FRE – Half Year Report for the 6 months ended 31 Dec 2017

DECEMBER 2017
HALF YEAR REPORT

DX Mail
www.dxmail.co.nz
Dataprint
www.dataprint.co.nz
Security Express
www.securityexpress.co.nz
Pass The Parcel
www.passtheparcel.co.nz
Stuck
www.stuck.co.nz
Post Haste Couriers
www.posthaste.co.nz
New Zealand Couriers
www.nzcouriers.co.nz
Air Freight NZFreightways Information ServicesFieldair Engineering
www.fieldair.co.nz
Parceline Express
Databank
www.timg.com
Shred-X
www.shred-x.com.au
Filesaver
www.filesaver.com.au
LitSupport
www.litsupport.com.au
SUB60
www.sub60.co.nz
Kiwi Express Couriers
www.kiwiexpress.co.nz
Security Express
www.securityexpress.co.nz
Data Security Services
www.timg.co.nz
The Information Management Group
www.timg.co.nz
Document Destruction Service
www.timg.co.nz
Archive Security
www.timg.co.nz
Castle Parcels
www.castleparcels.co.nz
Now Couriers
www.nowcouriers.co.nz

www.statewaste.com.au

Freightways Limited
and its subsidiaries
1
Freightways Limited
and its subsidiaries
1
HALF YEAR REVIEW FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Freightways Limited (Freightways) is pleased to present its consolidated financial result for the half year ended
31 December 2017. This report discusses the result, reviews the operations of each division and provides an
outlook for the financial year ending 30 June 2018.
Highlights of the result include:
•
the volume and revenue growth achieved in the express package & business mail division and related
earnings margins, that have more than offset the cost impact of significant recent investment in capacity;
• the overall revenue and earnings growth of the information management division compared to the prior
comparative period (pcp) following the completion of a significant premises relocation project in New South
Wales; and
•
Freightways’ further diversification through its entry into the Medical Waste industry.
Operating performance
The below table presents the latest half year result compared to the pcp, both before and after the inclusion
of non-recurring items that were reported in the pcp:
Dec-17 Dec-16 Increase
Note $M $M %
Revenue 292.1 272.8 7.1%
EBITA, before non-recurring items
(i) 49.2 46.1 6.9%
Non-recurring items - 4.0
EBITA (ii) 49.2 50.1 (1.7%)
NPAT, before non-recurring items (iii) 31.4 29.5 6.5%
Non-recurring items after tax - 4.5
NPAT (iv) 31.4 34.0 (7.6%)
Basic EPS (cents), before non-recurring items 20.3 19.0
Notes:
(i)
Operating profit before interest, tax and amortisation, before non-recurring items.
(ii) Operating profit before interest, tax and amortisation.
(iii) Net profit after tax (NPAT), before non-recurring items.
(iv) Profit for the half year attributable to shareholders.
The results discussed throughout this commentary exclude the impact in the pcp of a non-recurring benefit
before tax of $5.6 million (no tax applicable) relating to previously accrued final acquisition payables that were
no longer expected to be required and a non-recurring cost before tax of $1.6 million ($1.1 million after tax)
relating to the relocation of the TIMG business in Sydney.

2
Freightways Limited
and its subsidiaries
HALF YEAR REVIEW FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Dividend
The Directors have declared an interim dividend of 14.5 cents per share, fully imputed at a tax rate of 28%,
being a 12% increase above the pcp interim dividend of 13 cents per share. This represents a payout of
approximately $22.5 million compared with $20.1 million for the pcp. The dividend will be paid on 3 April
2018. The record date for determination of entitlements to the dividend is 16 March 2018. The Dividend
Reinvestment Plan (DRP) will not be offered in relation to this dividend. As a capital management tool, the
application of the DRP will be reviewed for each future dividend.
REVIEW OF OPERATIONS
Divisional results for the half year ended 31 December 2017 are provided below for the express package &
business mail division and the information management division.
Express Package & Business Mail
Operating revenue of $216.7 million was 7% higher than the pcp. EBITA of $36.4 million was 4.6% higher
than the pcp.
The express package & business mail division operates a multi-brand strategy in the domestic market through
New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express,
Stuck, Pass The Parcel, DX Mail and Dataprint.
Recent investment in aircraft, premises and IT has been essential to accommodate and appropriately service
the volume growth from existing and new customers throughout this half year. While this investment results
in higher operating costs it means that quality capacity exists to support the division’s current and expected
future growth. Overall earnings margins remain sound, particularly when allowing for the additional cost of
this capacity and expenses incurred in relation to the relocation of our Christchurch businesses during the half
year. Key matters:
• The recently introduced Boeing 737-400 aircraft are performing well. The introduction of a fourth aircraft
will continue to be considered. In the meantime, the current operating model using 3 Boeings and the
charter of a Convair, as required, is providing sufficient airfreight capacity.
• The relocation of the Christchurch express package businesses from four independent sites to one purpose-
built airside facility at Christchurch Airport was completed during the half year.
• Good progress was made by Freightways’ IT team in addressing the many initiatives planned in support of
Freightways’ strategic intent to be a technology leader in the markets it operates in.
• New Zealand Couriers relocated to significantly larger premises on Auckland’s North Shore during October
2017, with Post Haste and Castle Parcels to follow in July 2018. This site will enable the operation of
a twin-Auckland city operation to accommodate the current and expected growth in volume from the
North Harbour and West Auckland areas for many years to come. These new premises complement, and
effectively extend the life of, the existing Penrose site, south of the city.
•
Overall volume mix within the customer base continues to evolve as consumers increasingly shop online,
resulting in Business to Consumer (B2C) deliveries growing faster than Business to Business (B2B)
deliveries. A number of wide-ranging initiatives are being developed to ensure these B2C deliveries are
completed as efficiently as possible and to the satisfaction of customers. Ensuring integrity in pricing is
also important to properly enable the support required to service this volume.
• Freightways’ business mail operators, DX Mail and Dataprint, while small, continue to perform profitably.
Both revenue and earnings have remained on par with the pcp. The organic decline in physical mail volumes
has been offset by market share gains and an increase in the contribution from Dataprint’s digital mail
offering.

Freightways Limited
and its subsidiaries
3
Freightways Limited
and its subsidiaries
3
Information Management
Operating revenue of $76.3 million was 7.3% higher than the pcp. EBITA of $14.6 million was 9.2% higher
than the pcp.
This division operates under the brands of The Information Management Group (TIMG), Shred-X and, following
the recent acquisition in the medical waste industry, Med-X.
Positive results were achieved in all businesses within this division, while investment occurred in resources to
support the growing suite of digital information management services. Key matters:
• Within TIMG Australia, the performance of the LitSupport business improved, albeit the project nature of
this business means that revenue does fluctuate from month to month. This requires careful management
attention to appropriately align resources with activity.
• The new consolidated Sydney site is providing important quality capacity to accommodate current and
expected volume growth.
•
Demand for the broad suite of digital services offered by TIMG in New Zealand and Australia, and the
e-destruction services offered by Shred-X, continues to gain momentum. Accordingly, further investment
has been made in resources to support these growing revenue streams.
• A project is underway to replace all racking in TIMG’s Porirua document storage facility that was damaged
in the North Canterbury earthquake. Freightways carries comprehensive insurance for events such as this.
The $1.4 million write-off of the written down book value of the structurally-compromised racking in the
division’s half year result has been offset by the recognition of insurance proceeds received during the half
year. Importantly, this project is being managed in a way that ensures no service disruption to customers.
Internal service providers
Fieldair Holdings, through its subsidiary of Air Freight NZ, operates a joint venture company that leases and
operates the Boeing 737-400 aircraft fleet that provides Freightways’ overnight airfreight linehaul service.
Fieldair also provides specialist engineering and contracting services to the general aviation market. Parceline
Express provides Freightways’ road linehaul service. The service provided by both these businesses throughout
the half year, but particularly during the peak December volume month, was outstanding. Freightways
Information Services provides IT development and support to both operating divisions. Good progress is being
made by this team in support of our front line businesses’ technology-related strategic objectives.
Corporate
Corporate costs decreased compared to the pcp, primarily due to higher one-off costs in the pcp which included
expensing insurance deductibles in respect of the November 2016 earthquake.
Net debt increased by approximately $7 million to $165 million during the half year, driven mostly by the
acquisition of a small medical waste business in Australia for an initial payment of $5 million. Investment in
operating capacity has been funded from operating cash flows.
HALF YEAR REVIEW FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER

4
Freightways Limited
and its subsidiaries
HALF YEAR REVIEW FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER
OUTLOOK
The markets in which Freightways operates in both New Zealand and Australia remain positive. In particular,
the growth in express package volume and activity levels throughout this half year supports Freightways in
targeting the delivery of year-on-year earnings growth again for the 2018 financial year.
Within the express package & business mail division, investment will continue to be made in IT development
and new initiatives to service projected B2B and B2C volume growth. As a significant employer of around
2,300 team members and while working alongside 1,200 business partners in New Zealand, Freightways will
continue to carefully monitor any further proposed changes to workplace legislation. The recently announced
minimum wage increases are not expected to have a material impact on Freightways’ overall cost base,
given that its employees are all paid above the minimum wage. Freightways will continue to consider pricing
annually to mitigate necessary cost increases, including the projected impact of ensuring its workforce remains
above the minimum wage as it progressively steps-up. Within the information management division, increased
utilisation of existing capacity will support improving margins, while also enabling continued investment in
digital information management services.
Overall capital expenditure for the 2018 financial year is expected to be approximately $16 million. Operating
cash flows are expected to remain strong throughout the balance of the 2018 financial year.
Strategic growth opportunities, including acquisitions and alliances that complement existing capabilities, will
be executed where they make commercial sense.
CONCLUSION
The strength of Freightways’ business models, the expertise of its people and the positive features of the
markets it operates in are once again evident in this half year result. This result has benefited from recent
capacity investment decisions, which have been important in providing capacity for current volumes and also
to ensure sufficient quality capacity is available to enable servicing of future expected growth.
The Board and Chief Executive Officer acknowledge the outstanding work and ongoing dedication of the
Freightways team of people throughout New Zealand and Australia.
Susan Sheldon
Mark Troughear
Chairman Chief Executive Officer
19 February 2018

Freightways Limited
and its subsidiaries
5
Freightways Limited
and its subsidiaries
5
FINANCIAL SUMMARY (UNAUDITED)

600
500
400
300
200
100

-
$M
Year
Ended 30 June
FREIGHTWAYS OPERATING REVENUE
FREIGHTWAYS EBITA*
1st half 2nd half

100
90
80
70
60
50
40
30
20
10

-
$M
* This EBITA graph represents the operating results of the company, exclusive of any non-recurring items.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Year Ended 30 June
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

6
Freightways Limited
and its subsidiaries
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.com/nz
INDEPENDENT REVIEW REPORT
To the shareholders of Freightways Limited
Report on the Interim Consolidated Financial Statements
We have reviewed the accompanying interim consolidated financial statements of Freightways Limited (the
Company) including its subsidiaries (the Group), on pages 7 to 19, which comprise the consolidated balance
sheet as at 31 December 2017, and the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the half year ended on that date, and the notes to the consolidated financial statements which
include accounting policies and other explanatory information.
Directors’ Responsibility for the Interim Consolidated Financial Statements
The Directors are responsible on behalf of the Company for the preparation and presentation of these interim
consolidated financial statements in accordance with International Accounting Standard 34 Interim Financial
Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34 Interim Financial
Reporting (NZ IAS 34) and for such internal controls as the Directors determine are necessary to enable the
preparation of interim consolidated financial statements that are free from material misstatement, whether
due to fraud or error.
Our Responsibility
Our responsibility is to express a conclusion on the accompanying interim consolidated financial statements
based on our review. We conducted our review in accordance with the New Zealand Standard on Review
Engagements 2410 Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ
SRE 2410). NZ SRE 2410 requires us to conclude whether anything has come to our attention that causes us to
believe that the interim consolidated financial statements, taken as a whole, are not prepared in all material
respects, in accordance with IAS 34 and NZ IAS 34. As the auditors of the Group, NZ SRE 2410 requires that
we comply with the ethical requirements relevant to the audit of the annual financial statements.
A review of interim consolidated financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. The
procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand) and International Standards on Auditing.
Accordingly, we do not express an audit opinion on these interim consolidated financial statements.
We are independent of the Group. Our firm carries out other services for the Group in the areas of Data Integrity
audit, the specified procedures over the poll for the shareholder resolutions at the Annual General Meeting and
other related assurance services. The provision of these other services has not impaired our independence.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these interim
consolidated financial statements of the Group are not prepared, in all material respects, in accordance with
IAS 34 and NZ IAS 34.
Who We Report To
This report is made solely to the Company’s shareholders, as a body. Our review work has been undertaken so
that we might state to the Company’s shareholders those matters, which we are required to state to them in
our review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the shareholders, as a body, for our review procedures, for this report, or
for the conclusion we have formed.
For and on behalf of:
Leopino (Leo) Foliaki
Chartered Accountants, Auckland
19 February 2018

Freightways Limited
and its subsidiaries
7
6 mths ended6 mths endedVariance
Note31 Dec 201731 Dec 2016%
$000$000
Operating revenue
4292,133272,7827%
Other income52,913--
Transport and logistics expenses(115,158)(107,862)7%
Employee benefits expenses
(79,233)(75,157)5%
Occupancy expenses(13,124)(12,082)9%
General and administrative expenses(28,490)(25,920)10%
Other expenses5(2,913)--
Non-recurring items3-4,031 -
Operating profit before interest, income tax, depreciation
and software amortisation and amortisation of intangibles
56,12855,7921%
Depreciation and software amortisation
(6,895)(5,690)21%
Operating profit before interest, income tax and
amortisation of intangibles
49,23350,102(2%)
Amortisation of intangibles(979)(806)21%
Operating profit before interest and income tax
448,25449,296(2%)
Net interest and finance costs(5,127)(4,711)9%
Profit before income tax
43,12744,585(3%)
Income tax(11,718)(10,598)11%
Profit for the period attributable to shareholders
31,40933,987(8%)

Earnings per share for the period:
Basic earnings per share (cents)20.321.9*
Diluted earnings per share (cents)20.221.9*
* Basic and diluted earnings per share for 2016 calculated on the profit for the period attributable to shareholders,
excluding non-recurring items, net of tax, were both 19.0 cents (There are no non-recurring items for 2017).
NB: All revenue and earnings are from continuing operations.
The above Income Statement should be read in conjunction with the accompanying notes.
CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)

8
Freightways Limited
and its subsidiaries
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
6 mths ended 6 mths ended
31 Dec 2017 31 Dec 2016
Note $000 $000
Equity at the beginning of the period 236,568 214,856
Profit for the period 31,409 33,987
Exchange differences on translation of foreign operations 2,274 (1,008)
Cash flow hedges taken directly to equity, net of tax 1,006 3,320
Total comprehensive income for the period 34,689 36,299
Dividends paid (22,880) (22,466)
Issue of ordinary shares, net of costs
680
452
Equity at the end of the period 6 249,057 229,141
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
6 mths ended 6 mths ended
31 Dec 2017 31 Dec 2016
$000 $000
Profit for the period 31,409 33,987

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
2,274 (1,008)
Cash flow hedges taken directly to equity, net of tax 1,006 3,320
Total other comprehensive income after income tax
3,280 2,312
Total comprehensive income for the period attributable
to the shareholders
34,689 36,299
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Freightways Limited
and its subsidiaries
9
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2017 (UNAUDITED)
As at As at As at
31 Dec 2017 31 Dec 2016 30 Jun 2017
Note $000 $000 $000
(Restated)
ASSETS
Current assets
Cash and cash equivalents 10,450 10,690 8,423
Trade and other receivables 89,234 77,483 77,184
Inventories 4,848 6,190 5,190
Income tax receivable 657 222 705
105,189 94,585 91,502
Assets held for sale - 750 -
Total current assets 105,189 95,335 91,502
Non-current assets
Trade receivables and other non-current assets 2,158 1,950 2,914
Property, plant and equipment 103,002 91,946 101,934
Intangible assets 357,817 342,504 343,543
Total non-current assets 462,977 436,400 448,391
Total assets 568,166 531,735 539,893
LIABILITIES
Current liabilities

Trade and other payables 71,878 64,460 65,722
Finance lease liabilities 118 70 147
Income tax payable 1,791 1,690 3,350
Provisions 795 1,101 1,008
Derivative financial instruments 1,343 871 2,054
Unearned income 15,633 16,044 15,446
Total current liabilities 91,558 84,236 87,727
Non-current liabilities
Trade and other payables 4,887 3,034 2,867
Borrowings (secured) 7 175,778 169,196 166,241
Deferred tax liability 36,168 35,250 35,606
Provisions 4,268 3,323 3,691
Finance lease liabilities
142 - 204
Derivative financial instruments 6,308 7,555 6,989
Total non-current liabilities 227,551 218,358 215,598
Total liabilities 319,109 302,594 303,325
NET ASSETS 249,057 229,141 236,568
EQUITY
Contributed equity 6 125,110 124,304 124,430
Retained earnings 132,601 117,345 124,072
Cash flow hedge reserve (5,484) (6,097) (6,490)
Foreign currency translation reserve (3,170) (6,411) (5,444)
TOTAL EQUITY 6 249,057 229,141 236,568
The above Balance Sheet should be read in conjunction with the accompanying notes.

10
Freightways Limited
and its subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
6 mths ended 6 mths ended
31 Dec 2017 31 Dec 2016
$000 $000
INFLOWS INFLOWS

Note (OUTFLOWS) (OUTFLOWS)
Cash flows from operating activities
Receipts from customers 284,333 264,165
Payments to suppliers and employees (230,720) (214,918)
Cash generated from operations 53,613 49,247
Interest received 41 43
Interest and other costs of finance paid (5,002) (4,957)
Income taxes paid (13,831) (15,829)
Net cash inflows from operating activities 8 34,821 28,504
Cash flows from investing activities
Payments for property, plant & equipment (7,402) (8,098)
Payments for software (2,953) (1,865)
Proceeds from disposal of property, plant & equipment 33 23
Payments for businesses acquired (net of cash acquired) (5,374) (1,991)
Payments to associate - (1,667)
Payments for other investing activities (203) (231)
Net cash outflows from investing activities (15,899) (13,829)
Cash flows from financing activities
Dividends paid (22,880) (22,466)
Increase in bank borrowings 5,594 11,143
Proceeds from issue of ordinary shares 330 338
Finance lease liabilities repaid (93) (38)
Net cash outflows from financing activities (17,049) (11,023)
Net increase in cash and cash equivalents 1,873 3,652
Cash and cash equivalents at the beginning of the period
8,423 7,065
Exchange rate adjustments 154 (27)
Cash and cash equivalents at the end of the period 10,450 10,690
The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

Freightways Limited
and its subsidiaries
11
1. BASIS OF PREPARATION
The interim financial statements are those of Freightways Limited (the ‘Company’) and its subsidiary companies
(together with the Company, referred to as the ‘Group’). The Company is registered under the Companies Act
1993 and is an FMC Reporting Entity under Part 7 of the Financial Markets Conduct Act 2013. The financial
statements of the Group have been prepared in accordance with the requirements of the Financial Markets
Conduct Act 2013 and the NZX Main Board Listing Rules.
The financial statements are stated in New Zealand dollars and rounded to the nearest thousand, unless
otherwise indicated.
The consolidated financial statements of the Group have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP). They comply with NZ IAS 34 Interim Financial Reporting and
IAS 34 Interim Financial Reporting and consequently, do not include all the information required for full
financial statements. These condensed Group interim financial statements should be read in conjunction with
the annual report for the year ended 30 June 2017.
The Group is designated as a for-profit entity for the purposes of complying with NZ GAAP.
2.
ACCOUNTING POLICIES
The accounting policies and methods of computation are consistent with those used in the most recent annual
report.
Restatement of prior period
Prior to 30 June 2017, deferred tax had not been recognised on indefinite life brand names. In November 2016,
the IFRS Interpretations Committee issued an agenda decision regarding the determination of the expected
manner of recovery of intangible assets with indefinite useful life for the purposes of measuring deferred tax,
in accordance with IAS 12 Income Taxes. This decision provided additional guidance on how an entity recovers
the carrying value of such assets and the consequences for the measurement and recognition of deferred tax.
In response to this additional guidance, the Group reviewed the expected recovery of the carrying amount
of the indefinite life brand names and concluded that the carrying amounts are expected to be recovered
through use of the brand names within its businesses. As a result, as at 30 June 2017, the Group restated
its comparatives to recognise an additional deferred tax liability of $30 million on the brand names, with a
corresponding increase in the carrying amount of goodwill. Accordingly, the comparatives for goodwill and
deferred tax liability as at 31 December 2016 have also been increased by $30 million. This adjustment has
no impact on profit or net assets in the respective reported periods.
As the restatement amount only affects two line items in the balance sheet, as described above, an additional
pre-restatement balance sheet as at 31 December 2016 has not been presented.
3. NON-RECURRING ITEMS
There were no non-recurring items for the period ended 31 December 2017.
Non-recurring items for the period ended 31 December 2016 related to:
• a non-recurring benefit before tax of $5.6 million ($5.6 million after tax) relating to the reversal of
previously-accrued earn-out payments that are no longer expected to be paid; and
• a non-recurring cost before tax of $1.6 million ($1.1 million after tax) relating to the relocation of the TIMG
business in Sydney.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)

12
Freightways Limited
and its subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
(b) Segment analysis
EXPRESS
PACKAGE &
BUSINESS MAIL
INFORMATION
MANAGEMENT
CORPORATE
& OTHER
INTER-
SEGMENT
ELIMINATION
CONSOLIDATED
OPERATIONS
$000$000$000$000 $000
Half year ended 31 December 2017
Sales to external customers
215,81576,318--292,133
Inter-segment sales864-2,281(3,145)-
Total revenue
216,67976,3182,281(3,145)292,133
Operating profit (loss) before interest,
income tax, depreciation and software
amortisation and amortisation of
intangibles39,77617,345(993)-56,128
Depreciation and software amortisation
(3,380)(2,749)(766)-(6,895)
Operating profit (loss) before interest,
income tax and amortisation of
intangibles36,39614,596(1,759)-49,233
Amortisation of intangibles, excluding
software amortisation(25)(954)--(979)
Operating profit (loss) before interest
and income tax36,37113,642(1,759)-48,254
Net interest and finance costs
(12)(240)(4,875)-(5,127)
Profit (loss) before income tax
36,35913,402(6,634)-43,127
Income tax
(10,072)(3,997)2,351-(11,718)
Profit (loss) for the period attributable
to the shareholders26,2879,405(4,283)-31,409
4.
SEGMENT REPORTING
(a) Description of segments
The Group is organised into the following reportable operating segments which categorise the business into
its primary markets and reflect the structure and internal reporting used by the Chief Executive Officer, as the
chief operating decision maker, and the Board to assist strategic decision-making and allocation of resources:
Express package & business mail
Comprises network courier, point-to-point courier and postal services.
Information management
Comprises secure paper-based and electronic business information management services.
Corporate & other
Comprises corporate, financing and property management services.
The Group has no individual customer that represents more than 3% of external sales revenue.

Freightways Limited
and its subsidiaries
13
(b) Segment analysis (continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
EXPRESS
PACKAGE &
BUSINESS MAIL
INFORMATION
MANAGEMENT
CORPORATE
& OTHER
INTER-
SEGMENT
ELIMINATION
CONSOLIDATED
OPERATIONS
$000$000$000$000 $000
Half year ended 31 December 2016
Sales to external customers
201,66871,114--272,782
Inter-segment sales829192,255(3,103)-
Total revenue
202,49771,1332,255(3,103)272,782
Operating profit (loss) before non-
recurring items, interest, income tax,
depreciation and software amortisation
and amortisation of intangibles37,25215,824(1,315)-51,761
Non-recurring items
-4,031--4,031
Operating profit (loss) before interest,
income tax, depreciation and software
amortisation and amortisation of
intangibles37,25219,855(1,315)-55,792
Depreciation and software amortisation
(2,467)(2,458)(765)-(5,690)
Operating profit (loss) before interest,
income tax and amortisation of
intangibles34,78517,397(2,080)-50,102
Amortisation of intangibles, excluding
software amortisation
(25)(781)--(806)
Operating profit (loss) before interest
and income tax
34,76016,616(2,080)-49,296
Net interest and finance costs
(4)(62)(4,645)-(4,711)
Profit (loss) before income tax
34,75616,554(6,725)-44,585
Income tax
(9,803)(3,214)2,419-(10,598)
Profit (loss) for the period attributable to
the shareholders24,95313,340(4,306)-33,987

14
Freightways Limited
and its subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
CONTRIBUTED
EQUITY
$000
RETAINED
EARNINGS
$000
CASH FLOW
HEDGE
RESERVE
$000
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$000
TOTAL
EQUITY
$000
Balance at 1 July 2017
124,430124,072(6,490)(5,444)236,568
Profit for the period-31,409--31,409
Dividend payment-(22,880)--(22,880)
Shares issued, net of costs680---680
Cash flow hedges taken directly to equity,
net of tax--1,006-1,006
Exchange differences on translation
of foreign operations---2,2742,274
Balance at 31 December 2017
125,110132,601(5,484)(3,170)249,057
Balance at 1 July 2016
123,852105,824(9,417)(5,403)214,856
Profit for the period
-33,987--33,987
Dividend payment
-(22,466)--(22,466)
Shares issued, net of costs
452---452
Cash flow hedges taken directly to equity,
net of tax
--3,320-3,320
Exchange differences on translation
of foreign operations
---(1,008)(1,008)
Balance at 31 December 2016
124,304117,345(6,097)(6,411)229,141
5. IMPAIRMENT LOSS AND COMPENSATION
Included in other expenses is an impairment loss of $1.4 million related to the information management
division’s racking at its Porirua site in Wellington that was damaged by the North Canterbury earthquake. It
has been determined that all this racking will be replaced under insurance. Also included in other expenses is
an amount of approximately $1.5 million of additional costs of operations resulting from the earthquake, which
are also recoverable from insurance.
An amount of $2.9 million has been included in other income in relation to insurance proceeds received from
the Group’s insurers to reinstate the damaged racking noted above and as compensation for the additional cost
of operations resulting from the above-mentioned earthquake.
6.
EQUITY

Freightways Limited
and its subsidiaries
15
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
Contributed equity
Fully paid ordin
ary shares
As at 31 December 2017, there were 155,115,946 fully paid ordinary shares on issue (2016: 154,938,225). All
fully paid ordinary shares have equal voting rights and share equally in dividends and surplus on winding up.
Partly-paid ordinary shares
On 13 September 2017, 96,108 partly-paid shares were issued to certain senior executives under the rules of
the Freightways Senior Executive Performance Share Plan (2016: 103,682). The issue price per share was $7.83
(2016: $6.82) and the shares have been paid-up by the relevant participants to one cent per share. The balance
of the issue price per share may only be paid-up upon the participants meeting agreed performance hurdles
and upon the expiry of the applicable three-year escrow period in accordance with the Plan rules. During the
period, 15,790 partly-paid shares were redeemed and cancelled (2016: 17,863). As at 31 December 2017, there
were 319,513 partly-paid ordinary shares on issue (2016: 342,006). Partly-paid ordinary shares have no voting
rights and no rights to dividends and surplus on winding up.
Partly-paid ordinary shares, fully paid up to ordinary shares
On 13 September 2017, 102,721 partly-paid shares were fully paid-up by certain Freightways senior executives
upon the achievement of agreed performance targets in accordance with the terms of the original issue of the
relevant partly-paid shares under the Freightways Senior Executive Performance Share Plan (2016: 127,534).
The average issue price per share was $5.07 (2016: $4.17).
Employee share plan
On 13 September 2017, the Company issued 75,000 fully paid ordinary shares at $7.05 each to Freightways
Trustee Company Limited, as Trustee for the Freightways Employee Share Plan (2016: 50,000 fully paid ordinary
shares at $6.13 each). In total, participating employees were provided with interest-free loans of $0.5 million
to fund their purchase of the shares in the Share Plan (2016: $0.3 million). The loans are repayable over three
years and repayment commenced in October 2017.
7. BORROWINGS (SECURED)
In December 2016, a US$125 million uncommitted finance facility was established with a US-based lender on
the same terms as those that are in place with the existing banking syndicate. Of this facility, the US dollar
equivalent of NZ$10 million and A$10 million has been drawn as at 31 December 2017.
As at 31 December 2017, the Group’s debt facilities with its banking syndicate comprised NZ$93.5 million and
A$87 million (2016: NZ$100 million and A$87 million), of which NZ$73 million and A$74 million (2016: NZ$72
million and A$74 million) had been drawn, respectively. The Group also had an undrawn bank overdraft facility
of NZ$8 million available (2016: NZ$8 million).
The Group was in compliance with all its banking covenants throughout this financial period.

16
Freightways Limited
and its subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
8. RECONCILIATION OF PROFIT FOR THE PERIOD WITH CASH FLOWS FROM OPERATING
ACTIVITIES
6 mths ended 6 mths ended
31 Dec 2017 31 Dec 2016
$000 $000
Profit for the period 31,409 33,987
Add non-cash items:
Depreciation and amortisation 7,874 6,496
Movement in provision for doubtful debts 4 89
Movement in deferred income tax
(236) 885
Net loss on disposal of fixed assets 7 1
Net foreign exchange loss (gain) 7 4
Movement in derivative fair value 6 137
Impairment of property, plant and equipment 1,400 -
Movement in working capital, net of effects of acquisitions of
businesses:
(Increase) decrease in trade and other receivables (10,357) (10,636)
(Increase) decrease in inventories 396 (942)
Increase (decrease) in trade and other payables 5,791 3,294
Increase (decrease) in income taxes payable
(1,480) (4,811)

Net cash inflows from operating activities
34,821 28,504
9. TRANSACTIONS WITH RELATED PARTIES
Trading with related parties: TThe Group has not entered into any material external related party
transactions which require disclosure.
Payments to associate: During the period, the Group paid Parcelair Limited $5.4 million for the provision of
airfreight linehaul services to the express package businesses on normal commercial terms. Parcelair Limited
is incorporated in New Zealand and is half-owned by the Group.
Key management compensation: Compensation paid during the period (or payable as at 31 December
2017 in respect of the half year) to key management, which includes senior executives of the Group and non-
executive independent directors, is as follows:
2017 2016
$000 $000
Short-term employee benefits 3,631 3,372
Long-term employee benefits - -
Post-employment benefits - -
Termination benefits - -
Share-based payments 390 375

Freightways Limited
and its subsidiaries
17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
10. FINANCIAL RISK MANAGEMENT
The Group has a treasury policy which is used to assist in managing foreign exchange and interest rate risks.
The interim financial statements do not include all financial risk management information and disclosures and
should be read in conjunction with the Group’s annual financial statements as at 30 June 2017 contained in
its Annual Report, which can be obtained from the Company’s registered office or www.freightways.co.nz.
There have been no significant changes in the Group’s risk management objectives and policies since 30 June
2017.
In the period to 31 December 2017 there were no significant changes in the business or economic circumstances
that affect the fair value of the Group’s financial assets and financial liabilities.
Fair values and valuation techniques
The Group uses various methods in estimating the fair value of financial instruments. The methods comprise:
Level 1 – Quoted prices (adjusted) in active markets for identical assets or liabilities at the reporting date. A
market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual
and regularly occurring market transactions on an arm’s length basis.
Level 2 – Inputs that are observable for the asset or liability, either directly (i.e., as prices; other than
quoted prices referred to in Level 1 above) or indirectly (i.e., derived from prices). The fair value
of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined by using valuation techniques. These valuation techniques maximise the
use of observable market data where it is available and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the fair value
of an instrument is included in Level 2.
Level 3 – Inputs for the asset or liability that are not based on observable market data (i.e., unobservable
inputs). In these cases, the fair value of an instrument would be included in Level 3.
Specific valuation techniques used to value financial instruments include:
• in respect of interest rate swaps, the fair value is calculated as the present value of the estimated future
cash flows based on observable yield curves;
• in respect of forward foreign exchange contracts, the fair value is calculated using forward exchange rates
at the balance sheet date, with the resulting value discounted back to present value; and
• discounted cash flow analysis for other financial instruments.
Specific valuation techniques used to value contingent consideration in a business combination and estimated
purchase price adjustments include:
•
fair value is calculated as the present value of the estimated future cash flows based on management’s
assessment of future performance; and
• management’s knowledge of the business and the industry it operates in.
Specific valuation techniques used to value aircraft held for sale include among other factors, market demand
and pricing of similar aircraft.
The Group’s derivative financial instruments (and aircraft held for sale in the comparative period) are all Level
2 financial instruments. Contingent consideration in a business combination and estimated purchase price
adjustments are all Level 3 financial instruments. There have been no transfers between levels of the fair
value hierarchy used in measuring the fair value of financial instruments in the period to 31 December 2017.
There have been no reclassifications of financial assets and finance liabilities since 30 June 2017.

18
Freightways Limited
and its subsidiaries
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
10. FINANCIAL RISK MANAGEMENT (continued)
The carrying value of the following financial assets and liabilities approximate their fair value:
• cash and cash equivalents
• trade and other receivables
• trade and other payables
•
bank borrowings
11. BUSINESS COMBINATIONS
Effective 1 September 2017, the Group acquired the business and assets of State Waste Services (SWS), an
Australian-based medical waste collection and destruction business, for an initial payment of approximately
$6.5 million (A$5.9 million) and a future maximum earn-out of up to $4.5 million (A$4.1 million). SWS has been
branded as Med-X and integrated into the Group’s information management division.
The contribution of Med-X to the Group results for the half year ended 31 December 2017 was revenue of
$1.1 million and operating profit before interest, income tax and amortisation of intangibles of $0.3 million.
If this acquisition had occurred at the beginning of the period, the contribution to revenue and operating profit
before interest, income tax and amortisation of intangibles for the period is estimated at $1.8 million and $0.5
million, respectively.
The following table summarises the purchase consideration and the fair value of assets acquired and liabilities
assumed:
Purchase consideration

$000
Initial acquisition payments 6,481
Less Cash consideration payable as at the end of the period (1,107)
Cash consideration paid during the period 5,374
Cash consideration payable as at the end of the period 1,107
Fair value of future earn-out payment 1,603
Total purchase consideration 8,084
Fair value of assets and liabilities arising from the acquisition
Plant and equipment 659
Customer relationships 1,793
Goodwill 6,273
Provisions (136)
Deferred tax liability (497)
Exchange rate movement (8)
8,084
The cash consideration payable at the end of the period of up to a maximum amount of $1.1 million may be
payable in September 2018, but is contingent upon certain financial performance hurdles being achieved for
the year ended 30 June 2018.
The estimated discounted future earn-out payment of $1.6 million may be payable in September 2021, but
is contingent upon certain financial performance hurdles being achieved for the years ended 30 June 2019,
2020 and 2021. The potential undiscounted amount of the future earn-out payment that the Group expects
could be required to be made in respect of this acquisition is between nil and $4.5 million. The Group has
forecast several scenarios and probability-weighted each to determine a fair value for this contingent payment
arrangement.

Freightways Limited
and its subsidiaries
19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 31 DECEMBER 2017 (UNAUDITED)
The goodwill of $6.3 million arising upon this acquisition is attributable to the intellectual property obtained
and the premium paid for strategic reasons, including acquiring an entry point into the medical waste industry.
None of the goodwill recognised is expected to be deductible for income tax purposes.
The acquisition accounting for this acquisition has been determined on a provisional basis. The fair value of
assets and liabilities acquired, including identified intangible assets, will be finalised within 12 months from
the acquisition date and upon confirmation of certain determinants.
Prior period acquisition - LexData
On 1 July 2016, the Group acquired the business and assets of LexData Management Pty Limited (LexData),
an Australian-based information management business, for initial payments in aggregate of approximately
$2.9 million (A$2.8 million) and a future maximum earn-out of $3.6 million (A$3.5 million). LexData has been
integrated into the Group’s information management division.
An estimated discounted future earn-out payment of $1.6 million may be payable in September 2019, but
is contingent upon certain financial performance hurdles being achieved for the years ended 30 June 2017,
2018 and 2019. The potential undiscounted amount of the future earn-out payment that the Group expects
could be required to be made in respect of this acquisition is between nil and $3.6 million. The Group has
forecast several scenarios and probability-weighted each to determine a fair value for this contingent payment
arrangement.
12. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
As at 31 December 2017, the Group had capital commitments to purchase equipment of $2.9 million (2016:
$9.3 million).
As at 31 December 2017, the Group had outstanding letters of credit and bank guarantees issued by its lenders
totalling approximately $5.8 million (2016: $5.7 million). The letters of credit relate predominantly to support
for regular payroll payments. The bank guarantees relate to security given to various landlords in respect of
leased operating facilities.
There were no other contingent liabilities as at 31 December 2017 (2016: nil).
13. NET TANGIBLE ASSETS PER SECURITY
Net tangible assets (liabilities) per security at 31 December 2017 was ($0.61) (2016 restated: ($0.66)).
14. POST BALANCE DATE EVENTS
Dividend declared
On 19 February 2018, the Directors declared a fully imputed interim dividend of 14.5 cents per share
(approximately $22.5 million) in respect of the year ended 30 June 2018. The dividend will be paid on 3 April
2018. The record date for determination of entitlements to the dividend is 16 March 2018. A supplementary
dividend of 2.56 cents per share will be paid to overseas shareholders when the interim dividend is paid. The
Freightways Dividend Reinvestment Plan will not operate for this dividend.

As pioneers of New Zealand’s express package industry, we trace our origins back to 1964.

DIRECTORY
For inquiries in relation to Freightways’ services and products contact the offices listed below or refer to
Freightways’ website at www.freightways.co.nz.
Messenger Services LimitedNew Zealand Document Exchange Limited
32 Botha Road20 Fairfax Avenue
PenrosePenrose
DX EX10911DX CR59901
AUCKLAND AUCKLAND
Telephone: 09 526 3680 Telephone: 09 526 3150
www.sub60.co.nz www.dxmail.co.nz
www.kiwiexpress.co.nzwww.dataprint.co.nz
www.stuck.co.nz
www.securityexpress.co.nz
New Zealand Couriers Limited
The Information Management Group (NZ) Limited
32 Botha Road33 Botha Road
PenrosePenrose
DX CX10119DX EX10975
AUCKLANDAUCKLAND
Telephone: 09 571 9600Telephone: 09 580 4360
www.nzcouriers.co.nzwww.timg.co.nz
Post Haste LimitedFieldair Holdings Limited
32 Botha RoadPalmerston North International Airport
PenrosePalmerston North
DX EX10978DX PX10029
AUCKLANDPALMERSTON NORTH
Telephone: 09 579 5650Telephone: 06 357 1149
www.posthaste.co.nzwww.fieldair.co.nz
www.passtheparcel.co.nz

Castle Parcels LimitedNOW Couriers Limited
163 Station Road 161 Station Road
PenrosePenrose
DX CX10245AUCKLAND
AUCKLANDTelephone: 09 526 9170
Telephone: 09 525 5999www.nowcouriers.co.nz
www.castleparcels.co.nz
Shred-X Pty LimitedThe Information Management Group Pty Limited
PO Box 1184PO Box 21
OxenfordEnfield
Queensland 4210New South Wales 2136
AUSTRALIAAUSTRALIA
Telephone: +61 1 300 747 339Telephone: +61 2 9882 0600
www.shred-x.com.au www.timg.com
www.statewaste.com.auwww.filesaver.com.au
www.litsupport.com.au