1. Full Year Presentation 31 July 2006

2. This presentation relates to the Freightways Limited NZX announcement and media release of 31 July 2006. As such it should be read in conjunction with, and is subject to, the explanations and views contained in those releases.

3. Presentation  2006 highlights  Operating performance  Business strategy  Outlook

5. 2006 Highlights

6. General Highlights All subsidiaries have performed soundly in a challenging operating environment Strategies have realised profitable growth in both ‘Core’ Express Package and ‘Emerging’ Business Mail and Information Management markets Kiwi Express acquisition has performed fully to expectation

7. Financial Highlights

8. Operating Performance

9. 10 % revenue growth compared to 2005 5-year compound average annual revenue growth of 8% Operating Revenue 2 nd Half 1st Half

10. Where Revenue Growth Has Come From

11. EBITA 6% EBITA growth compared to 2005 5-year compound average annual EBITA growth of 17% 2 nd Half 1st Half

12. Drivers of EBITA Growth Business mix Margin integrity Cost control Incremental investment

13. Balance Sheet N egative working capital position continues Increase in fixed assets of $2.5m (net of depreciation) Increase in bank borrowings of $1m Goodwill amortised over 20 years

14. Cash Flows Cash generated from operations of $53m Capital expenditure at expectation of $7.5m Payments for acquisitions of $4m Borrowings increased by $1m during the year

15. Dividends Key points: Increase of 8% compared to 2005 Fully Imputed Record date 15 September 2006 Payable 30 September 2006

16. Finance Facilities Debt drawn to $128m at 30 June 2006 Interest savings of approximately $500k realised Subsequent to balance date, debt increased by $15m to initiate the acquisition of DataBank Additional finance facilities obtained to facilitate purchase of DataBank

17. Business Strategy

18. Business strategy Continued development of growth opportunities in Freightways’ existing three markets Positioning, People, Performance, Profit Explore complementary growth opportunities Invest in IT and infrastructure

19. Business strategy - Australia Features of the DataBank acquisition - No.2 operator in data storage niche of Information Management market - Information Management market is under-developed - Experienced and capable management team - Similar service-oriented operating culture to FRE - Earn-out purchase structure aligns vendors’ interests with those of FRE shareholders

20. Business strategy - Australia (continued) Features of the DataBank acquisition (continued) - Immediately EPS positive - Diversifies FRE earnings geographically and deeper into the Information Management market - Catalyst for further growth

21. Outlook

22. Capital expenditure 2007 2006 Forecast Actual Capital expenditure$8.9m$7.5m Depreciation$6.7m$5.0m 2006/07 includes stepped investment in core IT infrastructure and impact of DataBank acquisition

23. Outlook Near-term performance will be influenced by NZ economic conditions Investment in people, infrastructure and customer service initiatives (competitive advantage) will continue Characteristics of competitive environment expected to remain unchanged Consistent application of proven market strategies All subsidiaries well positioned to accommodate growth Recent Australian acquisition will assist FRE platform for growth and is immediately EPS positive

24. Summary Strong successful business Positioned to deliver continuing earnings growth Delivering an attractive dividend yield