1. six months ended 31 December 2004
Report for the
six months ended 31 December 2004

2. This presentation relates to the Freightways Limited NZX announcement and media release of 7 February 2005.
As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.

4. Financial Highlights

5. Operating Revenue 10% revenue growth to Dec 2004
2nd Half
1st Half
10% revenue growth to Dec 2004
5 year compound average annual revenue growth of 7%

6. Where Revenue Growth Has Come From

7. EBITA 28% EBITA growth to Dec 2004
2nd Half
1st Half
28% EBITA growth to Dec 2004
5 year compound average annual EBITA growth of 18%

8. Drivers of EBITA Growth
Leverage gained by adding revenue to established national infrastructure
Disciplined margin focus relating to new business
Favourable business mix
Good cost control

9. Cash Flows Operational cash flows of $28m reflect strong EBITA result
Capital expenditure below budgeted expectation at this stage of the year
Borrowings reduced by $3m during the half year ending 31 December 2004

10. Balance Sheet Continuation of strong negative working capital position
Increase in fixed assets of $1m (net of depreciation)
Reduction in bank borrowings of $3m
Goodwill amortised over 20 years (charge of $5m p.a.)

11. Interim Dividend

12. Finance Facilities
Refinancing completed December 2004 to replace subordinated debt with core bank debt
Additional headroom negotiated of $22m
Interest savings of approximately $500k p.a. will flow from 1 July 2005
New finance facility leverages existing documentation and covenants

13. Business Strategy

14. Strategy
Continued development of growth opportunities in Freightways’ existing three core markets
Positioning, People, Performance, Profit
Explore complementary growth opportunities
Invest in IT and infrastructure

15. The Next Six Months

16. The Next Six Months Economy favourable from Freightways’ perspective
Characteristics of competitive environment expected to remain unchanged despite competitors ownership change
Consistent application of proven market strategies
Expect to deliver a strong full year result
Business as usual

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