Freightways Group Limited · NZX:FRW

Freightways — Shareholder Meeting (October 2011)

27 slides from Freightways's shareholder meeting presentation, Oct 27, 2011

1. Slide 1: Freightways Annual Shareholders Meeting

   Freightways Annual Shareholders Meeting 27 October 2011

2. Slide 2: Sue Sheldon, Chairman

   Sue Sheldon Chairman Freightways

3. Slide 3: Agenda

   Agenda ƒ Chairman’s Introduction ƒ Managing Director’s Review and Trading Update ƒ Resolutions 1

4. Slide 4: General Highlights - 2011

   General Highlights - 2011 ƒ Express Package & Business Mail division again demonstrated its ability to deliver double digit EBITA growth in Q2 and Q4 ƒ New operations started-up in NSW, WA and SA now means FRE can offer a nationwide Information Management service to its Australian customers ƒ Inform

5. Slide 5: Financial Highlights - 2011

   Financial Highlights - 2011 Jun-11 Jun-10 Variance $M $M % Operating Revenue 353 329 7% EBITDA* 66 64 4% EBITA* 57 54 5% NPAT* 31 29 7% * Jun-11 excludes non-recurring earthquake costs $1.3m ($0.9m net of tax) Jun-10 NPAT excludes one-off abnormal tax charge $5.7m 1

6. Slide 6: Final Dividend - 2011

   Final Dividend - 2011 ƒ Final dividend: 7.25 cps ƒ Imputation credits: 3.11 cps ƒ Supplementary dividend: 1.28 cps ƒ Record date: 16 September 2011 ƒ Payment date: 30 September 2011 ƒ DRP not offered in respect of the 2011 Final Dividend 1

7. Slide 7: Dean Bracewell, Managing Director: Review and Trading Update

   Dean Bracewell, Managing Director Review and Trading Update

8. Slide 8: Managing Director's Presentation

   Managing Director’s Presentation ƒ Industry overview and business description ƒ Business strategy ƒ Trading update ƒ Outlook 1

9. Slide 9: Express Package & Business Mail

   Express Package & Business Mail Industry Overview and Business Description

10. Slide 10: Express Package & Business Mail Industry Overview

    Express Package & Business Mail Industry Overview ƒ Services embedded in supply chains of businesses ƒ Consolidated industry structure ƒ Growth underpinned by demand for Just-in-Time supply ƒ Market has expanded as postal operators transition traditional ‘parcel’ volume to ‘express packages’ 1

11. Slide 11: Express Package and Business Mail Business Description

    Express Package and Business Mail Business Description Network Courier Point to Point Business Mail Support 1

12. Slide 12: Information Management

    Information Management Industry Overview and Business Description

13. Slide 13: Information Management Industry Overview

    Information Management Industry Overview ƒ Accelerating growth opportunity driven by: - Demand for expert management of business data - Risk management - Compliance requirements - Lower cost outsourcing ƒ Recurring revenue streams ƒ Consolidated industry structure 1

14. Slide 14: Information Management Business Description

    Information Management Business Description New Zealand NSW VIC QLD ACT SA WA Document Storage Data Storage Document Destruction 1

15. Slide 15: Business Strategy

    Business Strategy CASTLE | IPARGELS; Freightways

16. Slide 16: Business Strategy

    Business Strategy ƒ Develop organic growth opportunities ƒ Diversification: Industry and geography ƒ Positioning, People, Performance, Profit ƒ Explore complementary acquisition and alliance opportunities

17. Slide 17: Trading Update

    Trading Update Freightways

18. Slide 18: Operating Revenue

    Operating Revenue 400 350 300 $M 250 200 150 100 50 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended 30 June 2nd Half ƒ 8% higher revenue compared to PCP 1st Half ƒ 10-year compound average annual revenue growth of 7%

19. Slide 19: EBITA

    EBITA* 70 60 50 $M 40 30 20 10 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended 30 June 2nd Half 1st Half ƒ 5% higher EBITA compared to PCP ƒ 10-year compound average annual EBITA growth of 9% *2011 excludes non-recurring earthquake costs $1.3m

20. Slide 20: Operating Performance (Year Ended June 2011)

    Business Segments Operating Performance (Year Ended 30 June 2011) Revenue 79% 21% Express Package & Business Mail Information Management 1

21. Slide 21: Current Financial Performance

    Current Financial Performance Qtr ended 30 Septem ber 2011* 2010 Variance $000 $000 % Revenue 93,317 85,381 9% EBITDA 16,648 15,410 8% EBITA 14,187 13,014 9% NPAT 8,037 6,743 19% NB: - 2011 numbers are drawn from unaudited management accounts. * Excludes one-off $0.9m benefit ($0.6m net of tax) from

22. Slide 22: Recent Acquisition Activity

    Recent Acquisition Activity ƒ Acquired IMNZ, effective 1 October 2011 ƒ Revenue $12m, EBITA pre-synergies of $1.5m in first 12 months ƒ Acquisition cost $12.7m (US$10m) ƒ IMNZ being fully merged with Freightways subsidiary OSS ƒ Synergies will include relocation of IMNZ Wellington operations to the

23. Slide 23: Outlook

    12) ie £ ep E

24. Slide 24: Outlook

    Outlook ƒ Continued gradual improvement in FRE’s market segments expected, with consequently improving FRE performance ƒ If recent EP&BM growth can be maintained, year-on-year improvement is expected to be sustained ƒ IM transitioning through a period of significant capacity investment, with accompa

25. Slide 25: Questions

    é i 10ns Quest

26. Slide 26: Resolutions

    Resolutions ƒ Re-election of Directors ƒ Approval of Directors’ fees ƒ Authority to fix Auditors’ remuneration

27. Slide 27: Freightways Annual Shareholders Meeting

    Freightways Annual Shareholders Meeting 27 October 2011

Freightways Group — Shareholder Meeting (October 2011) on 6ix