Annual Shareholders Meeting 26 October 2006

Wayne Boyd, Chairman



Agenda

Chairman’s introduction  Managing Director’s review and trading update  Resolutions

General Highlights

• Subsidiaries have performed well in a challenging operating environment • Strategies have realised sound growth in both ‘Core’ Express Package and ‘Emerging’ Business Mail and Information Management businesses • Kiwi Express acquisition has performed fully to expectation • Post balance date acquisition of DataBank • Approximately 7,000 shareholders

Financial Highlights 2006 $000 Operating revenue EBITDA

256,689 58,318

EBITA NPAT NPATA

53,360 24,306 29,276

Earnings per share (NPAT)

19 cents

2005 $000

233,725 54,996 50,539 21,991

increase %

10% 6% 6% 11% 26,948 17 cents 9% 11%

Dividends

Dividend declared Cents per share Full year (cps)

Jun-06 $11.2m

8.75

17.25

Key points:

• Increase of 8% compared to 2005 • Fully Imputed • Was paid 30 September 2006

Dec-05

$10.9m

8.50

Jun-05

$10.7m

8.50

16.00

Dec-04

$9.5m

7.50

Dean Bracewell, Managing Director Review and Trading Update



Managing Director’s Presentation

Industry overview and business description  Business strategy  Trading update  Outlook

Express Package Industry Overview and Business Description

Express Package Industry

• Two segments to Express Package industry – Network couriers 90% of industry revenue – Point-to-point couriers 10% • Services embedded in supply chains of businesses • Consolidated industry structure • Growth underpinned by demand for Just in Time supply

Multi-Brand Strategy

Major brands: – Differentiated by price and service – Capture growth across entire market

Freightways’ Courier Brands Price Service

Information Management and Business Mail Industry Overview and Business Description

Information Management - NZ

• Total information management solution • An emerging growth opportunity • Integrated with Freightways express package operations

Information Management - Australia Features of the DataBank acquisition

• No.2 operator in data storage niche of Information Management market • Experienced and capable management team • Similar service-oriented operating culture to FRE • Earn-out purchase structure aligns vendors’ interests with those of FRE shareholders

Information Management – Australia (cont.) Features of the DataBank acquisition (continued)

• Immediately EPS positive • Diversifies FRE earnings geographically and deeper into the Information Management market • Information management market is under-developed • Catalyst for further growth

Business Mail

• Niche player in deregulated postal services industry • Growth opportunities in business mail segment • Integrated with Freightways express package operations

Business Strategy

Business strategy

• Enhancing capability within core business - people, infrastructure and IT • Continued development of growth opportunities in Freightways’ existing three markets • Positioning, People, Performance, Profit • Explore complementary acquisition and alliance opportunities in New Zealand & Australia

Trading Update

Operating Revenue

300 250 200

$M

150 100 50 Jun99 Jun00 Jun01 Jun02 Jun03

Year Ended

Jun04 Jun05 Jun06

2 nd Half 1st Half

• 10 % revenue growth compared to 2005 • 5-year compound average annual revenue growth of 8%

EBITA

60 50 40

$M

30 20 10 Jun99 Jun00 Jun01 Jun02 Jun03

Year Ended

Jun04 Jun05 Jun06

2 nd Half 1st Half

• 6% EBITA growth compared to 2005 • 5-year compound average annual EBITA growth of 17%

Current Financial Performance Operating revenue EBITDA EBITA NPAT Qtr ended 30 September 2006 $000 2005 $000 increase %

70,050 62,445 12% 15,564 13,973 6,288 14,416 13,236 6,109 8% 6% 3%

NB: S eptember YTD numbers are drawn from management accounts and are unaudited

Outlook

Outlook

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

Summary

 Strong successful business  Positioned to deliver continuing earnings growth  Delivering an attractive dividend yield

Questions

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Resolutions

Re-election of Directors  Authority to fix Auditors remuneration

Annual Shareholders Meeting 26 October 2006