Full Year Presentation

9 August 2004

This presentation relates to the Freightways Limited NZX announcement and media release of 9 August 2004.

As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.

Presentation

2004 highlights

Operating performance

Strategy and outlook

2004 Highlights

General Highlights

• Successful transition to public listing

• All subsidiaries have performed very well

• Recent acquisition at expectation

• IPO forecast has been exceeded

• Growth underpinned by increasing demand for Freightways’ services

Financial Highlights

2004 2003 variance

$000 $000 %

Operating revenue 214,498 195,625 10%

EBITDA 45,618 38,071 * 20%

EBITA 40,714 32,104 * 27%

NPAT 16,137

NPATA 21,081

Earnings per share (NPAT) 13 cents*pro-forma

Performance vs. IPO Forecast

Actual IPO Forecast$000 $000

Operating revenue 214,498 207,297

EBITA 40,714 36,118

Cash generated from operations 48,183 39,074

Capital expenditure 4,475 4,988

NPAT 16,137 13,533

Total dividend 15,800 14,000

Cash dividend per share 12.75 cents 11.3 cents

Operating 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

Where Revenue Growth Has Come From

180

190

200

210

220

2003 O rganic Pricing Market share Acquisition 2004

Growth drivers

$M 196

6%1%

2% 0.5% 214

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

Drivers of 2004 EBITA growth

• Disciplined margin focus relating to new business

• Favourable business mix

• Productivity gains

• Good cost control

• Operating leverage gained by adding revenue to established national infrastructure

Cash Flows$M

Cash generated from operations 48

Capital expenditure at expectation (5)

Recent acquisition funded from surplus cash (7.5)

FEL's preference shares redeemed (post-IPO) (44)

Bank borrowings repaid on 31 December 2003 (4)

Balance Sheet$M

Strong working capital position (negative) (9)

Bank borrowings $2m lower than IPO forecast (131)($136m term debt facility consistent with expectation)

New equity raised as part of IPO 17

FEL's preference shares (minority interest) redeemed 60

Dividend

Interim Final Total

Total cash dividend ($) 7,250,000 8,550,000 15,800,000

Cents per share (fully imputed) 5.85 6.90 12.75

Record date: Friday, 17 September 2004

Payment date: Thursday, 30 September 2004

Strategy and Outlook

Strategy

• Continued development of growth opportunities in Freightways’ existing three core markets

• Positioning, People, Performance, Profit

• Explore incremental and complementary growth opportunities

• Invest in IT and infrastructure

Outlook

• Economy favourable from Freightways’ perspective

• No change expected to Freightways’ operating environment

• Consistent application of proven market strategies

• Business as usual

Summary

Strong successful business

Positioned to deliver continuing earnings growth

Delivering an attractive dividend yield