Half Year Results to 31 December 2024 and Interim Dividend

Results for announcement to the market
Name of issuer FREIGHTWAYS GROUP LIMITED
Reporting Period 6 months to 31 December 2024
Previous Reporting Period 6 months to 31 December 2023
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$662,105 6.7%
Total Revenue $662,105 6.7%
Net profit/(loss) from
continuing operations
$44,747 9.5%
Total net profit/(loss) $44,747 9.5%
Interim Dividend
Amount per Quoted Equity
Security
$0.26388889
Imputed amount per Quoted
Equity Security
$0.07388889
Record Date 7 March 2025
Dividend Payment Date 1 April 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$(0.84) $(0.94)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the section “Half Year Review” for commentary
Authority for this announcement
Name of person

authorised
to make this announcement
Stephan Deschamps
Contact person for this
announcement
Stephan Deschamps
Contact phone number +64 27 562 5666
Contact email address stephan.deschamps@freightways.co.nz
Date of release through MAP

17 February 2025

Unaudited financial statements accompany this announcement.

---

Reporting for the period ending 31December 2024
HY25 Results
Presenters:
Mark TroughearStephan DeschampsNeil WilsonAaron Stubbing
Chief Executive OfficerChief Financial OfficerGeneral Manager, FRWGeneral Manager, EP

Allied Express, Australia

Freightways
HY25 Results
3.
Disclaimer
Read this presentation with the financial statements: The financial results in this presentation should be read in conjunction with the financial statements for the half
year ended 31 December 2024, which can be found in the Freightways half 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.

Slide#
01Overview
5.
02Financial Summary & Capital Management
6.
03Divisional Performance
10.
04Strategy Update
17.
05Outlook
25.
Freightways
HY25 Results
4.
Outline

Express Package & Business MailTemperature ControlledInformation ManagementWaste Renewal
Overview
B2B - national delivery
B2C - courier and mail
Oversize parcels
Refrigerated national transport
Temperature controlled 3PL
Same day refrigerated delivery
Document Storage
Digitalisation
E-Commerce 3PL
Document Destruction
Medical Waste
High-Value Waste Recycling
Brands
EP & BM HY25 external revenue: $545mIM HY25 external revenue: $117m
Freightways
HY25 Results
5.
Freightways’ Brands

Presenter:
Stephan Deschamps
Chief Financial Officer
Financial Summary &
Capital Management

Freightways
HY25 Results
7.
HY25 Group Highlights
NOTES
1.Metrics shown relative to pcp
2.Non-GAAP (Generally Accepted Accounting Principles)
Revenue Growth
6.7%
EBITA
2
Growth
6.5%
NPAT Growth
9.5%
Dividend (Half Year)
19c
(HY24 18cps)

Freightways
HY25 Results
8.
HY25 Consolidated Performance
Notes
HY25
$m
HY24
$m
Change
%
Operating Revenue
662.1620.76.7
EBITA (non-GAAP)1
86.080.86.5
EBITA margin
13.0%13.0%-
NPAT2
44.740.99.5
NPAT margin
6.8%6.6%2.6
Basic Earnings Per Share (cents)
25.023.08.7
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 and amortisation
2.Net profit after tax
HY25 Performance Overview:
Solid result in a macro-economic environment that is still
challenging
Performance from all businesses through peak was very
strong
Express Package (EP) has performed well with solid market
share gains and a well executed pricing round
Same customer activity levels are still negative on the pcp in
NZ
Costs have normalised – particularly labour costs with few
vacancies
Ruakura 3PL is now at 76% utilisation but with lower-than-
expected activity levels
Victorian medical waste facility is operational, revenue is up
20% despite thedelay to a decision on a large tender
One off costs of $2.1m from Evolve and Workers
Compensation cost related to previous periods at Shred-X

Capital Management Principles
Targeting solid Investment Grade credit profile, at a level that
minimises the cost of capital
Net Debt / EBITDA between 2.0x and 3.0x post IFRS16
Dividend Policy
Dividend Policy aligned with Capital Management Policy,
balancing several objectives:
−The setting of the dividend is subordinated to the overall capital
structure of Freightways. When debt is considered high, the
cash dividend will be reduced to allow for faster debt reduction
−The dividend is set at a level that the Board expects to be
sustainable in the medium term
−Subject to the first two principles, the Board will aim to pay 75%
to 80% of the NPATA adjusted for significant one-offs
Interim Dividend
19CPS
(HY24 18cps)
Imputation credits
7.39 cps
(fully imputed in NZ at 28% tax rate)
Supplementary dividend3.3529 cps
Record date7 March 2025
Payment date1 April 2025
Dividend Reinvestment Plan Not operating for this dividend
Freightways
HY25 Results
9.
Capital Management and Dividend Policy

Presenter:
Mark Troughear
Chief Executive Officer
Divisional Performance

DX Mail, NZ

Notes
HY25
$m
HY24
$m
Change
%
Operating Revenue
547.2517.15.8
EBITA (non-GAAP)1
80.071.412.0
EBITA margin
14.6%13.8%5.8
NPAT2
49.643.813.2
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 and amortisation
2.Net profit after tax
HY25 Performance Overview:
EPBM divisional revenue up 5.8% on the pcp
EPBM EBITA is up 12% on pcp
Service performance was strong across all business
through peak
Market share gains in all businesses
Big Chill performance slightly improved on pcp despite
negative same-customer transport revenue (-2%), due to a
better new business performance and higher 3PL
utilisation.
Allied handled higher volumes, with better operational
efficiencies as a result of investment in automation.
DX Mail delivered strong improved performance on pcp
supported by improved pricing, market share gains and
operational efficiencies
The smaller premium point-to-point segment impacted by
recession with lower volume
EBITA % margin improved by 80bp
Freightways
HY25 Results
12.
HY25 Express Package & Business Mail Result

B2C Items
21%
As a percentage of total items
Fleet Vacancies (wage drivers)
<1%
Of Total Fleet
Average Price Per Item
$8.86
At December ‘24,
excluding surcharges
EP Courier Pay Average
$502
Per courier / per day
Same-Customer Volumes
H1 FY25
3.9%
FRW FY24 Results | Slide 13
Freightways
HY25 Results
13.
HY25 NZ Express Package Metrics
PFE Per Residential Item
$1.70
Surcharge per residential item
at December ‘24

New Zealand
Other EP Volumes:
NZ Network market share gains of c. 4% helped offset same-customer
decline
Woolworths has now fully exited the business (from September)
Big Chill Transport revenue up 6% on pcp overall
Oversize courier freight revenue now at a ~$10m p.a. run rate
NZ Network Express
Item Trend
Compared to the PCP
FY25 HY Volumes
1.5%
Temu contributed 3.4% of FY24 volume (all in H1)
Freightways
HY25 Results
14.
HY25 NZ Express Package Volume
FY24 H2 Volumes 1.9%
FY24 H1 Volumes 1.6%

Australia
Allied service delivery performance improved in H1, increased customer
confidence resulted in 7.6% organic and new business revenue growth
(particularly from eCommerce customers)
The new automated sortation systems and an increased focus on operating
costs have assisted the Allied result
Good pipeline of new business prospects for remainder of FY25
AU Network Express
Item Trend
Compared to the PCP
FY25 HY Volumes
8%
Freightways
HY25 Results
15.
HY25 AU Express Package Volume
FY24 H2 Volumes 9%
FY24 H1 Volumes 13%

Notes
HY25
$m
HY24
$m
Change
%
Operating Revenue
117.6105.711.3
EBITA (non-GAAP)1
15.515.40.6
EBITA margin
13.2%14.6%(9.5)
NPAT2
8.58.32.4
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 and amortisation
2.Net profit after tax
Freightways
HY25 Results
16.
HY25 Information Management & Waste Renewal Result
HY25 Performance Overview:
IM revenue was up 11.3% on the pcp overall with a mixed
performance across the various lines of business:
‒Document storage and activity revenue grew by 2%
despite the recessionary environment in NZ
‒Digital in AU generated more revenue than document
storage and activity combined for the first time (up 32% on
the PCP)
‒Medical Waste revenue was up 20% for the HY but is still
pending VIC tender outcome
‒One off NZ$1.2m cost incurred in H1, with Workers
Compensation cost related to previous periods at Shred-X
EBITA was flat on last year, with margins dropping by 140bp,
primarily impacted by one off costs

Presenters:
Mark TroughearNeil WilsonAaron Stubbing
Chief Executive OfficerGeneral Manager, FRWGeneral Manager, EP
Strategy Update

Big Chill, NZ

Overview:
B2B - overnight national network delivery -courier and mail
B2C - overnight and economy delivery - courier and mail
Oversize parcels
Express Package Brands:
Horizon 1. Extend And Defend | B2B
Focus on a profitable market share gains
Continue to ensure service is a differentiator for customers in NZ
Assess metropolitan “local” pricing and infrastructure costs
Expand DX Mail automation into South Island delivering operational
efficiencies and further growing new business opportunities
Evolve spend still on track for $5m in FY25
Horizon 2. Grow Scale | B2C
Maintain high levels of service to be able to commanda premium for B2C
deliveries
Horizon 3. Establish New Lines of Business | Oversize (25kg+)
Scale Oversize revenue in NZ
New business teams now fully in place at Allied and delivering expected
performance
Leverage improved service quality at Allied to achieve further market share
gains
Assess bolt-on M&A opportunities in AU
Freightways
HY25 Results
19.
3 Horizons of Growth | Express Package & Business Mail

Freightways
HY25 Results
20.
Airfleet Strategy Update
Over time we will continue the transition of our fleet from the
current four aircraft (three 737-400s and one 737-800) to three
737-800s.
737-800's have higher carrying capacity and are more fuel
efficient
There will be some one off costs at the point of transition
expected to be no more than $2m in aggregate. But we would
expect cost savings in the long run
The upgrade programme will further progress as the current
leases with Airwork expire or earlier as circumstances may
dictate.
The programme can be implemented on short notice and with
minimal operational impact.
In the meantime, we are closely monitoring the situation with
our partner Airwork

Horizon 1. Extend And Defend | National Delivery
Pursue market share opportunities leveragingnewinfrastructure,
technology and improved service performance
Implementation of Big Chill Connect (new Transport Management
System) has delivered improved visibility across the network. Phase 2 to
support efficiencies is near completion
Horizon 2. Grow Scale | 3PL
Demand for Ruakura 3PL services has exceed expectations, profitable
from Q1 2024, aim to scale to 90% utilisation by the end of FY25
Modelling future 3PL facilities to determine whether either (or both)
provide required ROIC. Strong customer demand in both locations
Horizon 3. Establish new lines of business |
Same Day (ProducePronto)
Continue to win new customers and leverage existing capability within the
Big Chill network where appropriate
Ensure that step change costs associated with strong growth are managed
and new business secured supports any additional infrastructure costs
Expand offering into the quick service restaurant and convenience retail
sectors
Overview:
Refrigerated national transport
Temperature controlled 3PL
Same day refrigerated delivery
Temperature Controlled Brands:
Freightways
HY25 Results
21.
3 Horizons of Growth | Temperature Controlled

Freightways
HY25 Results
22.
3 Horizons of Growth | Information Management
Horizon 1. Extend And Defend | Storage
Archive revenues and margins forecasted to grow through a combination of
pricing and new business.New customer growthexpected to be stronger in
AU assisted by health and government verticals
Focus on filling AU spare warehouse capacity (82% utilised nationwide)
Media volumes are flat on pcp but activity is reducing. Focus on maintaining
media activity margins through pricing for effort approach and explore
alternative uses for vaults
Overview:
Document Destruction
Digitalisation
E-Commerce 3PL
Information Management Brands:
Horizon 2. Grow Scale | Digitisation
Large existing workstreams across government and health sectors in AU
continue to deliver strong growth. Focus on aligning digital processing on a
monthly basis with additionalresources needed to support.
Successful projects completed to date are helping TIMG’s digital
credentials. Implement largersalesteams to further capitalise on this
opportunity
Horizon 3. Establish new lines of business | eCommerce 3PL
Utilise spare records storage capacity to grow our SME targeted eCommerce
fulfilment offer
On track to provide $4m additional 3PL / last mile delivery revenue for full
year FY25 (77% increase on pcp)

Horizon 1. Extend And Defend | Secure Destruction
Implementing new pricing strategies to restore margin in locations where
the density of collections have changed
Continued focus on market share gains
Horizon 2. Grow Scale | Medical Waste
Target 25% revenue growth through market share gains in VIC, NSW, QLD
in FY25 (HYTD = 20%)
VIC tender outcome still to be advised (expected in Q4)
Horizon 3. Establish new lines of business | High Value Waste
Build profitability in SaveBOARD, recently secured Codemark certification
in NZ will assess volume growth
Target product destruction market
Continue to source circular loop solutions for hard to recycle waste
Overview:
Document Destruction
Medical Waste
High-Value Waste Recycling
Waste Renewal Brands:
Freightways
HY25 Results
23.
3 Horizons of Growth | Waste Renewal

Acquisition Strategy and Investment Criteria
Well defined target characteristics
Acquisitions aligned with strategy & operating culture
Disciplined approach to acting on opportunities
In HY25
Completed the Produce Pronto Earnout, integrated more fully into Big Chill
Acquired small WA based IT Asset Disposal business, TGR, to strengthen Shred-X
capabilities
Built relationships with a pipeline of AU targets
Have seen more stressed businesses in the last year due to the economic climate
Acquired in 2022 for A$160m.
Revenue and EBITA have
improved year on year and
delivered above the business
case.
Further investment made to
expand capacity - automation
and largerfacilities in Sydney,
Melbourne, Perth, Adelaide and
Brisbane.
Assisted the launch of a similar
Oversize service in NZ, Revenue
run rate of $10m p.a.
Freightways
HY25 Results
24.
Disciplined Approach to M&A

Presenter:
Mark Troughear
Chief Executive Officer
Outlook

Volume in the HY was as expected and we expect that it will be a slow grind for the economy to
provide some organic growth in NZ in H2
The AU economy is slightly more buoyant
Our focus remains on restoring margins for both divisions in FY25 and FY26 as modest organic
growth occurs and market share gains are realised
Big Chill’s Ruakura facility is contributing positively to earnings although in FY25 we expect only
modest organic growth in Temperature Controlled transport
We now expect additional Medical Waste revenue to be delayed to Q4
Labour cost increases are controlled and will be just above 3% for the year
Full Year Capex expected to be steady at $35m including for trucks, IT capital projects and NZ
mechanisation
Continuous focus on the transition of our airfleet, particularly given Airworks’ challenges
We have invested c. $1m (opex) in a new pricing / billing and courier pay system in H1 with
another $4m expected in H2
We are assessing M&A opportunities to leverage our presence in AU
Volumes expected to
grow as the economy
improves
Focus on restoring
margins
Disciplined M&A
approach
Freightways
HY25 Results
26.
Outlook

Q & A

Appendices

FREIGHTWAYS GROUPHY25 ($m)HY24 ($m)
Notes
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Operating Revenue
662.1-662.1620.7-620.7
EBITDA (non-GAAP)1
130.5(36.4)94.1119.5(31.6)87.9
EBITA (non-GAAP)2
86.0(6.1)79.980.8(5.7)75.0
NPATA (non-GAAP)3
51.01.852.847.31.849.1
NPAT4
44.71.846.540.91.842.7
NOTES
•Results in this table are unaudited
1.Operating profit before interest, tax, depreciation and amortisation
2.Operating profit before interest, tax and amortisation
3.Net profit after tax before amortisation
4.Net profit after tax
Freightways
HY25 Results
29.
Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited)

EXPRESS PACKAGE & BUSINESS MAILNotesHY25 ($m)HY24 ($m)Change (%)
Operating Revenue
547.2517.15.8
EBITDA (after NZ IFRS16)
1110.697.014.0
Less: NZ IFRS16 adjustment
(25.5)(20.9)22.0
EBITDA (before NZ IFRS16)
85.176.012.0
EBITA (after NZ IFRS16)
280.071.412.0
Less: NZ IFRS16 adjustment
(4.0)(3.5)14.3
EBITA (before NZ IFRS16)
76.068.011.8
NOTES
•Results in this table are unaudited
1.Operating profit before interest, tax, depreciation and amortisation (non-GAAP)
2.Operating profit before interest, tax and amortisation (non-GAAP)
Freightways
HY25 Results
30.
Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited)

INFORMATION MANAGEMENT &
WASTE RENEWAL
NotesHY25 ($m)HY24 ($m)Change (%)
Operating Revenue
117.6105.711.3
EBITDA (after NZ IFRS16)
128.627.92.5
Less: NZ IFRS16 adjustment
(10.8)(10.6)1.9
EBITDA (before NZ IFRS16)
17.817.32.9
EBITA (after NZ IFRS16)
215.515.40.6
Less: NZ IFRS16 adjustment
(2.2)(2.2)-
EBITA (before NZ IFRS16)
13.313.20.8
Freightways
HY25 Results
31.
Appendix – Reconciliation of Post-IFRS16 to PRE-IFRS16 (unaudited)
NOTES
•Results in this table are unaudited
1.Operating profit before interest, tax, depreciation and amortisation (non-GAAP)
2.Operating profit before interest, tax and amortisation (non-GAAP)

Project Evolve.
Benefits:
•Designed to improve our ability to efficiently Price for Effort
(differentiate our pricing on the basis of effort) for a range of
transactions. It will enable, for example:
‒differential pricing for local items based on distance
travelled and size
‒efficient charges for re-handling of items in the network
•Enable differential payment to couriers for effort
•Modernise customer invoicing with flexibility in invoice
presentation, consolidation and payment options
Overview:
•Project Evolve is a staged multi-year investment in
modernising pricing, billing and courier pay systems that
support the NZ Express Package business.
Expected Implementation Costs:
‒FY25 c. $5m
‒FY26 c. $5m
•Expected payback in c. 4.5 years
•Under current accounting standards, this is treated as an
expense
Freightways
HY25 Results
32.
Project Evolve | Express Package

Background
Pricing structure always been a flat rate
per item up to 25kg / 0.125m3
Local pricing has not kept in step with
congestion, geographical spread of cities
and the size of the average item travelling
through networks
City boundaries have grown. In 1996
Auckland was 65km (Papakura to Orewa),
it is now 125km (Pukekohe to Wellsford)
and growing
Increased infrastructure required to
deliver effectively across larger cities
(satellite depots, shuttle trucks, people)
Average Auckland
Local Rate is
1/3
Of the price charged in
Sydney, Melbourne &
Brisbane
Solution
Charge based on distance, size and
complexity to maintain margin and
remunerate couriers for effort and ensure
pricing reflects that effort and resources
required to deliver locally – especially in
NZ’s larger cities
Average local rates have
increased only modestly
in the last 25 years,
whereas city boundaries
and costs have increased
significantly.
Freightways
Local Courier Network Courier Pricing | Express Package

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Section 1: Issuer information
Name of issuer Freightways Group Limited
Financial product name/description Fully Paid Ordinary Shares
NZX ticker code FRW
ISIN (If unknown, check on NZX
website)
NZFREE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 7 March 2025
Ex-Date (one business day before the
Record Date)
6 March 2025
Payment date (and allotment date for
DRP)
1 April 2025
Total monies associated with the
distribution
1

$33,970,000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.26388889
Gross taxable amount
3
$0.26388889
Total cash distribution
4
$0.19000000
Excluded amount (applicable to listed
PIEs)
$-
Supplementary distribution amount $0.03352941
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed

Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
6

28%

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Imputation tax credits per financial
product
$0.07388889
Resident Withholding Tax per
financial product
$0.01319444
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Stephan Deschamps
Contact person for this
announcement
Stephan Deschamps
Contact phone number +64 27 562 5666
Contact email address stephan.deschamps@freightways.co.nz
Date of release through MAP

17 February 2025

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FREIGHTWAYS GROUP LIMITED














Half Year Report
December 2024

Note: EBITA is a non-GAAP (Generally Accepted Accounting Principles) measure. Refer to the Income Statement and
Note 3 within the financial statements in the following pages for a reconciliation from EBITA to NPAT. NPAT is GAAP
compliant.

1

HALF YEAR REVIEW
From the Chairman and Chief Executive Officer

Despite the markets in which Freightways operate remaining challenging over the first half of FY25, the
company recorded positive revenue and earnings growth. In NZ, the depressed economic environment
meant same-customer volumes have continued to decline, impacting both our express courier and
temperature-controlled businesses. Australia was more positive but still well short of the type of organic
growth we have seen in better times. Our consistently high service levels and the ability of all of our
businesses to leverage their strong market positioning allowed us to win new customers which has helped
offset the severity of the recession experienced over the half year (and indeed the last few years). Total
company revenue was up by 6.7% on the pcp, with EBITA increasing by 6.5% and NPAT by 9.5%. Lower
same customer volumes in express have been offset by pricing improvements and market share gains,
while costs were well contained and labour costs in particular steadied compared to the escalation that
we incurred during periods of very tight labour markets. A slightly lower level of debt allowed us to reduce
the interest spend, supporting a strong NPAT growth.

Divisional performance
Express Package and Business Mail
The result for the Express Package and Business Mail (EPBM) division was particularly pleasing, with
revenue growing by 5.8% and EBITA by 12% over the pcp. Service performance was strong from all
businesses and benchmarked favourably against our competition which assisted with new customer
acquisition. In NZ, both average pricing per item and Pricing for Effort B2C charges were up on the pcp. In
Australia, Allied Express continued their momentum with a meaningful 8% increase in volume and with
extra items they also experienced the efficiency benefits of the new automation in both Sydney and
Melbourne. Big Chill, while still somewhat hampered by lower same-customer volume, also achieved
market share improvements and pushed utilisation of their new 3PL facility at Ruakura up to 76% by
December. DX Mail delivered strong performance on pcp, supported by improved pricing, market share
gains and operational efficiencies. The one brand hit especially hard by the current environment was
SUB60 (our smaller premium point-to-point business), which is usually more heavily impacted by a
recession with lower volume as customers seek cheaper alternatives.
Margins in EPBM were up by 80bp over the pcp.
Information Management and Waste Renewal
The Information Management and Waste Renewal division recorded much stronger revenue, up 11.3% on
the pcp but with flat earnings for the half. We incurred a one-off NZ$1.2m Workers Compensation back-
payment during the half year related to a prior period, which reduced profitability. Storage revenue was
positive compared to the pcp and digital services continued their strong growth. Our Medical waste
revenue stream also grew by 20% despite the delayed outcome of a large tender, now expected in H2.
Margins were down on the pcp by 140bp partially as a result of the one-off costs and slightly lower than
expected Medical Waste revenue.

Note: EBITA is a non-GAAP (Generally Accepted Accounting Principles) measure. Refer to the Income Statement and
Note 3 within the financial statements in the following pages for a reconciliation from EBITA to NPAT. NPAT is GAAP
compliant.


2
Strategy
We continue to drive growth and efficiency through our core (horizon one) services while working to grow
horizon two more quickly as those markets evolve. We will also invest for longer term growth in our
emerging horizon 3 services (oversize deliveries, same-day chilled delivery, high-value waste services and
eCommerce 3
rd
party logistics).
We are working on the plan to upgrade the fleet of aircraft that service the NZ domestic overnight market.
Over time, we will continue to modernise our current aircraft fleet, replacing four aircraft (three 737-400s
and one 737-800) with three 737-800s that have higher carrying capacity and are more fuel efficient. This
transformation could occur either as current leases expire, or sooner if contractual commitments allow.
We expect this will create one-off costs at the point of transition expected to be no more than $2m, but will
generate long term efficiencies. For now, we are closely monitoring the situation with our partner Airwork.

Freightways is well positioned to take advantage of the opportunities that are in front of us with loyal
customers, high-performing businesses, disciplined balance sheet management as well as experienced
and adaptable customer-focused teams. Our focus will continue to be on restoring margins in FY25 and
FY26 as expected modest organic growth returns.
The Directors have declared an interim dividend of 19 cents per share, fully imputed in New Zealand at a
tax rate of 28%, up 6% on the pcp interim dividend. This represents a payout of approximately $34 million.
The dividend will be paid on 1 April 2025. The record date for determination of entitlements to the dividend
is 7 March 2025.

Disciplined Balance Sheet management
Capital expenditure for FY25 is forecast to be approximately $35m for the year as previously advised. We
remain committed to a solid investment-grade credit profile and will continue to manage our balance
sheet accordingly. Our gearing is expected to remain in the top half of our target range by the end of the
year.

Outlook
Whilst interest rates are beginning to fall in NZ and business confidence is slowly returning, we remain
cautious about any rapid recovery in NZ and to a lesser extent Australia.
• Volume in the HY was as expected and we expect that it will be a slow grind for the economy to provide
some organic growth in NZ in H2
• The AU economy is slightly more buoyant
• Our focus remains on restoring margins for both divisions in FY25 and FY26 as modest organic growth
occurs and market share gains are realised
• Big Chill’s Ruakura facility is contributing positively to earnings although in FY25 we expect only modest
organic growth in Temperature Controlled transport
• We now expect additional Medical Waste revenue to be delayed to Q4
• Labour cost increases are controlled and will be circa 3% for the year
• Continuous focus on the transition of our airfleet,
particularly given Airwork’s challenges
• We have invested c. $1m (opex) in a new pricing / billing and courier pay system in H1, with another
$4m expected in H2
• We are assessing M&A opportunities to leverage our presence in AU

Note: EBITA is a non-GAAP (Generally Accepted Accounting Principles) measure. Refer to the Income Statement and
Note 3 within the financial statements in the following pages for a reconciliation from EBITA to NPAT. NPAT is GAAP
compliant.


3

Fatality
We were deeply saddened by the sudden death of a member of the Shred-X team in Victoria Australia in
December of 2024. Our thoughts and sympathy are with family and colleagues impacted. While we
continue to investigate the cause of the accident, it reminds us that our team’s safety is our most important
priority. We will continue to be focused on our health and safety practices and the well-being of our teams.

The Directors would like to thank the Freightways’ teams right across New Zealand and Australia for their
efforts in providing reliable and high-quality service to our customers.





Mark Cairns Mark Troughear
Chairman Chief Executive Officer

17 February 2025

Independent auditor’s review report
To the shareholders of Freightways Group Limited

Report on the consolidated financial statements
Our conclusion
We have reviewed the consolidated financial statements of Freightways Group Limited (the Company)
and its subsidiaries (the Group), which comprise the consolidated balance sheet as at 31 December
2024, 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
six month period ended on that date, and selected explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated financial statements of the Group do not present fairly, in all material
respects, the financial position of the Group as at 31 December 2024, and its financial performance
and cash flows for the six month period then ended, 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).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for
the review of the consolidated financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In our capacity as auditor our firm
provides review and other assurance services. In addition, certain partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the
business. The firm has no other relationship with, or interests in, the Group.
Responsibilities of Directors for the consolidated financial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated financial statements in accordance with IAS 34 and NZ IAS 34 and
for such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of the consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s responsibilities for the review of the consolidated financial statements
Our responsibility is to express a conclusion on the consolidated financial statements based on our
review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention
that causes us to believe that the consolidated financial statements, taken as a whole, are not
prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of consolidated financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform 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 and International Standards
on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these consolidated financial
statements.

PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

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 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 Company and the Company’s Shareholders, as a body, for our
review procedures, for this report or for the conclusion we have formed.




The engagement partner on the review resulting in this independent auditor’s review report is Richard
Day.

For and on behalf of:






PricewaterhouseCoopers Auckland
17 February 2025

PwC

6

FREIGHTWAYS GROUP LIMITED
CONSOLIDATED INCOME STATEMENT
for the half year ended 31 December 2024 (unaudited)



Note
6 mths
ended
31 Dec 2024
$000
6 mths
ended
31 Dec 2023
$000

(restated*)



Operating revenue
3 & 4
662,105 620,693

Transport and logistics expenses

(272,169) (267,165)
Employee benefits expenses

(190,976) (177,157)
Occupancy expenses

(6,768) (3,035)
General and administrative expenses

(61,710) (53,832)
Depreciation and software amortisation

(44,478) (38,734)
Amortisation of intangibles

(6,221) (6,401)
Operating profit before interest and income tax
3
79,783 74,369
Net interest and finance costs

(17,122) (17,173)
Profit before income tax

62,661 57,196
Income tax

(17,914) (16,316)
Profit for the period

44,747 40,880



Profit for the period attributable to:


Owners of the parent

44,637 40,802
Non-controlling interests

110 78


44,747 40,880



Earnings per share for the period:


Basic earnings per share (cents)

25.0 23.0
Diluted earnings per share (cents)

25.0 23.0





* Refer to Note 1 for further details on the restated balances, which relates to the reclassification of certain expense items.


The above Income Statement should be read in conjunction with the accompanying notes.

7


FREIGHTWAYS GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half year ended 31 December 2024 (unaudited)



Note
6 mths ended
31 Dec 2024
$000
6 mths ended
31 Dec 2023
$000

Profit for the period

44,747 40,880

Other comprehensive income


Items that may be reclassified subsequently to profit or loss:


Exchange differences on translation of foreign operations
5
1,449 (2,067)
Cash flow hedges taken directly to equity, net of tax

(1,222) (1,533)
Total other comprehensive income after income tax 227 (3,600)

Total comprehensive income for the period

44,974 37,280



Total comprehensive income for the period is attributable to:


Owners of the parent

44,864 37,202
Non-controlling interests

110 78


44,974 37,280





The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

8
FREIGHTWAYS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year ended 31 December 2024 (unaudited)


Note
Contributed
equity
Retained
earnings
Cash flow
hedge
reserve
Foreign
currency
translation
reserve
Non-
controlling
interests
Total equity
$000 $000 $000 $000 $000 $000
Balance at 1 July 2024 308,386 190,476 1,024 (8,021) 404 492,269
Profit for the period - 44,637 - - 110 44,747
Exchange differences on translation of foreign operations - - - 1,449 - 1,449
Cash flow hedges taken directly to equity, net of tax - - (1,222) - - (1,222)
Total Comprehensive Income - 44,637 (1,222) 1,449 110 44,974
Dividend payments - (33,962) - - - (33,962)
Shares issued 5 1,210 - - - - 1,210
Balance at 31 December 2024 309,596 201,151 (198) (6,572) 514 504,491

Balance at 1 July 2023 298,075 185,618 2,404 (9,883) 388 476,602
Profit for the period - 40,802 - - 78 40,880
Exchange differences on translation of foreign operations - - - (2,067) - (2,067)
Cash flow hedges taken directly to equity, net of tax - - (1,533) - - (1,533)
Total Comprehensive Income - 40,802 (1,533) (2,067) 78 37,280
Dividend payments - (33,884) - - - (33,884)
Shares issued 9,673 - - - - 9,673
Balance at 31 December 2023 307,748 192,536 871 (11,950) 466 489,671

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

9
FREIGHTWAYS GROUP LIMITED
CONSOLIDATED BALANCE SHEET
as at 31 December 2024 (unaudited)


Notes
As at
31 Dec 2024
$000
As at
31 Dec 2023
$000
As at
30 Jun 2024
$000
(audited)
Current assets
Cash and cash equivalents 33,994 34,089 35,653
Trade and other receivables 186,634 173,007 160,610
Inventories 12,007 10,554 9,447
Contract assets 3,950 1,769 1,473
Derivative financial instruments 317 340 491
Total current assets 236,902 219,759 207,674

Non-current assets
Trade receivables and other non-current assets 4,823 7,644 6,194
Loans to related parties
Property, plant and equipment

180
163,642
-
153,335
180
160,677
Right-of-use assets 344,774 355,278 336,083
Intangible assets 6 665,813 671,209 668,941
Investment in associates and joint venture 14,626 13,990 13,335
Derivative financial instruments - 895 938
Total non-current assets 1,193,858 1,202,351 1,186,348
Total assets 1,430,760 1,422,110 1,394,022

Current liabilities
Trade and other payables 156,278 146,012 152,564
Borrowings (current portion) 7 22,077 - -
Lease liabilities 56,612 48,777 51,400
Income tax payable 29,681 18,550 17,297
Provisions 3,283 3,704 3,145
Contract liability 13,387 13,790 14,497
Total current liabilities 281,318 230,833 238,903

Non-current liabilities
Trade and other payables - 2,000 1,920
Borrowings 7 249,400 285,706 265,674
Deferred tax liability 47,412 52,366 52,192
Provisions 12,256 10,530 11,397
Lease liabilities 335,290 350,977 331,667
Derivative financial instruments 593 27 -
Total non-current liabilities 644,951 701,606 662,850
Total liabilities 926,269 932,439 901,753
NET ASSETS 504,491 489,671 492,269

EQUITY
Contributed equity 5 309,596 307,748 308,386
Retained earnings 201,151 192,536 190,476
Cash flow hedge reserve (198) 871 1,024
Foreign currency translation reserve (6,572) (11,950) (8,021)
503,977 489,205 491,865
Non-controlling interests 514 466 404
TOTAL EQUITY 504,491 489,671 492,269




The above Balance Sheet should be read in conjunction with the accompanying notes.

10
FREIGHTWAYS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half year ended 31 December 2024 (unaudited)


Note
6 mths
ended
31 Dec 2024
$000
6 mths
ended
31 Dec 2023
$000


Inflows
(Outflows)
Inflows
(Outflows)
Cash flows from operating activities


Receipts from customers

640,489 595,143
Payments to suppliers and employees

(535,901) (502,987)
Cash generated from operations

104,588 92,156
Interest received

496 488
Interest and other costs of finance paid

(18,647) (17,661)
Income taxes paid

(10,116) (16,649)
Net cash inflows from operating activities

76,321 58,334



Cash flows from investing activities


Payments for property, plant & equipment

(14,338) (9,325)
Payments for software

(1,882) (1,233)
Proceeds from disposal of property, plant & equipment

314 207
Payments for businesses acquired (net of cash acquired) 10 (4,298) 102
Dividends received from joint venture

400 -
Net cash outflows from investing activities

(19,804) (10,249)



Cash flows from financing activities


Dividends paid

(33,962) (25,012)
Increase (decrease) in bank borrowings

4,687 (9,585)
Principal elements of lease payments

(28,983) (23,696)
Proceeds from issue of ordinary shares

400 -
Net cash outflows from financing activities

(57,858) (58,293)



Net decrease in cash and cash equivalents

(1,341) (10,208)
Cash and cash equivalents at the beginning of the period

35,653 44,485
Exchange rate adjustments

(318) (188)
Cash and cash equivalents at the end of the period

33,994 34,089




The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)

11

1. Basis of Preparation

The interim financial statements are those of Freightways Group 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 New Zealand Equivalent to
the International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34) and International
Accounting Standard 34: Interim Financial Reporting (IAS 34) 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 2024.

The Group is designated as a for-profit entity for the purposes of complying with NZ GAAP.

The Group has negative working capital of $44.6 million. This is mostly due to contract liability for deferred
revenue (prepaid ticket liability) of $13.3 million and borrowings repayable within 12-months of $22.1
million which are classified as current liability (June 2024: $31.2 million due partly to contract liability; Dec
2023: $11.1 million due to contract liability). The Group has undrawn bank loan facilities as at 31 December
2024 totalling $109.2 million to fund short term cash requirements.

Reclassification of employee benefits expenses
The Group previously presented certain employee benefits expenses as transport and logistics expenses in
the Income Statement. The Group now considers it is more appropriate to include the expenses in employee
benefits expenses. The comparatives for the half year ended 31 December 2023 have been restated by
reclassifying $5.9 million from transport and logistics expenses to employee benefits expenses.


2. Material Accounting Policy Information

The accounting policies and methods of computation are consistent with those used in the most recent annual
report.


3. Segment Reporting

(a) Description of segments


A segment is a component of the Group that can be distinguished from other components of the Group by
the products or services it sells, the primary market it operates in and the risks and returns applicable to it.
Operating segments are reported upon in a manner consistent with the internal reporting used by the Chief
Executive Officer, as the chief operating decision maker, and the Board for allocating resources, assessing
performance and strategic decision making.

The Group is organised into the following reportable operating segments:

Express package & business mail
Comprises network (hub & spoke) courier, express freight, refrigerated transport, point-to-point courier and
postal services.

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


12
Information management
Comprises secure paper-based and electronic business information management services. This segment also
comprises secure handling, treatment and disposal of clinical waste, waste renewal, and related services.

Corporate and other
Comprises corporate, financing and property management services.

The Group has no individual customer that represents more than 10% of external sales revenue.

(b) Segment analysis

Express
package &
business
mail
Information
management
Corporate Inter-
segment
elimination
Consolidated
operations
$000 $000 $000 $000 $000
Half year ended
31 December 2024


Sales to external customers 544,758 117,347 - - 662,105
Inter-segment sales 2,475 222 2,573 (5,270) -
Total revenue 547,233 117,569 2,573 (5,270) 662,105

Operating profit (loss) before
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 110,569 28,610 (8,697) - 130,482
Depreciation and software
amortisation (30,556) (13,152) (770) - (44,478)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles 80,013 15,458 (9,467) - 86,004
Amortisation of intangibles,
excluding software amortisation (5,336) (885) - - (6,221)
Operating profit (loss) before
interest and income tax 74,677 14,573 (9,467) - 79,783
Net interest and finance costs (6,019) (2,509) (8,594) - (17,122)
Profit (loss) before income tax 68,658 12,064 (18,061) - 62,661
Income tax (19,051) (3,563) 4,700 - (17,914)
Profit (loss) for the period
49,607 8,501 (13,361) - 44,747

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


13
Segment Reporting (continued)

Express
package &
business
mail
Information
management
Corporate Inter-
segment
elimination
Consolidated
operations
$000 $000 $000 $000 $000
Half year ended
31 December 2023


Sales to external customers 515,118 105,575 - - 620,693
Inter-segment sales 1,986 155 3,009 (5,150) -
Total revenue 517,104 105,730 3,009 (5,150) 620,693

Operating profit (loss) before
interest, income tax,
depreciation and software
amortisation and amortisation of
intangibles 96,974 27,897 (5,367) - 119,504
Depreciation and software
amortisation (25,529) (12,450) (755) - (38,734)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles 71,445 15,447 (6,122) - 80,770
Amortisation of intangibles,
excluding software amortisation (5,240) (1,161) - - (6,401)
Operating profit (loss) before
interest and income tax 66,205 14,286 (6,122) - 74,369
Net interest and finance costs (5,303) (2,597) (9,273) - (17,173)
Profit (loss) before income tax 60,902 11,689 (15,395) - 57,196
Income tax (17,104) (3,403) 4,191 - (16,316)
Profit (loss) for the period
43,798 8,286 (11,204) - 40,880

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


14
4. Revenue from Contracts with Customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the
following major product lines:


Express
Package and
Refrigerated
Transport &
Storage
Postal Storage &
Handling
Destruction
Activities
Other
including
Digital
Services
Total
Half year ended
31 December 2024
$000 $000 $000 $000 $000 $000
Revenue from external
customers
512,842 31,916 35,878 56,324 25,145 662,105
Timing of revenue
recognition:

At a point in time - 1,620 - 15,610 3,527 20,757
Over time 512,842 30,296 35,878 40,714 21,619 641,349
512,842 31,916 35,878 56,324 25,145 662,105

Half year ended
31 December 2023

Revenue from external
customers
486,153 28,965 33,972 47,336 24,267 620,693
Timing of revenue
recognition:

At a point in time - 1,559 - 13,922 4,203 19,684
Over time 486,153 27,406 33,972 33,414 20,064 601,009
486,153 28,965 33,972 47,336 24,267 620,693


5. Equity

Contributed equity

Fully paid ordinary shares
As at 31 December 2024, there were 178,789,356 fully paid ordinary shares on issue (2023: 178,712,819).
All fully paid ordinary shares have equal voting rights and share equally in dividends and surplus on winding
up.

Dividend Reinvestment Plan
The Freightways Dividend Reinvestment Plan was not offered during the period (2023: the Company issued
1,054,748 fully paid ordinary shares at $8.4115 under the Freightways Dividend Reinvestment Plan).

Share rights
On 21 August 2024, 33,537 share rights vested upon achievement of certain financial hurdles set by the
Board and each of the share rights converted to one Freightways fully paid ordinary share (2023: 136,713).
The issue price per share was $12.85 (2023: $7.38).

On 21 August 2024, 55,879 share rights were redeemed and cancelled as the performance hurdles were not
met at the end of the 3-year vesting period (2023: 13,717).

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


15
On 6 December 2024, 241,230 share rights were issued to certain senior executives under the rules of the
Freightways Long Term Incentive Scheme (2023: Nil).

As at 31 December 2024, there were 618,697 share rights on issue (2023: 241,576). Share rights do not
carry a dividend entitlement and are non-transferable.


Employee share plan
On 5 December 2024, the Company issued 43,000 fully paid ordinary shares at $9.18 each to Freightways
Trustee Company Limited, as Trustee for the Freightways Employee Share Plan (2023: 90,000 fully paid
ordinary shares at $6.85 each). In total, participating employees were provided with interest-free loans of
$0.4 million to fund their purchase of the shares in the Share Plan (2023: $0.6 million). The loans are
repayable over three years and repayment commenced in December 2024.

Exchange differences on translation of foreign operations
Exchange differences on translation of foreign operations comprise all foreign exchange differences
arising from the translation of the financial statement of foreign operations into New Zealand
dollars.


6. Intangible Assets

(i) Goodwill
Goodwill represents the excess of the consideration transferred in an acquisition over the fair value of
the Group’s share of the net identifiable assets of the acquired business at the date of acquisition.
Goodwill is not amortised but is tested for impairment annually or whenever events or changes in
circumstances indicate that it might be impaired and is carried at cost less accumulated impairment
losses. Goodwill is allocated to cash-generating units for the purpose of impairment testing.

(ii) Brand names
Acquired brand names are recognised at cost, being their fair value at the date of acquisition if acquired
in a business combination. Brand names with indefinite useful lives are not subject to amortisation but
are tested for impairment annually or whenever events or changes in circumstances indicate that they
might be impaired and are carried at cost less amortisation and impairment losses. Brand names with
finite useful lives are amortised over their expected useful lives. The useful lives and amortisation
methods are reviewed and adjusted, if appropriate, at each balance sheet date.

Brand names are allocated to cash-generating units for the purpose of impairment testing. The allocation
is made to those cash-generating units or groups of cash-generating units that are expected to benefit
from the brand names.

Impairment tests for indefinite life intangible assets

On an annual basis or whenever events or changes in circumstances indicate potential impairment, the
recoverable amount of goodwill and brand names is determined based on the greater of value-in-use and fair
value less costs of disposal calculations specific to the CGU or group of CGUs associated with both goodwill
and brand names.

The financial performance of Big Chill for the half year ended 31 December 2024 is significantly behind
budget, impacted by the economic downturn in New Zealand and the company’s exposure to higher value
food, indicating risk of a potential impairment. Value-in-use calculation has been prepared for Big Chill at
the half year to ensure that the recoverable amount of goodwill and brand name of Big Chill is greater than
the carrying value.

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


16
The value-in-use calculation has been prepared using pre-tax cash flow projections based on financial
forecast prepared by management for the year ended 30 June 2025 and financial projections for the years
ended 30 June 2026 and 2027. Cash flows beyond June 2027 have been extrapolated using growth rates
which take into consideration historical economic conditions for the relevant economies. A probabilistic
approach was also adopted where a number of different growth scenarios were considered and weighted by
likelihood of achievement. In addition, the sensitivity of the main financial variables was tested and
considered in the final estimation. No adjustments were made to forecast cash flows for the unknown impacts
of future climate change.

Revenue growth rates and a consistent EBITDA margin assuming costs increase in line with revenue,
reflecting both historical and expected growth, have been applied to the value-in-use calculation with the
same scenarios and sensitivities applied as described in Section (i) Significant estimate – sensitive to changes
in assumptions below. Pre-tax discount rate, reflecting the current environment in financial markets and New
Zealand, has been used. The growth rates and pre-tax discount rates applied are:

2025 2024

Revenue
Growth Rate
FY25-FY27
Pre-tax
Discount
Rate
Revenue
Growth Rate
Beyond FY24
Pre-tax
Discount
Rate
Big Chill 5.1% - 9.5% 13.4% 6% – 13.9% 14.1%

(i) Significant estimate - Sensitivity to changes in assumptions

From the value-in-use assessment for Big Chill, management believes that the indefinite life intangible assets
are not impaired.

Management also assessed the sensitivity of Big Chill’s value-in-use to changes of some of the key value
drivers. BCD would be most specifically impacted by further reduction of its profitability against forecast.
The recoverable amount of Big Chill would equal its carrying amount if any of the key assumptions were to
change as follows:

2025
From To
Achievement of FY25-FY27 revenue 100% 94%
Terminal EBITDA growth rate 2.5% 0.7%
Pre-tax discount rate 13.4% 15.3%


7. Borrowings

As at 31 December 2024, the Group’s debt facilities with its banking syndicate comprised NZ$150 million
and A$80 million (2023: NZ$150 million and A$80 million), of which NZ$104 million and A$33.6 million
(2023: NZ$109 million and A$45.2 million) had been drawn, respectively.

The Group has a finance facility with a US-based lender on the same terms as the banking syndicate. Of this
facility, the US dollar equivalent of NZ$20 million and A$100 million were drawn as at 31 December 2024
(2023: NZ$20 million and A$100 million).

The Group had an undrawn bank overdraft facility of NZ$12 million available (2023: NZ$8 million).

The Group was in compliance with all its banking covenants throughout this financial period.

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


17
8. Transactions with Related Parties

Trading with related parties: The Group has not entered into any material external related party transactions
which require disclosure. The Group does trade, on normal commercial terms, with certain companies in
which there are common directorships.


Payments to associates: During the period, the following transactions occurred with Sweetspot Group
Limited (GSS), an entity incorporated in New Zealand and is 33.3% owned by the Group:

Payments to joint venture: During the period, the Group paid Parcelair Limited $7.9 million (2023: $7.4
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 jointly controller by the Group.

Key management compensation: Compensation paid during the period (or payable as at 31 December 2024
in respect of the half year) to key management, which includes senior executives of the Group and non-
executive independent directors, is as follows:



9. 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 2024 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 2024.

In the period to 31 December 2024 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.


2024
$000
2023
$000
Sale of courier services to GSS 6,362 6,653
Purchase of goods and services from GSS 841 1,088
Receivables from GSS at end of period 1,290 1,738

2024
$000
2023
$000
Short-term employee benefits 6,246 6,272
Share-based payments 275 200

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)


18
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 and US Private Placement (USPP)) 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;
• In respect of USPP, the fair value is calculated on a discounted cash flow basis using the USD Bloomberg
curve and applying discount factors to the future USD interest payment and principal payment cash
flows; 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.

The Group’s derivative financial instruments and USPP 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 2024.

There have been no reclassifications of financial assets and finance liabilities since 30 June 2024.

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


10. Business Combinations

Prior period acquisition – First Global Logistics (“FG”)

Effective 1 November 2023, the Group acquired the business and assets of FG, an end-to-end international
e- commerce logistics business in New Zealand for total consideration of $5.9 million. The consideration
comprises a $3.9 million non-cash settlement of trade payables between the Group and the acquiree and a
future earn-out of up to $2 million payable at the end of the 2025 financial year. The acquired business
expands the Group’s international e-commerce logistics know-how and operates within the Group’s express
package division.

As at 31 December 2024, the estimated discounted future earn-out payment for the acquisition of FG was
$1.9 million (30 June 2024: $1.9 million). This represents no change in the estimated undiscounted future
earn-out payment from the last balance date. The Group has forecast several scenarios and probability-

FREIGHTWAYS GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the half year ended 31 December 2024 (unaudited)
19
weighted each to determine an updated fair value for this contingent payment arrangement. The liability is
presented within current trade and other payables in the balance sheet.
Prior period acquisition – ProducePronto (“PP”)
E
ffective 1 November 2021, the Group acquired the business and assets of PP for an initial consideration of
approximately $12.1 million and future earn-out of up to $3.8 million over 3 years. PP operates fourth party
logistics (4PL) services with 365 days per year, same-day fresh and frozen delivery to convenience outlets
in New Zealand and businesses across Auckland. This acquired business operates within the Group’s express
package & business mail operating segment.
As at 30 June 2024, the estimated discounted future earn-out payment for the acquisition of PP was $3.7
million. The final earn-out amount was $3.5 million and this was paid in September 2024.
Reconciliation of payments for businesses acquired
$000
Cash paid for contingent consideration for the acquisition of ProducePronto 3,458
Cash paid for other acquisitions 840
Payments for businesses acquired, net of cash acquired 4,298
11. C
limate Change
Ri
sks, including those associated with climate change, are reviewed on a regular basis. There is no material
change to the Group’s climate change risk since 30 June 2024 or from the Group’s Climate Statement for the
year ended 30 June 2024 which was released on 21 October 2024.
12.C
apital Commitments and Contingent Liabilities
A
s at 31 December 2024, the Group had capital commitments to purchase equipment of $8.1 million (2023
:
$10.5 mi
llion).
As at 31 December 2024, the Group had outstanding letters of credit and bank guarantees issued by its lenders
totalling approximately $14.3 million (2023: $14.1 million). The letters of credit and bank guarantees
predominantly relate to security given to various landlords in respect of leased operating facilities.
T
here were no other contingent liabilities as at 31 December 2024 (2023: nil).
13.N
et Tangible Assets per security
N
et tangible assets (liabilities) per security at 31 December 2024 was ($0.84) (2023: ($0.94)).
14.P
ost Balance Date Events
Dividend declared
On 17 February 2025, the Directors declared a fully imputed interim dividend of 19 cents per share
(approximately $34 million) in respect of the half year ended 31 December 2024. The dividend will be pai
d
on
1 April 2025. The record date for determination of entitlements to the dividend is 7 March 2025. A
supplementary dividend of 3.35 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.
A
t the date of this report, there have been no other significant events subsequent to the reporting date.