026 the network will be
serviced completely by 787-800 aircraft. 787-800s are more
fuel efficient with additional payload capacity
•We expect the change to be mostly cost neutral for FRW,
other than incurring previously provisioned one-off
transition costs
Slide 18
Freightways FY26 Results | Slide 18

Divisional Performance
Information Management &
Waste Renewal
Mark Troughear | Chief Executive Officer
Neil Wilson | General Manager, Freightways
Freightways FY26 Results | Slide 19

Notes
FY26
$m
FY25
$m
Change
%
Operating Revenue
234.0233.60.2
EBITA (non-GAAP)1
31.631.31.0
EBITA margin
13.5%13.4%
NPAT2
16.917.3(2.3)
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 and amortisation
2.Net profit after tax
FY26 Information Management &
Waste Renewal
Slide 20
FY26 Performance Overview:
•Revenue stable with growth from pricing
improvement and waste renewal
>Document Destruction grew 4%
>Medical waste grew7%
>E-waste grew by 10%
•Document storage revenues grew by 3%
with pricing initiatives offsetting flat
volumes
•TIMGAU margins fell as a result of lower
digitalisation revenue
•Paper prices were lower during FY26 resulting
in 8% less revenue
•Shred-X reset largely complete with the
business on an improved margin run rate in Q4
Freightways FY26 Results | Slide 20

Shred-X | Med-X Margin Improvement
Shred-X 6 Monthly Rolling Average EBITA Margin
FY26 Performance Overview:
•Pick up network optimisation – 12% reduction
in driver FTE
•Focus on productivity / efficiency – 8%
reduction in staff FTE
•Pricing improvement initiatives over 2 years
•Improvements in HSE focus reducing
Workcover premiums
•Removal of low margin paper rebates (July
2026)
•Growth in IT Asset Disposal volumes
•Introduction of fuel surcharge to shield
against fuel spikes
4.8
5.4
4.1
4.6
7.3
7.8
8.7
8.3
8.3
9.0
8.3
8.7
9.4
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Jun-25Jul-25Aug-25Sept-25Oct-25Nov-25Dec-25Jan-26Feb-26Mar-26Apr-26May-26Jun-26
%
Freightways FY26 Results | Slide 21

Information Management Revenue
TIMG AU Digital Revenues
Archive / Media
•Focus on running lean operations
to maximise returns
•Yield management approach
where warehouses are at or near
capacity using pricing and
destruction levers
•New business to fill lower
utilisation warehouses or new H3
products to develop alternative
uses
Digitalisation
•Consultative selling to unlock new
digitalisation opportunities e.g.
privacy law changes
•TIMG AU impacted by reduced
demand for digitisation in the last
year
•Invest in H3 opportunities –
continue to scale Stocka in NZ and
launch in AU
•Market test new AI assisted digital
products to ensure scalable
•TIMG NZ a significant contributor
of cash to the Group: ROIC of
c.23% and FCF in excess of $10m
Freightways FY26 Results | Slide 22
Horizon One
Horizon TwoHorizon Three
FY21FY22FY23FY24FY25FY26
Revenue
Digital
Linear
(Digital)
Trend

Future Investment
Mark Troughear | Chief Executive Officer
Aaron Stubbing | General Manager, Express Package
Freightways FY26 Results | Slide 23

NZ Capacity + Expansion
CHRISTCHURCH Airport – Expansion:
Objective – Scale for growth and bring all of our NZ EP Brands back
under one roof
•The expanded facility will increase operational capacity by around
50%
Current site footprint 12,000m2 - Expanding to 28,000m2
•Warehouse from 9,000m2 to 20,000m2
•FY27 capex of $8.2m
Timelines:
•Occupation from Q2, 2027
Freightways FY26 Results | Slide 24

NZ Capacity + Expansion
Freightways FY26 Results | Slide 25
PALMERSTON NORTH Airport - New Build:
Objective - Increase operational footprint and locate our NZ EP Brands
and linehaul in a single Lower North Island hub
•The expanded facility will increase operational capacity by 40%
•Current Estate 2,300m2 - Expanding to 5,500m2
•Warehouse from 1,500m2 to 3,000m2
•FY27 capex of $0.5m
Timelines:
•Occupation from Q1, 2027

AUSTRALIA:
What does the future
look like for
Freightways?
•We expect in the medium-term that AU has the
potential to surpass NZ in terms of revenue and
earnings for FRW
•The AU express market is estimated at around
A$13bn p.a. and, below the 3 tier-one players, is very
fragmented with most operators targeting a
particular niche
•Combination of organic and inorganic opportunities
exist in the AU Express market within a number of
target niches
•FRW have explored over 70 targets over the past 3-4
years to build a shortlist of opportunities that align
with our ambition
•We expect to deploy more of our capital to this
geography in the medium term, but still within our
Capital Management Policy
Freightways FY26 Results | Slide 26

MERGERS &
ACQUISITION
Australia Focus
There are a targeted number of M&A targets to consider
in Australia. We continue to operate a disciplined
approach to these opportunities focused on:
•Adding to Allied Express or VTFE by either expanding
their geographic footprint, or providing an adjacent
service
•Considering larger stand-alone, quality express
package businesses where they have a strong
position in a niche, or have a service advantage in
comparison to the market
•Other opportunities which are complementary to our
existing lines of business where strong synergies or
bolt-on potential exists
Freightways FY26 Results | Slide 27

Outlook
Mark Troughear | Chief Executive Officer
Freightways FY26 Results | Slide 28

•Our businesses have proven to be resilient over the past 3 years of soft
economic activity. Same-customer activity was recovering and positive before
the war, but has turned negative since April
•We expect that same-customer volumes in both markets will remain soft and
only improve progressively when there is a sustained fall in fuel prices
•The pace of recovery will also be dependent on broader economic conditions
but overall, it will be another year of “softer for longer” than initially expected
•Additional capacity in Christchurch and Palmerston North and the investment in
Evolve will support long term growth in NZ Express Package division
•Margin improvement remains a focus, across all businesses and particularly
with the IM division in AU
•We will continue to grow our EP presence in both B2B and B2C in Australia
•We will continue to have a proactive focus on targeted M&A that is
complementary to growing our Australian express network
Outlook
Volumes expected to
increase when fuel
prices fall
Focus on improving
margins continues
Disciplined M&A
approach, with
complementary
opportunities being
explored within the
parameters of our
Capital Management
Policy
Freightways FY26 Results | Slide 29

Questions
FRW: NZX | ASX

FREIGHTWAYS GROUPFY26 ($m)FY25 ($m)
Notes
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Operating Revenue
1,463.6-1,463.61,289.6-1,289.6
EBITDA (non-GAAP)1
278.1
(80.4)
197.7248.6(74.2)174.4
EBITA (non-GAAP)2
181.6(14.7)166.9158.4(12.9)145.5
NPATA (non-GAAP)3
108.32.2110.592.43.495.8
NPAT4
94.02.296.280.13.483.5
NOTES
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.
Appendix – Reconciliation of Post-IFRS16 to Pre-IFRS16
Freightways FY26 Results | Slide 31

EXPRESS PACKAGE & BUSINESS MAILNotesFY26 ($m)FY25 ($m)
Operating Revenue
1,235.21,061.0
EBITDA (after NZ IFRS16)
1234.3204.7
Less: NZ IFRS16 adjustment
(56.0)(51.4)
EBITDA (before NZ IFRS16)
1178.3153.3
EBITA (after NZ IFRS16)
2168.1143.3
Less: NZ IFRS16 adjustment
(9.9)(8.5)
EBITA (before NZ IFRS16)
2158.2134.8
NOTES
1.Operating profit before interest, tax, depreciation and amortisation (non-GAAP).
2.Operating profit before interest, tax and amortisation (non-GAAP).
Appendix – Reconciliation of Post-IFRS16 to Pre-IFRS16
Freightways FY26 Results | Slide 32

INFORMATION MANAGEMENT &
WASTE RENEWAL
NotesFY26 ($m)FY25 ($m)
Operating Revenue
234.0233.6
EBITDA (after NZ IFRS16)
160.258.5
Less: NZ IFRS16 adjustment
(24.2)(22.5)
EBITDA (before NZ IFRS16)
136.036.0
EBITA (after NZ IFRS16)
231.631.3
Less: NZ IFRS16 adjustment
(4.8)(4.4)
EBITA (before NZ IFRS16)
226.826.9
NOTES
1.Operating profit before interest, tax, depreciation and amortisation (non-GAAP).
2.Operating profit before interest, tax and amortisation (non-GAAP).
Appendix – Reconciliation of Post-IFRS16 to Pre-IFRS16
Freightways FY26 Results | Slide 33

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Results for announcement to the market
Name of issuer FREIGHTWAYS GROUP LIMITED
Reporting Period 12 months to 30 June 2026
Previous Reporting Period 12 months to 30 June 2025
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$1,463,645 13.5%
Total Revenue $1,463,645 13.5%
Net profit/(loss) from
continuing operations
$93,958 17.3%
Total net profit/(loss) $93,958 17.3%
Final Dividend
Amount per Quoted Equity
Security
$0.33333333
Imputed amount per Quoted
Equity Security
$0.09333333
Record Date 11 September 2026
Dividend Payment Date 1 October 2026
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
$(1.13) $(0.79)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the attached annual report and results presentation.
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

17 August 2026

The information set out in this announcement is based on the audited financial statements of
the Group for the financial year ended 30 June 2026. An unqualified audit opinion was issued
by the Group’s auditors in relation to those financial statements.

---

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 X Quarterly
Half Year Special
DRP applies
Record date Friday, 11 September 2026
Ex-Date (one business day before the
Record Date)
Thursday, 10 September 2026
Payment date (and allotment date for
DRP)
Thursday, 1 October 2026
Total monies associated with the
distribution
1

$42,959,000
Source of distribution (for example,
retained earnings)
Current earnings for the year ending 30 June 2026
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.33333333
Gross taxable amount
3
$0.33333333
Total cash distribution
4
$0.24000000
Excluded amount (applicable to listed
PIEs)
$-
Supplementary distribution amount $0.04235294
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed

Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.09333333

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Resident Withholding Tax per
financial product
$0.01666667
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

17 August 2026

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FINANCIAL YEAR ENDED 30 JUNE 2026
Annual Report

We move you to a
better place.
This reflects our commitment to creating
value for our people, customers,
investors, and the environment.
We are committed to continually
improving how we operate and the
value we create.
This commitment guides how we
support our people, serve our
customers, deliver sustainable returns
for our investors, and manage our
environmental responsibilities.
We create value by employing people
who share our values and are committed
to delivering excellent service. Together,
we provide reliable, efficient, and
customer-focused solutions across
every stage of our operations.
Our focus on operational excellence and
sustainable growth enables us to deliver
long-term value for our investors while
continuing to invest in our business.

21 FY26 operating highlights
22 CASE STUDY |
DX Mail
24
CASE STUDY |

Freightways Global
26 CASE STUDY |
VT Freight Express
28 Supporting community
30 Sustainability
32 Directors’ report
Performance
20
03 FY26 financial highlights
04 Freightways’ methodology
07 Chair and CEO report
10 Our family of brands
12 Freightways’ network
14 Our people
16 Health and safety
18 Our board
19 Our leadership
Overview
02
45 Independent Auditor’s report
48 Income statement
49 Statement of
comprehensive income
50 Statement of changes
in equity
51 Balance sheet
53 Statement of cash flows
54 Notes to the
financial statements
Financial Report
44
101 Shareholder information
103 Corporate governance
statement
108 Directory
109 Company particulars
Additional Disclosures
100
Contents
01Freightways Annual Report 2026

Overview
02
03 FY26 financial highlights
04 Freightways’ methodology
07 Chair and CEO report
10 Our family of brands
12 Freightways’ network
14 Our people
16 Health and safety
18 Our board
19 Our leadership
02Freightways Annual Report 2026

▲
17.2%
Basic earnings
per share
to 52.4cps
1
FY26 financial highlights
▲
14.9%
Cash generated
from operations
▲
17.3%
to $94m
NPAT growth
▲
13.5%
to $1,463.6m
Revenue
▲
14.6%
to $181.6m
*EBITA growth
▲
12.4%
from 12.3% FY25
*EBITA margin
▼
2.4x
Net Debt/EBITDA
▲
12.5%
to 45c (40c in FY25)
Dividend (FY)

1
cps – cents per share
to $279.4m
▼
* Non-GAAP (Generally Accepted Accounting Principles).
03Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Platform for growth
FREIGHTWAYS’ METHODOLOGY
1Win niches
We seek to be #1 in the niches we choose to
compete in, or the fast-growing #2 gaining share
faster than the market. We are deliberate about
where we compete and regularly assess whether
we have a pathway to a winning position.
FREIGHTWAYS HAS A RANGE OF
BRANDS, OPERATING ACROSS
DIFFERENT MARKETS, GEOGRAPHIES
AND STAGES OF MATURITY. WHAT
CONNECTS THEM IS A COMMON
APPROACH TO GROWTH.
Our growth methodology provides a
framework for each business to identify
where it can win, where additional scale
can improve returns, and where today’s
capabilities can create tomorrow’s
growth opportunities.
2Grow scale to improve margins
and ROIC
Scale matters in our businesses. We look for
opportunities to grow organically, invest behind
proven revenue streams and selectively use M&A
where additional scale can improve margins and
returns on invested capital.
3Explore adjacent niches
Some of our best growth opportunities
come from applying the networks, people,
customer relationships, technology and
systems we already have to adjacent markets.
This can allow us to establish new revenue
streams without having to recreate the entire
operating platform supporting them.
4Develop three horizons
of growth
We expect our businesses to think constantly
about their three horizons: strengthening the
core business of today; scaling their horizon
two businesses that can become meaningful
contributors to earnings; and then developing the
embryonic opportunities that could drive growth
well into the future.
AT ITS HEART ARE FOUR DISCIPLINES:
04Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

IMPORTANTLY, THE HORIZONS DO
NOT STAND STILL.
As a Horizon 2 opportunity scales, it can
become the core Horizon 1 business of
tomorrow. As that happens, management
needs to be developing the next Horizon
2 and Horizon 3 opportunities behind it.
This creates a continuous cycle
of reinvention.
From paper recycling
to high-value waste: the
evolution of Shred-X
Shred-X provides a good example of the
methodology in action.
The business began as a paper recycler,
collecting paper, baling it and selling it to
recyclers. That was its original Horizon 1.
Shred-X then found a way to add
more value to what it was already
doing. It began charging customers
for collections and invested in secure
shredding facilities, allowing it to expand
meaningfully into document destruction.
Document destruction became
Horizon 2 and, as it scaled, helped
establish a national operating network
across Australia. Each operating hub
brought with it fleets, secure facilities,
management, sales capability and
customer relationships. Over time,
Shred-X established itself as Australia's
#1 document destruction business.
That infrastructure created the platform
for the next horizon.
A relatively small acquisition in
Sydney provided an entry into medical
waste. Rather than having to build
an entirely new organisation around
that opportunity, Shred-X was able
to grow the new service alongside
the capabilities and infrastructure
it had already established. Medical
waste subsequently grew strongly,
particularly through the Covid years.
Today, the horizons have shifted again.
Paper recycling has progressed through
its lifecycle. Document destruction is
now Horizon 1 – the established core
business supporting Shred-X's national
network. Medical waste has become
Horizon 2 and is being scaled further.
At the same time, Shred-X is making
relatively small investments to explore its
next horizon: high-value waste, including
opportunities associated with IT
equipment, textiles and packaging waste.
The result is a business that has become
much more than a document destruction
company. Rather than allowing itself
to be defined by a single niche that
may decline over time, Shred-X has
repeatedly used its existing capabilities
to create the next source of growth.
That is the Freightways growth
methodology at work.
05Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Building the next revenue
stream before we need it
The same principles can be seen
across the Freightways portfolio.
ALLIED EXPRESS – INVESTING
BEHIND A SCALABLE GROWTH
OPPORTUNITY
When Freightways acquired Allied
Express, the business had two principal
service offerings: ad hoc and fixed-
run courier services using a floating
fleet of vans, and big-and-bulky home
delivery through its Oversize business.
We saw an opportunity to accelerate
the second of these revenue streams.
Freightways applied capital to help Allied
Express scale Oversize and introduced
a proven sales structure to support
new business development. Growing
volume through the network has helped
build scale and improve the returns
generated from the initial acquisition.
It demonstrates an important part of our
methodology: we do not simply acquire
businesses and wait for the market to
grow them. We look for the revenue
streams with the strongest potential,
then apply capital, capability and
management focus to help them scale.
MESSENGER SERVICES –
CONTINUALLY FINDING THE
NEXT HORIZON
Messenger Services demonstrates
why developing new horizons is
essential to remaining relevant.
Its traditional point-to-point business
once moved documents, contracts,
marketing proofs, X-rays and other
time-sensitive items around New
Zealand. Had the business continued
to rely solely on those services,
technological change would have
progressively eroded its reason to exist.
Instead, Messenger Services has
repeatedly reinvented itself.
Following the Global Financial Crisis,
it developed a dedicated home-
delivery network for supermarket
deliveries. That new revenue stream
grew to the point where it almost
doubled the size of the business.
When supermarkets subsequently
decided to bring much of that activity
in-house, Messenger Services
was already developing its next
horizon through Kiwi Oversize.
Over the past two years, Kiwi Oversize
has grown rapidly and generated
around $10 million of revenue in FY26,
providing Messenger Services with
another scalable revenue stream.
The lesson is important. Growth is not
simply about making an existing service
bigger. Markets change, customer
requirements change and some
revenue streams eventually decline.
Our job is to recognise that early
and use the assets, capabilities and
customer relationships we have built
to create the next opportunity.
A REPEATABLE APPROACH
TO LONG-TERM GROWTH
Across Freightways, the application
of the methodology will look different
because every business starts
from a different position. But the
questions we ask are consistent:
Can we win this niche?
Can greater scale and our capabilities
improve margins and returns?
What adjacent markets can our
existing capabilities unlock?
And what are our future
horizons of growth?
By asking those questions consistently
across the Group, we aim to grow
today's businesses while continually
building the businesses that will drive
Freightways' earnings in the future.
Kiwi Oversize
$10m
of revenue in FY26
06Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Chair and CEO Report
Against this backdrop, we remained
focused on the areas within our control.
We maintained high service standards,
continued to win market share, invested
in improving our operating platforms
and facilities, and maintained disciplined
capital allocation. These actions
continue to position the business well
for when economic conditions improve.
Higher fuel prices affect our business
in two ways. First, rapid increases
temporarily compress margins because
fuel recovery mechanisms inevitably
lag underlying fuel costs. Secondly,
higher fuel costs reduce discretionary
spending across the economy, lowering
freight volumes as consumer and
business activity slows. After modest
same-customer volume growth during
the second and third quarters, volumes
within our New Zealand Express Package
and Temperature Controlled divisions
softened from April as these factors
took effect. The tightening of monetary
conditions by the RBNZ also contributed
to a softer economic environment.
FREIGHTWAYS DELIVERED A RESILIENT PERFORMANCE IN FY26 DESPITE OPERATING CONDITIONS BECOMING MORE CHALLENGING DURING THE SECOND
HALF OF THE FINANCIAL YEAR. ECONOMIC ACTIVITY HAD SHOWN ENCOURAGING SIGNS OF IMPROVEMENT THROUGH MUCH OF THE YEAR BEFORE BEING
DISRUPTED BY THE CONFLICT IN THE MIDDLE EAST, WHICH DROVE A SHARP INCREASE IN FUEL PRICES. THE COMBINATION OF HIGHER FUEL COSTS
AND SOFTER CUSTOMER DEMAND CREATED A DRAG DURING THE FINAL QUARTER ON A RESULT WHICH WAS OTHERWISE STRONG FOR THE GROUP.
David Gibson
CHAIR
During the year we improved one of our
key commercial levers. Historically, a
number of our fuel recovery mechanisms
incorporated a two-month lag between
movements in fuel prices and customer
pricing. While this had long reflected
customer requirements, the sharp
increase in fuel prices highlighted the
need for a more responsive approach.
From April we substantially reduced
this lag to around one week across most
of the network, which will improve our
ability to recover rapid movements
in fuel costs in future periods.
Despite weaker market conditions,
our businesses remained focused on
growing through market share gains,
winning new customers and improving
pricing to recover our cost input
increases. This approach has become
increasingly important during periods of
limited same-customer growth. Pricing
discipline was a key priority, with annual
pricing reviews and pricing-for-effort
initiatives helping to recover increases in
the cost base while ensuring customers
Mark Troughear
CEO
07Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

continue to receive appropriate
value for the services provided.
Across our express businesses, Allied
Express, DX Mail and Post Haste all
performed well. Each business increased
its share of customer spend while
securing new business from both new-to-
market customers and from competitors.
Post Haste benefited from its range
of economy services and experienced
relatively higher demand during the
year. In tighter times some customers
expressed a preference for express
road freight over overnight airfreight
within New Zealand. The business
also benefitted from the cross-border
eCommerce growth during the year.
Big Chill experienced solid utilisation
in its storage facilities and improving
transport volumes around Christmas but
this momentum was trumped by higher
fuel prices impacting demand for the
premium food products they distribute.
In Australia, Allied Express improved its
results with a continuous improvement
approach to service helping strong
delivery in full on time performance
(DIFOT). Allied is a brand which is
squarely focussed on its niche and has
built systems and processes to provide
a premium service for its customers.
The acquisition of VTFE, completed
on 30 January 2026, represents an
important step in expanding Freightways’
presence in the business-to-business
express freight Australia market.
VTFE provides road-based express
services into attractive industry
sectors and broadens our capability
within the Australian transport market.
During the year we also commenced
operations in Queensland. While the
Queensland business incurred some
initial start-up costs in the first month,
trading thereafter was profitable. We
expect further growth during FY27
as customer volumes build across
both local and interstate services.
DX Mail has continued to streamline its
operational processes with the use of
automation and AI deployment. This has
assisted it to improve its margins and
continue to offer a premium mail delivery
experience to its target customer base.
Operational efficiency continued to
receive significant attention across the
Group. Our focus was on increasing
utilisation of existing networks and
infrastructure so that incremental
volume was handled with limited
additional fixed cost. This operating
leverage has been an important
contributor to Freightways' long-
term earnings growth and remains
a priority across all businesses.
The rollout of Evolve, our new billing
and rating platform for the New
Zealand Express Package business,
progressed during the year, although
implementation has taken longer than
originally anticipated. Phase one of the
project is now being deployed across
the New Zealand Express Package
businesses and will provide improved
billing and collection processes for
our largest customer bases. We
08Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

David Gibson
CHAIR
Mark Troughear
CEO
expect the majority of the pricing
and efficiency benefits from this
investment to be realised during FY28.
Airwork, our joint venture partner in
Parcelair, was placed into receivership
in July 2025; however, the business
has continued to operate as a going
concern throughout the sale process.
During FY26, both Airwork and Texel
delivered strong reliability across
our air freight network. We expect
to be able to maintain continuity
of service regardless of the future
provider of air network services.
By the end of 2026, we anticipate the
network will be operated entirely with
Boeing 737-800 aircraft, providing
greater fuel efficiency and additional
payload capacity. The transition is
expected to be largely cost neutral for
Freightways, apart from one-off costs
that have already been provided for.
Changes to New Zealand inbound
low-value goods customs charges have
to-date not resulted in a material shift in
customer behaviour towards mail-based
alternatives, although some customers
are increasingly seeking lower-cost
transport options as higher fuel prices
and customs charges place additional
pressure on their own operating costs.
Shred-X performance also improved
through the year as the effects
of our reset programme began to
restore margins. We have shed
the negative margin products we
were collecting and right sized the
business for the new volume profile.
Whilst TIMG New Zealand delivered a
significant margin improvement, the
Australian business was impacted by
lower digitisation work. In response,
a number of cost improvement
initiatives have been implemented.
Capital allocation remained disciplined
throughout the year. Capital expenditure
continued at approximately 2.3% of
revenue, reflecting ongoing investment
in our networks while maintaining
financial flexibility. Following the
acquisition of VTFE, leverage
remained comfortably within our
target range at approximately 2.4x.
We expect to remain within our stated
policy while still exploring acquisitions
that can augment our Australian
Express Package businesses.
Outlook
The positive trend that had started
early in FY26 was sharply interrupted
by the conflict in the Middle East. The
significant increase in fuel prices for
a period of time, combined with much
higher uncertainty and a contracting
monetary policy negatively impacted
demand. Our businesses have
demonstrated their resilience through
the last three years of economic
recession in New Zealand and we expect
they will continue to do so until economic
activity recovers. As fuel prices
moderate, we expect same-customer
volumes to improve progressively in
Australia and New Zealand, although the
pace of recovery will remain dependent
on broader economic conditions.
We expect to complete two important
network investments during the year
with expanded and new hub facilities
in Christchurch and Palmerston
North respectively. These facilities
will improve operational efficiency
and provide significant additional
capacity to support future growth. In
Christchurch, approximately $8.2 million
will be invested in FY27 to expand the
existing automated sortation system
that processes all freight transiting into
and out of the South Island. Overall,
capital expenditure is expected to be
approximately 3% of FY27 revenue.
Implementation of Evolve is expected
to be continued in FY27 – with a
projected cost of approximately $5.5
million. The operational and commercial
benefits will increasingly emerge
during FY28, particularly through
more sophisticated pricing capability
and improved billing efficiency.
In Australia, we will continue to
integrate and grow VTFE while
actively evaluating further acquisition
opportunities that strengthen our
position in the express freight market.
Within our Information Management
and Waste Renewal businesses, the
actions taken during FY26 to exit
unprofitable work and align operating
costs provide a stronger foundation for
improved performance during FY27.
While demand currently continues to
favour economy road services over
premium overnight airfreight, we expect
the mix to progressively normalise as
economic conditions strengthen.
Across the Group, pricing initiatives
implemented at the beginning of the
financial year are expected to offset
increases in our operating cost base.
Freightways has consistently
demonstrated its ability to perform
through varying economic conditions.
Our strategy remains unchanged:
continue investing in our networks
and technology, maintain financial
discipline, deliver high service standards
for customers and create sustainable
long-term value for shareholders.
09Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Our market-leading brands
combine shared infrastructure
within New Zealand and Australia
respectively, with specialist
knowledge in each niche. We
work across a range of business
sectors, achieving high levels of
quality and efficiency, through
our focus on adding value to how
we pick-up, process and deliver.
Our strong culture and commitment unifies our
people and feeds our deep team spirit.
We draw on all of that to continue to evolve
our businesses to meet the changing needs of
our customers.
Express Package and Business Mail
Our multi-brand strategy in the Australasian courier and New Zealand business mail markets caters to a range of
customer needs and delivery timeframes. It enables us to win a niche with a specialist focus – but also leverage
the combined infrastructure across each segment. Our New Zealand Express Package operations share branch
networks, air and road linehaul, and IT. These brands include New Zealand Couriers, Post Haste, Castle Parcels,
NOW Couriers, SUB60, Security Express, Kiwi Express, STUCK, Kiwi Oversize, Freightways Global, and Pass the
Parcel. We also offer airfreight capability for our overnight Express Package delivery service through our joint
venture airline, Parcelair, and our linehaul partner, Parceline.
Our family of brands
10Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Waste Renewal
Shred-X offers document destruction,
eDestruction and product destruction services
in Australia. We also provide medical waste
collection and processing services under the
Med-X brand. We continue to assess new ways
of collecting and processing waste streams for
diversion from landfill. In New Zealand, TIMG
offers secure document and device destruction.
Information Management
The Information Management Group (TIMG)
offers physical storage and information
management services, as well as digital
information processing services such as
digitalisation, business process outsourcing,
online back-up and eDiscovery services.
Temperature Controlled
Big Chill Distribution and ProducePronto
make up our national temperature-controlled
business. Combining our chilled national linehaul
with an urban, chilled van network allows us
to offer national delivery, same day delivery,
3PL and 4PL under one responsive umbrella
utilising the Big Chill depots nationwide.
11Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Express Package

Information Management

Waste Renewal
Townsville
Brisbane
Sydney
Perth
Melbourne
Adelaide
Darwin
Hobart
Canberra
Australia
PAYROLL CENTRALISATION
The centralisation of payroll operations across New
Zealand, commenced in 2024 and successfully
completed in 2026, delivering a more efficient and
resilient operating model. Initially established within
New Zealand Couriers under the leadership of the
Financial Controller, the project was progressively
expanded to create a centralised payroll function
supporting 10 Freightways businesses and
approximately 3,200 employees through a
dedicated team of three full-time Payroll Advisors.
By bringing payroll expertise into a single function,
the business has strengthened capability through
cross-training and knowledge sharing, ensuring
consistent resourcing during periods of leave
while reducing dependency on Finance teams
for operational support. The centralised model
has also provided a single point of contact for
payroll-related enquiries across all New Zealand
Freightways brands, improving support for
managers and employees and enhancing their
understanding and effective use of the Group’s
payroll and time and attendance systems.
The initiative has standardised payroll processes and
controls, promoting best practice and the consistent
interpretation and application of New Zealand
payroll legislation and company policy across all
New Zealand businesses. These improvements have
supported stronger governance, reduced operational
risk, increased process efficiency, improved the
employee and manager experience, and established
a scalable payroll model that supports the Group’s
continued growth and operational excellence.
Freightways’ network
12Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

New Zealand

Express Package and Business Mail

Temperature Controlled


Information Management
Tauranga
Whangarei
Central Otago / Cromwell
Invercargill
Auckland / North Shore
Hamilton / Putaruru
New Plymouth
Whanganui
Nelson
Rotorua
Hawke’s Bay
Taup o
Palmerston North
Wellington
Christchurch
Dunedin
Timaru
PARCELINE EXPRESS
Parceline Express is Freightways' specialist linehaul
business, delivering the nationwide network that
keeps the express package, business mail, and other
brands moving. While customers interact directly
with the individual Freightways brands that pickup
and deliver their freight or mail (such as New Zealand
Couriers or DX Mail), Parceline Express works behind
the scenes centrally managing the multimodal
movement of this processed freight across road, air
and inter-island ferry services, connecting depots
and key freight hubs throughout New Zealand.
At the heart of Parceline Express is a dedicated
operations team that plans, coordinates, and
manages Freightways' nationwide linehaul
network. From linehaul planning, capacity
allocation, and disruption management to staffing
the key interchange hubs where road and air
freight connect, the team ensures freight keeps
moving safely, efficiently, and on schedule.
Parceline Express also centrally sources and manages
the specialist road and air transport providers that
power the network. Complementing this is a suite of
network visibility platforms and data services that give
Freightways brands access to real-time tracking, freight
milestones, utilisation metrics, and operational insights.
Together, these capabilities provide the shared
transport backbone that enables Freightways' New
Zealand Express Package, Business Mail, and other
brands to deliver fast, reliable, and cost-effective
nationwide services without the complexity and
cost of each operating its own linehaul network.
13Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Our people
PEOPLE
FROM ATTRACTING EMERGING
TALENT THROUGH THE GRADUATE
PROGRAMME TO PREPARING
EXPERIENCED LEADERS FOR BROADER
RESPONSIBILITIES, FREIGHTWAYS IS
COMMITTED TO BUILDING A STRONG
AND CAPABLE TALENT PIPELINE
AT EVERY LEVEL OF THE GROUP.
Succession has been a particular
focus during FY26. Promoting from
within is a longstanding strength of
Freightways, providing opportunities for
our people while ensuring the qualities
that define the Group – humility, hard
work, commercial thinking and working
A structured support framework
helps graduates succeed throughout
the programme, including:
• A dedicated manager for each
rotation, providing day-to-
day guidance, feedback and
accountability.
• A senior mentor who supports the
graduate throughout the full two-year
programme.
• A programme buddy – a former
graduate who offers practical advice
and peer support.
• Monthly development breakfasts,
providing opportunities to learn
together as a family – are carried forward
by the next generation of leaders.
During the year, 70 people were
promoted into leadership positions
across the Group, demonstrating the
depth of talent within our businesses and
the value of creating visible pathways
for progression. A further 634 people
participated in leadership development
initiatives, reflecting our belief that
investing in our people strengthens
internal capability, preserves our culture
and supports long-term performance
and sustainable shareholder value.
Freightways Graduate
Programme
The Freightways Graduate Programme
is a two-year rotational programme
designed to attract and develop the next
generation of talent across the Group.
Participants complete four rotations,
stepping into meaningful roles within
different Freightways businesses.
This provides genuine exposure to a
range of functions, business cultures
and operational environments, while
building a broad understanding of how
the Group works together to serve
its customers and create value.
“Learning from
experienced leaders
across the Group
is challenging the
way I think, and
I am embracing
the opportunity to
grow. I look forward
to applying these learnings and
making a meaningful contribution to
the future success of Freightways.”
TINEKE MANN, HEAD OF CUSTOMER
EXPERIENCE AND NATIONAL CHANGE
MANAGER – TIMG AUSTRALIA
from experts across Freightways
and explore topics relevant
to the wider industry.
• Corporate projects that give
graduates the opportunity to
work alongside senior leaders on
complex business challenges, new
propositions and research initiatives.
Together, these experiences build
commercial capability, confidence and
valuable relationships across the Group,
while establishing a strong foundation
for a long-term career with Freightways.
14Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Senior Leadership
Programme
For experienced leaders with the
potential to take on broader roles,
the Senior Leadership Programme
provides an intensive and challenging
development experience. It is
designed to reflect the complexity of
leading a high-performing business
and to prepare participants for roles
of greater scale and responsibility
- whether leading a large branch or
region, supporting a new acquisition, or
establishing a new division or function.
The programme centres on real-
world business scenarios covering
areas such as profit and loss analysis,
strategic planning, commercial
decision-making, and mergers and
acquisitions. Each participant is paired
with a General Manager as a dedicated
mentor, while CEO-level sponsorship
reinforces the programme’s strategic
importance and its role in strengthening
Freightways’ succession pipeline.
Freightways is committed to making
learning and development accessible to
all our people, regardless of their role,
location or employment arrangement.
This commitment is already taking
shape within the Express Package
team, which is developing a dedicated
learning site to provide more than
1,000 independent contractors with
easy access to critical learning and
development. Initiatives such as this will
help extend development opportunities
beyond traditional programmes and
reach the people and partners working
throughout the Freightways network.
Outlook
The breadth of Freightways’ investment
in learning and development reflects
our belief that capable leaders and
engaged people are fundamental to
long-term business performance.
By making development more accessible,
creating opportunities for people at
every career stage and maintaining
a deliberate focus on succession,
Freightways is strengthening its ability
to promote from within. In doing so, the
Group is building the capability it needs
to grow and adapt, while preserving
the distinctive culture and values
that have underpinned its success.
This approach supports Freightways’
long-term ability to deliver for its
customers, its people and partners, and
its shareholders well into the future.
FY26 Development
Highlights
Alongside the Graduate and
Senior Leadership programmes,
Freightways introduced
three new development
initiatives during FY26:
• Future-Proof Leadership –
identifying and developing
the next generation of leaders
to build succession depth
and long-term leadership
continuity across the Group.
• Facilitation Skills – helping
people who lead training,
complex meetings and
group presentations to build
confidence and capability as
facilitators.
• Tough Conversations –
equipping leaders to approach
challenging workplace
conversations with confidence,
clarity and care.
“The programme
has pushed me
outside my comfort
zone, introduced
me to talented
people from across
Freightways and
challenged me to
think differently as a leader. I have
gained practical tools and fresh
ideas that I can apply in my role.”
JESSICA SMITH, NATIONAL SALES MANAGER
— POST HASTE GROUP
“The Senior
Leadership
Programme has
been a valuable
opportunity to
connect and learn.
It has strengthened
my leadership
capability and confidence, while
encouraging me to think more
broadly beyond my own business.”
SHAUN REED, WAIKATO BAY OF PLENTY
REGIONAL MANAGER – BIG CHILL
15Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Home safe and well
HEALTH & SAFETY
HEALTH, SAFETY AND WELLBEING IS A STRATEGIC PRIORITY FOR
FREIGHTWAYS. OUR VISION – HOME SAFE & WELL: TODAY, TOMORROW,
ALWAYS – REFLECTS OUR COMMITMENT TO HELPING EVERYONE WHO WORKS
FOR, OR WITH, FREIGHTWAYS TO RETURN HOME SAFELY EACH DAY.
With multiple businesses operating
across diverse locations and
environments, each presenting its own
range of hazards and risks, Freightways
takes a structured approach to health
and safety management – one grounded
in clear accountability, strong capability
and supports developing a culture where
safety is everyone’s responsibility.
Our Health and
Safety Strategy
Freightways recognises that managing
health and safety requires continuous
improvement. During FY26 the Group
continued investing in capability,
governance and critical risk management
to strengthen its approach across
diverse operational environments.
In May and June 2026, Freightways
engaged an external health and
safety consultancy to undertake a
comprehensive review of safety culture
across its operating businesses.
The review produced a three-year
FY26 Key Focus Areas
• Critical risk management:
We have commenced identifying
critical risk controls across the
Group’s operating businesses
as part of establishing a
consistent framework for
managing critical risks.
• Competency framework:
A health and safety competency
framework has been designed and
is currently being implemented
across all operating businesses,
to support consistent health and
safety capability development.
• Increased dedicated resource:
Additional health and safety
resource has been deployed
across New Zealand and
Australian operational businesses.
• ACC Accredited Employer
Programme: In New Zealand,
Freightways participates in
the ACC Accredited Employer
Programme, meeting the
requirements of the programme
following the 2026 audit. Under
the previous ACC Partnership
Programme, Freightways achieved
tertiary level status for more than
20 consecutive years.
• AI-powered safety technology:
Freightways has now
implemented AI-powered camera
technology across several
operating branches to monitor
interactions between forklifts and
pedestrians. Interaction alerts
are being used to support learning
and reinforce safe behaviours.
roadmap that has since been developed
into Freightways’ formal health
and safety strategy. The strategy is
designed to encourage workers to
raise health and safety concerns.
16Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Freightways Health
and Safety training
for Managers
195
Attendees (FY26)
Lost Time Injury
Frequency Rate
(LT I FR)
13.3 (FY26) vs
16.6 (FY25)
Our health and safety focus for FY26
centred on defining our operating
model, clarifying responsibilities at the
governance, strategic, and operational
levels, and increasing technical
capability to support leaders and
workers across every operating business.
Employee Wellbeing
Employees have access to wellbeing
services across New Zealand and
Australia, providing confidential
support across mental health,
wellbeing and practical matters.
The business will develop a proactive,
risk-based programme ‘Better Work
by Design’ intended on improving both
mental and physical health by reshaping
how work is designed and delivered.
Outlook: Priorities
Looking ahead to FY27, Freightways
will continue to prioritise increased
worker participation in health and
safety and the further development
of technical capability across the
organisation. Investment in online
systems to capture accidents, incidents,
near misses and hazards will support
trend analysis and inform preventive
action. Freightways intends to introduce
active risk management which will be
evidenced through structured assurance
checks and visible ownership of critical
controls and health risks, positioning
Freightways firmly within a continuous
improvement cycle where innovation and
learning drive better safety outcomes.
17Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Our board
Fiona Oliver
DIRECTOR
Abby Foote
DIRECTOR
Grant Devonport
DIRECTOR
David Gibson
CHAIR
Peter Kean
DIRECTOR
Mark Cairns was a Director and Chair of
the Company during the year ended 30
June 2026 and retired from his role with
effect on and from 30 July 2026. Following
Mr Cairns’ resignation, David Gibson was
appointed Chair on 30 July 2026.
18Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Our leadership
Mark Troughear
CHIEF EXECUTIVE OFFICER
Matthew Cocker
CHIEF INFORMATION OFFICER
Neil Wilson
GENERAL MANAGER FREIGHTWAYS
Stephan Deschamps
CHIEF FINANCIAL OFFICER
Nicola Silke
GENERAL COUNSEL AND COMPANY SECRETARY
Aaron Stubbing
GENERAL MANAGER EXPRESS PACKAGE
Ami van Gils
HEAD OF PEOPLE AND CULTURE
Michael Claydon
GENERAL MANAGER SAFETY
19Freightways Annual Report 2026
PERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
OVERVIEW

Performance
20
21 FY26 operating highlights
22 CASE STUDY |
DX Mail
24
CASE STUDY |

Freightways Global
26 CASE STUDY |
VT Freight Express
28 Supporting community
30 Sustainability
32 Directors’ report
20Freightways Annual Report 2026

FY26 operating highlights
FY26 New Zealand
Network Items vs PCP
1
▲
5.1%
FY26 Allied Express
Network Items vs PCP
1
▲
20%
1
Prior comparative period.
OVERVIEW
PERFORMANCE
21
Freightways Annual Report 2026
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AI-Enabled mail sortation
DX MAIL HAS DEVELOPED AND
DEPLOYED AN AI-ENABLED
WORKFLOW SOLUTION THAT IS
TRANSFORMING THE EFFICIENCY
AND SCALABILITY OF ITS MAIL
SORTATION OPERATIONS.
Designed and integrated in-house, the
solution combines automated sortation
technology, operational mapping data
and AI-assisted address recognition to
reduce manual processing requirements
and support the continued growth
of DX Mail’s residential delivery
network. The initiative reflects the
business’s commitment to practical,
cost-effective innovation – enhancing
existing infrastructure rather than
replacing it and delivering measurable
operational benefits at scale.
The Initiative
The development of DX Mail’s AI
workflow solution was driven by a
clear operational need. Growing mail
volumes, increasing complexity across
the delivery network and constraints
around manual labour availability
created pressure on traditional sortation
processes. Rather than pursuing large-
scale infrastructure replacement, the
business took a targeted approach –
designing a modular AI augmentation
layer that integrates directly with existing
sortation machinery and workflows.
The solution addresses key processing
bottlenecks, including machine-
rejected mail, handwritten addresses
and oversized or non-machinable
items such as magazines and C4/C5
mail. By combining image recognition,
address validation logic and operational
mapping data, the system enables
delivery runs to be sorted in delivery
order – improving route efficiency and
reducing downstream manual effort.
The solution is currently operational
across Auckland and Christchurch, with
deployment in Wellington underway.
Approximately 800,000 items
were processed through AI-
assisted workflows between
January and May 2026.
Internal analysis estimates a
97.6% reduction in equivalent
manual processing effort between
January and May 2026.
Average daily processing
volumes of approximately
4,000 items in Auckland and
3,000 items in Christchurch.
Mail that previously required many
hours of manual sorting is now largely
processed through automation
and sequencing workflows.
AI-assisted workflows capable
of processing up to
approximately 700–900 items
per hour, compared with:
250 items per hour after
3+ months of manual
operator training
300+ items per hour after
6+ months of manual
operator training.
Improved capacity to manage
high-volume processing events,
including election mail and local
government communications.
Reduced dependency on large
overnight manual encoding teams
during peak operational periods.
Wellington deployment currently
underway using the latest iteration
of AI logic and workflow integration.
Key Highlights
CASE STUDY | DX MAIL
OVERVIEW
PERFORMANCE
22
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Performance and Impact
The productivity gains delivered
by DX Mail’s AI workflow solution
are significant. Where experienced
operators previously required three
to six months of training to reach
processing rates of 250 to 300 items
per hour, the AI-assisted system is
capable of processing up to 700–900
items per hour, depending on load and
configuration. Between January and
May 2026, the business estimates that
the solution reduced equivalent manual
processing costs by approximately
97.6% – a compelling demonstration of
the operational value delivered through
targeted technology integration.
Beyond throughput, the solution has
improved processing consistency, helped
reduce the manual handling required
with handwritten address recognition
and decreased operational delays
caused by machine-rejected items.
The business’s ability to manage high-
volume events – such as election mail
and local government communications
– has also been meaningfully enhanced,
providing greater confidence in service
delivery during peak demand periods.
Outlook
DX Mail continues to refine and optimise
the solution, with ongoing improvements
to image quality standards, address
recognition accuracy and workflow
integration. The Wellington deployment,
currently underway with the most
advanced iteration of the technology,
will further extend the solution's reach
and impact across the network. With
a scalable platform now operational
across its major processing centres,
DX Mail is well positioned to manage
continued volume growth efficiently
and sustainably – without the need for
proportional increases in manual labour.
OVERVIEW
PERFORMANCE
23
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FINANCIAL REPORTADDITIONAL DISCLOSURES

A global reach
FREIGHTWAYS GLOBAL DELIVERED
A YEAR OF SIGNIFICANT GROWTH
AND OPERATIONAL ADVANCEMENT
DURING FY26, REINFORCING
ITS POSITION AS A TRUSTED
PARTNER FOR INTERNATIONAL
INBOUND E-COMMERCE LOGISTICS
INTO NEW ZEALAND.
Building on strong foundations
established in prior years, the business
achieved approximately 73% year-
on-year growth in shipment volume
compared with FY25 – a result that
reflects both the continued expansion
of cross-border e-commerce and the
business’s capacity to scale effectively
in response to rising customer demand.
Growth was most pronounced across
the China-to-New Zealand trade lane,
with meaningful contributions also
recorded from the United Kingdom,
United States and Australia. Across the
full year, Freightways Global maintained
average on-time performance levels
of approximately 95% across its
international cross-border clearance and
last-mile delivery operations, supporting
reliable and consistent service delivery.
Expanding Operational
Capability
Throughout FY26, Freightways
Global continued to invest in and
expand its operational capability
to meet growing shipment volumes
and the evolving expectations of
international retailers, marketplaces
and consolidators. The business
supports a broad range of e-commerce
product categories, including general
merchandise, consumer products and
oversized freight, and has developed
its infrastructure accordingly to
handle increasingly diverse and
high-volume freight movements.
Key operational enhancements
introduced during the year included:
• Expanded Sunday shift operations to
increase processing capacity across
peak and standard trading periods.
• Increased peak processing capacity
to support higher inbound shipment
volumes and reduce handling
timeframes.
• Introduction of an oversize
sea freight solution supporting
freight movements between
Australian retailers and the
New Zealand market.
• Improved network flexibility to better
accommodate fluctuating volume
demand and peak trading conditions.
Network Reach
and Compliance
Freightways Global operates within a
regulated environment and is supported
by the broader Freightways network to
deliver national final-mile distribution
capability across New Zealand. The
business maintains MPI, RACA and
bonded facility accreditations, ensuring
compliant and secure freight processing
for all international inbound shipments.
• Multi-port injection capability
is supported across Auckland,
Wellington and Christchurch, enabling
effective national coverage.
“FY26 has been a defining year for
Freightways Global. The scale of
international e-commerce into New
Zealand continues to accelerate,
and our focus has been on building
the capability, resilience, and
partnerships required to support
that growth consistently.”
RUTH ADIN, GM FREIGHTWAYS GLOBAL
CASE STUDY | FREIGHTWAYS GLOBAL
OVERVIEW
PERFORMANCE
24
Freightways Annual Report 2026
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Performance
Highlights
• International inbound shipment
volumes increased by more
than 70% year-on-year during
FY26 compared with FY25.
• Shipment volumes across the
November and December
2025 peak trading period
increased approximately
50% compared with the prior
corresponding period.
• Average on-time performance
of approximately 95% was
maintained across international
cross-border clearance and
last-mile delivery operations
throughout FY26.
• The strongest growth was
experienced across the
China-to-New Zealand
trade lane, with additional
inbound growth recorded
from the United Kingdom,
United States and Australia.
• Final-mile delivery is facilitated
through Freightways operating
businesses, including New Zealand
Couriers, Post Haste and Kiwi
Oversize.
• The business provides integrated
customs clearance, freight forwarding
and final-mile delivery solutions for
international retailers, marketplaces
and consolidators.
Customer Expectations
Customer expectations across the
international inbound e-commerce
sector continued to evolve during FY26,
with increasing demand for faster
delivery timeframes, real-time shipment
visibility and enhanced tracking
capability. These trends reinforce
the strategic importance of scalable
operational infrastructure, deep customs
expertise and a fully integrated final-
mile delivery network. As cross-border
e-commerce volumes continue to grow,
Freightways Global is well-positioned
to support the expanding needs of
its customers, with a proven service
model, strong compliance credentials
and a connected national network that
spans the length of New Zealand.
OVERVIEW
PERFORMANCE
25
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A significant acquisition
THE ACQUISITION OF VT FREIGHT
EXPRESS (VTFE) MARKS A
SIGNIFICANT STEP IN FREIGHTWAYS’
AUSTRALIAN GROWTH STRATEGY.
A PROFITABLE, ASSET-LIGHT
EXPRESS FREIGHT BUSINESS
HEADQUARTERED IN VICTORIA, VTFE
BRINGS A WELL-ESTABLISHED B2B
CAPABILITY, A SERVICE FOOTPRINT
THAT COVERS MOST OF AUSTRALIA
VIA AN AGENCY NETWORK AND
A CUSTOMER BASE WHICH HAS
MANY CROSS OVERS WITH OUR
NEW ZEALAND B2B BRANDS.
With annual revenue of approximately
A$77 million and earnings accretion
expected from year one, the acquisition
reinforces Freightways’ disciplined
approach to strategic investment and
its long-term commitment to building
scale, density and shareholder value.
Business Profile
Established in 2010, VTFE has built
a strong track record of consistent
growth and profitability in the Australian
express freight market. The business
specialises in parcel and palletised
freight and serves more than 350
customers across the building,
healthcare, retail and plumbing
sectors – from small and medium-sized
enterprises to multinational corporates.
VTFE operates across all Australian
states and territories (except NSW),
supported by a growing interstate
freight capability and a team of 87
contractors and 49 employees who are
domiciled in Victoria and Queensland.
Strategic Rationale
VTFE provides Freightways with a
meaningful entry point into Australia’s
B2B express freight segment – a
capability that directly complements
Allied Express’s established B2C focus.
Together, the two businesses create
a broader, more diversified Australian
freight platform, better positioned
to serve a wider range of customers
and build greater market share. The
acquisition supports Freightways’ stated
strategy of building scale and density in
Australia through disciplined investment,
both organic and acquisitive, while
preserving the specialist focus that has
driven growth across the wider portfolio.
Operating Model Alignment
VTFE operates an asset-light model
utilising contractor fleets and leased
facilities, which closely aligns with
CASE STUDY | VT FREIGHT EXPRESS
OVERVIEW
PERFORMANCE
26
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES
CASE STUDY

Financial Highlights
• Acquisition price of A$71 million.
• VTFE generated approximately A$77 million in revenue over the 12 months
to October 2025.
• Expected to be approximately 6% accretive to EPS from year one.
• Funded through existing and new bank debt facilities.
Freightways’ proven express package
operating model and core expertise
in pick-up, processing and delivery.
The business demonstrates strong
cultural and operational alignment
with Allied Express and other
Freightways businesses, providing a
natural foundation for collaboration,
selective resource sharing and network
enhancement. The acquisition increases
network density across Freightways’
Australian portfolio and creates a
scalable platform for future organic
growth and further acquisitions.
Multi-Brand Approach
Consistent with Freightways’ successful
multi-brand strategy, VTFE will retain its
leadership team and specialist market
positioning after the acquisition. This
approach preserves the entrepreneurial
culture and customer-focused
reputation that have underpinned
the business’s growth, while allowing
VTFE to selectively draw on the scale,
expertise and resources of the wider
Freightways Group. The model has
proven effective across Freightways’
New Zealand portfolio and is expected to
support sustained value creation as the
Australian platform continues to develop.
Outlook
The acquisition of VTFE further
diversifies Freightways’ earnings
base across geography and customer
segments, strengthening the Group’s
long-term growth prospects. With a
scalable operating model, a broad
and established customer base, and
meaningful opportunities to expand
B2B express freight services across
Australia, VTFE is a well-considered,
strategically-aligned addition to the
Freightways portfolio. The business
is well-positioned to grow alongside
Allied Express, adding depth and
balance to Freightways’ Australian
platform as the Group continues
to pursue disciplined, sustainable
value creation for shareholders.
OVERVIEW
PERFORMANCE
27
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Supporting our community
AT FREIGHTWAYS, WE RECOGNISE THE IMPORTANCE
OF ACTIVELY ENGAGING WITH AND SUPPORTING
THE COMMUNITIES WHERE WE WORK.
Across the Group, we support a variety of charitable
organisations and not-for-profits at a national level,
and many more at a local or regional level.
Our businesses are encouraged to support causes
that resonate with their people and customer base,
whether national initiatives or grassroots efforts, such
as local sports teams, schools, or community projects.
We are very proud of our people who take time out to
support others.
Freightways is proud to be a longstanding major partner
of KidsCan, our key charity partner working to ensure Kiwi
kids have the essentials they need to be ready to learn.
KidsCan supports more than 1,500 schools and
early childhood education centres throughout New
Zealand and, in 2025 alone, distributed 5.5 million
food items, 58,065 warm jackets, 41,765 pairs
of shoes and socks, and 45,736 health items.
With the belief that education equals opportunity,
KidsCan's mission is to give every child a fair chance
at a brighter future – and Freightways is incredibly
proud to provide financial support for their work
to improve the lives of the next generation.
Beyond funding, our team gets hands-on too.
Each school term, KidsCan distributes food to its
partner schools, and in Term 4 last year, several of
our staff volunteered their time to help pack and
dispatch food from KidsCan's Auckland warehouse. We
also supported the community directly, firing up the
barbecue at Onehunga Primary School's Year 5 and 6
camp fundraiser, serving hot dogs to raise funds for the
school's trip.
Freightways remains committed to working alongside
KidsCan to help even more Kiwi children access
the food, clothing, and health essentials they need
to succeed.
OVERVIEW
PERFORMANCE
28
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

In addition to KidsCan, Freightways is proud
to support a range of charities and community
organisations across New Zealand and Australia.
During the year, this included organisations such
as the Child Cancer Foundation, Keep New Zealand
Beautiful, RSA, and the Clontarf Foundation,
reflecting our commitment to supporting the
communities in which we operate in both countries.
OVERVIEW
PERFORMANCE
29
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Sustainability
FREIGHTWAYS’ APPROACH TO SUSTAINABILITY
IS GROUNDED IN FOUR UNITED NATIONS
SUSTAINABLE DEVELOPMENT GOALS
(SDGS) IDENTIFIED AS THE MOST RELEVANT
TO THE BUSINESS, ITS VALUE CHAIN
AND ITS STRATEGIC OBJECTIVES.
These focus areas were established through a
materiality assessment that considered both
financial materiality – how sustainability matters
may affect Freightways’ financial performance
– and impact materiality – how Group activities
may affect society and the environment more
broadly. The assessment drew on input from
a range of internal and external stakeholders,
including Board members, executives, employees,
contractors, suppliers, and investors, ensuring
the identified priorities reflect the perspectives
of those most closely connected to the Group.
Our Sustainability Focus Areas
The materiality assessment confirmed four focus areas
aligned to SDG 3 (Good Health and Wellbeing), SDG 8
(Decent Work and Economic Growth), SDG 9 (Industry,
Innovation and Infrastructure) and SDG 13 (Climate
Action). Together, these areas reflect the sustainability
matters considered most relevant to Freightways and
its stakeholders, and provide the framework for the
Group’s sustainability activities, priorities and reporting.
OVERVIEW
PERFORMANCE
30
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

SDG 3
Health, Safety
and Wellbeing
The health, safety and wellbeing
of employees and contractors is a
focus area for Freightways. Across
the Group, activity is focused on
managing health and safety risks,
preventing harm and supporting
the physical and mental
wellbeing of the workforce.
Please refer to the Health and
Safety Update on pages 16 and 17.
SDG 8
Decent Work and
Economic Growth
Freightways’ workforce,
contractors and suppliers
are central to the reliable
delivery of services across
the Group. Activity is focused
on supporting workforce
development, maintaining fair
and sustainable contractor
arrangements, and strengthening
supply chain transparency.
This includes continuing to
advance the understanding
and management of human
rights and modern slavery risks
across Freightways’ operations
and broader value chain.
Please refer to the People Update
on pages 14 and 15.
SDG 9
Industry, Innovation
and Infrastructure
The reliable and efficient delivery
of services across Freightways’
network depends on resilient
infrastructure and continuous
operational improvements.
Activity is focused on improving
resource efficiency, supporting
innovation where it makes
commercial sense and maintaining
the infrastructure required to
sustain high-quality service
delivery across the Group.
Investment in technology and
operational improvement remains
central to Freightways’ approach.
Please refer to AI-Enabled Mail
Sortation case study on page 22.
SDG 13
Climate Action
Climate change presents both
risks and opportunities for
Freightways, with potential
implications for operations,
customer relationships, the
supply chain and long-term
strategic direction. Freightways
focuses on understanding and
managing climate-related risks
and impacts across the Group,
measuring emissions from its
operations and progressing
transition planning in line with
evolving regulatory requirements
and stakeholder expectations.
Further information on
Freightways’ climate-related
disclosures is available in the
2026 Climate Statement.
OVERVIEW
PERFORMANCE
31
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Directors’ Report
The Directors of Freightways Group Limited
(Freightways) resolved to submit the following report
with respect to the financial position of the Group
as at 30 June 2026 and its financial performance
and cash flows for the year ended on that date.
DIRECTORS
The names and profiles of the Directors of the
Company in office at the date of this report are:
David Gibson |
B.Com, LLB (Hons)
David was appointed to the Board in April 2022.
David is a professional director and has a strong
background in strategy and finance with over 20
years investment banking experience, including as
Co-Head of Investment Banking in New Zealand
for Deutsche Bank and Deutsche Craigs. During his
finance career David has advised on many of New
Zealand’s largest capital market transactions. David
is Chair of Origin Capital Partners, Deputy Chair of
Goodman NZ and a director of Contact Energy.
Grant Devonport |
BBus, GDipBA
Grant was appointed a Director in November 2024. He
was appointed a Non-Executive Director of Auckland
International Airport in October 2024 after finishing
his executive career as Chief Financial Officer of
Australian Pacific Airports Corporation (APAC), owner
of both Melbourne and Launceston Airports and is also
a director of North Queensland Airports. Previously
Grant worked at Toll Holdings from 2006- 2015 where
he was CFO of both NZ (2006- 2008) and Group
CFO (2011- 2015) up to the time of the sale of the
business to Japan Post in 2015. Grant’s portfolio with
Toll included finance, Treasury, investor relations,
procurement, property, safety and technology.
Abby Foote |
LLB (Hons), BCA, CF Inst D, INFINZ (cert)
Abby was appointed a Director in June 2018. She is a
professional director with over 15 years governance
experience, with qualifications in both law and
accounting. Abby has experience in a range of senior
management, finance and legal roles, with a focus
on corporate finance and commercial transactions.
Abby is currently a director of KMD Brands Limited.
Peter Kean |
PMD Harvard
Peter was appointed a Director in July 2016. He
brings to Freightways many years of senior executive
experience with the Lion group of companies in both
New Zealand and Australia. Peter’s last executive
roles were as Managing Director of Lion Nathan
New Zealand and Managing Director of Lion Dairy
and Drinks, based in Melbourne. Peter retired from
Lion in 2014 and has since developed his career in
governance. Peter is involved in a number of private
companies both in New Zealand and in Australia.
Fiona Oliver |
LLB, BA, CF Inst D
Fiona was appointed a Director in July 2021. She is a
professional director, holding governance roles across
a range of business sectors including infrastructure,
retirement villages, technology, and financial
services. She is a board member of the New Zealand
Superannuation Fund and a director of Summerset
Group Limited, Gentrack Group Limited, Clarus
(previously the First Gas Group), Listed Investment
Vehicles and Wynyard Group Limited (in liquidation).
She is also a director and the Chair of Marlin Global,
Barramundi and Kingfish. Fiona’s executive career was
in financial services in New Zealand and overseas,
managing BT Funds Management, Westpac’s investment
arm, and AMP’s Wealth Management division in New
Zealand. In Sydney and London, Fiona managed
the Risk and Operations function of AMP’s global
private capital division. Fiona has also practised
as a senior corporate solicitor in New Zealand and
overseas, specialising in mergers and acquisitions.
*Mark Cairns was a Director and Chair of the Company during the year ended 30 June 2026 and retired from his role with effect on and from 30 July 2026.
OVERVIEW
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32
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FINANCIAL REPORTADDITIONAL DISCLOSURES

Independence of the Board
The Board has determined for the purposes of the NZX
Listing Rules that, as at 30 June 2026, David Gibson,
Grant Devonport, Abby Foote, Peter Kean, Fiona Oliver
and Mark Cairns (now retired) are independent Directors.
The Board assessed each Director’s independence
with regard to the NZX Listing Rules, the interests and
relationships of each Director and by considering each
of the factors set out in Table 2.4 of the NZX Corporate
Governance Code. The Board is satisfied that none of the
factors set out in Table 2.4 apply to any of the Directors.
Board skills matrix
The Board focuses on governance, strategy and
the oversight of the performance of the different
Freightways businesses and brands. The Directors
bring both proven experience in governance and
a strong background in business to their decision
making. Together, they provide the wide-ranging
skills needed to ensure the Board has the expertise
to set and approve strategic direction, make senior
management appointments, monitor performance,
manage risk and oversee our many stakeholder
relationships. The Board Skills Matrix below sets
out the skills of the Directors against the range
of expertise Freightways requires to succeed.
Skills & Experience: AreaSkills & Experience: Description
GovernanceUnderstanding of legal and regulatory frameworks
underpinning corporate governance principles
51
New Zealand & Australian
Listed Markets
Experience as a Non-Executive Director
of a listed entity (NZ or Australian)
51
Audit and RiskExperience in identifying, assessing and
monitoring systemic, existing and emerging
financial and non-financial risks
33
Business Operations
at Scale
Experience operating a large and/or
complex company or group of companies in
multiple countries over a period of time
42
International Transport,
Logistics, & Sector
Aligned Expertise
Experience and expertise in the international
transport, logistics, freight or associated sectors
213
Marketing, Brand, & SalesExperience in brand development, customer
relationships and supply chain
222
IT Platforms and
Digital Innovation
Experience in technology and innovation
and the impact on business operations
and customer experience
42
Australian MarketExperience and understanding of the
Australian market, including the macro-
political and economic environments
132
Health & SafetyExperience with the development and oversight
of frameworks focused on the identification,
assessment and assurance of operational
workplace, health and safety risks
51
Sustainability and
Climate Change
Understanding and experience in managing
the impact of the Group on the environment
and community, as well as the impact of
climate change on Group operations
141
EntrepreneurialExperience in starting, managing and scaling
new businesses and innovations
312
H = High competency, knowledge and experience P = Practised/direct experience A = Awareness
OVERVIEW
PERFORMANCE
33
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Principal activities
The principal activities of the Group during the year
ended 30 June 2026 were the operation of express
package & business mail services and information
management services.
Consolidated result for the year
2026
$000
2025
$000
Operating revenue1,463,6451,289,559
Operating profit before interest and income tax1 67, 2 1 5146,089
Net interest and finance costs(33,584)(34,056)
Profit before income tax133,631112,033
Income tax(39,673)(31,925)
Profit for the year93,95880,108
Directors holding office during
the year were:
PA R E N T:
Mark Cairns (Chairman)
Grant Devonport
Abby Foote
David Gibson
Peter Kean
Fiona Oliver
SUBSIDIARIES:
Mark Troughear
Stephan Deschamps
Stephen Micallef (Australian subsidiaries only)
OVERVIEW
PERFORMANCE
34
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Approved remuneration of Directors
(effective 1 November 2025):
Director remuneration is paid from the total director
fee pool that was last approved by shareholders at the
Annual Shareholders Meeting on 30 October 2025.
Group Fees (per annum)
Position
2026
$
2025
$
Board of DirectorsChair210,000185,000
Board of Directors – New Zealand basedMember105,000100,000
Board of Directors – Australia basedMember114,130-
Audit & Risk CommitteeChair23,00023,000
Audit & Risk Committee – New Zealand basedMember14,00014,000
Audit & Risk Committee – Australia basedMember15,217-
People & Safety CommitteeChair20,00019,000
People & Safety Committee – New Zealand basedMember10,00010,000
People & Safety Committee – Australia basedMember10,870-
Committee work pool (if required)188,78642,145
Total annual fee pool limit1,050,000965,000
Remuneration received by Directors
Directors of the Company’s subsidiaries do not
receive any remuneration or other benefits in their
capacity as a director of those companies, except
indemnity and insurance referred to in the Directors’
and Officers’ Liability Insurance section on page 43.
Directors of Freightways (Parent company)
2026
$
2025
$
Mark Cairns225,667209,000
Grant Devonport (appointed 25 November 2024)134,67381,510
Abby Foote126,333123,000
David Gibson117,333114,000
Peter Kean123,000119,000
Fiona Oliver113,333110,000
Mark Rushworth (retired 23 October 2024)-36,667
Total non-executive Directors840,339793,177
OVERVIEW
PERFORMANCE
35
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Chief Executive’s remuneration
Financial YearFixed RemunerationShort Term Incentive (STI)Long Term Incentive (LTI)Total
Base Salary
Other Benefits
(including
statutory
benefits)Earned
Amount
Earned as a %
of maximum
Award
Number of
Shares Vested
% of Maximum
Awarded for
the relevant
performance
period
Weighted Average
Market Price at
Vesting Date
Total LTI
Plan Value
(Fixed
remuneration
+ STI + LTI
Vested)
$000$000$000%%$ per share$000$000
20261,064704728247,7 8 19712.786112,217
20251,01298460838,418389.25781,648
Five-year summary – Chief Executive’s remuneration
Financial yearCEO
Total remuneration
Percentage STI
against maximum
Percentage vested LTI
against maximum
Span of LTI
performance period
$000%%
2026Mark Troughear2,2178297FY23-FY25
2025Mark Troughear1,6488338FY22-FY24
2024Mark Troughear1,7577791FY21-FY23
2023Mark Troughear1,7939084FY20-FY22
2022Mark Troughear1,668100100N/A
The remuneration of the CEO in the remuneration tables above includes the STI and LTI incentive payments made during the
year ended 30 June 2026 in respect of the 2025 financial year performance. No amount is included above in respect of incentive
payments for the 2026 financial year, as these were paid in August 2026.
OVERVIEW
PERFORMANCE
36
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Breakdown of Chief Executive’s pay for performance
DescriptionPerformance measuresAchieved (%)
STI55% of base salary. Based on a combination of
financial and non-financial performance measures.
70% weighting on achievement of Board approved earnings before interest, tax and amortisation (EBITA).100%
30% weighting on individual performance comprising strategy development & delivery, health & safety and
carbon emissions reduction strategy.
100%
LT I50% of base salary. Conditional awards of shares
under long-term incentive scheme with a vesting
period of 3 years ending 30 June 2028.
Relative TSR (rTSR) - 50% of the share rights are subject to a total shareholder return (TSR), whereby half
these share rights vest if Freightways outperforms the NZX50 index median, pro-rated up to 100% vesting at
the 75th percentile of the index constituents.
Absolute TSR (aTSR) - 50% of the share rights are subject to an absolute TSR measured against a fixed
annualised return threshold, whereby half these share rights vest when it equals 10.3%, pro-rated up to
100% vesting for achieving a TSR equal to or above 11.3%, over the vesting period.
Chief Executive’s STI Structure
ObjectiveMaximum % potential% of objective achieved
EBI TA70%100%
Health & safety12.5%100%
Strategic objective10%100%
Climate & sustainability7. 5 %100%
Total100%100%
The STI achievements in the tables above are in respect of the 2026 financial year performance and were paid
in August 2026.
In addition, the Chief Executive receives overachievement of
earnings before interest, tax and amortisation (EBITA) over a
Board approved EBITA target, calculated as follows:
i No incentive is payable until 90% of budget EBITA is
achieved
ii At 90% of budget EBITA, 50% of the incentive is payable
iii At 95% of budget EBITA, 75% of the incentive is payable
iv At 100% of budget EBITA, 100% of the incentive is payable
v At 105% of budget EBITA, 125% of the incentive is payable
vi At 110% of budget EBITA, 150% of the incentive is payable
vii Pro-rata between 90% and 110% of budget EBITA
viii Overachievement is capped at 150% of the EBITA portion of
the STI payment and pro-rated from 100%-150%
OVERVIEW
PERFORMANCE
37
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

CEO’s LTI summary

Awarded during the reporting periodShares Vested during the reporting period
Shares issued/transferred
during the reporting period
Share
Rights
Award
Date
Vesting
Date
Balance
of share
rights at
30 June
2025
Share
rights
awarded
Market
Price at
Award ($)
Share rights
lapsed
during the
reporting
period
Shares
Vested
Market Price
at Vesting
Date
Vesting
Date
Shares
issued /
transferred
Market price
at issue /
transfer date
Issue /
transfer
date
Balance
of share
rights at 30
June 2026
27
February
2026
August
2028
-43,65614.35--To be
determined on
transfer date
August
2028
-To be
determined on
transfer date
N/A43,656
22 October
2024
August
2027
54,398-9.75--To be
determined on
transfer date
August
2027
-To be
determined on
transfer date
N/A54,398
25 October
2023
August
2026
59,259-8.05--To be
determined on
transfer date
August
2026
-To be
determined on
transfer date
N/A59,259
24
November
2022
August
2025
46,462-9.991,48729,41011.80August
2025
29,41011.80August
2025
-
15,56514.35February
2026
15,56514.35February
2026
In February 2026, a further 2,806 shares were issued to the Chief Executive following an external review of the TSR calculation for share rights that vested on 30 June 2024.
The market price on the issue date was $14.35 per share.
OVERVIEW
PERFORMANCE
38
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Three-year summary
– TSR performance

75th Percentile

Freightways Group Limited

50th Percentile

S&P NZX 50 Index
30/06/2023
30/09/2023
31/12/2023
31/03/2024
30/06/2024
30/09/2024
31/12/2024
31/03/2025
30/06/2025
30/09/2025
31/12/2025
31/03/2026
30/06/2026
0%
50%
100%
150%
200%
250%
TSR%
OVERVIEW
PERFORMANCE
39
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Chief Executive’s remuneration
performance pay for FY26
0
500
1,000
1,500
2,000
2,500
3,000
$000
FixedOn-planMaximum
Base Salary & Benefits
Annual variable
LTI vested during the year
Remuneration of other officers
Fixed remuneration of other officers, not being Directors of the Company, representing
a range from 77% to 80% of their total remuneration, is benchmarked to market
and consists of base salary and matched KiwiSaver contributions up to a maximum
of 3.5%. The officers participate in an at-risk short-term incentive (STI) scheme,
representing a range from 20% to 23% of their total remuneration, that reflects the
achievement of predetermined company profit levels and individual performance
objectives aligned to business strategy and goals. In addition, the officers receive 2%
of earnings before interest, tax and amortisation (EBITA) over a Board approved EBITA
target. The officers also participate in the Freightways Senior Executive Performance
Share Plan (the ‘Plan’) described in Note 22 of the Financial Statements by way of
an annual allocation of Performance Share Rights (PSRs). The PSRs have a 3-year
vesting period and are subject to the achievement of financial hurdles, as described
in Note 22. Both the STI scheme and Senior Executive Performance Share Plan are
variable, performance-based incentives and are only awarded if specific financial
and non-financial performance hurdles are met, and at the discretion of the Board.
Remuneration framework
The remuneration framework of the Company is detailed in the Company’s
Remuneration Policy (which can be found at https://www.freightways.co.nz/
our-profile/corporate-governance/) and is overseen by the People & Safety
Committee. Further information on the Remuneration Policy and the People & Safety
Committee is set out within the Corporate Governance Statement on page 103.
OVERVIEW
PERFORMANCE
40
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Remuneration of employees
The following table notes the number of employees or
former employees, not being Directors of the Company,
within the Group who, during the reporting period,
received remuneration and any other benefits in their
capacity as employees, the value of which was or
exceeded $100,000 per annum, in brackets of $10,000:
Group
20262025
$100,000 – $109,999146211
$110,000 – $119,999141105
$120,000 – $129,9999895
$130,000 – $139,9998871
$140,000 – $149,9997559
$150,000 – $159,9994432
$160,000 – $169,9993730
$170,000 – $179,9993127
$180,000 – $189,9992420
$190,000 – $199,9992316
$200,000 – $209,9991714
$210,000 – $219,999816
$220,000 – $229,9991112
$230,000 – $239,99999
$240,000 – $249,999145
$250,000 – $259,999127
$260,000 – $269,99969
$270,000 – $279,99992
$280,000 – $289,99965
$290,000 – $299,99951
$300,000 – $309,99924
$310,000 – $319,99957
$320,000 – $329,99944
$330,000 – $339,99964
$340,000 – $349,9991-
$350,000 – $359,99931
Group
20262025
$360,000 – $369,99941
$370,000 – $379,9991-
$380,000 – $389,99911
$390,000 – $399,99922
$410,000 – $419,9991-
$420,000 – $429,9991-
$430,000 – $439,999-2
$440,000 – $449,999-1
$460,000 – $469,9993-
$470,000 – $479,9991-
$490,000 – $499,9992-
$500,000 – $509,9991-
$510,000 – $519,999-1
$530,000 – $539,9991-
$540,000 – $549,9991-
$550,000 – $559,9991-
$580,000 – $589,999-1
$610,000 – $619,999-2
$700,000 – $709,9991-
$750,000 – $759,9991-
$790,000 – $799,999-1
$830,000 – $839,9991-
$1,030,000 – $1,039,9991-
$1,640,000 – $1,649,999-1
$2,210,000 – $2,219,9991-
TOTAL EMPLOYEES850779
OVERVIEW
PERFORMANCE
41
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Entries in the
Register of Directors’ interests
The Register of Directors’ Interests records that
the following Directors of Freightways Group
Limited have an equity interest in the Company.
DirectorFully-paid ordinary shares
Mark Cairns50,000
Grant Devonport 17,000
Abby Foote14,665
David Gibson20,610
Peter Kean51,500
Fiona Oliver4,359
The following table shows transactions recorded in respect of securities acquired or disposed
of by Directors of Freightways Group Limited during the year ended 30 June 2026:
Directors are not required to hold any equity securities in the Company although it is encouraged.
Number Acquired
/ (Disposed)
Consideration
per share
Grant Devonport
On-market purchase of ordinary shares on 22 August 20253,000$12.18
On-market purchase of ordinary shares on 4 May 20267$12.78
On-market purchase of ordinary shares on 5 May 20261,993$12.90
David Gibson
On-market sale of ordinary shares on 5 March 2026(202)$14.03
FREIGHTWAYS GROUP LIMITED SHARES
At 30 June 2026 Directors of Freightways Group Limited held the following number of equity securities in
the Company:
OVERVIEW
PERFORMANCE
42
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Other interests
Listed below are details of the entries made in the Interests Register of the
Company during the year, together with the existing entries as at 30 June 2026.
NameName of company/entityNature of interest
Abby FooteKMD Brands LimitedDirector
David Gibson Goodman New Zealand Limited and
associated group companies
Deputy Chair
Director
Contact Energy LimitedDirector
Fiona OliverBarramundi LimitedChair*
Director
Gentrack Group LimitedDirector
Clarus (previously First Gas group companies)Director
Kingfish LimitedChair*
Director
Marlin Global LimitedChair*
Director
Guardians of New Zealand SuperannuationBoard member
Summerset Group Holdings LimitedDirector
Wynyard Group Limited (in liquidation) Director
Grant DevonportAuckland International AirportDirector
North Queensland AirportsDirector*
Mark CairnsAuckland International AirportDirector
Briscoes GroupDirector*
Peter KeanTrojan Holdings LimitedDirector
* Entry added by notice given by the Director during the year.
** Entry removed by notice given by the Director during the year.
Directors’ and Officers’ liability insurance
Deeds of indemnity have been granted by the Company in favour of the Directors of
the Company and its subsidiaries, to the fullest extent permitted by the Companies
Act 1993. In accordance with the deeds of indemnity, the Company has insured all
its Directors and the Directors of its subsidiaries against liabilities to other parties
(except the Company or a related party of the Company) that may arise from their
positions as Directors. Freightways’ liability insurance also covers Officers of the
Group. The insurance does not cover liabilities arising from criminal actions.
For and on behalf of the Board this 17th day of August 2026.
David Gibson
CHAIRMAN
Abigail Foote
DIRECTOR
OVERVIEW
PERFORMANCE
43
Freightways Annual Report 2026
FINANCIAL REPORTADDITIONAL DISCLOSURES

Financial
Report
44
45 Independent Auditor’s report
48 Income statement
49 Statement of
comprehensive income
50 Statement of changes
in equity
51 Balance sheet
53 Statement of cash flows
54 Notes to the
financial statements
44Freightways Annual Report 2026

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West,
Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000
pwc.co.nz
Independent auditor’s report
To the shareholders of Freightways Group Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of Freightways
Group Limited (the Company), including its subsidiaries (the Group), present fairly, in all material respects, the
financial position of the Group as at 30 June 2026, its financial performance, and its cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
• the balance sheet as at 30 June 2026;
• the income statement for the year then ended;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, comprising material accounting policy information and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and
International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board (PES 1) and the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), as applicable to audits of financial statements of public interest
entities. We have also fulfilled our other ethical responsibilities in accordance with PES 1 and the IESBA Code.
2 PwC - Independent auditor’s report
In our capacity as auditor and assurance practitioner, our firm also provided review and other assurance services.
Our firm has also carried out an assignment in the area of executive long term incentives market practice
benchmarking. In addition, certain partners and employees of our firm may deal with the Group on normal terms
within the ordinary course of trading activities of the business. The firm has no other relationship with, or interests
in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial statements of the current year. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Description of the key audit matter How our audit addressed the key audit matter

Revenue recognition

The Group’s operating revenue of $1,464 million for the
current year (30 June 2025: $1,290 million) primarily
consisted of express package, refrigerated transport and
storage, postal, storage and handling, destruction activities
and digital services, as disclosed in Note 3 of the financial
statements.
Given the significance of revenue to the Group’s financial
statements and the high volume of transactions processed
across multiple businesses and revenue streams, revenue
recognition required significant auditor attention and was
therefore considered to be a key audit matter.
We obtained an understanding and evaluated the Group’s
processes and controls relating to revenue recognition for
each material revenue stream.
Our audit procedures in relation to revenue recognition for
each material revenue stream included:
• challenging the material judgements made by
management in applying the standard, including
assessing a sample of individual contracts against the
requirements of NZ IFRS 15, particularly the
determination of performance obligations;
• performing substantive analytical procedures to test the
accuracy and occurrence of revenue for specific revenue
streams, including considering the reliability of the data
used in the analytics;
• testing a sample of revenue transactions to assess the
completion of performance obligations;
• testing a sample of revenue transactions to assess the
accuracy of pricing to supporting documentation;
• for a sample of transactions within accounts receivable
during the year, we obtained either confirmation of the
amount owing from the customer, or evidence of the
amount owing from alternative procedures including
testing of subsequent receipts or shipping documentation;
• identifying journal entries affecting revenue that met
specified characteristics and, for a sample of journals,
inspecting supporting documentation and evaluating the
business rationale; and
• assessing the disclosures made against the requirements
of the accounting standards.

Impairment assessment of goodwill and indefinite life
brand names

As disclosed in Note 14, the Group has goodwill and brand
names with carrying values of $497.4 million and $163.0
million respectively (30 June 2025: $408.1 million and $156.6
million).
Goodwill and indefinite life brand names are allocated to
cash-generating units (CGUs) for the purpose of impairment
testing.
Management performed an annual impairment assessment
using value in use (VIU) models to determine whether the
carrying value of assets held by each CGU is recoverable.
The carrying value of goodwill and indefinite life brand names
is an area of focus for the audit and a key audit matter as it is
Based on the level of headroom and the sensitivity to
impairment of each CGU, our audit procedures relating to the
estimates and judgements in the VIU models included the
following:
• gaining an understanding of the business process and
controls applied by management in preparing the
impairment assessments;
• considering the appropriateness of the determination of
CGUs and recalculating the carrying amounts of net
assets;
• evaluating whether corporate costs have been
appropriately considered;
• testing the mathematical accuracy of the models used to
determine the VIU;
ADDITIONAL DISCLOSURES
45
FINANCIAL REPORT
OVERVIEWPERFORMANCE
Freightways Annual Report 2026

3 PwC - Independent auditor’s report
a significant financial statement line item on the balance
sheet and involves estimation and judgement about future
business performance, which includes certain key
assumptions such as revenue growth, earnings before
interest, tax, depreciation and amortisation (EBITDA) margin,
terminal growth rates, and the pre-tax discount rate.
For each CGU, the recoverable amount based on the value
in use calculation was higher than the carrying value of the
CGU and, as a result, no impairment was recognised.
However, the level of headroom varied across the CGUs.
Management’s assessment for the Big Chill CGU indicated
headroom of $2.9 million at 30 June 2026, compared with
$39.7 million at 30 June 2025. As disclosed in Note 14,
reasonably possible changes to the VIU model assumptions
for forecast earnings, the terminal growth rate, or the pre-tax
discount rate could result in the recoverable amount no
longer exceeding the carrying amount of the Big Chill CGU.
• reviewing historical years actual revenue and EBITDA
against the original budgeted performance to determine
the reliability of the budgeting process and considering the
impact on forecast performance;
• obtaining an understanding of the current and forecast
outlook for the business and management’s basis for
determining the key assumptions in preparing the forecast
cash flows. This included management's assessment of
the likely impact of climate change;
• agreeing forecast future performance included in the
impairment assessments to the budgets approved by the
Board of Directors;
• with the assistance of our auditor’s valuation expert,
assessing the appropriateness of the terminal growth and
discount rates; and
• performing a sensitivity analysis over key assumptions to
determine whether reasonably possible changes could
result in impairment of goodwill.
We also reviewed the financial statements for appropriate
disclosure of key assumptions, including the impact of any
reasonably possible changes which could result in an
impairment.

VT Freight Express acquisition accounting

As disclosed in Note 30, on 30 January 2026, the Group
completed the acquisition of the business and assets of VT
Freight Express Pty Ltd for total consideration of $82.5
million.
The fair values of the separately identifiable assets and
liabilities arising from the acquisition were determined as part
of the purchase price allocation. The purchase price
allocation resulted in the recognition of customer
relationships of $27.8 million and goodwill of $60.2 million.
Management engaged an external valuation expert to assist
with the identification and valuation of the separately
identifiable intangible assets acquired.
We consider the accounting for the acquisition to be a key
audit matter due to the significance of the acquisition to the
Group and the judgement involved in identifying and valuing
the assets and liabilities acquired.
In particular, the valuation of the customer relationships
involved judgement in relation to forecast revenue and
margins, customer attrition, contributory asset charge, and
the discount rate.
We obtained an understanding and evaluated the Group’s
process for accounting for the acquisition.
Our audit procedures included:
• reading the Sale and Purchase Agreement to understand
the key terms and conditions, including assessing the
acquisition date;
• agreeing the consideration paid to supporting
documentation;
• gaining an understanding of management’s approach to
identifying separately identifiable intangible assets and
determining the fair value of the assets and liabilities
acquired;
• considering whether all material identifiable assets and
liabilities had been recognised in accordance with the
requirements of NZ IFRS 3 Business Combinations;
• obtaining and reading the valuation report prepared by
management’s external expert and, with the assistance of
our auditor’s valuation expert, assessing the valuation
methodology and key assumptions used in valuing the
customer relationships;
• testing the mathematical accuracy of the purchase price
allocation, including the resulting goodwill; and
• assessing the disclosures made against the requirements
of the accounting standards.

4 PwC - Independent auditor’s report
Our audit approach
Overview

Overall group materiality: $6.66 million, which represents approximately 5% of profit before
tax.
We chose profit before tax as the benchmark because, in our view, it is the benchmark
against which the performance of the Group is most commonly measured by users and is a
generally accepted benchmark.

The scope of our audit and the nature, timing and extent of audit procedures performed were
determined by our risk assessment, the financial significance of components and other
qualitative factors (including history of misstatement through fraud or error).
We performed audit procedures over components considered financially significant in the
context of the Group (full scope audit) or in the context of individual primary statement
account balances (audit of specific account balances). We performed other procedures
including analytical review procedures to address the risk of material misstatement in the
residual components.

As reported above, we have three key audit matters, being:
• Revenue recognition
• Impairment assessment of goodwill and indefinite life brand names
• VT Freight Express acquisition accounting



As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements. In particular, we considered where management made subjective judgements; for example, in
respect of significant accounting estimates that involved making assumptions and considering future events that are
inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls,
including among other matters, consideration of whether there was evidence of bias that represented a risk of
material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable
assurance about whether the financial statements are free from material misstatement. Misstatements may arise
due to fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the
overall group materiality for the financial statements as a whole as set out above. These, together with qualitative
considerations, helped us to determine the scope of our audit, the nature, timing and extent of our audit
procedures, and to evaluate the effect of misstatements, both individually and in the aggregate, on the financial
statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the
financial statements as a whole, taking into account the structure of the Group, the accounting processes and
controls, and the industries in which the Group operates.

ADDITIONAL DISCLOSURES
46
FINANCIAL REPORT
OVERVIEWPERFORMANCE
Freightways Annual Report 2026Freightways Annual Report 2026

5 PwC - Independent auditor’s report
Other information
The Directors are responsible for the other information. The other information comprises the information included
in the Annual Report and the Climate Statement, but does not include the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
audit opinion or assurance conclusion thereon. We issue a separate limited assurance report on the Greenhouse Gas
Disclosures included in the Climate Statement.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have
performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that
there is a material misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial
statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the External
Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our auditor’s report.
6 PwC - Independent auditor’s report
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that
we might state those matters which we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company
and the Company’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Richard Day.
For and on behalf of:
PricewaterhouseCoopers Auckland
17 August 2026


ADDITIONAL DISCLOSURES
47
FINANCIAL REPORT
OVERVIEWPERFORMANCE
Freightways Annual Report 2026Freightways Annual Report 2026

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
48Freightways Annual Report 2026
PERFORMANCE
Income Statement
FOR THE YEAR ENDED 30 JUNE 2026
Group
Note
2026
$000
2025
$000
Operating revenue2 & 31,463,6451,289,559
Transport and logistics expenses(644,304)(536,741)
Employee benefits expenses(392,844)(373,374)
Occupancy expenses(14,466)(12,564)
General and administration expenses(134,209)(120,046)
Depreciation and software amortisation4(96,552)(90,189)
Amortisation of intangibles4(14,355)(12,306)
Change in fair value of contingent consideration3001,750
Operating profit before interest and income tax1 67, 2 1 5146,089
Net interest and finance costs4(33,584)(34,056)
Profit before income tax133,631112,033
Total income tax5(39,673)(31,925)
Profit for the year 93,95880,108
Profit for the year is attributable to:
Owners of the parent93,73179,919
Non-controlling interests227189
93,95880,108
Earnings per share25
Basic earnings per share (cents)52.4 4 4.7
Diluted earnings per share (cents)52.244.6
Note: All revenue and earnings are from
continuing operations.The above Income Statement should be read in conjunction with the accompanying notes.

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
49Freightways Annual Report 2026
PERFORMANCE
Statement of
Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2026
The Board of Directors of Freightways Group Limited
authorised these financial statements for issue on the
date below.
For and on behalf of the Board this 17th day of
August 2026.
Group
Note
2026
$000
2025
$000
Profit for the year93,95880,108
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations
2132,703(4,379)
Cash flow hedges taken directly to equity, net of tax211,280(1,978)
Total other comprehensive income after income tax33,983(6,357)
Total comprehensive income for the year 1 27,9 4173,751
Total comprehensive income for the year is attributable to:
Owners of the parent1 2 7,7 1 473,562
Non-controlling interests227189
1 27,9 4173,751
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Abigail Foote
DIRECTOR
David Gibson
CHAIR

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
50Freightways Annual Report 2026
PERFORMANCE
Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2026
Note
Contributed
equity
$000
Retained
earnings
$000
Cash flow hedge
reserve
$000
Foreign currency
translation
reserve
$000
Non-controlling
interests
$000
Total
equity
$000Group
Balance at 1 July 2024308,386190,4761,024(8,021)404492,269
Profit for the year-79,919--18980,108
Exchange differences on translation of foreign operations---(4,379)-(4,379)
Cash flow hedges taken directly to equity, net of tax--(1,978)--(1,978)
Total Comprehensive Income-79,919(1,978)(4,379)18973,751
Dividend payments6-(67,932)--(166)(68,098)
Shares issued212,045----2,045
Balance at 30 June 2025310,431202,463(954)(12,400)427499,967
Profit for the year-93,731--22793,958
Exchange differences on translation of foreign operations---32,703-32,703
Cash flow hedges taken directly to equity, net of tax--1,280--1,280
Total Comprehensive Income-93,7311,28032,7032271 27,9 41
Dividend payments6-(75,155)--(210)(75,365)
Shares issued213,031----3,031
Balance at 30 June 2026313,462221,03932620,303444555,574
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
51Freightways Annual Report 2026
PERFORMANCE
Balance Sheet
AS AT 30 JUNE 2026
Group
Note
2026
$000
2025
$000
Current assets
Cash and cash equivalents732,90 443,261
Trade and other receivables8190,337166,320
Inventories913,49612,358
Contract assets2,9873,057
Derivative financial instruments10415-
Total current assets240,139224,996
Non-current assets
Other non-current assets84,3254,212
Loans to related parties180180
Property, plant and equipment12174 ,79 1160,722
Right-of-use assets13315,554325,199
Intangible assets14769,199651,466
Investments in associates and joint venture1514,62114,024
Derivative financial instruments1053-
Total non-current assets1,278,7231,155,803
Total assets1,518,8621,380,799
Current liabilities
Trade and other payables17170,216144,840
Borrowings2082,99321,538
Lease liabilities1364,8645 7,75 8
Income tax payable11,04422,412
Provisions184,9613,506
Contract liabilities1914,54820,500
Derivative financial instruments10-71
Total current liabilities348,626270,625

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
52Freightways Annual Report 2026
PERFORMANCE
Balance Sheet continued
AS AT 30 JUNE 2026
Group
Note
2026
$000
2025
$000
Non-current liabilities
Borrowings20245,649236,94 3
Deferred tax liability1647, 2 0 343,586
Provisions1817, 4 2 912,476
Lease liabilities13304,381315,931
Derivative financial instruments10-1,271
Total non-current liabilities614,662610,207
Total liabilities963,288880,832
NET ASSETS555,574499,967
Equity
Contributed equity21313,462310,431
Retained earnings221,039202,463
Cash flow hedge reserve10326(954)
Foreign currency translation reserve20,303(12,400)
555,130499,540
Non-controlling interests444427
TOTAL EQUI T Y555,574499,967
The above Balance Sheet should be read in conjunction with the accompanying notes.

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
53Freightways Annual Report 2026
PERFORMANCE
Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2026
Group
Note
2026
$000
2025
$000
Inflows
(Outflows)
Inflows
(Outflows)
Cash flows from operating activities
Receipts from customers1,442,2301,284,359
Payments to suppliers and employees (1,162,880)(1,041,248)
Cash generated from operations279,350243,111
Interest received1,1801,066
Interest and other costs of finance paid(34,207)(35,769)
Income taxes paid(58,876)(34,761)
Net cash inflows from operating activities231 8 7, 4 47173,647
Cash flows from investing activities
Payments for property, plant and equipment(29,825)(25,907)
Payments for software and other intangibles(4,123)(3,637)
Proceeds from disposal of property, plant and equipment634571
Payments for businesses acquired (net of cash acquired) 30(82,472)(4,813)
Receipts from joint ventures and associates1,7501,600
Net cash outflows from investing activities(114,036)(32,186)
Cash flows from financing activities
Dividends paid(75,365)(68,098)
Net increase (decrease) in bank borrowings53,289(5,092)
Proceeds from issue of ordinary shares 645400
Principal elements of lease payments(63,730)(57,698)
Net cash outflows from financing activities(85,161)(130,488)
Net (decrease) increase in cash and cash equivalents(11,750)10,973
Cash and cash equivalents at beginning of year43,26135,653
Exchange rate adjustments 1,393(3,365)
Cash and cash equivalents at end of year732,90443,261
The above Statement of Cash Flows should be read
in conjunction with the accompanying notes.

OVERVIEW
FINANCIAL REPORT
ADDITIONAL DISCLOSURES
54Freightways Annual Report 2026
PERFORMANCE
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2026
Note 1. Material Accounting
Policy Information
(A) REPORTING ENTITY AND STATUTORY BASE
Freightways Group Limited is a company 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 Part
7 of the Financial Markets Conduct Act 2013 and the
NZX Main Board Listing Rules. In accordance with the
Financial Markets Conduct Act 2013, Group financial
statements are prepared and presented for Freightways
Group Limited and its subsidiaries. Accordingly, separate
financial statements for Freightways Group Limited
are not required to be prepared and presented.
The financial statements are stated in New Zealand
dollars rounded to the nearest thousand, unless
otherwise indicated.
Basis of preparation
The financial statements of the Group have been
prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP).
The Group is a for-profit entity for the purposes of
complying with NZ GAAP. The financial statements
comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS), other New
Zealand accounting standards and authoritative notices
that are applicable to entities that apply NZ IFRS. The
financial statements comply with International Financial
Reporting Standards Accounting Standards (IFRS).
The financial statements have been prepared on a
historical cost basis, except for derivative financial
instruments and acquisition earn-out payables,
which have been measured at fair value.
Going concern assumption
The Group has negative working capital of $108.5
million. This is due partly to contract liabilities for
deferred revenue (prepaid ticket liability) of $14.5
million and borrowings repayable within 12-months of
$83 million which are classified as a current liability
(2025: negative working capital of $45.6 million
due to contract liabilities and borrowings repayable
within 12-months). The Group has undrawn bank
loan and bank overdraft facilities as at 30 June 2026
totalling $139.9 million (2025: $142.9 million) to
meet obligations and continue for the foreseeable
future, being at least 12 months from the date of
approval of the financial statements. Accordingly,
there are no material uncertainties related to events
or conditions that may cast significant doubt upon
the Group’s ability to continue as a going concern
for the purpose of these financial statements.
Critical accounting estimates and judgements
The preparation of financial statements in conformity
with NZ IFRS requires the use of certain critical
accounting estimates, where necessary, and may
require management to exercise judgement in
the process of applying the Group’s accounting
policies. Specific areas of critical accounting
estimates and assumptions used are as follows:
(i) Carrying value of indefinite life intangible assets
Impairment assessments are performed by
management, annually or where there is an indicator
of impairment, to assess the carrying value of
indefinite life intangible assets, including goodwill
and brand names. The recoverable amounts of cash-
generating units have been determined based on
the greater of value-in-use and fair value less cost of
disposal calculations. These calculations require the
use of estimates. Refer to Note 14.
(ii) Customer relationships
The estimation of the useful lives of customer
relationships has been based on historical
experience. The useful lives are reviewed at least
once per year and adjustments to useful lives are
made when considered necessary. Refer Note 14.
(iii) Purchase price allocation for acquisitions
During the year, the Group acquired a business
as described in Note 30. All identifiable assets
and liabilities, including intangible assets, were
measured at fair value at acquisition date. In
deriving a fair value for identifiable intangibles, the
Group used a variety of valuations methods and
key assumptions to reflect what a typical market
participant would apply if they were to buy or sell
each asset on an individual basis.