Transcript Slide 1

Lois Zabrocky
Senior Vice President
Overseas Shipholding Group
WISTA Conference Panel
October 17, 2008
About OSG
 Market leader in multiple sectors
 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
Crude Oil Products U.S. Flag
 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
 Strong corporate governance and transparency
Gas
 Fully engaged independent board
 Enhanced centralized internal audit in New York; reports directly to audit
committee
 Sarbanes Oxley compliant since 2004
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Acta and Verba
“All Hands on Deck” to Elevate OSG Profile
Extended Platform for Communications
Shareholders / Media
 Starts at the top: A CEO who
believes in the benefits of
communication
 Dedicated Corporate IR
 Active media relations builds
OSG’s corporate profile in the
mainstream and business press
 Websites
 Field trips
Customers
 Focused commercial strategy
 KPIs
 Customer events
 Quarterly global TMM review
 Shore side vettings and
communication
 Bottom line: integrity reliability
performance
 Investor day
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
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“All Hands on Deck” to Elevate OSG Profile
Extended Platform for Communications
Policymakers
 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 OSG’s
U.S. Flag investment: gross
output +$10B
 Labor compensation +$2B
 +2400 jobs per year
 Tax payments +$830M
Employees

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
Every employee represents OSG
with pride and professionalism
Source: PriceWaterHouseCoopers statistics for National and Philadelphia 2005-2020, September 2007
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Sharing 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!
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330 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.”
 OSG’s Jennifer Schlueter, VP Investor Relations and Corporate
Communications is chair of INTERTANKO’s 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
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Environmental 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
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Getting 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
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Environmental 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
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Continuous 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 OSG’s 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
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Safety and Quality

Risk Assessment



Trend analysis
Open Reporting

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
Trend analysis
Root Cause Analysis


Identify and mitigate hazards
Tool Box meetings
Near Miss Reporting


Q1 U.S. Fleet Near Miss Report
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
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Getting It Done: Where the Sea Meets the Shore!
Global offices participated in 2ND Annual Coastal Clean Up on September 20, 2008
MANILA
NEW YORK
MANILA
ATHENS
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Getting 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
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Getting It Done: Shoreside
 Seamen’s 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 Seamen’s 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
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Getting 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 PB&J sandwiches to a local food
pantry
 Employees participated in local Holiday giving events
 Plans in the works for our ‘2009 Campaign’
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Getting 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
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Acta and Verba – Our Work is Never Done
I drove to the garden centre for a tree to offset my carbon
footprint… so now I’ve got to go back for another one…
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