Overview of Goldman Sachs
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 30 November 2007. 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 its date. 2
Introduction to Goldman Sachs � A leading global investment 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
Goldman Sachs Financial Performance Net Earnings ($mm) & ROTCE (1) (%) Net Revenues ($mm) 39.8% 38.2% $12,000 $50,000 $10,000 26.7% $40,000 25.2% $8,000 19.9% $30,000 $6,000 11,599 16.3% 45,987 9,537 $20,000 37,665 $4,000 4,443 23,800 25,238 5,626 20,951 $10,000 4,553 $2,000 16,023 3,005 $0 $0 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 YTD YTD Net Earnings ROTCE (1) Return on Tangible Common Equity 4
Long Term Growth Net Revenues 1985 to 2007 ($ in billions) 1985 to 2007 Global GDP CAGR (1) : 7% GS Net Revs CAGR: 17% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (1) Compound Annual Growth Rate; Source: International Monetary Fund 5
2008 YTD Highlights Highlights Net Revenue Composition (1) Net Revenues $23.8bn Securities Services Net Earnings $4.4bn 11% Investment Banking Diluted EPS $9.62 17% Asset Mgmt Pre-tax Margin 24.9% 15% ROCE 14.2% FICC ROTCE 16.3% 30% Equities Announced M&A (2) #1 27% Total: $23.8bn (1) Net Revenue composition excludes Principal Investments for 2008 YTD (2) League Table Source: Thomson Reuters. Rankings are global; on a calendar-year basis - January 1, 2008 through August 29, 2008 6
Investment Banking GS Leadership and Net Revenues ($mm) 2003 2004 2005 2006 2007 2008 YTD M&A Ranking #1 #1 #1 #1 #1 #1 $8,000 7,555 $7,000 $6,000 5,629 3,333 $5,000 4,151 3,049 $4,000 3,671 3,374 2,069 $3,000 2,711 1,766 1,637 4,222 1,509 $2,000 2,580 2,082 1,905 $1,000 1,737 1,202 $0 2003 2004 2005 2006 2007 2008 YTD Financial Advisory Underwriting League Table Source: Thomson Reuters. Rankings are global; on a calendar-year basis - January 1, 2008 through August 29, 2008. Represents Announced M&A 7
Fixed Income, Currency & Commodities Net Revenues ($mm) Diverse Business � Credit Products $18,000 $16,500 � Interest Rate Products $15,000 � Mortgages $13,500 � Currencies $12,000 $10,500 � Commodities $9,000 16,165 $7,500 14,262 $6,000 8,940 $4,500 7,723 7,116 $3,000 5,607 $1,500 $0 2003 2004 2005 2006 2007 2008 YTD 8
Equities Net Revenues ($mm) Diverse Business � Customer Franchise Business $12,000 � Principal Strategies $10,500 � Specialist Activities $9,000 � Insurance Activities $7,500 $6,000 11,304 $4,500 8,483 6,563 $3,000 5,650 4,673 4,281 $1,500 $0 2003 2004 2005 2006 2007 2008 YTD 9
Principal Investments Net Revenues ($mm) 3Q 2008 Carrying Value 3,757 $3,800 495 $3,400 2,817 $3,000 ICBC $2,600 2,228 29% 937 $2,200 Corporate 55% $1,800 3,391 527 1,332 1475 $1,400 $1,000 771 566 1,353 $600 293 753 561 Real $200 273 Estate 185 (129) 16% ($200) - 445 -260 ($600) 2003 2004 2005 2006 2007 2008 Total: $24.2bn YTD Corporate and Real Estate (1) SMFG ICBC (2) (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) Includes economic interests of $4.51bn as of August 2008 assumed by investment funds managed by Goldman Sachs 10
Asset Management Assets Under Management ($bn) Net Revenues ($mm) $4,500 868 $900 863 $4,000 $800 151 154 $3,500 676 $700 $3,000 179 145 $600 255 532 $2,500 $500 452 4,490 110 4,294 215 $2,000 373 95 262 $400 3,607 206 68 167 2,956 $1,500 $300 133 2,553 118 104 $1,000 101 1,853 $200 89 89 268 256 $500 198 $100 154 134 112 $0 $0 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 YTD YTD Fixed Income and Currency Money Markets Equity Alternative Investments 11
Securities Services Net Revenues ($mm) Market Leading Franchise � Growth driven by: $3,000 • $2,800 Hedge fund formation $2,600 • Asset inflows and growth $2,400 $2,200 • Leading market share $2,000 $1,800 � Significant recurring fee revenue $1,600 $1,400 2,716 2,623 $1,200 2,180 $1,000 1,793 $800 1,296 $600 1,005 $400 $200 $0 2003 2004 2005 2006 2007 2008 YTD 12
Equity Capital Base ($bn) $50 5.0 5.0 � Significant equity base sized relative to regulatory $45 3.1 capital requirements, other external benchmarks, 3.1 $40 subsidiary capital requirements and our overall 2.8 risk profile $35 3.1 $30 2.8 � Effective April 1, 2005, GS Group became a CSE 1.8 2.8 and is now subject to consolidated supervision by $25 the SEC and a minimum capital requirement 42.5 39.7 $20 � Issued Trust Preferred, Perpetual Preferred and 32.7 $15 Automatic Preferred Enhanced Capital Securities 26.3 25.1 to optimize our capital base 21.6 $10 $5 $0 2003 2004 2005 2006 2007 2008 YTD Hybrids (1) Common Equity Perpetual Preferred (1) Includes trust preferred and automatic preferred enhanced capital securities 13
Conservative Funding Profile Unsecured Short-term Borrowings = $64.7bn Unsecured Long-term Borrowings = $176.4bn Weighted Average Years to Maturity: Approximately 8 years CP 2% Samurai Bonds 2% U.S. MTNs Other 13% 14% Euro MTNs 21% Global Bonds - Prom Notes Current LTD Other 13% 42% 17% Subordinated Debt 8% Hybrid Debt Global Bonds - USD Hybrids 29% 32% 3% Other 4% Moody’s S&P Fitch DBRS Moody’s S&P Fitch DBRS Ratings P-1 A-1+ F1+ R-1 (middle) Ratings Aa3 AA- AA- AA (low) 14
Conservative and Comprehensive Liquidity Risk Management Framework � Pre-Funded Excess Liquidity � Asset-Liability Management • Asset Quality and Balance Sheet Composition • Total Capital Surplus • Conservative Spacing of Debt Maturities • Focus on Diversification and Depth of Funding � Prudent Intercompany Funding Policies � Continuing Liquidity Stress Testing and Crisis Planning 15
Pre-Funded Excess Liquidity Global Core Excess Pre-Funded Potential Outflows Average Loan Value � Disruptions to unsecured and secured financing Currency ($bn) flows USD 90.5 � Collateral outflows EUR/GBP 4.6 � Draws on unfunded commitments JPY 7.2 � Other upcoming cash outflows Total 102.3 Note: Data for the quarter ended August 29, 2008 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 17
Credit Summary � Leading firm providing advisory and underwriting services � Diversified trading operations with sound risk management policies � Significant growth in, and more stable revenue streams from, asset management and securities services � Well capitalized with excess liquidity � Focus on risk management 18
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