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 2005 increase$000 $000 %

Operating revenue 256,689 233,725 10%

EBITDA 58,318 54,996 6%

EBITA 53,360 50,539 6%

NPAT 24,306 21,991 11%

NPATA 29,276 26,948 9%

Earnings per share (NPAT) 19 cents 17 cents 11%

Dividends

Jun-06 Dec-05 Jun-05 Dec-04

Dividend declared $11.2m $10.9m $10.7m $9.5m

Cents per share 8.75 8.50 8.50 7.50

Full year (cps) 17.25 16.00

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

Dean Bracewell, Managing Director

Review and Trading Update

Managing Director’s Presentation

Industry overview and business description

Business strategy

Trading update

Outlook

Express Package IndustryOverview 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

• Total information management solution

• An emerging growth opportunity

• Integrated with Freightways express package operations

Information Management - NZ

Features of the DataBank acquisition

• No.2 operator in data storage niche of InformationManagement market

• Experienced and capable management team

• Similar service-oriented operating culture to FRE

• Earn-out purchase structure aligns vendors’ interests withthose of FRE shareholders

Information Management - Australia

Features of the DataBank acquisition (continued)

• Immediately EPS positive

• Diversifies FRE earnings geographically anddeeper into the Information Management market

• Information management market is under-developed

• Catalyst for further growth

Information Management – Australia (cont.)

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

• 10% revenue growth compared to 2005

• 5-year compound average annual revenue growth of 8%

Operating Revenue

-

50

100

150

200

250

300

Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06

Year Ended

$M 2nd Half

1st Half

EBITA

• 6% EBITA growth compared to 2005

• 5-year compound average annual EBITA growth of 17%

-

10

20

30

40

50

60

Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06

Year Ended

$M 2nd Half

1st Half

Current Financial Performance

Qtr ended 30 September

2006 2005 increase

$000 $000 %

Operating revenue 70,050 62,445 12%

EBITDA 15,564 14,416 8%

EBITA 13,973 13,236 6%

NPAT 6,288 6,109 3%

NB: September 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

Resolutions

Re-election of Directors

Authority to fix Auditors remuneration

Annual Shareholders Meeting

26 October 2006