Operational Reviews (continued) Trading, Freight and Financial Services The bulk product trading activities are undertaken by Grindrod (South Africa) (Pty) Limited locally, and Grindrod Trading and Shipping Limited internationally. The freight management activities are undertaken by Grindrod Freight Investments (Pty) Limited and its subsidiaries and Ocean Africa Container Lines (Pty) Limited. The financial services are undertaken by the Marriott Group.

2005

2004

Revenue (Rm)

4 582

495

Total assets (Rm)

2 833

732

Attributable earnings (R000)

88 705

51 543

Number of employees – subsidiaries

2 001

1 172

– joint ventures

2 248

1 180

Number of ships operated – average number on charter

9

8

The Trading, Freight and Financial Services division reported a 72% growth in earnings over the prior year. During the year, there was major expansion with the establishment of the bulk product trading operations and acquisition/investment in landfreight logistics, namely African Portland Industrial Holdings, Sheltam Rail, Grindrod J&J Logistics, Kusasa Bulk Terminals and Röhlig-Grindrod. The increase in revenue is as a result of the investments that took place during the year as well as from increased business activities. 82% of revenue arose from bulk product trading. Bulk product trading has performed well since the acquisition and is expected to contribute significantly to group profits in the future. Grindrod ships agencies traded well in a competitive market and improved its contribution to the division’s profits. The landfreight logistics operations had a mixed year, with strong performances from the established operations being offset by the turnaround costs incurred by the more recent acquisitions. Subsequent to year end, a joint venture with Lauritzen Cool Logistics, a provider of South African perishable goods logistics services, was concluded. Ocean Africa Container Lines, the group’s seafreight logistics partnership with Safmarine, had an excellent year with good earnings growth. Marriott, the group’s investment in banking, property management and asset management, performed well during the year. The group’s strategy is to increase the profit contribution from Trading, Freight and Financial Services through the acquisition or development of complementary businesses to ensure that a full range of services is provided to our customers. 2005 Analysis of Trading, Freight and Financial contribution before group costs Ships Agency Landfreight Seafreight Financial Trading Services