ANNUAL SHAREHOLDERS MEETING
A.
CHAIRMAN’S INTRODUCTION
Slide 1.
Freightways – 26 October 2006, Annual Shareholders Meeting
Slide 2.
Wayne Boyd, Chairman
Ladies and Gentlemen welcome to Freightways’ Annual Shareholders Meeting. My name is
Wayne Boyd and I am the Chairman of Freightways’ Board of Directors.
Slide 3.
Agenda
- Chairman’s introduction
- Managing Director’s review and trading update
- Resolutions
Before we get underway I will run through the structure of the meeting.
 I will begin with procedural matters, introduce the Freightways Board and senior executive team
to you and then summarise some of the Company’s 2006 highlights. I will then ask Dean
Bracewell, Freightways’ Managing Director, to provide a review of the Company and an update
on current trading performance.
 I ask that you hold all questions about the performance of the Company until the close of the
Managing Director’s presentation and direct them through the Chair. Any questions related to
resolutions should be asked when we consider those resolutions.
 Following the Managing Director’s presentation, we will attend to the resolutions as outlined in
the notice of meeting.
 The notice of meeting, which includes the explanatory notes, has been circulated to all
shareholders, and I intend to take it as read.
The Company’s constitution prescribes a quorum requirement of 5 shareholders. As you can see
this requirement is met. As a quorum is therefore present, the meeting is duly constituted and I
declare it open.
Proxies have been appointed for the purpose of this meeting in respect of approximately 53 million
ordinary shares. As was indicated on the proxy form, where proxy discretion has been given, the
Directors and myself, as Chairman, intend to vote those proxies we have received in favour of the
resolutions before the meeting.
I would now like to introduce those at the table with me:
 Mark Royle, Freightways’ Chief Financial Officer and Company Secretary. Mark has over 20
years accounting and commercial experience of which 13 years were with a major international
chartered accounting firm. Mark was appointed Chief Financial Officer and Company Secretary
of Freightways 6 years ago, having spent a number of years prior to that with Freightways’ then
Australian owner.
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Your Directors at the table are:

Dean Bracewell, Freightways’ Managing Director. Dean has spent almost his entire career with
Freightways. Over a 20-year term Dean has held a number of senior Executive and General
Management roles within Freightways’ subsidiary businesses prior to his appointment to
Managing Director in 1999.

Warwick Lewis. Warwick was Dean’s predecessor as Managing Director of Freightways
between 1994 and his retirement in 1999. Prior to that role Warwick was Freightways’
Commercial Manager for 8 years and prior to that he founded and managed Chep Pallets, a
company that was previously part owned by Freightways.

Sir William Birch. Sir William began his career in 1957, when he established a private practice
as a surveyor in Pukekohe. His keen interest in community affairs led to six years as Deputy
Mayor of Pukekohe and election to Parliament in 1972. During his 27 years in Parliament he
served for 15 years as a Minister of the Crown, including 6 years as Minister of Finance
between 1993 and 1999. Sir William retired from Parliament in 1999 and commenced a private
consultancy. Currently he is a member of the ABN AMRO Australia and New Zealand
Advisory Council in an advisory capacity on business transactions and a director of a number of
public and private companies including St George Bank New Zealand and Viking Capital. He is
also a trustee of Mutual Fund Limited and Superannuation Investments Limited.

Sue Sheldon is a Chartered Accountant and professional director. Sue is Chairman of the
National Provident Fund Board of Trustees and Wool Industry Network Limited, Deputy
Chairman of Christchurch International Airport and a director of CanWest Media Works,
Smiths City Group, Asure New Zealand, Fibre Tech NZ and Nimbus Bedware. Sue is a former
president of the Institute of Chartered Accountants and is a Board member of Guides New
Zealand.

I was appointed a Director and elected Chairman of Freightways in June 2003. After practising
law for 18 years and spending 5 years in investment banking, I established a specialist advisory
business and a career as a professional director. I am also Chairman of Telecom NZ, Meridian
Energy and Vulcan Steel, and am a director of Landco.
Also present today are several members of the Freightways team. I shall introduce the
members of Freightways’ senior executive team to you:

Steve Wells, General Manager of New Zealand Couriers. Steve has been with Freightways for
22 years.

Mark Troughear, General Manager of Post Haste. Mark has been with Freightways for 10
years.

Richard Mitchell-Lowe, General Manager of Freightways Information Services. Richard has
been with Freightways for 18 years.

Stewart Maclaren, General Manager of Online Security Services. Stewart has been with
Freightways for 16 years.

Mark Brightwell, General Manager of DX Mail. Mark has been with Freightways for 12 years.
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
Bill Olsen, General Manager Fieldair Holdings. Bill has been associated with Freightways for
16 years.

Neil Wilson, General Manager, Messenger Services and Parceline Express. Neil has been with
Freightways for 9 years.

Devon Buckingham, General Manger of Castle Parcels Limited. Devon has been with
Freightways for 10 years.

Colin Shotter, Auckland Manager of New Zealand Couriers. Colin has been with Freightways
for 26 years.
As you can see the senior executive team of Freightways has considerable depth of experience. It is
a particular strength of Freightways that we are able to identify and promote talent from within, not
only in these senior roles but across many occupations within the greater company.
The Company’s Auditors PricewaterhouseCoopers are represented here today by Grant Burns and
the Company’s legal advisors Lee Salmon Long are represented here today by Matthew Pasley.
The Financial Statements for the year ended 30 June 2006 are set out in the Company’s Annual
Report that was mailed to shareholders last month.
I would now like to speak briefly to some of the general and financial highlights of Freightways’
2006 year. I will then ask Dean Bracewell to address you.
Slide 4.
General Highlights
The 2006 year has been challenging on many fronts, none the least being the slowing New Zealand
economy. We clearly signalled evidence of this slowdown at last year’s annual meeting and again
in February of this year and it is particularly pleasing that despite the tougher operating
environment all Freightways subsidiaries have performed well.
Freightways operates in the three distinct markets of Express Package, Business Mail and
Information Management. 2006 has been another very busy year for all Freightways subsidiaries
which have delivered sound growth while taking different strategies to their respective markets. At
all times in delivering these strategies, Freightways has continued to leverage the fundamental
business methodology that has historically underpinned the success of the company.
During the year Freightways acquired the well established point-to-point business of Kiwi Express.
Kiwi Express operates in Auckland and Wellington. Consistent with Freightways’ strategy of
operating multiple brands, and thus providing the market with a differentiated choice, the Kiwi
Express brand has been retained in the marketplace. It is a credit to the management of
Freightways that they have been able to identify and successfully implement acquisitions of this
nature.
Also consistent with this growth strategy and post balance date, Freightways acquired the business
of DataBank that operates in the information management sector in Australia. This is naturally an
important and well considered step for Freightways into the larger Australian market. This move
expands the geographical reach of Freightways and further diversifies the company’s earnings base
by increasing its presence in the information management market.
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Throughout the year Freightways’ shareholder base has remained strong with approximately 7,000
retail and institutional shareholders. A large 98% majority of these shareholders are registered in
New Zealand.
Slide 5.
Financial Highlights
Freightways has again delivered sound financial performance on all fronts in 2006 that has
culminated in an 11% increase in Earnings Per Share.
Slide 6.
Dividends
Again your Directors have been able to lift the annual dividend payout to shareholders compared
with the previous year. This is consistent with the approach taken each year since the IPO of
Freightways in 2003.
The 2006 year has been another record year for Freightways. The Board thanks the Freightways
team throughout New Zealand for their consistently delivered efforts. Your Board has again
enjoyed its year with Freightways Limited. I’ll now call on Dean Bracewell to address the meeting.
Slide 7.
B.
Freightways – Dean Bracewell, Managing Director
MANAGING DIRECTOR’S REVIEW AND TRADING UPDATE
Thank-you Wayne and thank-you ladies and gentlemen for coming along today.
Slide 8.
Managing Director’s presentation
My presentation will provide an update of the industries that we work in, along with a brief
description of our businesses. I will touch on Freightways’ over-arching strategy, before finishing
with an update on our recent trading performance and outlook for the foreseeable future.
Slide 9.
Express package - industry overview and business description
Slide 10.
Express package industry
The express package industry can be viewed in two quite distinct segments. Firstly there is the
network courier segment, which is where Freightways generates the majority of its activity. Within
this segment we operate a fleet of freighter aircraft, a fleet of linehaul trucks, we have branches in
every major town and city across New Zealand, we employ approximately 1,200 people and
partner with around 1,000 independent contractors. Our brands such as New Zealand Couriers, Post
Haste and Castle Parcels are well established in their respective niches of this market.
A smaller segment of the industry is the point-to-point courier segment that offers a direct
customer-to-customer or point-to-point service. We have made considerable gains in this segment
of the industry during the last year, as evidenced by the acquisition of Kiwi Express.
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We have also recently increased our presence in the same-day niche of the express package market.
A smaller segment again, this niche services customers whose product needs to connect with
international flights to service their export markets and also customers who must get their product
very quickly on a same-day basis to other major cities in New Zealand. This service has been
further enhanced as a result of successful negotiations with Qantas to market the freight capacity
that they have in their domestic airline network.
The express package industry is embedded in customers’ supply chains. We provide a service to all
industries and most, if not all, New Zealand businesses will have a relationship with a courier.
There are two major players in the express package industry - NZ Post and ourselves.
Growth of the express package industry is effectively underwritten by the increasing demand for
goods and services to be supplied faster today than they were in years gone by. It is this demand for
urgent Just-in-Time delivery that will continue to drive increasing volumes to our businesses.
Slide 11.
Multi-brand strategy
We operate a number of differentiated brands in the express package market. This multi-brand
strategy provides customers with the choice of various price and service options, without having to
leave the Freightways Group. It also provides each brand with the opportunity to focus directly on
enhancing its leadership position in its respective niche of the express package market.
The multi-brand strategy positions Freightways to capture growth across the entire market.
Importantly major costs such as linehaul, IT and occupancy are shared across these brands to
ensure we do not unnecessarily duplicate our costs.
Slide 12.
Information Management and Business Mail
Slide 13.
Information Management - NZ
Our information management brands provide a total information management service for
businesses, including the archiving and retrieval of documents, the destruction of confidential
documents and the archiving and retrieval of computer backup tapes. In New Zealand we operate
in AKL, WLG, PMR and CHC.
We continue to view information management as an emerging business within the Freightways
Group, one that we will continue to invest in and grow. After only 6 years of aggressively being in
this market we have established ourselves as the second largest operator in New Zealand.
Our recent acquisition of DataBank in Australia that I will elaborate on shortly replicates a part of
what we do in New Zealand in the larger Australian market.
The information management business in New Zealand complements our courier businesses
through the collection of Online’s back-up tapes and archive boxes by our express package brands.
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Slide 14.
Information Management - Australia
Post balance date we acquired DataBank, the no. 2 operator in Australia’s data storage niche of the
information management market.
This acquisition comes with a very experienced and capable management team which runs
DataBank with a similar operating culture to that of Freightways.
We have aligned the vendors’ interests with yours by agreeing a purchase price that will be paid
out over a two year period and is dependent on the delivery of forecast earnings.
Slide 15.
Information Management – Australia (continued)
DataBank has been Earnings Per Share positive for Freightways shareholders since acquisition.
It further diversifies Freightways’ earnings both geographically and also deeper into the
information management market that remains an under-developed market.
This acquisition is in many respects very positive for Freightways, none the least of which is that
we expect it to be a catalyst for further growth.
Slide 16.
Business mail
DX Mail is a specialist business mail service provider. It has grown successfully since the
deregulation of New Zealand’s postal services industry in 1998 to be the only nationwide
competitor to NZ Post.
While continuing to leverage its traditional box-to-box network, DX Mail has also invested in a
street delivery network and has posties completing letterbox deliveries of business mail in select
centres around New Zealand. The full potential of this business will be realised over a number of
years as we continue to roll out our network in a manner that ensures profitable growth.
DX Mail drives volumes to the express package brands through the pick-up and delivery of DX’s
mail bags by NZC.
Slide 17.
Business strategy
Slide 18.
Strategy
Freightways’ strategy is well developed and straightforward. Firstly it centres on enhancing
capability within our core business, to ensure we are able to retain our existing customers and grow
our market share. Secondly our strategy is to leverage this capability by extending Freightways’
presence into complementary areas of growth.
We have positioned your company with capacity to enable the development of growth
opportunities that exist in the three markets we currently work in.
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The positioning and relevance of our brands and how we take these brands to the market is
regularly reviewed - as evidenced by the change of brand image at Post Haste during the year. We
also innovate to add value wherever possible - as evidenced by the recent introduction of in-van
data capture at New Zealand Couriers. We also have specific strategies concerning the training,
retention, and progression of our people, how we can further improve our performance for our
customers and naturally we are very focused on sustaining our track record of profitable growth.
Acquisitions and alliances will continue to be explored where we believe they complement our
core capability and add value to your company – as evidenced by the acquisition of Kiwi Express
during the year and of DataBank subsequent to balance date. In addition, we will also explore startup opportunities if they make commercial sense.
These strategies are designed to continue to deliver good long-term value to shareholders.
Slide 19.
Trading update
Slide 20.
Operating revenue
Our 2006 result clearly sustains the long-term track record of Freightways. We have achieved 5year compound average annual revenue growth of 8%.
Slide 21.
EBITA
Our revenue growth has been translated into EBITA or operating earnings growth at an average
17% p.a. over the same period.
Slide 22.
Current financial performance
This slide shows our most current ‘unaudited’ financial performance drawn from our management
accounts for the quarter through until 30 September 2006. Our result as expected continues to
reflect the slower economic environment in New Zealand, however it remains positive on a
comparable basis to last year. Naturally the revenue and earnings from our recent acquisition has
assisted this result and demonstrates the continuing importance of Freightways’ strategy of
exploring complementary growth opportunities for its core businesses. July and August were
relatively quiet months for us in our New Zealand express package businesses, however our
performance in September has improved and is encouraging.
The top line growth that we have achieved has come from sustained support from existing
customers, higher than normal pricing gains geared to offset the still high cost of fuel, some market
share gains and new revenue from the DataBank acquisition. This revenue growth has been
essential to offset increased operating costs particularly labour, fuel related costs and occupancy.
Given the slower economic environment we are operating in we are pleased to be able to deliver a
trading update that demonstrates the resilience of Freightways strategy to these quieter times.
Slide 23.
Outlook - Pioneers
Many of you will have seen this photo before in Freightways presentations. In looking forward it
sometimes pays to keep an eye on your past and to learn from past lessons. One such lesson we
have learnt from our history is that quiet times come and go and they are no time to shut up shop.
In fact the opposite is often the case as quieter times can deliver opportunities, some of which we
have already been able to realise.
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Most importantly Freightways management had seen these quieter times approaching, had planned
for them and had gotten on the front foot with our strategies to ensure the long term health of your
company.
Slide 24.
Outlook
Encouragingly we have seen some recent improvement in trading activity. Although it is too early
to celebrate this improvement, your company is very well positioned to benefit from increased
activity in the marketplace, if it can be sustained. In addition, we do expect to see some moderation
in the level of cost increases throughout the rest of the year.
Our investment programme in the future health of the company will continue. We must continue to
invest to sustain and improve our competitive advantage wherever possible.
We have not seen any change nor are we aware of any change that may alter the competitive
environment that we operate in.
Freightways will continue to take consistent well-developed strategies to the market in areas where
we have proven capability. These strategies are naturally adapted to suit the times and are
designed for the long term good of your company.
We have ensured that all our subsidiaries are well positioned for the growth that will occur again as
market conditions inevitably improve.
Our recent Australian acquisition opens up a new and larger market that in time will contribute to
Freightways’ growth.
Freightways’ future will, in the short term, be influenced by the performance of New Zealand’s
domestic economy. Medium to longer term, and subject to business factors beyond its control,
Freightways is exceptionally well positioned in all aspects of its business to continue to deliver
positive performance to its shareholders and all other stakeholders.
Slide 25.
Summary
In summary your company is strong and successful. We are well positioned to deliver continuing
earnings growth and we intend to pay a good dividend along the way.
Thank-you ladies and gentlemen.
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