Fisher Funds Annual Roadshow

August 2004

Presentation

Introduction to Freightways

Industry, business description and strategy

Financial performance

Recent events and outlook

Introduction

• Listed on the NZX September 2003

• Established in 1964

• Express package, mail, information management

• Approx. 7,000 retail and institutional shareholders

• Revenue $214m, EBITA $41m, NPAT $16m

A Survivor

• Freightways’ businesses have survived:

- Regulated / deregulated road transport industry

- Substitute services: fax machine and email

- Many competitors

- Three owners in the last two years

Express Package Industry Overview and Business Description

Express Package Industry

• Two segments to Express Package industry– Network couriers 90% of industry revenue– Point-to-point couriers 10%

• Services embedded in supply chains of businesses

• Consolidated industry structure

• Growth underpinned by demand for Just in Time supply

Business Description - Strengths

• Network of independent contractors

• Dedicated express package linehaul network

• Operational excellence and profit culture

• Experienced people

• Established multi-brand strategy

Multi-Brand Strategy

Price

Service

Three major brands:

– Differentiated by price and service

– Captures growth across entire market

– Provides defence against competitive threats

Freightways’ Network Courier Brands

Information Management and Business MailIndustry Overview and

Business Description

• Well positioned in each niche

• Offers a total information management solution

• Integrated with express package operations

• Records management growth opportunity

Information Management

Business Mail

• Niche player in deregulated postal services industry

• Postal deregulation enabled expansion of DX Mail

• Growth opportunities in business mail segment

• Drives volume to New Zealand Couriers

Business Strategy

• Revenue growth from existing and complementary markets:– Increase volumes from existing customers– Gain new customers– Achieve some price improvements

• Converted into strong earnings growth:– Ability to grow volume at low incremental cost– Volume growth drives efficiencies/productivity gains – Maintenance of margin integrity– Continued focus on cost control

• Explore incremental acquisition opportunities

Business Strategy

Financial Performance

• 10% revenue growth in 2004

• 5 year compound average revenue growth of 7%

Operating Revenue

-

50

100

150

200

250

Jun99 Jun00 Jun01 Jun02 Jun03 Jun04

Year Ended

$M

EBITA

• 27% EBITA growth in 2004

• 5 year compound average EBITA growth of 18%

-

5

10

15

20

25

30

35

40

45

Jun99 Jun00 Jun01 Jun02 Jun03 Jun04

Year Ended

$M

Recent Events and Outlook

Recent Events

• Transition to a listed NZ company Sept. 2003

• Acquisition of Archive Security

• Actual 2004 financial performance exceeded IPO forecasts on all fronts

Outlook

• Economy favourable from Freightways’ perspective

• No change expected in Freightways’ operating environment

• Sustained focus on core business / core strategies

• Business as usual

Summary

Strong successful business

Positioned to deliver continuing earnings growth

Delivering an attractive dividend yield