Slides
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Freightways Annual Shareholders Meeting 2026 NZX | ASX: FRW
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David Gibson Chairman’s Address 2 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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1. Procedural matters 2. Chairman’s address 3. CEO’s strategy & trading update 4. Questions 5. Resolutions Agenda 3 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Q&A Participation & Voting Shareholder & Proxy Holders Help: The Q&A tab can also be used for immediate help. If you need assistance, please submit your query in the same manner as typing a question and a Computershare representative will respond directly to you. Online Questions: If you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen at anytime. Type your question into the field and press submit. Your question will be immediately submitted to the moderator. Voting: Once the voting has been opened, the resolutions and voting options will allow voting. To vote, simply click on the Vote tab, and select your voting direction from the options shown on the screen. Your vote has been cast when the tick appears. To change your vote, select Change Your Vote. 4 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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FY26 Performance 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 5 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Note: • *Non-GAAP (Generally Accepted Accounting Principles) • cps – cents per share Financial Highlights Dividend (FY) 12.5% to 45c ( 40c in FY25) Revenue 13.5% to $1,463.6m * EBITA growth 14.6% to $181.6m NPAT growth 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 6 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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NZ 62% AU 38% EBITA FY26 NZ 66% AU 34% EBITA FY25 NZ 61% AU 39% Revenue FY26 NZ 64% AU 36% Revenue FY25 Australia Growing as a Contributor to Group Results 7 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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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% FY20 FY21 FY22 FY23 FY24 FY25 FY26 Gearing (Net Debt / Equity) Excluding lease liabilities Including lease liabilities - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Times Net Debt to EBITDA Net debt to EBITDA (post IFRS16) Net debt to EBITDA (pre IFRS16) 8 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Leverage Reflects Acquisition Of VTFE From Feb 26
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Notes: • cps = Cents Per Share - Final dividend of 24cps, fully imputed in NZ, 49% franked in Australia 0 10 20 30 40 50 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Dividends: (cps) FY26 Dividend 12.5% Dividend FY26 9 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 post IFRS16 FY26 Final Dividend 24 cps (FY 45cps) FY25 Final Dividend 21cps (FY 40cps)
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Freightways has continued to deliver through the cycle despite an extended challenging economic period We have continued to invest in the business to position it for future growth; – With network investment in Christchurch and Palmerston North – The acquisition of VTFE Our strategy to provide the highest levels of service in our respective niches to enable our business to win share and recover costs is key to our success Thank you to our teams across NZ and Australia 10 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Conclusion
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Mark Troughear Strategy & Trading Update 11 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Our Blueprint 12 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Implementing and delivering our Transition Plan objectives, including our commitment to transition light commercial vehicles to low emission vehicles. Drive profitable market share gains in both B2B and B2C Expansion of two key regional hubs (CHC and PMR) and assess AKL options Scale Oversize revenue in NZ and AU Target opportunities that provide density to expand the transport network Assess 3PL expansion opportunities Improve utilisation of the network of records management sites in particular in AU Target high value digitisation activity Explore a number of H3 opportunities Optimisation of the network to improve margins Continue to drive medical waste growth Source circular loop solutions for hard to recycle waste Three Horizons of Growth Key Strategic Initiatives Express Package Temperature Controlled Information Management Waste Renewal Our Transition Plan Focus Areas 13 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Q1 FY27 Trading Update 14 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Q1 FY27 • Fuel prices fluctuated but generally remained elevated through Q1 • High fuel prices have the dual impact of; – elevating revenue and costs (through fuel adjustment factors that recover fuel costs) – dampening consumer demand – particularly for discretionary retail and hospitality spending • Additionally the AU economy has taken a turn with higher interest rates and lower economic growth • Despite these macro headwinds the business has recorded a resilient Q1 trading result 15 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Consolidated Performance - Unaudited Notes Q1 FY27 $m Q1 FY26 $m Change % Operating Revenue 408.3 347.1 17.6 EBITDA (non-GAAP) 1 74.8 67.2 11.3 EBITA (non-GAAP) 2 50.0 44.3 12.9 NPAT 3 26.2 23.4 12.0 Notes: • Results in this table are unaudited and after adjustments for NZ IFRS16 (Leases). • Refer to appendices for reconciliation to results before NZ IFRS16. 1. Operating profit before interest, tax, depreciation and amortisation 2. Operating profit before interest, tax and amortisation 3. Net profit after tax Revenue growth driven by higher fuel recovery in EP&BM and the addition of VTFE Continued to win market share and in most cases have been able to recover cost increases through pricing Strong performance from the IM division with consistent performance across all lines of business Premium services remain subject to lower demand, particularly overnight airfreight and temperature controlled delivery This led to margin contraction for NZC and BCD, which, together with the impact of higher fuel on revenue, drove margins down over the quarter Q1 16 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Notes: • Results in this table are unaudited and before adjustments for NZ IFRS16 (Leases). • Refer to appendices for reconciliation to results after NZ IFRS16. 1. Operating profit before interest, tax, depreciation and amortisation 2. Operating profit before interest, tax and amortisation Strong revenue growth of 20% with key contributors being; VTFE 9% Fuel 5% Post Haste and DX Mail brands performed strongly – reflecting leading positions in their respective niches and higher demand for their services Effective pricing to recover cost of operating Premium services remain impacted in NZ, and margin neutral fuel levies lead to EP margin contraction Despite the environment 10% growth in EBITA is a positive result Express Package & Business Mail - Unaudited Notes Q1 FY27 $m Q1 FY26 $m Change % Operating Revenue 346.0 288.0 20.1 EBITDA (non-GAAP) 1 47.1 43.0 9.5 EBITA (non-GAAP) 2 42.1 38.3 9.9 EBITA Margin 12.2% 13.3% Q1 17 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Q1 FY27 NZ Express Package Network Volume Item growth of 2.9% for Q1 – +2.6% from net market share gains (wins – losses) – Same customer volumes were marginally positive at +0.3% Key Sector Trends (item change YoY) – eCommerce sector: +24% – Retail sector: (-1%) – Manufacturing sector: +1.2% – Health sector: -3% eCommerce wins have continued to bolster our market share gains New Zealand 18 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Q1 FY27 Network Items v pcp 2.9% Q1 FY27 Revenue growth 8.3% -3.0% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% -3 -1 1 3 5 7 9 11 13 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 % Express Package Item Growth YoY Net Market Share Gains Same Customer Revenue % Growth
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Q1 FY27 Allied Express Package Volume Q1 FY27 Network Items v pcp Flat Revenue for Q1 up 8% due to pricing, fuel recovery and a larger item profile This revenue growth was achieved off flat Q1 volumes (a 6% organic decline offset by a 6% gain from new business) This new business momentum continued in Q1 with a further A$11.2m of annualised new customers secured during the quarter A number of eCommerce customers down traded 8% due to less online sales A large customer has just re contracted their work through Allied with additional volumes expected as a result Australia 19 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 -10 -5 0 5 10 15 20 25 30 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 % Allied Express Item and Revenue Growth YoY Net Market Share Gains Same Customer Revenue Growth % Q1 FY27 Revenue growth1 8% Note: 1 Represents revenue growth in AUD
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Notes: • Results in this table are unaudited and before adjustments for NZ IFRS16 (Leases). • Refer to appendices for reconciliation to results after NZ IFRS16. 1. Operating profit before interest, tax, depreciation and amortisation 2. Operating profit before interest, tax and amortisation Information Management - Unaudited Notes Q1 FY27 $m Q1 FY26 $m Change % Operating Revenue 63.9 60.5 5.6 EBITDA (non-GAAP) 1 11.7 10.3 13.6 EBITA (non-GAAP) 2 9.4 8.0 17.5 EBITA Margin 3 14.7% 13.2% 20 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Q1 Revenue growth of 6% driven by: – Strong IT Equipment and Product Destruction revenues at Shred-X (up 40% and 28% respectively on pcp) – Well executed pricing strategy to improve margins Consistent performance across most lines of business Impact of Shred-X reset apparent in Q1 profitability Margin improvement of150bps across IM
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Our businesses have proven to be resilient over the past 3 years of soft NZ economic activity. In NZ same-customer activity was recovering and positive before the war in the Middle East, some customer segments have struggled since fuel prices have risen In both markets, we expect that same-customer volumes will remain subdued but we expect them to improve progressively if there is a sustained fall in fuel prices in the future. This could be more pronounced in NZ than Australia The pace of Australian recovery may be dependent on broader economic conditions Additional capacity in Christchurch and Palmerston North and the investment in Evolve (our new billing and rating systems) will support long term growth in the NZ Express Package division We will continue to grow our EP presence in both B2B and B2C in Australia Margin improvement remains a focus, across all businesses and particularly with the IM division in AU We will continue to have a proactive focus on targeted M&A that is complementary to growing our Australian express network 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 21 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Outlook
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Questions If you wish to ask a question, please simply raise your hand. For those joining online, select the “Q&A” tab on the right half of your screen at any Type your question into the field and press “Send” . Your question will be immediately submitted. 22 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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1. That Peter Kean be re-elected as a director of Freightways. 2. That the Directors are authorised to fix the Auditors’ remuneration. Resolutions 23 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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24 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Resolution 1 That Peter Kean be re-elected as a Director of Freightways
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25 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Resolution 2. That the Directors are authorised to fix the Auditors’ remuneration
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26 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Questions?
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27 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Ngā mihi nui (thank you)
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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. Disclaimer 28 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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29 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026 Appendices
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Group Financial Summary – For the Financial Year Ended 30 June 2026 Notes: • Results in this table after adjustments for NZ IFRS16 (Leases) 1. Operating profit before interest, tax and amortisation 2. Net profit after tax Notes FY26 $m FY25 $m Change % Operating Revenue 1,463.6 1,289.6 13.5 EBITA (non-GAAP) 1 181.6 158.4 14.6 EBITA margin 12.4% 12.3% NPAT 2 94.0 80.1 17.3 NPAT margin 6.4% 6.2% Basic Earnings Per Share (cents) 52.4 44.7 17.2 30 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Express Package & Business Mail – For the Financial Year Ended 30 June 2026 Notes: • Results in this table are after NZ IFRS16 (Leases). FY26 $m FY25 $m Change % Operating Revenue 1,235.2 1,061.0 16.4 EBITA (non-GAAP) 168.1 143.3 17.3 EBITA margin 13.6% 13.5% NPAT 102.1 86.7 17.8 31 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Information Management – For the Financial Year Ended 30 June 2026 Notes: • Results in this table are after NZ IFRS16 (Leases). FY26 $m FY25 $m Change % Operating Revenue 234.0 233.6 0.2 EBITA (non-GAAP) 31.6 31.3 1.0 EBITA margin 13.5% 13.4% NPAT 16.9 17.3 (2.3) 32 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Reconciliation of Post-NZ IFRS16 to Pre-NZ IFRS16 (Unaudited) Freightways Group Notes: • EBITDA, EBITA and NPATA are non-GAAP measures Freightways Group Q1 FY27 $m Q1 FY27 $m Q1 FY27 $m Q1 FY26 $m Q1 FY26 $m Q1 FY26 $m POST NZ IFRS16 NZ IFRS16 ADJUSTMENT PRE NZ IFRS16 (NON-GAAP) POST NZ IFRS16 NZ IFRS16 ADJUSTMENT PRE NZ IFRS16 (NON-GAAP) Operating Revenue 408.3 - 408.3 347.1 - 347.1 EBITDA (non-GAAP) 74.8 (21.2) 53.6 67.2 (19.1) 48.1 EBITA (non-GAAP) 50.0 (4.0) 46.0 44.3 (3.5) 40.8 NPATA (non-GAAP) 30.3 0.2 30.5 26.4 0.6 27.0 NPAT (GAAP) 26.2 0.2 26.4 23.4 0.6 24.0 33 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Notes: • EBITDA and EBITA are non-GAAP measures Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited) Express Package & Business Mail Express Package & Business Mail Q1 FY27 $m Q1 FY26 $m Change % Operating Revenue 346.0 288.0 20.1 EBITDA (before NZ IFRS16) 47.1 43.0 9.5 Add: NZ IFRS16 adjustment 14.8 13.3 11.3 EBITDA (after NZ IFRS16) 61.9 56.3 9.9 EBITA (before NZ IFRS16) 42.1 38.3 9.9 Add: NZ IFRS16 adjustment 2.7 2.4 12.5 EBITA (after NZ IFRS16) 44.8 40.7 10.1 34 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026
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Notes: • EBITDA and EBITA are non-GAAP measures Reconciliation of Pre-NZ IFRS16 to Post-NZ IFRS16 (Unaudited) Information Management Information Management Q1 FY27 $m Q1 FY26 $m Change % Operating Revenue 63.9 60.5 5.6 EBITDA (before NZ IFRS16) 11.7 10.3 13.6 Add: NZ IFRS16 adjustment 6.3 5.8 8.6 EBITDA (after NZ IFRS16) 18.0 16.1 11.8 EBITA (before NZ IFRS16) 9.4 8.0 17.5 Add: NZ IFRS16 adjustment 1.3 1.1 18.2 EBITA (after NZ IFRS16) 10.7 9.1 17.6 35 FREIGHTWAYS ANNUAL SHAREHOLDERS MEETING | 2026