Enhanced Investments - Financial Portal

Trading update

Published: 2022-10-13 08:06:03 ET

(Incorporated in the Republic of South Africa)
(Registration number 1966/009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE000071106
(“Grindrod” or “the Company” or “the Group”)

TRADING UPDATE

This trading update is also available on the Company’s website on the Investor Presentations landing page:
https://www.grindrod.com/investor-proposition/shareholder-documents#presentations.

TRADING UPDATE

OVERVIEW

Grindrod continued to deliver a strong performance for the nine-month period ended 30 September 2022 (“the
period”).

Volume growth due to strong mining minerals markets and strategic focus on customer solutions are the
drivers of performance in both the Port and Terminals, and Logistics business segments.

Grindrod Bank reported healthy growth in its earnings compared to the nine-month period ended
30 September 2021 (“the prior period”) underpinned by the higher interest rate environment.

OPERATIONAL REVIEW

Port and Terminals

Maputo Port volumes were up 23% against the prior period capitalising on the additional slab and berthing
capacity.

Grindrod’s drybulk terminals volumes were up 47% on the prior period. Grindrod benefited from further profit
participation on 293 716 tonnes of coal cargo handled, driven by strong customer demand.

Repairs to the damaged berth infrastructure at the Matola terminal are now complete. Feasibility studies are
currently underway for the expansion of the terminal from 7.3 million tonnes per annum to 12.0 million tonnes
per annum.

Logistics

Grindrod’s coastal shipping and container depot business performance benefitted from healthy charter rates
secured on the leasing and subleasing of vessels.

The locomotives deployment rate in Grindrod’s Rail business improved to 63% compared to the prior
period’s 32%.
The Northern Mozambique graphite operations embedded its alternative break bulk solution out of the port of
Pemba handling 60 684 tonnes for the period.

The clearing and forwarding business delivered solid results for the period supported by favourable freight
rates.

CORPORATE TRANSACTIONS

The disposal of Grindrod Bank to African Bank is now complete with all conditions precedent fulfilled on the
7th of October 2022. The disposal will be effective on the 1st of November 2022.

REMGRO LIMITED (“REMGRO”) UNBUNDLING

Following Remgro’s announcement to unbundle its Grindrod interest to its shareholders, Grindrod would like
to thank Remgro for their continued support over the years and reaffirm the Group’s commitment to execute
the strategy to unlock shareholder value.

STRATEGY

Grindrod continues to drive its strategy of delivering efficient and cost-effective logistics solutions to its existing
and potential new customers. In support of these solutions Grindrod will invest in the required infrastructure.

The information in this trading update has not been reviewed or reported on by Grindrod’s auditors.

By order of the Board
13 October 2022

Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

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Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.