Overview of Goldman Sachs
Cautionary Note on Forward-Looking Statements


 Today’s presentation may include forward-looking statements. These statem...
Introduction to Goldman Sachs


 A leading global bank with broad and diverse businesses

 •   Investment Banking

 •   Sa...
Goldman Sachs Financial Performance

                                                                                Net E...
Long Term Growth
Net Revenues 1988 to 2008
($ in billions)




             1988 to 2008
             Global GDP CAGR(1): ...
Investment Banking
GS Leadership and Net Revenues ($mm)

                                    2003                  2004   ...
Fixed Income, Currency & Commodities


                  Net Revenues ($mm)                                       Diverse ...
Equities


                  Net Revenues ($mm)                                       Diverse Business

                  ...
Principal Investments


                                                                                                  ...
Asset Management


        Assets Under Management ($bn)                                                 Net Revenues ($mm...
Securities Services


                 Net Revenues ($mm)                                 Market Leading Franchise

      ...
Equity Capital Base ($bn)

  •   The firm has always maintained a significant core equity capital base comprised mainly of...
Conservative Funding Profile



    Unsecured Short-term Borrowings = $53bn                                               ...
Conservative and Comprehensive
Liquidity Risk Management Framework

 Pre-Funded Excess Liquidity

 Asset-Liability Managem...
Pre-Funded Excess Liquidity


           Average Global Core Excess ($bn)1                                                ...
Market and Credit Risk Tools


                    Market Risk                                  Credit Risk

 Value at Ris...
Credit Summary


 Leading firm providing advisory and underwriting services

 Diversified trading operations with sound ri...
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goldman sachs Creditor Presentation

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goldman sachs Creditor Presentation

  1. 1. Overview of Goldman Sachs
  2. 2. Cautionary Note on Forward-Looking Statements Today’s presentation may include forward-looking statements. These statements represent the Firm’s belief regarding future events that, by their nature, are uncertain and outside of the Firm’s control. The Firm’s actual results and financial condition may differ, possibly materially, from what is indicated in those forward- looking statements. For a discussion of some of the risks and factors that could affect the Firm’s future results, please see the description of “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended 28 November 2008. You should also read the information on the calculation of non-GAAP financial measures that is posted on the Investor Relations portion of our website: www.gs.com. The statements in the presentation are current only as of January 27, 2009. 2
  3. 3. Introduction to Goldman Sachs A leading global bank with broad and diverse businesses • Investment Banking • Sales and Trading • Principal Investing • Asset Management and Securities Services Focused strategy to grow our core businesses Straightforward financial goal • Return on tangible common equity > 20% over the cycle People, culture and reputation are the keys to our long-term success 3
  4. 4. Goldman Sachs Financial Performance Net Earnings ($mm) & ROTCE1 (%) Net Revenues ($mm) $12,000 39.8% 38.2% $50,000 $10,000 26.7% 25.2% $40,000 $8,000 19.9% $30,000 $6,000 11,599 45,987 9,537 $20,000 37,665 $4,000 5.5% 22,222 25,238 5,626 20,951 $10,000 4,553 $2,000 16,023 2,322 3,005 $0 $0 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Net Earnings ROTCE (1) Return on Tangible Common Equity 4
  5. 5. Long Term Growth Net Revenues 1988 to 2008 ($ in billions) 1988 to 2008 Global GDP CAGR(1): 6% GS Net Revs CAGR: 12% 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 5 (1) Compound Annual Growth Rate; Source: International Monetary Fund
  6. 6. Investment Banking GS Leadership and Net Revenues ($mm) 2003 2004 2005 2006 2007 2008 (1) M&A Ranking #1 #1 #1 #1 #1 #1 $8,000 7 ,555 $7,000 $6,000 3 ,333 5,62 9 5,185 $5,000 3,04 9 $4,000 3,67 1 2 ,529 3,3 74 $3,000 2,7 11 1,76 6 1,6 37 4 ,222 $2,000 1,5 09 2 ,656 2,58 0 $1,000 1,90 5 1,7 37 1,2 02 $0 2003 2004 2005 2006 2007 2008 Financial Advisory Underwriting 6 (1) League Table Source: Thomson Reuters. Rankings are global; on a calendar-year basis - January 1, 2008 through November 28, 2008. Represents Announced M&A
  7. 7. Fixed Income, Currency & Commodities Net Revenues ($mm) Diverse Business Credit Products $18,000 $16,500 Interest Rate Products $15,000 Mortgages $13,500 Currencies $12,000 Commodities $10,500 $9,000 16,165 $7,500 14,262 $6,000 $4,500 8,940 7,723 $3,000 5,607 3,713 $1,500 $0 2003 2004 2005 2006 2007 2008 7
  8. 8. Equities Net Revenues ($mm) Diverse Business Customer Franchise Business $12,000 Principal Strategies $10,500 Specialist Activities $9,000 Insurance Activities $7,500 $6,000 11,304 9,206 $4,500 8,483 $3,000 5,650 4,673 4,281 $1,500 $0 2003 2004 2005 2006 2007 2008 8
  9. 9. Principal Investments YE 2008 Carrying Value2 Net Revenues Since 2003 ($mm) 3,757 495 2,817 2,228 937 Real Estate 1,332 3,391 527 1475 17% 566 771 1,353 293 753 561 273 ICBC (129) 12% Corporate (3,410) 71% -446 (3,856) 2003 2004 2005 2006 2007 2008 Total: $17.2bn Corporate and Real Estate(1) SMFG ICBC 9 (1) Includes Other Corporate and Real Estate gains and losses, and Overrides; starting in 1Q08 this also includes Sumitomo Mitsui Financial Group; as of February 2008, we had hedged all of the common stock underlying our investment in SMFG (2) ICBC represents GS’ economic interest of $2.0bn as of November 2008
  10. 10. Asset Management Assets Under Management ($bn) Net Revenues ($mm) $4,500 $900 868 $4,000 779 $800 151 $3,500 676 146 $700 $3,000 $600 145 255 112 532 $2,500 $500 452 4,552 110 4,490 4,294 $2,000 215 373 95 $400 273 206 68 167 $1,500 2,956 $300 133 2,553 118 104 $1,000 101 $200 1,853 89 89 256 248 $500 $100 198 154 134 112 $0 $0 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Fixed Income and Currency Money Markets Equity Alternative Investments 10
  11. 11. Securities Services Net Revenues ($mm) Market Leading Franchise Leading market franchise driven by: $3,000 • $2,800 Front-to-back service offering $2,600 • Extensive securities lending relationships $2,400 $2,200 • Advanced client facing technology platforms $2,000 Significant recurring fee revenue $1,800 3,422 $1,600 $1,400 2,716 $1,200 2,180 $1,000 1,793 $800 1,296 $600 1,005 $400 $200 $0 2003 2004 2005 2006 2007 2008 11
  12. 12. Equity Capital Base ($bn) • The firm has always maintained a significant core equity capital base comprised mainly of vanilla common stock • In September 2008, we enhanced our equity base with a $10.75bn capital raise: – $5.0bn investment by Berkshire Hathaway in cumulative perpetual preferred stock (qualifies for Tier 1 capital treatment); Berkshire also received warrants to purchase up to $5bn of our common stock – $5.75bn common stock offering placed with long-term institutional holders of our stock • Our capital position was further strengthened by the Treasury’s $10bn perpetual preferred investment; the Treasury also received warrants to purchase up to $1.5bn of our common stock Equity Capital: (in $ billions) $75 69.4 5.0 $65 16.5 $55 47.8 5.0 $45 38.6 3.1 2.8 30.9 $35 3.1 27.9 2.8 1.8 2.8 21.6 $25 47.9 39.7 32.7 $15 26.3 25.1 21.6 $5 -$5 2003 2004 2005 2006 2007 2008 Equity Perpetual Preferred Hybrids 12
  13. 13. Conservative Funding Profile Unsecured Short-term Borrowings = $53bn Unsecured Long-term Borrowings = $168bn Weighted Average Years to Maturity: Approximately 8 years CP 2% Hybrids 3% Other Othe r 8% Subordinated 12% Debt 8% Global Bonds - USD Pr om Note s 32% 13% Cur re nt LTD Euro MTNs 50% 19% Hybrid De bt Global 23% Bonds - U.S. MTNs Other 11% 16% Samurai Bonds 3% Moody’s S&P Fitch DBRS Moody’s S&P Fitch DBRS Ratings P-1 A-1 F1+ R-1 (middle) Ratings A1 A A+ A (high) 13 Note: Data for the year ended November 28, 2008; Ratings current as of January 27, 2008
  14. 14. Conservative and Comprehensive Liquidity Risk Management Framework Pre-Funded Excess Liquidity Asset-Liability Management • Asset Quality and Balance Sheet Composition • Total Capital Surplus • Conservative Spacing of Debt Maturities • Focus on Diversification and Depth of Funding Prudent Intercompany Funding Policies Continuing Liquidity Stress Testing and Crisis Planning 14
  15. 15. Pre-Funded Excess Liquidity Average Global Core Excess ($bn)1 Pre-Funded Potential Outflows Disruptions to unsecured and secured financing 113 flows 111 Collateral outflows 88 Draws on unfunded commitments 69 Other upcoming cash outflows 64 61 55 53 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 15 (1) In the 3Q08 and 4Q08, the Global Core Excess includes the global core excess of Goldman Sachs Bank USA and Goldman Sachs Bank (Europe) PLC
  16. 16. Market and Credit Risk Tools Market Risk Credit Risk Value at Risk (VaR) Fundamental Credit Analysis at Sovereign, Industry, and Company Levels Stress Tests, including but not limited to: Current Exposure • Credit Spread Widening Expected Exposure • Equity Crash Stress Tests • Emerging Markets Use of Netting, Triggers, and Collateral Idiosyncratic Risk of Loss Single Name Limits Asset Liquidity Considerations Focus on Crowded Trades 16
  17. 17. Credit Summary Leading firm providing advisory and underwriting services Diversified trading operations with sound risk management policies More stable revenue streams from asset management and securities services Well capitalized with excess liquidity Focus on risk management 17
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