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GNDE - GRINDROD LIMITED - Trading Statement

18/02/2016 14:28:00

GNDP GND 201602180031A
Trading Statement

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


In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a company is
required to publish a trading statement as soon as it becomes aware, with a reasonable degree of
certainty, that the financial results for the next period to be reported on are likely to vary by more
than 20% from the previous corresponding period.

Shareholders are advised that headline earnings for the year ended 31 December 2015 are expected
to be between R545 million and R580 million (2014: R729.4 million) which is a decrease of between
20% and 25%.

Strong performances in the tanker and ship operating businesses mitigated the impact of the weak
trading in the dry-bulk shipping business. The Carrier Logistics turnaround helped Freight Services
which was impacted by weak dry-cargo volumes. Financial Services again performed well and
showed robust growth across all its business units.

However, the persistent decline in the dry-bulk shipping rates has continued into 2016 and are now
at unprecedented levels. This has significantly impacted ship carrying values and the Board has
therefore deemed it appropriate to raise an impairment of US$100 million. Impairments were also
necessary in the mineral logistics and rail businesses. Prior year earnings benefited by
R430.6 million raised on change of control in the BEE joint ventures.

Shareholders are advised that after raising the above impairments the company is expected to make
a loss of between R1 350 million and R1 500 million (2014: Earnings R1 001.2 million), which is a
decrease of between 235% and 250%.

Despite the impairments the company's net asset value has increased to approximately R24 per
share (2014: R22.27). This is a result of the currency conversion of its US dollar assets. The
company generated strong cash flows in the year and remains ungeared.
During the prior period the company issued 161.3 million shares and therefore applied a weighting
based on the timing of the issue. The current period reflects the full impact of the additional shares
in issue, increasing the weighted average number of shares by 11%.

As a consequence of the above, Grindrod expects headline earnings per share for the 12 month
period ended 31 December 2015 to be between 70 and 75 cents per share (2014: 107.5 cents per
share) which is a decrease of between 30% and 35% and a loss per share between 185 and 195
cents per share (2014: Earnings per share 147.6 cents per share), which is a decrease of between
225% and 232%

The information contained in this trading statement has not been reviewed nor reported on by the
company's external auditors.

Grindrod will release its final results to shareholders on 25 February 2016 and will be holding an
investor presentation in Johannesburg on that day.

By order of the board
18 February 2016
Sponsor: Grindrod Bank Limited

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