August 2007August 2007

INTRODUCTIONINTRODUCTION

• 2007 Interim Results2007 Interim Results

• Shipping MarketsShipping Markets

• Strategy UpdateStrategy Update

• ConclusionConclusion

• AnnexuresAnnexures

– A : Market Value of FleetA : Market Value of Fleet

– B : Fleet SummaryB : Fleet Summary

– C : Shipping Market ReportC : Shipping Market Report

20072007

INTERIM RESULTSINTERIM RESULTS

EARNINGS FROM SHIPSEARNINGS FROM SHIPS

Owned & Long -Term Chartered

Bulk Carriers Tankers Total 2007

1st

Six

Months

Total 2006

1st

Six

Months

Handysize Panamax Capesize Chemical / Small

Product

Mid-Range Product

Daily income ($/day)

17 500 20 800 42 600 13 300 19 800 21 000 16 600

Daily cost ($/day)

7 500 9 200 21 000 9 600 14 600 10 900 10 700

Average no. of ships

18.7 2.0 4.8 5.5 6.5 37.5 39.2

Profit contribution

$34m $4m $19m $4m $6m $67m $42m

International Operations $63m $35m

SA Based Operations $4m $7m

June

2007

June

2006

Growth%

Comments

Shipping Services

Earnings from ships ($ million) 63.0 35.0 High shipping markets

Trading profits from ship sales ($ million) 19.8 18.5

Forex profit ($ million)

Other income / overheads / other interest ($ million)

0.6

(8.5)

8.3

(4.7)

Stable Rand

Profit from international operations ($ million) 74.9 57.1 31.1

Profit from international operations (R million) 538 360

Profit from SA based operations (59) 67 Loss in parcel service; provisions for contracted losses

479 427 12.2

Trading, Freight and Financial Services

Trading Services 29 (4) Increased volumes/margins

Freight Services 62 43

Financial Services 14 3

104 42 116.7

Overheads/disposal adjustment (13) (4) Adjustment i.r.o. disposals in previous year

92 38 140.0

Profit attributable to ordinary shareholders 571 465 22.6

INCOME STATEMENTINCOME STATEMENT

See Annexure A for detail on revaluation of fleet to market value

June

2007

Rm

June

2006

Rm

Comments

Fixed Assets / Investments 8 749 5 684 R2.9 billion increase in fleet value since June 2006

Bank Loans, Advances and Liquid Assets

839 - Acquisition of 100% of Grindrod Bank

Current Assets 2 233 2 033 Trading Services – increased volumes

Total Assets 11 821 7 717

Equity 8 410 5 805 Increase in profits and fleet value

Net Debt 777 266 Increased borrowings to fund acquisitions and expansion

Bank Deposits 784 - Acquisition of 100% of Grindrod Bank

Other Liabilities 1 850 1 646 Trading Services – increased volumes

Total Equity & Liabilities 11 821 7 717

Gearing - Book Value

- Fleet at Market Value

0.25

0.09

0.10

0.04

BALANCE SHEETBALANCE SHEETIncluding Revaluation of Fleet to Market Value

SHIPPING MARKETSSHIPPING MARKETS

SHIPPING MARKETS – DRY BULKSHIPPING MARKETS – DRY BULKBULK CARRIER

New Building Prices

0

10

20

30

40

50

60

70

80

90

100

1997

-Q1

1997

-Q2

1997

-Q3

1997

-Q4

1998

-Q1

1998

-Q2

1998

-Q3

1998

-Q4

1999

-Q1

1999

-Q2

1999

-Q3

1999

-Q4

2000

-Q1

2000

-Q2

2000

-Q3

2000

-Q4

2001

-Q1

2001

-Q2

2001

-Q3

2001

-Q4

2002

-Q1

2002

-Q2

2002

-Q3

2002

-Q4

2003

-Q1

2003

-Q2

2003

-Q3

2003

-Q4

2004

-Q1

2004

-Q2

2004

-Q3

2004

-Q4

2005

-Q1

2005

-Q2

2005

-Q3

2005

-Q4

2006

-Q1

2006

-Q2

2006

-Q3

2006

-Q4

2007

-Q1

2007

-Q2

'07-

08-0

3

US

$ m

il

170K DWT Capesize Bulkcarrier Newbuilding Prices 120K DWT Capesize Bulkcarrier Newbuilding Prices

75K DWT Panamax Bulkcarrier Newbuilding Prices 23/30K DWT Handysize Bulkcarrier Newbuilding Prices

32/35K DWT Handysize Bulkcarrier Newbuilding Prices

BULK CARRIER1 Year Time Charter Rates

0

20,000

40,000

60,000

80,000

100,000

120,000

1997

-Q1

1997

-Q2

1997

-Q3

1997

-Q4

1998

-Q1

1998

-Q2

1998

-Q3

1998

-Q4

1999

-Q1

1999

-Q2

1999

-Q3

1999

-Q4

2000

-Q1

2000

-Q2

2000

-Q3

2000

-Q4

2001

-Q1

2001

-Q2

2001

-Q3

2001

-Q4

2002

-Q1

2002

-Q2

2002

-Q3

2002

-Q4

2003

-Q1

2003

-Q2

2003

-Q3

2003

-Q4

2004

-Q1

2004

-Q2

2004

-Q3

2004

-Q4

2005

-Q1

2005

-Q2

2005

-Q3

2005

-Q4

2006

-Q1

2006

-Q2

2006

-Q3

2006

-Q4

2007

-Q1

2007

-Q2

'07-

08-0

3

US

$ p

er d

ay

1 Year Bulkcarrier Timecharter Rates 150,000 dwt 1 Year Bulkcarrier Timecharter Rates 170,000 dwt

1 Year Bulkcarrier Timecharter Rates 65,000 dwt 1 Year bulkcarrier Timecharter Rates 70/72,000 dwt

1 Year Bulkcarrier Timecharter Rates 30,000 dwt

BULK CARRIER – NEWBUILDING PRICES Comments• Continued demand for commodities

• Newbuildings not meeting demand

• Port delays

• Creation of new trade lanes

• Good long-term outlook

BULK CARRIER – 1 YEAR TIME CHARTER RATES

Spot/

Period

TC rates

Date Capesize Panamax Handysize

Spot rates Baltic Ave

time charters

02/03/07

29/06/07

03/08/07

80 584

100 713

107 593

38 437

51 870

57 744

22 478

28 471

34 416

1 Year time charter rates

02/03/07

29/06/07

03/08/07

67 500

92 500

106 500

33 250

45 000

54 250

19 500

25 000

29 000

3 year time charter rates

02/03/07

29/06/07

03/08/07

53 500

70 000

75 000

26 500

34 000

41 000

16 750

20 500

23 000

5 Year time charter rates

14/08/07 60 000 35 000 17 500

SHIPPING MARKETS – PRODUCT SHIPPING MARKETS – PRODUCT TANKERSTANKERS

Comments

• Relatively stable as expected

• Mid-range ships

Balanced supply and demand

• Smaller ships

Undersupplied

• Market outlook

Cautious in short-term

Stronger longer-term outlook

- Legislation requirements

- Scrapping

STRATEGY UPDATESTRATEGY UPDATE

STRATEGY UPDATESTRATEGY UPDATE

Shipping Services

• Shipping markets continue to be firm (but higher than expected)

• Continuing to focus on areas of expertise

• Fleet expansion in under-invested sectors

Ordered 2 x 16 500 dwt product tankers

Ordered 3 x handysize bulk carriers

Sales contracted for 2 x 12 800 dwt product/chemical tankers

• Continue to add to long-term contract cover

Contracted out at 30/06/2007

Bulk Carriers Tankers Total

Handysize Panamax Capesize Chemical Mid-Range Small

2007

2nd six months

Number (Average)

Revenue (US$/day)

21.3

20 600

2.0

20 800

4.3

39 700

2.3

15 000

5.3

18 500

-

-

35.2

22 400

2008 Number (Average)

Revenue (US$/day)

8.8

18 200

2.0

20 700

3.7

34 400

1.8

20 000

6.1

21 000

0.4

15 000

22.8

22 000

2009 Number (Average)

Revenue (US$/day)

1.6

18 300

2.0

20 700

2.4

36 700

0.8

19 900

3.7

20 400

1.5

15 000

12.0

22 900

2010 Number (Average)

Revenue (US$/day)

0.1

15 000

1.1

20 600

1.5

39 000

-

-

3.5

20 400

1.5

15 000

7.7

23 200

2011 Number (Average)

Revenue (US$/day)

-

-

1.0

20 600

0.9

27 500

-

-

1.5

22 000

1.1

15 000

4.5

20 800Contracted profits (US$m)

% of fleet

fixed

Charters

US$m

Ship sales

US$m

Total

US$m

2007 (2nd half) 89 72 6 78

2008 58 78 11 89

2009 32 36 - 36

2010 18 22 - 22

2011 9 8 - 8

CONTRACTED EARNINGSCONTRACTED EARNINGS

TRADING, FREIGHT & FINANCIAL SERVICESTRADING, FREIGHT & FINANCIAL SERVICES

• Trading operations now bedded down

• Freight Services

Greater focus on infrastructure investment

Restructure into distinct divisions completed

• Terminal Development

Maputo (R100m capital commitment)

- Ferroslab Terminal – operational August 2007

- Car Terminal – operational December 2007

- Coal Terminal upgrade – complete December 2007

- Bulk Liquids facility – complete October 2007

- Further terminal opportunities under negotiation

TRADING, FREIGHT & FINANCIAL SERVICESTRADING, FREIGHT & FINANCIAL SERVICES

• Terminal Development (continued)

Richards Bay Terminal expansion (R168m capital commitment) – complete June 2008

Maydon Wharf Facility expansion (R59m capital commitment) – complete October 2007

• Sold 6 locomotives – commercial decision

• Other acquisitions

50% in Vanguard Rigging (Heavy logistics)

Tate & Lyle Molasses South Africa (Bulk liquids)

Remaining 50% in Boltt Grindrod

Remaining 50% in CMC Grindrod

• Grindrod Bank

Performing according to plan

Net 1 initiative taking shape

STRATEGY UPDATESTRATEGY UPDATE

International Listing/Unbundling

• Have completed investigation

• Will revisit when:

Freight Services properly established

Capital required

Black Economic Empowerment

• Concluded Grindrod Bank transaction

• Freight Services BEE ownership transaction is in progress

CONCLUSIONCONCLUSION

• Shipping

Long-term charter rates/ship prices indicate expectation of a firm shipping market in the medium-term

Contracted growth in fleet (35% - detail in Annexure B)

Contracted earnings at good levels (last 6 months 2007 = 89%; 2008 =58%; 2009 = 32%)

• Trading, Freight and Financial Services

Well positioned for growth

Focus on infrastructure

Will take advantage of regional growth

CONCLUSIONCONCLUSION

ANNEXURESANNEXURES

Market Value of Fleet

Rm

Excess of market value over book 1 266value of owned ships

Value of long-term charters 3 483

Value of ship purchase options on 1 304chartered ships 6 053

Indicative values obtained in consultation with reputable ship brokers

Differential between Grindrod charter rate and current rate to replace charter i.e. does not include expected profitPV @ 8% (USD WACC) converted at closingexchange rate

Projected value of ship at end of charter compared to option strike pricePV @ 8% (USD WACC)

ANNEXURE AANNEXURE A

The group valuation should consist of:

1. The analyst’s valuation of Grindrod’s SA based operations 2. A valuation of the international shipping operation taking into account the fleet value,

comparison to peers and the analyst’s estimation of the group’s ability to extract value from its shipping fleet

Contracted in at 30/06/2008

Bulk Carriers Tankers Bunker Barges

Total

Handysize Panamax Capesize Chemical Mid- Range

Small

2007 Number 21.0 2.0 5.0 4.4 6.0 1.0 - 39.4

2nd six months

Cost (US$/day) 7 500 9 200 20 700 11 400 16 100 9 000 - 11 200

2008 Number 21.2 2.0 4.4 4.0 7.4 1.4 2.0 42.4

Cost (US$/day) 8 000 9 200 19 300 14 600 14 600 10 300 5 100 10 900

2009 Number 21.2 2.0 3.0 4.0 8.1 4.2 2.0 44.5

Cost (US$/day) 8 100 9 200 21 400 14 600 15 900 11 500 5 600 11 200

2010 Number

Cost (US$/day)

21.5

8 300

2.0

9 200

3.0

20 800

4.0

14 600

9.3

16 600

8.0

11 600

2.0

5 600

49.8

11 500

2011 Number

Cost (US$/day)

22.6

8 800

2.0

9 200

2.0

20 700

4.5

14 600

10.0

17 100

9.0

11 800

2.0

5 700

52.1

11 600

Current Fleet 21 2 5 5 6 1 - 40

Net Number of Ships to Deliver

2nd half 2007 - - - - 1 - - - -1

2008 1 - -2 - 2 1 2 4

2009 -1 - - - 1 3 - 3

2010 1 - - - 1 4 - 6

2011 2 - -1 1 - - - 2

Fleet at end of 2011 24 2 2 5 10 9 2 54

ANNEXURE BANNEXURE B