Report for thesix months ended 31 December 2004

This presentation relates to the Freightways Limited NZX announcement and media release of 7 February 2005.

As such it should be read in conjunction with, and is subject to the explanations and views contained in, those releases.

Financial HighlightsDec-04 Dec-03 variance$000 $000 %

Operating revenue 117,226 106,358 10%

EBITDA 28,212 22,791 24%

EBITA 26,000 20,355 28%

NPAT 11,238 7,696 46%

ROFE 26% 21%

NB: The above results are drawn from unaudited management accounts.External auditors have performed a half year review in respect of Dec-04.

• 10% revenue growth to Dec 2004

• 5 year compound average annual revenue growth of 7%

Operating Revenue

2nd Half

1st Half

-

50

100

150

200

250

Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05

Year Ended

$M

Where Revenue Growth Has Come From

100

105

110

115

120

2003 O rganic Pricing Market share Acquisition 2004

Growth drivers

$M 106

5%2%

2%1% 117

EBITA

• 28% EBITA growth to Dec 2004

• 5 year compound average annual EBITA growth of 18%

2nd Half

1st Half

-

5

10

15

20

25

30

35

40

45

Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05

Year Ended

$M

Drivers of EBITA Growth

• Leverage gained by adding revenue to established

national infrastructure

• Disciplined margin focus relating to new business

• Favourable business mix

• Good cost control

Cash Flows

• Operational cash flows of $28m reflect strong EBITA result

• Capital expenditure below budgeted expectation at this stage of the year

• Borrowings reduced by $3m during the half year ending 31 December 2004

Balance Sheet

• Continuation of strong negative working capital position

• Increase in fixed assets of $1m (net of depreciation)

• Reduction in bank borrowings of $3m

• Goodwill amortised over 20 years (charge of $5m p.a.)

Interim Dividend

Dec-04 Jun-04 Dec-03

Dividend declared $9.45m $8.55m $7.25mFully imputed yes yes yes

Cents per share 7.50 6.90 5.85

Record date 18 March - -Payment date 31 March 30 Sept 31 March

Finance Facilities

• Refinancing completed December 2004 to replace subordinated debt with core bank debt

• Additional headroom negotiated of $22m

• Interest savings of approximately $500k p.a. will flow from 1 July 2005

• New finance facility leverages existing documentation and covenants

Business Strategy

Strategy

• Continued development of growth opportunities in Freightways’ existing three core markets

• Positioning, People, Performance, Profit

• Explore complementary growth opportunities

• Invest in IT and infrastructure

The Next Six Months

The Next Six Months

• Economy favourable from Freightways’ perspective

• Characteristics of competitive environment expected to remain unchanged despite competitors ownership change

• Consistent application of proven market strategies

• Expect to deliver a strong full year result

• Business as usual

Summary

• Strong successful business

• Positioned to deliver continuing earnings growth

• Delivering an attractive dividend yield