1. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 THE LLOYD’S REGISTER GROUP Continuous improvement – the future role of classification Richard Sadler Chief Executive Officer

2. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Risk Management Maintenance Management STAGE 4 Operations Environmental Management Safety Management Project Management STAGE 1 Strategic Planning STAGE 2 Design STAGE 3 Construction & Commissioning - ISM / ISPS – ILO - Integrated Management Systems Life-extension/ship re-cycling/scrapping INTEGRITY PERFORMANCE SAFETY - Risk Management Services - Lloyd’s Register Integrator - EP / Green Passport - CO2 Index - Energy Efficiency Services - Planned Maintenance - Maintenance Strategy - Condition Monitoring STAGE 5 De-commissioning Human Element/ Training Supporting all the stages of a vessel’s lifecycle Life cycle

3. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Our stakeholders Owners Charterers Bankers Insurers Regulators NGOs Media NGOs Owners, Builders ME&C and Regulators Society

4. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 The elements of sustainability Safety / Asset integrity improvement Environmental improvement Social improvement

5. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Social conditions

6. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 “I joined the navy…”

7. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Continuous improvement Better regulation, inspection, research and knowledge management. Improved goals on safety and sustainability. Balanced stakeholder requirements of safety, reliability and cost.

8. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Our Group at a glance Anticipated annual turnover $1.0bn 7174 employees 101 companies 278 offices in 78 countries Delivering services in 228 countries 7 months from our 250th anniversary

9. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 A model for our new business assurance system Adapted from Harvard Business Review - Mastering the Management System By Robert S. Kaplan and David P. Norton TRANSLATE THE STRATEGY DEVELOP THE STRATEGY Define mission, vision and values Conduct strategic analysis Formulate strategy TEST AND ADAPT THE STRATEGY PLAN OPERATIONS MONITIOR AND LEARN Strategic Plan Strategy map Balanced Scorecard StratEx Execute processes and initiatives Conduct strategic analysis Operating Plan Dashboards Budgets Pro formaP&Ls Define strategic objectives and themes Select measures and targets Select strategic initiatives Develop sales plan Plan resource capability Prepare budgets Conduct profitability analysis Conduct strategy correlation analysis Examine emerging strategies Hold strategy reviews Hold operational reviews results performance metrics results performance metrics STAGE 3 3 2 2 1 1 5 5 4 4 Improve key processes

10. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Our stakeholders Owners Charterers Bankers Insurers Regulators NGOs Media NGOs Owners, Builders ME&C and Regulators Society

11. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Beyond the model of straight-forward compliance Necessary components Suitable management and management systems. The right attitude and corporate culture. The appropriate training and leadership models.

12. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Incident trends

13. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Human decisions…

14. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Analysing the Human Element

15. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 Areas of best practice in addressing the human element

16. THE LLOYD’S REGISTER GROUP INTERTANKO Tanker Event 2009 So, our role has changed… “Excellent firms don’t believe in excellence, only in constant improvement and constant change” Improved regulatory framework “I am opposed to the laying down of regulation lest the improvement of progress tomorrow is shackled by the mistakes of today” Greater human element understanding