A

2010 Unaudited Interim Results and Dividend Announcement• Attributableincomedown10%toR435,5million• Headlineearningspershareof95,4cents• Returnonordinaryshareholders’fundsexceeds

16%annualised• Interimordinarydividendof27centspershare• Capacityforsubstantialgrowth

1

Features

Group:• AverageRand/USDollarexchangerate18%strongervsH12009• CapitalexpenditureofR1012million(H12009:R801million) − capitalcommitmentsofR1773millionovernexttwoyears − capacityforuptoR5billionadditionalcapitalexpenditureoverthenextthreeyears• Dividendcoveris3,5timesearnings

Shipping:• Tookdeliveryoffourshipsandexercisedpurchaseoptiononacharteredship• Contractedtopurchasea40000dwtproductstanker• ConcludedtheacquisitionofaRotterdambasedbunkersupplybusiness• Extendedcontractcover• Cancelledfour16500dwtproducttankernewbuildingsandacharteredcapesizebulkcarrier• Contractedthesaleofa50%shareinaproductstankerinH22010• NoshipsaleprofitsinH12010(H12009:R152million)• Averageearningsperdaymarginallyoutperformedaveragespotmarketratesfortheperiod

Trading:• Increasedvolumes• Slightlyloweroperatingmarginsduetochangeinproductmix• FocusondevelopmentofAsianmarkettrade• Furtherdevelopmentofphysicalsupplyopportunitiesinmarinefuelssector

Freight Services:• PortofMaputoconcessionsextendedto2043• Logisticsbusinessrestructurecompletedtocounterchallengingmarketconditions• Terminalcapacityutilisationbelowexpectationduetostrikes/lackofrailwagonavailability• Concludedthepurchaseofapetrochemicalroadtransportcompany• Ongoinginvestmentinportandterminalcapacity• GoodprogressmadewithTransnetandCFM(Mozambiquestateownedrailandportcompany)

onexpandingrailcapacity

Financial Services:• GrowthinAssetManagementdivision• GrindrodGlobalPropertyIncomeFundwasratedsecondbestperformingSouthAfricanunit

trustfund• Maintainedqualityoflendingbook

2

30 June 30June 31December(Unaudited) (Unaudited) (Audited)

2010 2009 Change 2009 R000 R000 % R000

Revenue 14 883 863 12420348 20 27692041Tradingprofit 685 582 801412 (14) 1434922Depreciationandamortisation (157 946) (147742) (292400)Operatingprofitbeforeinterestandtaxation 527 636 653670 (19) 1142522Non-tradingitems 738 5965 13881Interestreceived 93 032 77179 161328Interestpaid (86 944) (150119) (252695)Profitbeforeshareofassociates’profit 534 462 586695 1065036Shareofassociates’profitbeforetaxation 36 699 35032 76465Profitbeforetaxation 571 161 621727 (8) 1141501Taxation (97 081) (91230) (188075)Profitfortheperiod 474 080 530497 953426ProfitattributabletoOrdinaryshareholders 435 493 483780 (10) 872763Preferenceshareholders 30 017 39426 69023GrindrodLimitedshareholders 465 510 523206 941786Minorityinterest 8 570 7291 11640

474 080 530497 953426Exchangerates(R/US$)Openingexchangerate 7,37 9,45 9,45Closingexchangerate 7,65 7,77 7,37Averageexchangerate 7,54 9,24 8,46

Condensed income statementfor the six months ended 30 June 2010

3

30 June 30June 31December(Unaudited) (Unaudited) (Audited)

2010 2009 Change 2009 R000 R000 % R000

ReConCiliaTion oF Headline eaRninGSProfitattributabletoordinaryshareholders 435 493 483780 872763Adjustedfor: (2 145) (5965) (15445)IAS38impairmentofgoodwill 10 044 – 990IAS38reversalofimpairmentof

intangibleassetsinrespectofcharters (746) – (46886)IFRS3negativegoodwillreleased (473) – (156)IFRS3netprofitondisposalof

investments (9 936) (3328) (2081)IAS16impairmentofships,plantand

equipment 760 894 36731IAS16netprofitondisposalofplant

andequipment (680) (2726) (1674)IAS21FCTRadjustmentondisposalof

business 292 (805) (805)Totaltaxationeffectsofadjustments (1 406) – (1564)

Headline earnings 433 348 477815 857318

oRdinaRy SHaRe PeRFoRmanCeNumberofsharesinissuelesstreasuryshares (000’s) 454 503 452384 454203Weightedaveragenumberofsharesonwhichearningspersharearebased (000’s) 454 469 451944 452278Dilutedweightedaveragenumberofsharesonwhichdilutedearningspersharearebased (000’s) 456 450 455243 454436Earningspershare (cents)Basic 95,8 107,0 (10) 193,0Diluted 95,4 106,3 (10) 192,1Headlineearningspershare (cents)Basic 95,4 105,7 (10) 189,6Diluted 94,9 105,0 (10) 188,7Dividendspershare (cents)Interim 27,0 30,0 (10) 30,0Final 30,0Dividendcover (times) 3,5 3,6 3,2

4

30 June 30June 31December (Unaudited) (Unaudited) (Audited)

2010 2009 2009 R000 R000 R000

Ships,property,terminals,vehiclesandequipment 4 763 589 4152229 3923378Intangibleassets 905 112 805061 830663Investmentsinassociates 325 024 252811 283068Deferredtaxation 162 874 178025 159088Derivativefinancialassetsandotherinvestments 400 898 183673 185376Recoverablesoncancelledships 511 371 – 238589Loansandadvancestobankcustomers 1 778 019 1129515 1483314Liquidassetsandshort-termnegotiablesecurities 80 335 145701 104092Bankbalancesandcash 1 154 197 1565844 1917695Othercurrentassets 4 034 640 3648138 3493156Non-currentassetsheldforsale 5 112 2048 12680Total assets 14 121 171 12063045 12631099Shareholders’equity 6 219 750 5854433 5737980Minorityinterest 116 864 96319 98146Totalequity 6 336 614 5950752 5836126Deferredtaxation 14 183 20917 22277Provisionforpost-retirementmedicalaid 77 945 75085 77868Incomereceivedinadvance 76 500 117164 88441Depositsfrombankcustomers 1 786 984 1435153 1756126Interest-bearingdebt 2 920 580 1672988 2246462

11 212 806 9272059 10027300Non-currentliabilitiesassociatedwithassetsheldforsale 3 734 – 5193Otherliabilities 2 904 631 2790986 2598606Total funding 14 121 171 12063045 12631099Networthperordinaryshare–atbookvalue(cents) 1 205 1130 1122Netdebt:equityratio 0,187:1 0,006:1 0,04:1Capitalexpenditure 1 011 866 800816 1407629CapitalcommitmentsAuthorisedbydirectorsandcontractedfor 1 515 992 2189011 2243062Duewithinoneyear 1 154 366 1272355 1455328Duethereafter 361 626 916656 787734Authorisedbydirectorsnotyetcontractedfor 256 946 11862 56434

Statement of financial positionas at 30 June 2010

5

30 June 30June 31December (Unaudited) (Unaudited) (Audited)

2010 2009 Change 2009 R000 R000 % R000

diviSional analySiS RevenueShipping 2 051 609 2012189 2 4918406Trading 11 485 148 9314514 23 20335439FreightServices 1 217 824 1031552 18 2302323FinancialServices 110 782 62093 78 135695Group 18 500 – n/a 178

14 883 863 12420348 20 27692041Trading profit (earnings before interest, taxation, depreciation and amortisation)Shipping 335 206 498153 (33) 774174Trading 104 915 133233 (21) 255743FreightServices 194 030 157048 24 387239FinancialServices 45 209 26843 68 54193Group 6 222 (13865) 145 (36427)

685 582 801412 (14) 1434922operating profit before interest and taxationShipping 279 206 431808 (35) 647292Trading 101 846 130270 (22) 249264FreightServices 100 674 79596 26 233903FinancialServices 44 562 25861 72 52192Group 1 348 (13865) 110 (40129)

527 636 653670 (19) 1142522attributable incomeShipping 249 615 337209 (26) 492482Trading 71 289 84585 (16) 181233FreightServices 103 314 88696 16 221717FinancialServices 21 276 17878 19 35500Group (10 001) (44588) 78 (58169)

435 493 483780 (10) 872763

6

Sharecapital,premium

andequitycompensation

reserve Hedgingreserve

Foreigncurrencytranslation

reserveAccumulated

profit

Interestofshareholdersof

GrindrodLimited MinorityinterestInterestofallshareholders

R000 R000 R000 R000 R000 R000 R000

Balanceasat31December2008 12828 153855 1393267 5152746 6712696 62315 6775011

Shareoptionsexercised 13209 13209 13209

Share-basedpayments 22954 22954 22954

Minorityinterestacquired – 29633 29633

Profitfortheyear 941786 941786 11640 953426

Othercomprehensiveincome (323376) (1117621) (1440997) 2251 (1438746)

Totalcomprehensiveincome – (323376) (1117621) 941786 (499211) 13891 (485320)

Dividendspaid (511668) (511668) (7693) (519361)

Balanceasat31December2009 48991 (169521) 275646 5582864 5737980 98146 5836126

Shareoptionsexercised 384 384 384

Share-basedpayments 358 358 358

Treasurysharesdisposed 3078 3 078 3 078

Minorityinterestacquired – 10000 10 000

Minorityinterestdisposed – (1494) (1 494)

Profitfortheperiod 465510 465 510 8570 474 080

Othercomprehensiveincome 6831 171979 178 810 1642 180 452

Totalcomprehensiveincome – 6831 171979 465510 644 320 10212 654 532

Dividendspaid (166370) (166 370) (166 370)

Balance as at 30 June 2010 52 811 (162 690) 447 625 5 882 004 6 219 750 116 864 6 336 614

Statement of changes in equityfor the six months ended 30 June 2010

7

Sharecapital,premium

andequitycompensation

reserve Hedgingreserve

Foreigncurrencytranslation

reserveAccumulated

profit

Interestofshareholdersof

GrindrodLimited MinorityinterestInterestofallshareholders

R000 R000 R000 R000 R000 R000 R000

Balanceasat31December2008 12828 153855 1393267 5152746 6712696 62315 6775011

Shareoptionsexercised 13209 13209 13209

Share-basedpayments 22954 22954 22954

Minorityinterestacquired – 29633 29633

Profitfortheyear 941786 941786 11640 953426

Othercomprehensiveincome (323376) (1117621) (1440997) 2251 (1438746)

Totalcomprehensiveincome – (323376) (1117621) 941786 (499211) 13891 (485320)

Dividendspaid (511668) (511668) (7693) (519361)

Balanceasat31December2009 48991 (169521) 275646 5582864 5737980 98146 5836126

Shareoptionsexercised 384 384 384

Share-basedpayments 358 358 358

Treasurysharesdisposed 3078 3 078 3 078

Minorityinterestacquired – 10000 10 000

Minorityinterestdisposed – (1494) (1 494)

Profitfortheperiod 465510 465 510 8570 474 080

Othercomprehensiveincome 6831 171979 178 810 1642 180 452

Totalcomprehensiveincome – 6831 171979 465510 644 320 10212 654 532

Dividendspaid (166370) (166 370) (166 370)

Balance as at 30 June 2010 52 811 (162 690) 447 625 5 882 004 6 219 750 116 864 6 336 614

Statement of changes in equityfor the six months ended 30 June 2010

8

Statement of other comprehensive incomefor the six months ended 30 June 2010

30 June 30June 31December(Unaudited) (Unaudited) (Audited)

2010 2009 2009 R000 R000 R000

Profitfortheperiod 474 080 530497 953426other comprehensive incomeExchangedifferencesontranslatingforeign

operations 173 621 (854387) (1122650)Cashflowhedges 6 831 (210782) (316096)Total comprehensive income/(loss) for the period 654 532 (534672) (485320)Totalcomprehensiveincome/(loss)attributableto:GrindrodLimitedshareholders 644 320 (541965) (499211)Minorityshareholders 10 212 7293 13891

654 532 (534672) (485320)

9

Condensed statement of cash flowsfor the six months ended 30 June 2010

30 June 30June 31December(Unaudited) (Unaudited) (Audited)

2010 2009* 2009 R000 R000 R000

Cashgeneratedfromoperations 392 909 584213 917747Netinterestpaid (22 926) (72940) (91367)Netdividendspaid (166 318) (278224) (460868)Taxationpaid (99 275) (164864) (240459)

104 390 68185 125053Netbankadvancestocustomersandothershort-termnegotiables (240 089) (151510) (150013)Netcashflowsutilisedinoperatingactivitiesbeforeshipandlocomotivesalesandpurchases (135 699) (83325) (24960)Netproceedsondisposalofshipsandlocomotives 11 632 430464 756728Proceedsondisposalofshipsandlocomotives 11 632 541957 1257467Cashpaymentsonshipoptionsexercised – (111493) (500739)Capitalexpenditureonshipsandlocomotives (608 498) (581488) (793207)Netcashflowsutilisedinoperatingactivities (732 565) (234349) (61439)Acquisitionofproperty,terminals,vehiclesandequipmentandinvestments (398 615) (219328) (578139)Proceedsfromdisposalofproperty,terminals,vehiclesandequipmentandinvestments 28 395 56766 51498Intangibleassetsacquired (4 753) (1253) (36283)Loansrepaidbyjointventureandassociatecompanies – – 27386Disposalofinvestmentinsubsidiaryutilised (4 632) – –Netcashflowsutilisedininvestingactivities (379 605) (163815) (535538)Proceedsfromissueofordinarysharecapital 384 8359 13209Proceedsondisposaloftreasuryshares 3 078 – –Minorityinvestmentinsubsidiary – – 3780Loanfromminorityshareholders – – 15853Long-termborrowingsraised 326 317 224581 591700Paymentofcapitalportionoflong-termborrowings (159 516) (102122) (447341)Short-termloan(repaid)/raised (42 009) (20973) 381783Netcashflowsfromfinancingactivities 128 254 109845 558984Netdecreaseincashandcashequivalents (983 916) (288319) (37993)Cashandcashequivalentsatbeginningoftheperiod 1 669 282 1975106 1975106Differencearisingontranslation 15 814 (216325) (267831)Cashandcashequivalentsatendoftheperiod 701 180 1470462 1669282

*RestatedduetoareallocationinrelationtoIAS7CashFlowStatements.

10

Condensed changes in disclosurefor the six months ended 30 June 2010

Previous Restated30June 30June

(Unaudited) (Unaudited)2009 IAS7 2009*R000 R000 R000

Cashgeneratedfromoperations 1014677 (430464) 584213Netinterestpaid (72940) (72940)Netdividendspaid (278224) (278224)Taxationpaid (164864) (164864)

498649 (430464) 68185Netbankadvancestocustomersandothershort-termnegotiables (151510) (151510)Netcashflowsfrom/(utilisedin)operatingactivitiesbeforeshipssalesandpurchases 347139 (430464) (83325)Netproceedsondisposalofships – 430464 430464Proceedsondisposalofships – 541957 541957Cashpaymentsonshipoptionsexcercised – (111493) (111493)Capitalexpenditureonships – (581488) (581488)Netcashflowsfrom/(utilisedin)operatingactivities 347139 (581488) (234349)Acquisitionofproperty,terminals,vehiclesandequipmentandinvestments (800816) 581488 (219328)Proceedsfromdisposalofproperty,terminals,vehiclesandequipmentandinvestments 56766 56766Intangibleassetsacquired (1253) (1253)Netcashflowsusedininvestingactivities (745303) 581488 (163815)

*Restated due to the requirement of IAS 7 Cash Flow Statements which states that capitalexpenditure relating todualpurposeassetsshouldbereallocated from investingactivities tooperatingactivities.

11

oveRvieW

The group generated earnings of R435,5 million for the six months ended 30 June 2010(H12009:R483,8million), down10%on the correspondingperiodof theprior year.Headlineearnings per share decreased by 10% to 95,4 cents per share (H1 2009: 105,7 cents pershare).ThedeclineinearningsandheadlineearningspersharewasprimarilyduetoastrongerRand/USDollarexchangerateandnoshipsaleprofitscomparedtoaprofitofR152millioninthepriorperiod.However,strongerdrybulkmarketsandinterestearnedoncancelledshipnewbuildingcontractsinH12010,reducedtheirimpact.

Aninterimordinarydividendof27centspershare(H12009:30centspershare)wasdeclared.Dividendcoverhasbeenmaintainedat3,5timesinlinewithhistoricalpractice.Returnonordinaryshareholders’fundsforthesixmonthswasanacceptable16,2%annualised.

TheShippingandTradingdivisionsreportedlowerearningsfortheinterimperiodforthereasonssetoutabove,however, thegroupcontinuestobenefit fromthegrowthof theFreightServicesoperations.Despitetheimpactofinternalandexternalindustrialaction,goodearningsgrowthwasachievedbythisdivisionandbyFinancialServices.Groupcostsweresignificantlylowerduetotherecognitionofaonce-offBEEcostinthepriorperiod.

Thegroup’sbalancesheetissoundandalthoughthedebt:equityratiohasincreasedto18,7%,duetoanumberofacquisitionsbythegroup,thereisstillsubstantialcapacityfordebtfundingtodriveexpansionofthegroup’sbusinesses.

dividends/distribution per share

Comments

140

120

100

80

60

40

20

0

H1 H2

600

500

400

300

200

100

0

600

500

400

300

200

100

0

2010 H1 attributable income by division

2009 H1 attributable income by division

Shipping

Trading

FreightServices

FinancialServices

Group

Total

Shipping

Trading

FreightServices

FinancialServices

Group

Total

600

500

400

300

200

100

0

Headline earnings per share

2005

2006

2007

2008

2009

H1 2010

2005

2006

2007

2008

2009

H1 2010H1 H2

102.188.5 124.6242.8

105.7 95.4

83.9

268.9

138.5118.796.8

20.0

32.0

28.0

38.0

34.0

44.0

68.0

68.0

30.0

30.0

27.0

250

85

89 18(45)

484337

71

10321 (10)

435

cents

Rmillion Rmillion

cents

12

CaPiTal eXPendiTURe and CommiTmenTS

descriptionCapital

expenditure Capital commitments

Rmillion

Six monthsto June

2010

SixmonthstoDecember

2010 2011 2012Total

commitmentsShips 604 505 640 92 1237Propertyandterminals 48 240 152 – 392Vehicles,equipmentandsoftware 82 71 2 1 74

734 816 794 93 1703Acquisitionofbusinesses 278 53 17 – 70Total 1 012 869 811 93 1773

Major items of capital expenditure for the period included instalments paid under the group’snewbuildingshiporders, thepurchaseofships, theexpansionofdrybulk terminalcapacity, theacquisitionofabunkershippingandtradingoperationandaninvestmentinapetrochemicalroadtransportcompany.

CaSH FloW and BoRRoWinGS Cashgenerated fromoperationswasR392,9million (H12009:R584,2million).Cashoutflowsincluded capital expenditure of R1 012 million and dividends of R166,3 million during theperiod.ThisresultedinthenetdebtpositionofR258millionat31December2009increasingtoR1183millionat30June2010andthenetdebt:equityratiorisingfrom4,4%to18,7%.ThegroupgeneratednetinterestincomeofR6millionfortheperiodcomparedtoanexpenseofR73millioninthepriorperiodmainlyduetolownetdebtlevelsduringmostoftheperiod,interestearnedoncancelledshipnewbuildingcontractsandtheutilisationofUSDollarcashtoreduceRanddebt.

Thegroupisconfidentthatithasadequatefundingavailableforallcapitalcommitmentsthroughitscashresources,cashgeneratedfromoperationsandexistingcommittedbankfacilities.

Comments continued

600

400

200

0

-200

-400

-600

-800

-1000

-1200

net cash/debt analysis

2009

Cashgenerated

fromoperations

Proceedsondisposaloflocom

otives

Workingcpaital

movem

ents

Interest/dividends/taxation

Capital

expenditure

Foreignexchange/other

H1 2010

18,7%gearing

Rmillion

13

SHaReHoldeRS’ eQUiTyShareholders’equity increased fromR5738millionat31December2009 toR6220millionat30June2010duemainlytoretainedprofitsandtotheeffectoftheweakerclosingRand/USDollarexchangerate.

9179348ordinarysharesrepurchasedbysubsidiariesinprioryearscontinuetobeheldintreasury.

80

70

60

50

40

30

20

10

0

Return on ordinary shareholders’ funds

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010 June annualised

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010 June annualised

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

-0.5

net debt/eBiTda

Minimumbenchmark

Maximumnetdebt/EBITDAbenchmark

Returnonordinaryshareholders’funds

Netdebt/EBITDA

20.2

26.7

42.4

75.7 74.6

57.2

50.8 50.2

15.9 16.2

1.0

2.1

1.1

0.7 0.60.4

0.6

(0.1)

0.2

0.9

% times

14

maRKeT oveRvieW Thedrybulkshippingmarketexperiencedapositivefirsthalfoftheyearwiththesmallershipsizesinparticularbenefiting fromcontinuingstrongdemand fromChina fora rangeofcommodities.Boththehandysizeandhandymaxsectorsreached18monthhighsinMaybeforeacombinationof the World Cup and the early onset of a traditional northern hemisphere summer slowdowncausedratestodrop.Thesamecouldnotbesaidofthecapesizemarketwhich,strugglingundertheweightofasteadystreamofnewbuildings,washitbya tighteningofChinesegovernmentstimulusmeasures.Theresultantslowdownin ironoreimportscausedratestofalldramatically,whichendedthehalfyearatlevelsnotseensinceearly2009.Handysizeearningshaveremainedtheleastaffectedbytherecentdeclineinthedrybulkmarketwhich,whilst30%downfromtheirrecentpeak,lookwellunderpinnedbygrowingAsiandemandforminorbulks.Drybulkassetpricesfirmed in linewith thebuoyantmarketwhilemodestdeclines insecond-handvesselpricesarebeingseenasspotmarket ratescomeunderpressure.Newbuildingpricestodatecontinuetograduallyincrease.

Drybulkratesatthedateofpreparingthisreportare:

Averagespotrates

Spotrates(US$perday)

One-yeartimecharterrates(US$perday)

Three-yeartimecharter

rates(US$perday)

H1 2010 (US$ per day)

H12009(US$perday)

Handysize 15015 15250 14000 18 834 9092

Panamax 23013 23500 19500 30 155 13985

Capesize 29956 28750 26000 36 160 35031

Source:ClarksonsResearchServicesLimited

Thetankershippingmarketingeneral,whilstexperiencingsomevolatility,performedbetterthanthelastsixmonthsof2009,obtainingsupportfromincreasingoildemandaswesterneconomiesimproved. This trend has continued and tanker asset prices across all sectors have increased10–20%inbothnewbuildingsandsecond-handshipssincetheendoflastcalendaryear.Thetanker market still faces a relatively high level of ships on order, however, growing oil demandshouldabsorbmostofthesedeliveries.

Tankercharterratesatthedateofpreparingthisreportare:

Averagespotrates

Spotrates(US$perday)

One-yeartimecharterrates(US$perday)

Three-yeartimecharter

rates(US$perday)

H1 2010 (US$ per day)

H12009(US$perday)

Medium-range 10180 13500 14750 8 304 9257

Small * 9250 * 9700 *10500 9 250 12500

Source:ClarksonsResearchServicesLimitedexcept*whicharepermanagementassessment(Meaningfulchemicaltankerratesarenotavailable)

Comments continued

15

Tradingconditionsinagriculturalproductshavebeendifficultascustomerstendedtobuyspotduetomarketuncertainties,atrendthatisexpectedtocontinueinthemedium-term.Atthesametimetherehasbeenincreasedcompetitoractivityinthemarkets.

Bunkerfuelpriceshavebeenvolatileonthebackofasimilarpatternincrudemarkets.Neverthelessdemandhasremainedgoodandtherehasbeensignificantconsolidationinthemarket.

Metallurgical product markets in the last six months improved, particularly in China. Capacityutilisationimprovedassteelandalloyproducersincreasedtheirproductiontocaterforcustomerrestocking.Buyersarenowoperatingmoreinthespotmarketandforsmallerquantities.

Therehasbeenimproveddemandforcontainers,vehicles,coalandotherbulkcommodities.

Inthefinancialsectorthefirstsixmonthsoftheyearweredominatedbyglobalfinancialevents,withtheproblemsfacedbycertainEurozonecountriescontinuingtoimpactheavilyontheprospectsforglobaleconomicrecovery.

IntheSouthAfricanenvironment,corporateresultsarenotprovidinganyclear indicationoftherealstateoftheeconomy.Thenextsixmonthsare likelytoseesomeguardedoptimisminthecorporatesectorasthelocaleconomyimproveswhichshouldresultinanimprovedlendingandassetmanagementenvironment.

16

diviSional oPeRaTinG RevieWS SHiPPinGThe Shipping division was relatively active in the first half of 2010, taking delivery of a SouthAfricanbuilt4200dwtbunker tanker (owned),a32000dwthandysizebulkcarrier (owned),a40000dwtproductstanker(contractedtopurchaseinH12010),a47350dwtproductstanker(chartered) and exercised a purchase option on one of its long-term charters, a 32 400 dwthandysizebulkcarrier. Italsocontractedthepurchaseofafurther40000dwtproductscarrier,whichwillbedeliveredinSeptember2010.ThedivisionconcludedtheacquisitionofAssociatedBunkeroilContractors(ABC),aRotterdam-basedbunkertankerbusiness,whichhasafleetoffourbunkertankers.TheacquisitionofABCsawthegroupexpanditsexistingbunkertankerbusinesswiththisinvestmentinoneoftheworld‘smajorbunkeringports.

A16500dwtproductscarrieronorderfromayardinChinawascancelledduetoabreachofthecontractualdeliverydate.AfurtherthreeshipbuildingcontractsforsimilarshipswiththesameChineseyardwerecancelledduetoadisputeoncontractualterms.InstalmentrefundsandinteresttotallingUS$71million,securedbyrefundguarantees,arepayablebytheshipyardonconclusionof legalproceedings.Thedivisionalsonegotiatedthecancellationofacharteredcapesizebulkcarrier.

Thedivision’sdrybulkbusinessperformedwellduringthefirsthalfof2010.Thecapesizebusinessbenefitedfromthehigh levelofcontractcover,whichensuredthattheextrememarketvolatilitydid not have a negative effect. The panamax ships again generated good profits under theirfixedincomechartersandthedevelopmentofthehandymaxoperatingbusinesscontinues.Thehandysizeships,whicharemainlyemployedviaapool,generatedsubstantialprofitsduetolowvesselcosts.

Thetankerbusinesshadachallengingperiod,withchemicaltankersearningclosetobreakevenlevelsduetotheworldwidedownturninchemicalandindustrialproduction.Thesmallproductstanker earnings reduced due to higher repair and maintenance costs while the medium rangeproducttankersperformedwellasaresultofgoodcontractcover.

The division had significant contract cover during the period with average earnings per daymarginallybetterthanaveragespotratesfortheperiod.

Theshipoperatingactivitiesperformedwellduringthehalfyear.Increasingvolumeswereachievedin theparcelbusinesswhichcontinues tooperateefficientlyunder its formulaofmarket linkedrates.Thehandmaxbusinesswasnegativelyaffectedbythestrengtheningdrybulkmarketinthefirsthalfoftheyear.Thebunkertankerbusinessperformedwell,asdidtheSouthAfricanbasedtankeroperatingjointventurewithaSouthAfricanpartner,CaluloShipping.

Comments continued

17

Thedivision’sfinancialperformanceissummarisedbelow:

Profit from owned and long term chartered ships

Bulk carriers Tankers

H1 2010Total

H1 2009Total

Growth %Handysize Panamax Capesize

Medium-range Small Chemical

Averagenumberofowned/long-termcharteredships 14,2 2,0 3,3 8,9 1,3 4,0 33,7 35,6 (5)Averagedailyrevenue(US$) 13400 21800 39200 17700 10800 15900 17 800 16500 8Averagedailycost(US$) 7800 9400 26600 15000 11700 12600 12 600 11800 (7)Profit (US$ million) 14,2 4,4 7,5 4,4 (0,2) 0,9 31,2 30,1 4(US$millions)Profitfromshipoperatingactivities 14,4 15,6 (8)Profitfromshipsales – 16,4 (100)Overheads/other (11,7) (14,0) 16Fundingcosts/preferencedividends/taxation (2,6) (9,7) 73Foreignexhange 1,8 (1,9) 194

33,1 36,5 (9)

TheShippingdivisioncurrentlyhasanownedandlong-termcharteredfleetof34shipswhichhaveamarketvalueofR1,4billioninexcessofbookvalue.ForH2:2010,83%(weightedbyrevenue)of the ships are contracted out and 40% (weighted by revenue) for 2011. The value of profitcontractedisUS$30millionforthesecondhalfof2010andUS$35millionfor2011.

Afleetoverview,contractcoverinformationanddetailsofthefleetmarketvaluecalculationsareincludedinthegroup’sresultspresentationonthewebsitewww.grindrod.co.za.

OutlookThedrybulkmarket isexpected to recover fromthesummer lowscurrentlybeingexperienced,however,anydramaticupsidewillprobablybecappedbythesheervolumeofcapesizenewbuildingdeliveries.Assetpricesofdrybulkshipsarelikelytoremainclosetocurrentlevels.

The tanker market is expected to remain at current levels in the short-term, improving duringthenorthernhemispherewinter.Assetpricesare likelytostabiliseat thepresent levels forbothnewbuildingandsecond-handships.

TheShippingdivisioniswellplacedfortheremainderof2010,duetoitshighlevelofcontractualcoverinboththewetanddrymarketstogetherwithcontinuingstrongdemandforcommoditieswhichwillsupporttheshipoperatingbusinesses.

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TRadinGTrading increased its presence in Singapore in order to take advantage of new opportunities,productsandmarkets inAsiaboth inmetallurgicalandagriculturalproducts.PhysicalsupplyofbunkerfuelsisbeingfurtherdevelopedparticularlyinRotterdamandontheRiverThames.Thosedevelopments and others in both agricultural and metallurgical areas are a continuation of thedivision'sstrategytoembeditselfinthesupplychaintoprovidesustainablebusinessgoingforward.

Pricesinmostproductsweresomewhathigherandalthoughvolumeswereonlyslightlyup(6%),overallUSDollarrevenuewasupby23%duemainlytoachangeintheproductmixwithincreasedactivity in some higher valued products. US Dollar operating margins were slightly reduced bythechangeinproductmixandalthoughUSDollarprofitswereup2%,attributableprofitinRanddeclined16%becauseofthestrongeraverageRand/USDollarexchangerate.

OutlookTheoutlookfortradingforthebalanceof2010remainschallengingasmarketconditionscontinueto be volatile leading to continued customer uncertainty. However, the outlook ahead is verypositive across the division’s whole range of commodities with further significant increases indemandexpected.

FReiGHT SeRviCeSFreightServices reportedprofitsofR103,3million for theperiod, an increaseof 16%over theequivalentperiodin2009.Resultswerenegativelyimpactedbythirdpartyindustrialactionacrossmostbusinessesinthesegment.Inaddition,volumeswerealsoaffectedbylimitedavailabilityofrailwagonstomeetthedemandforexportcapacityatthedivision’sdrybulkterminals.However,agoodperformanceby Intermodal, togetherwithan improvedperformancefromLogisticsandrecognitionofearningsfromtheMaputoPort,contributedtoearningsgrowth.

Ports and TerminalsTheconcessionforthePortofMaputowasextendedforanadditional15years,withthe initialtermoftheconcessionnowrunninguntil2033,withtheoptionfora10yearextensionthereafter.Theextensionprovides a timeline for the implementationof theportmasterplan and for sub-concessionairestoundertakeadditionalinvestment.Theimmediateexpansionplansincludethedredging of the port from its current 9.4 metre draft to 11 metres to accommodate panamaxvessels, which will significantly increase competitiveness, particularly with respect to bulk andcontainertraffic.Theprojectisexpectedtobecompletedinearly2011.

TheextensionoftheMaputocoalterminalsub-concessionto2043wasconcluded,togetherwithanagreement toexpand theMaputocoal terminal from itscurrentplannedannual capacityof6milliontonnesperannum(onscheduleforcompletioninthelastquarterof2010)tobetween16 and 25 million tonnes. The project is currently in feasibility stage with completion plannedfor2013.

AgreementswereconcludedwithCFM (Mozambique state-owned rail andport company) andDPWorldforthejointdevelopmentandoperationofanintermodalcontainerdepotadjacenttotheMaputoPort,withphase1oftheprojectdueforcompletionbyJune2011.

Volumes through the drybulk terminals were negatively impacted by third party strike actionandinsufficientrailwagonresources,however,additionalrailwagonsareduetobereleasedbyTransnetinthesecondhalfoftheyear.GrindrodisalsoactivelypursuinginitiativestoprovidethenecessaryrailwagonstoservicetheRichardsBayandMaputodrybulkterminalsandtheMaputocarterminal.

Thesaleofa30%stake in thecar terminal toHöeghAutoliners,oneof the largestautomotiveshippingcompaniesintheworld,wasconcludedinthefirsthalfoftheyear.

Comments continued

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LogisticsTheLogisticsoperationsreturnedtoprofitabilityfollowingasuccessfulrestructureandrationalisationofoperationstoalignwithlowermarketvolumes.Furtherimprovementsinprofitabilityareexpectedinthesecondhalfoftheyear,asmarketsimprovefurtherandadditionalrationalisationbenefitsarerealised.TheacquisitionofFuelogic,apetrochemicalroadtransportoperation,wasconcludedinthefirsthalfoftheyear,makingGrindrodoneofthelargestoperatorsinSouthAfricainthissector.Other The improvement in container volumes in the first half of the year has positively benefited theIntermodaloperations. Intermodalcontinues to invest in theconsolidationandexpansionof itsexistingoperations,withadevelopmentinDurbandueforcompletioninthethirdquarterofthisyearanddevelopmentsinJohannesburgandMaputoexpectedtocommenceinthesecondhalfoftheyear.TheSeafreightbusinessconductedbyOceanAfricaContainerLinesdidnotbenefitfromimprovedcontainervolumesduetoportcongestionwhichraisedoperatingcostsandfreightratesremainedunderpressure.Thiswasexacerbatedbythestrikeactivityduringtheperiod.Itisexpectedthatsomeimprovementwillbeachievedinthesecondhalf.ShipsAgenciesresultswereimpactedbylowcontainerfreightratesandthestrongRand/USDollarexchangerate.TheRailbusinessconductedbyRRLGrindrodperformedinlinewithexpectations.Anumberofconcessionopportunitiesarebeingexplored,whichwouldpositivelyimpactonperformanceoverthenextfewyears.OutlookFurthermarket improvement isexpected in thesecondhalfof theyear,basedonthe followinganticipatedtrends:• Portandterminaloperationshavebeenlargelyunaffectedbymarketchallenges,withdemand

forcapacityremainingstrong.Throughput,whichuntilnowhasbeennegativelyimpactedbythelackofrailwagonavailability,isexpectedtoincreaseinthesecondhalfoftheyear,primarilyasaresultofmorerailwagonsbeingcommittedbyTransnet;

• ProfitabilityoftheLogisticsbusinesssegmentisexpectedtofurtherimproveinthesecondhalfoftheyearasgreaterbenefitsareextractedfromtherestructureoftheoperationscombinedwiththeexpectedimprovementinvolumes;and

• Otheroperationsareexpectedtobenefitfromimprovedtradingconditionsinthesecondhalfoftheyear,whichhistoricallyisaseasonallystrongertradingperiodcomparedtothefirsthalfoftheyear.

FinanCial SeRviCeSTheBankhadagoodfirsthalf,withattributableearnings19%uponthecomparativeperiodin2009.Significantfeeswererealisedfromlendingactivitiesandnet interest incomehasheldup,withbothnetmarginandadvanceslevelsbeingmaintained.Liquidityremainsatahealthylevelandthelendingbookiswellmanagedfromacreditperspective.ExpansionintheAssetManagementdivisionhasresultedinrevenuegrowthonlastyear,whichisanticipatedtocontinuefromthebasethathasbeencreated.Thirdpartyassetsundermanagementcontinuedtoincreaseovertheperiod.TheperformanceofthefundsmanagedbytheBankwasparticularlyencouraging,withtheGrindrodGlobalPropertyIncome Fund rated the second best performing South African unit trust fund for the year to30June2010withatotalreturnof42.6%.GrindrodAssetManagementhasalsobeenappointedmanager of Nedgroup Investment’s South African listed property unit trust which was officiallylaunchedon30July2010.OutlookTheBankexpectsasolidsecondhalfwithgoodearningsgrowthforthe2010financialyear.

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BaSiS oF PRePaRaTionThe results have been prepared in terms of IAS 34 Interim Financial Reporting and are inaccordancewith thegroup’saccountingpolicieswhich fully complywith International FinancialReportingStandards(IFRS),theCompaniesActasamendedandtheJSEListingsRequirements.TheyareconsistentwiththoseappliedinthepreviousyearexceptfortheJune2009condensedcashflowstatementwhichhasbeenrestatedduetoareallocationinrelationtoIAS7CashFlowStatements.Thisreallocationhasresultedincertaindisclosurechanges,buthasnotresultedinanychangesinaccountingpolicy.

TheaccountingfortheacquisitionofFuelogic(Proprietary)LimitedandtheAssociatedBunkeroilContractorsgrouphasonlybeenprovisionally determinedas at 30 June2010.At thedateoffinalisationoftheseresults,thenecessarymarketvaluationsandothercalculationshadnotbeenfinalisedandtheyhavethereforeonlybeenprovisionallydeterminedbasedonthedirectors’bestestimatesofthelikelyvalues.

diReCToRaTeTJTMcClureretiredasanExecutiveDirectorofGrindrodLimitedeffective31July2010.TheboardofdirectorswishestoexpressappreciationforhissignificantcontributiontotheCompany.

PRoSPeCTSContinuingstronggrowth fromChina, IndiaandBrazil isanticipated togetherwithanupturn inothereconomies,althoughatarelativelysubduedlevel.Volatilityislikelyinshipping,commodityandfinancialmarketswhichmayofferopportunitiestothegroup.

Thehighcontractcoverwillreducethegroup’sexposuretopossibleshippingmarketfluctuations.

ThegroupresultsaresensitivetoRand/USDollarexchangerates.

Acceptablereturnsonshareholders’fundsareexpectedfor2010.

Statementscontainedthroughoutthisannouncementregardingtheprospectsofthegrouphavenotbeenreviewedorreportedonbythegroup’sexternalauditors.

ForandonbehalfoftheBoard

iaJ Clark aK olivierChairman ChiefExecutiveOfficer

diSClaimeRGrindrodLimited–Disclaimer:-Themarketvalueofthefleetisbasedonvaluationsobtainedfromshipbrokersandpublishedmarketinformationonshipcharterrates.Thesevaluesandratesaresubjecttorisksanduncertainties,asvariousfactorsbeyondthecontrolofthegroupmaycausevaluestofluctuatemateriallysubsequenttothedateofthisannouncement.

ClarksonResearchServicesLimited–Disclaimer:The informationsuppliedherewith isbelievedtobecorrectbuttheaccuracythereofisnotguaranteedandtheCompanyanditsemployeescannotacceptliabilityforlosssufferedinconsequenceofrelianceontheinformationprovided.Provisionofthisdatadoesnotobviatetheneedtomakefurtherappropriateenquiriesandinspections.TheinformationisfortheuseoftherecipientonlyandisnottobeusedinanydocumentforthepurposesofraisingfinancewithoutthewrittenpermissionofClarksonResearchServicesLimited.

Comments continued

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declaration of interim dividends

PReFeRenCe dividendNotice is hereby given that a dividend of 406 cents per cumulative, non-redeemable, non-participating andnon-convertible preference share (H12009: 522,5 cents) hasbeendeclared,payabletopreferenceshareholdersinaccordancewiththetimetablebelow.

oRdinaRy dividendNoticeisherebygiventhataninterimdividendof27centsperordinaryshare(H12009:30cents)hasbeendeclared,payabletoordinaryshareholdersinaccordancewiththetimetablebelow.

TimeTaBleLastdaytotradecum-dividend Friday,3September2010Sharescommencetradingex-dividend Monday,6September2010Recorddate Friday,10September2010Dividendpaymentdate Monday,13September2010

Nodematerialisationorrematerialisationofshareswillbeallowedfortheperiodfrom6September2010to10September2010,bothdaysinclusive.

ThedividendsaredeclaredinthecurrencyoftheRepublicofSouthAfrica.

ByorderoftheBoard

CaS RobertsonSecretary

18August2010

FoR moRe inFoRmaTion, PleaSe ReFeR To oUR WeBSiTe aT WWW.GRindRod.Co.Za

directors IAJClark* (Chairman),AKOlivier (GroupCEO),HAdams*,MRFaku*,WDGeach*, IMGroves*,MJHankinson*,JGJones,DAPolkinghorne,DARennie,AFStewart,LRStuart-Hill,SDMZungu*.*Non-executive

Registered office: QuadrantHouse,115MargaretMncadiAvenue,Durban,4001POBox1,Durban,4000

Transfer secretaries: ComputershareInvestorServices(Pty)Limited,70MarshallStreet,Johannesburg,2001POBox61051,Marshalltown,2107

Sponsor: GrindrodBankLimited,39RivoniaRoad,Sandton,2146POBox78011,Sandton,2146

Registration number:1966/009846/06

Share code:GND&GNDP

iSin:ZAE000072328&ZAE000071106

IncorporatedintheRepublicofSouthAfrica

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www.grindrod.co.za