GNDE - GRINDROD LIMITED - Voluntary announcement relating to impact of the Coronavirus pandemic

06/04/2020 09:38:48


Voluntary announcement relating to impact of the Coronavirus pandemic:
Voluntary announcement relating to impact of the Coronavirus pandemic

Grindrod Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE 000071106
(“Grindrod” or “the Company”)

VOLUNTARY ANNOUNCEMENT RELATING TO IMPACT OF THE CORONAVIRUS PANDEMIC

OVERVIEW

The Coronavirus (COVID-19) pandemic is impacting all aspects of global society with serious
ramifications on the global economy. During the past month, the unprecedented impact on the
lives of people and disruption to economies has resulted in extraordinary measures being
taken across the world. In southern Africa governments are engaging widely on the
appropriate actions to minimise the impact of the pandemic.

As Grindrod, the health and safety of our people takes priority. The management of Grindrod
are committed to support the governments of the countries in which we operate, to deliver on
their actions, and are working closely with customers, communities, suppliers and key
stakeholders to mitigate the impact of COVID-19 and address the long term effects on our
business.

COLLABORATION WITH GOVERNMENTS, EMPLOYEES AND LOGISTICS SUPPLY
CHAIN PARTNERS

Grindrod established a special task team to monitor the specific requirements and
recommendations of governments and their health agencies. This team has developed
comprehensive response plans, provides guidance and has implemented the necessary
actions focused on ensuring the health and safety of our employees. Regular engagement
with our supply chain partners enables the businesses to respond to clarification from the
regions on essential trade. Daily meetings with senior management ensure the co-ordination
of these business-critical decisions.

PERFORMANCE

The first quarter of 2020 across the majority of the Group's businesses was strong with little
impact on shipments of commodities to China and only marginal impact in the container
business on inbound shipments from the East. The lockdown in South Africa impacts most of
the businesses in South Africa and in Maputo as trade flows either cease or are severely
restricted.

The Group's Port and Terminals businesses expect revenue to decline during April as a result
of the lockdown in South Africa and closure of the border with Mozambique. The extent of the
impact will depend on the duration of the closure of the South African mineral businesses and
the flow of mineral cargo through the Mozambique border. Early indications reveal that the
government may allow some dispensation for the mines to continue operating under strict
conditions once they have secured the necessary approvals. This may mitigate impact on our
Port and Terminals.

Grindrod's Container businesses are assisting with essential cargoes. Containers with non-
essential cargo are evacuated to depots for later delivery. Container berths across the South
African ports have been significantly reduced and therefore the businesses are operating well
below optimal levels.

The northern Mozambique business continues to provide essential logistics supplies to the
Palma region. The Carrier businesses have ceased operating with minimal requirement for
fuel transportation.

The North- South Corridor is currently limited to essential cross-border traffic. The Rail
business will consequently see a reduction in earnings.

Grindrod Bank, together with the banking industry, are playing a critical role with relief
measures in response to the increase in customer requests for loan restructures or temporary
relief.

CASH PRESERVATION AND BALANCE SHEET MANAGEMENT

Grindrod is deploying its available cash on priorities during this time. Identified non-essential
cost items, and projects are being deferred. The impact of lockdown on Grindrod's liquidity
outlook is assessed continuously. Offshore cash is being repatriated into South Africa and
banks engaged to secure additional headroom in the event of a prolonged period of low
revenue. Grindrod Bank has sufficient headroom on its liquidity cover and capital adequacy
ratios, and these metrics are being monitored closely.

CONCLUSION

The situation is fluid and Grindrod is organised in a manner to respond quickly to changes in
the circumstances. We will update you on the impacts the pandemic will have on our business
via the Stock Exchange News Service (“SENS”) platform in terms of the JSE Listings
Requirements and our website – www.Grindrod.com. We look forward to emerging from this
period stronger and with emboldened commitment to enable trade corridors to restore the
economy as expeditiously as possible.

Any forecast financial information contained herein has not been reviewed or audited by the
Group's external auditors.

Durban
6 April 2020


Sponsor
Nedbank Corporate and Investment Banking

Date: 06-04-2020 09:39:00
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