Vision Purpose Values Alignment March 2011

1. Vision PurposeValuesAlignmentMarch 2011

2. Agenda • Purpose: to engage employees in providing input to Teekay’s vision, purpose and values for 2020 • Agenda: • Overview – background to the new vision • Vision and Purpose – refining ideas • Values – what is most important to us • Alignment – how do we work best together • Next Steps

3. Overview

4. The BHAG Journey

5. BHAG 2010 • What were the thoughts, feelings or impressions the video generated for you? • What was powerful for you about the BHAG?

6. 3 year strategic plan 2009-2011 Survive and Thrive Scenario Planning Imagining possible Futures Vision Process BHAG 2010 2009 2010 Vision, Purpose, Values Engaging employees in our future 2010-2011 Strategic Planning – new 3 year plan 2011 Business Plan Personal Performance Plans 2011 New Vision 2020

7. Teekay 3-Year Strategic Plan

8. Scenario Planning – Possible Futures

9. Vision 2020 • What is the most exciting future we can imagine? • What is the boldest move Teekay could make? • How can we improve people’s lives, our industry, the world? • What achievement would make us truly proud? • What will energize our people? • What will we stand for? • What themes are we hearing?

10. Developing a Vision - Employee Wordle • Growth & Expansion • Acquisitions and diversification of business • Building stronger alliances with BRIC & NOC • People Vision • Employer of choice with the best employees • Opportunities to be challenged and develop knowledge • Innovative Leader • Green technology solutions provider for industry • Profit from broad knowledge / skills base and collective competencies • Sustainability • Environmental leadership / Stakeholder value / Community development

11. Developing a Vision - Overall Teekay Wordle • Marine and Energy Growth • Sustainability • Global Leadership • Dynamic, Entrepreneurial, Innovative • Operational Excellence • Flexibility, Agility

12. Vision and Purpose

13. Definitions Vision What we want to be What we do Purpose How we act Values 3 year Strategic Plan, 1 Year Business Plan, Goals, Actions, Scorecards to accomplish the purpose Strategies

14. Teekay’s BHAG 2010 and Purpose • Write down Teekay’s current BHAG and Purpose

15. Teekay’s Promise • Energy powers industries, fuels transportation systems and improves the quality of our lives. First, however, that energy must be moved from where it is produced to where it is consumed. At Teekay, it is our job to ship oil and gas, on behalf of our customers, anywhere in the world. It is our promise to do so safely and reliably, and to continuously reinvent our company to meet our customers' evolving needs. Our BHAG • Undisputed world leadership in marine services for the oil and gas industry by 2010. Our Mission • To be the premier provider of marine services in the oil and gas industry. Our Core Purpose • To be the first choice of our customers in the shipping industry; and to uphold the Teekay Standard as a respected symbol of quality. In fulfilling this purpose, we will create enduring value for our shareholders. Our Core Values • Quality through professionalism, reliability and integrity • Responsible safety and environmental practices • Responsiveness and creativity towards customers' needs • Loyalty to employees • Competitive and entrepreneurial spirit • Continuous self-improvement

16. Future Vision • The best vision statements are those that are short, easy to remember and create a feeling for the reader • The vision should resonate with all members of the organization and help them feel proud, excited, and part of something much bigger than themselves. • A vision should stretch the organization’s capabilities and image of itself. It gives shape and direction to the organization’s future and / or paints a unique and ideal picture of the future • Vision – What we want to be, or, a future we aspire to • Purpose – What we do and the business we are in

17. Vision Examples • President Kennedy: To put a man on the moon • Maersk: We create opportunities in global commerce • Vancouver Aquarium: A sustainable world, where aquatic life is diverse and flourishing • Chevron Vision: The global energy company most admired for its people, partnership and performance

18. Purpose Examples • Google: To organize the world’s information and make it universally accessible and useful • CSX Railroad: To be the safest, most progressive North American railroad, relentless in the pursuit of customer service and employee excellence • Hapag-Lloyd: To offer an accustomed reliable service and a comprehensive liner network to our customers at all times.

19. Draft Vision and Purpose ideas Purpose (what we do and what business we are in) • To be the trusted leader in sustainable shipping, offshore and marine services • The first choice globally for innovative marine solutions that help the world meet its energy needs reliably and sustainably • To be the leading marine provider of shipping and offshore solutions, harnessing the power of the ocean, our people and our assets to deliver enduring value • To be the world’s most respected marine services provider and a catalyst for a more sustainable energy future Vision/Mantra/Tagline/Ideal Future • Delivering marine energy solutions sustainably • Harnessing the power of the ocean to bring energy to the world • A reliable and renewable energy future brought about by the ingenuity and passion of our people • Bringing energy to the world – sustainably, innovatively, reliably • The marine midstream company • The undisputed world leader

20. Draft Vision and Purpose Discussion Questions: • Which inspires and energizes you? • What words and elements resonate with you? • Which do you think will best hold true in 10 years? • What else do you recommend?

21. Shared Values

22. Values • Our highest priorities and deeply held driving forces.

23. Teekay’s values • Take a minute. Write down Teekay’s values.

24. Why are Values important? • Strongly and deeply held beliefs • Expected behavior and actions of each other • How we make decisions • What is important in the organization. • Effective organizations identify and develop a clear, concise and shared meaning of values/beliefs, priorities, and direction so that everyone understands and can contribute. Once defined, values impact every aspect of the organization.

25. Values and Value Statements

26. …and the opposite!

27. Values Statements

28. Teekay Values • What 5 values do you think best represent Teekay today? (circle o) • What 5 new values might we need to achieve our Vision? (star **) • How can we make them memorable and embed them in our organization?

29. Organizational Alignment

30. Complexity “Three reasons problems are inevitable: • we live in a world of growing complexity and diversity; • we interact with people; and • we cannot control all the situations we face.” – John Maxwell “The art of simplicity is a puzzle of complexity.” – Douglas Horton

31. Teekay Complexity • 4 Public Companies • 250 Tax / Legal structures • 25 Offices in 17 countries • 10 BU / CU’s • 69 Departments • 150+ vessels • 6000+ Shore, offshore & sea staff • JVs, partnerships, Pools • Etc!

32. A Day In the Life of Teekay!… Sharing Cross-functional / Line reporting • Structure Optimization Communication Sustainability Innovation Resources Agility / speed Simplicity Complexity Decision-making / Authority Accountability Processes Regional / Central Location / geography Profit! Scale / size

33. Our ‘Complexity’ Question… • If there was one thing you could do as the CEO, what would it be?

34. How to roll out the Vision! • What can we do to roll out the vision and values that will be fun, memorable and lasting?

35. Next Steps

36. Your next steps Send any ideas about: • Vision • Vision roll-out (Fun!) • Purpose • Values • Complexity to Lois Nahirney or Jonathan Anthony

37. Our destiny is in our hands…