Title: Lois Zabrocky Senior Vice President Overseas Shipholding Group
1Lois ZabrockySenior Vice PresidentOverseas
Shipholding Group
WISTA Conference Panel October 17, 2008
2About OSG
- Market leader in multiple sectors
- Strategic focus on four market segments crude
oil, products, Jones Act and gas - 119 operating vessels 37 newbuilds
- One of the highest-rated independent diversified
tanker companies - Dow Jones Transportation Index company
- Founded in 1948
- Public since 1970
- 3,300 seafarers and 475 shoreside staff
- Seasoned management team
- 10 offices located in North America, Europe and
Asia-Pacific - Superior in-house technical and commercial
management - One global Gold Standard
- Flexible, quality, global SQE
- Strong corporate governance and transparency
- Fully engaged independent board
- Enhanced centralized internal audit in New York
reports directly to audit committee - Sarbanes Oxley compliant since 2004
Crude Oil
Products
U.S. Flag
Gas
3Acta and Verba
4All Hands on Deck to Elevate OSG Profile
Extended Platform for Communications
Shareholders / Media
Customers
- Starts at the top A CEO who believes in the
benefits of communication - Dedicated Corporate IR
- Active media relations builds OSGs corporate
profile in the mainstream and business press - Websites
- Field trips
- Investor day
- Focused commercial strategy
- KPIs
- Customer events
- Quarterly global TMM review
- Shore side vettings and communication
- Bottom line integrity reliability performance
Morten Arntzen and his group of experienced
executives form one of the most accessible teams
in the publicly traded shipping sector. Scott
Burk, Oppenheimer, Oct-2008
5All Hands on Deck to Elevate OSG Profile
Extended Platform for Communications
Employees
Policymakers
- Opportunities for rewarding career with
competitive pay - Opportunities to work abroad and migrate from
the sea to shore side - Quarterly town hall connects all offices
- Breakfast with the CEO
- Family day and Family Center in Manila
- Office and facility upgrades
- Dedicated C-level effort
- 100 meetings on Capitol Hill with senior policy
makers and staff in past two years - Protection of 2004 Jobs Creation Act and Jones
Act vital to OSG - Increased spending on lobbying and advertising
efforts - Direct economic impact of OSGs U.S. Flag
investment gross output 10B - Labor compensation 2B
- 2400 jobs per year
- Tax payments 830M
Every employee represents OSG with pride and
professionalism
Source PriceWaterHouseCoopers statistics for
National and Philadelphia 2005-2020, September
2007
6Sharing Employee Pride
Connecting Our Worldwide Team OSG Signal
- 8,500 copies distributed quarterly
- Sent to every home of every seafarer to connect
families - Sent to ships, offices, customers and partners
- Customers can read about the OSG family
- Onshore and Offshore profiles A Day in the Life
- Reinforce and introduce important company
messages, initiatives and have a little fun!
7330 Members Working to Enhance the Image of
Shipping
INTERTANKO (International Association of
Independent Tanker Owners)
- Intertanko fosters an awareness of a
responsible, sustainable, respected tanker
industry, committed to continuous improvement and
constructively influencing its future. - OSGs Jennifer Schlueter, VP Investor Relations
and Corporate Communications is chair of
INTERTANKOs Communications and Public Relations
advisory committee - Captain Robert Johnston and 10 additional top
commercial and technical shoreside staff are
members - Ongoing work includes
- Studying the human element
- Environmental agenda
- Self regulation and imposed regulations
-
We are constantly under the spotlight, being
watched by regulators, politicians and the
public surveyed and inspected by flag states,
class societies and insurers, monitored by
charterers, coastal states and port states and
scrutinized by the media. Nike Fistes, Chairman
INTERTANKO
8Environmental and Quality Platform On Board our
Vessels
Our desire to run the cleanest, safest and most
reliable fleet in the industry remains the single
most important strategic imperative of OSG
- Going beyond compliance with international and
local legislations - Improving waste management practices
- Improving company resources
- Enhanced environmental equipment on vessels
- Increasing awareness and natural resources
conservation
9Getting It Done At Sea
- Working with Universities, Classification
Societies and Research Institutes to find
solutions to a number of technical,
environmental and operational issues giving OSG
a competitive advantage in the shipping industry - Monitoring air emissions generated by vessels
- Performing Energy Efficient surveys
- Creating a Gold Standard Seafarer Training
Program - TAG system on all company vessels
- Replacement of cleaning chemicals with
environmentally friendly products - Recycling all waste material and garbage
produced onboard our vessels - Investigating new technologies for ballast
water management treatment methods
10Environmental Initiatives
- Reduce emission exhaust gases
- Advocate of cleaner distillate fuels
- Hull coatings
- 8 vessels coated with proven results in fuel
savings - Propeller coatings planned for VLCC fleet
- Emission calculations
- Pollution prevention equipment
- OWS, ODME, Envirologger
- Recycling programs
- Zero Solid Waste to Sea
- PC recycling program
11Continuous Improvements
- Operations Integrity Group
- An 11-person team of shoreside and senior sea
staff who conduct vessel audits of fleet and
investigations to ensure compliance with Company
vessel operating policies - A critical element of our assurance program
- Drives consistency and sharing of fleet-wide
best practices - More than 200 vessel audits in 2006 and 2007
- Operations Compliance Officer
- Reports jointly to OSGs CEO and Board
- Audits all fleet and shoreside technical
operations - Ensures training programs are best-in-class
- External Audit Group
- Responsible for separate, independent audit of
the fleet and offices - Quarterly Technical Management Meetings
- Sea-to-Shore Communication Programs
- Fleet visits generated 300 improvement ideas
- Independent action encouraged to avoid
incidents to ships, crew and the environment -
12Safety and Quality
Q1 U.S. Fleet Near Miss Report
- Risk Assessment
- Identify and mitigate hazards
- Tool Box meetings
- Near Miss Reporting
- Trend analysis
- Root Cause Analysis
- Trend analysis
- Open Reporting
- 218 reports received in 2007
- Unvarnished feedback to senior management
- Top issues crew relief, missing spare parts,
equipment repairs, safety issues and
environmental concerns. - Performance Reporting
- KPIs and Operations Dashboard
13Getting It Done Where the Sea Meets the Shore!
- Global offices participated in 2ND Annual Coastal
Clean Up on September 20, 2008
NEW YORK
MANILA
MANILA
ATHENS
14Getting It Done Shoreside
- OSG headquarters in New York City has an 82
waste diversion rate. Through technologies,
diligence of post consumer source recycling
separation, and our building cooperation with
our recycling program, we have been able to have
over 83 tons of paper and other recyclables from
going into landfills - Recycling costs 3 times less than dumping trash
into landfills - OSG has helped to save
- 1,360 trees 560,000 gallons
of water 6,320 gallons of oil -
-
- Global Environmental Quality workgroup (SQE)
- Xerox printers reconfigured to print on double
sides - Toner cartridges returned to manufacturer for
recycling - Light/energy saving program
- Staff bring batteries from home for proper
recycling
15Getting It Done Shoreside
- Seamens Church Institute
- The Seamen's Church Institute advocates for the
personal, professional, and spiritual well being
of merchant mariners around the world. - The staff and volunteers at the Seamens Church
in Port Newark welcome over 57,000 seafarers,
port workers, and truckers each year - OSG members of 2008 Supporting Sponsor Society -
50,000 annual sponsorship - Morten Arntzen member of Board of Trustees
- Local Disaster Relief
- Calamity Fund for victims of Typhoon Frank OSG
distributed 55,000 in cash and kind out from
employee donations to our Filipino seafaring
families - Athens Wild Fires OSG donated 20,000 to
rebuild the village of Miloi with OSG employees
also donating 3,765 to the cause
16Getting It Done Shoreside
- 2008 Campaign raised 74,000 in employee
contributions and achieved an 84 participation
rate - OSG corporate donation of an additional 50,000
- Employees prepared and delivered over 900 PBJ
sandwiches to a local food pantry - Employees participated in local Holiday giving
events - Plans in the works for our 2009 Campaign
17Getting It Done Shoreside
- 24 Peaks Challenge 2008
- Nominated Charity Seafarers UK
- 24 of the highest Peaks in the Lake District, all
above 2,400 feet each - Total climb of 13,133 feet, AND the descents
between peaks (fact Mt Everest is only 26,000
feet) - Total walking time approx 24 hours. 33.3 miles
in total over two very hard days - Sleeping time less than 4 hours with 6 in a
room - 10,000 for Seafarers UK
18Acta and Verba Our Work is Never Done
I drove to the garden centre for a tree to offset
my carbon footprint so now Ive got to go back
for another one