Our strategy - IAR FY2022

REPORT OF THE CHIEF EXECUTIVE OFFICER

Grindrod delivered good results, generating cash of R1.7 billion from its operations, a growth of 62% from R1.0 billion in 2021. Volume growth and our strategic focus on customer solutions drove strong performance in the Port and Terminals, and Logistics business segments.

Grindrod's purpose is central to our strategy, which comprises six pillars with our core values guiding how we conduct ourselves. We recognise, however, that within our current context, more is required of us.

The pandemic demonstrated that companies that recognise the criticality of adapting to changing socioeconomic and environmental conditions are better able to identify strategic opportunities and meet competitive challenges.

During the year, we undertook an exercise to develop our purpose-aligned ESG strategy, which underpins our strategic efforts. We believe this will support our resilience within a constantly shifting operating context and create financial value in the long term through cost reduction opportunities, productivity gains, alternative revenue sources and increased access to finance.

STRATEGIC REVIEW

Provide customer solutions for an efficient and cost-effective cargo-flow, now and in the future.

We optimise - We start with what we have, leveraging our six strategic pillars to ensure we deliver cost-effective and efficient solutions.

We grow - We extend our current business, developing new solutions based on our existing capabilities to take advantage of opportunities that arise, including greenfield and acquisitive growth opportunities.

We innovate - We recognise that across industries, the pace of change is accelerating exponentially. Therefore, to remain relevant and drive the developments we want to see, we explore new game-changing businesses/research and development that align with our purpose.

OUR SIX STRATEGIC PILLARS

Customer
Our people and communities
Market differentiation
Operational excellence
Revenue growth
Shareholder value

OUR STRATEGIC ESG OBJECTIVES

Our daily efforts are underpinned by an emphasis on broader ESG matters to create and preserve sustainable value.

PROSPERITY FOR ALL
REGENERATIVE ENVIRONMENT
SOCIALLY INCLUSIVE DEVELOPMENT
GOOD GOVERNANCE

OUR STRATEGIC ESG
TRANSFORMATION FRAMEWORK

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ESG IMPLEMENTATION AND GOVERNANCE

ESG Governance

Grindrod has established an ESG Steering committee to support its ongoing commitment to environmental, health and safety, corporate social responsibility, corporate governance, sustainability, and other public policy matters relevant to the Company. The ESG Steering committee is a cross functional senior management committee that will assist the CEO in integrating general strategy relating to ESG matters; developing, implementing, and monitoring initiatives and policies based on that strategy; overseeing communications with employees, investors and stakeholders with respect to ESG matters; and monitoring and assessing developments relating to enhancing the Company's understanding of ESG matters. We have a KPI driven implementation where employees have ESG metrics integrated into their annual KPIs.

GRINDROD STRATEGY AND ESG

Grindrod is moving beyond traditional silos and is committed to the integration of ESG considerations into its overarching corporate strategy. ESG factors are central to measuring the sustainability and ethical impact of the business. To prosper over time, Grindrod must deliver financial performance while also positively impacting its stakeholders, including shareholders, employees, customers and communities. Prosperity cannot be measured by financial results alone, the welfare of the Company's stakeholders is of critical importance to ensure mutual wellbeing and sustainability. Furthermore, Grindrod appreciates that corporates are indispensable role players in creating a just and inclusive society that can thrive within the ecological limits that the earth can sustain.

OUR VALUE OUTCOMES

PROSPERITY FOR ALL

Sustainable profitability
The Group seeks to use its economic resources to generate prosperity for all by operating a robust, profitable and growing business. In this way, Grindrod creates jobs and contributes to the economic success of its communities.

Decent work and economic growth for communities
Recognising the constrained environment in which the Group operates, with African countries facing pervasive challenges such as unemployment, limited access to basic services and barriers to education, Grindrod seeks to foster a positive and lasting impact on its communities and

society through meaningful interventions. Grindrod's prosperity is inextricably linked to that of the communities in which it operates.

Innovation
Elements such as information technology systems, knowledge, skills and intellectual property that enable a sustainable business through innovative, customer-centric product offerings remain critical. Furthermore, in line with Grindrod's horizon three strategic ambitions, the Group seeks to explore new game-changing businesses, research and development that align with its purpose.

REGENERATIVE ENVIRONMENT

Always mindful of the planet's finite resources, we are committed to minimising the adverse impact of our activities on the environment.

Energy and carbon management
Grindrod aims to strengthen business resilience within a low-carbon economy while reducing its impacts and contribution to climate change by decarbonising its footprint.

Water stewardship
Grindrod operates in water-scarce environments and recognizes the necessity to conserve this nvaluable resource. Therefore, water management constitutes a critical component of the organisation's operational and environmental management.

SOCIALLY INCLUSIVE DEVELOPMENT

Grindrod aims to develop and maintain mutually beneficial relationships, networks and partnerships for collective long-term sustainability while striving towards a diverse, equitable and inclusive work environment where all employees are treated equitably and fairly.

Health, safety and wellbeing
Keeping Grindrod's people and communities safe remains top of mind. The Group's policies and procedures guide its day-to-day operations, ensuring the wellbeing of its employees, customers, suppliers and communities.

Diversity, Equity and inclusion
Grindrod has adopted a multi-pronged approach to diversity, equity and inclusion, focusing on critical aspects that form part of the organisation's holistic transformation agenda.

Quality education
Grindrod seeks to embed a learning culture that supports its three horizons of growth across the short, medium and long term.

GOOD GOVERNANCE

Grindrod's Board is committed to continuously improving corporate governance principles, policies and practices that address bribery and corruption through implementing regulatory and compliance best practice and acting on feedback from stakeholders.

Zero bribery and corruption - The Group is committed to the highest standards of integrity and ethical behaviour, recognising that good conduct, underpinned by ethics, is fundamental to the sustainability of the business. Good conduct is evidenced through the daily behaviours of Grindrod's people and exhibited in individual and collective actions and decisions.

STAKEHOLDER RELATIONSHIPS

Grindrod's approach to managing relationships is based on King IV, which recognises that stakeholder inclusivity and sustainable value creation are interdependent and interconnected. Transparent, pro-active, two-way engagement is the foundation for creating mutually rewarding benefits for the stakeholder groupings that rely and thrive on, the sustainability of the business.

We prioritise our stakeholders according to their level of influence on us and the level of influence we have on them. Our core values guide us in our interactions with stakeholders. To meet and improve on our stakeholder commitments, we continually strive for: A safe and healthy working environment, ongoing and clear communication, driving a culture that views change as an opportunity to improve our customer solutions, delivering customer-focused business interactions and solutions, creating collaborative relationships with regulators and state-owned entities.

CUSTOMER SOLUTIONS