2009 Credit Suisse Document

8/8/2019 2009 Credit Suisse Document

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TodayTodays presentation may include forwards presentation may include forward--looking statements. Theselooking statements. These

statements represent the Firmstatements represent the Firms belief regarding future events that, bys belief regarding future events that, by

their nature, are uncertain and outside of the Firmtheir nature, are uncertain and outside of the Firms control. The Firms control. The Firmssactual results and financial condition may differ, possibly mateactual results and financial condition may differ, possibly materially, fromrially, fromwhat is indicated in those forwardwhat is indicated in those forward--looking statements. For a discussionlooking statements. For a discussionof some of the risks and factors that could affect the Firmof some of the risks and factors that could affect the Firms future resultss future results

and financial condition, please see the description ofand financial condition, please see the description of Risk FactorsRisk Factors inin

our current annual report on Form 10our current annual report on Form 10--K for our fiscal year endedK for our fiscal year endedNovember 2008.November 2008.

You should also read the information on the calculation of nonYou should also read the information on the calculation of non--GAAPGAAP

financial measures that is posted on the Investor Relations portfinancial measures that is posted on the Investor Relations portion of ourion of our

website: www.gs.com.website: www.gs.com.

The statements in the presentation are current only as of its daThe statements in the presentation are current only as of its date,te,February 4, 2009.February 4, 2009.

Cautionary NoteCautionary Noteon Forwardon Forward--Looking StatementsLooking Statements


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Goldman Sachs Presentation toGoldman Sachs Presentation to

2009 Credit Suisse Financial2009 Credit Suisse Financial

Services ConferenceServices Conference

David ViniarDavid Viniar

Chief Financial OfficerChief Financial Officer

February 4, 2009February 4, 2009


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2008 Highlights2008 Highlights

Net RevenuesNet Revenues $22.2 bn$22.2 bn

Net EarningsNet Earnings $2.3 bn$2.3 bn

EPSEPS $4.47$4.47

Return on EquityReturn on Equity 4.9%4.9%

Return on Tangible EquityReturn on Tangible Equity 5.5%5.5%

BV per shareBV per share $98.68$98.68


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$2,532$2,876

$4,245

$8,914

12%

21%

25%27%

1Q08 2Q08 3Q08 4Q08

($mm) R

OTE

Cumulative Fair Value Losses Annualized ROTE Excluding FV Losses and CVA

1 Pro forma analysis excludes results from Principal Investments, leveraged loans, and residential and commercial

real estate and is net of CVA gains from the impact of our wider credit spreads on certain long-term debt. Theseresults are adjusted for taxes and compensation.

The Year in ContextThe Year in Context11

Performance Excluding Fair Value Losses and CVAPerformance Excluding Fair Value Losses and CVA


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PrincipalInvestments

4%

FICC34%

Equities26%

AssetManagement

12%

SecuritiesServices7%

InvestmentInvestmentBankingBanking

17%17%

Investment BankingInvestment Banking20032003--2008 Contribution to Firmwide Net Revenues2008 Contribution to Firmwide Net Revenues

#1#1 RankedRanked in Globalin Global M&AM&A11

Growth in NonGrowth in Non--League TableLeague TableBusinessBusiness

IntegratedIntegrated Client Service ModelClient Service Model

Dominant FinancialDominant Financial InstitutionsInstitutionsFranchiseFranchise

1Announced M&A based on Thomson Financial data on a calendar year basis


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Fixed Income Currency & CommoditiesFixed Income Currency & Commodities20032003--2008 Contribution to Firmwide Net Revenues2008 Contribution to Firmwide Net Revenues

2005 2006 2007 2008

Commodities Currencies Interest Rate Products


4%

FICCFICC34%34%

Equities26%

AssetManagement

12%


InvestmentBanking

17%

Strength of macro businessesStrength of macro businesses

Integrated platformIntegrated platform


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EquitiesEquities20032003--2008 Contribution to Firmwide Net Revenues2008 Contribution to Firmwide Net Revenues

Strong customer facing franchiseStrong customer facing franchise

Market leading electronic tradingMarket leading electronic tradingplatformplatform

Best in class execution from highBest in class execution from high

to low touchto low touch


4%

FICC34%

EquitiesEquities26%26%

AssetManagement

12%


InvestmentBanking

17%


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Principal InvestmentsPrincipal Investments20032003--2008 Contribution to Firmwide Net Revenues2008 Contribution to Firmwide Net Revenues

Committed to coCommitted to co--investing withinvesting with

our clientsour clients

Successful longSuccessful long--term investmentterm investmentperformanceperformance

$12bn raised in 2008$12bn raised in 2008

PrincipalPrincipalInvestmentsInvestments

4%4%

FICC34%

Equities26%

AssetManagement

12%


InvestmentBanking

17%


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Asset Management and Securities ServicesAsset Management and Securities Services20032003--2008 Contribution to Firmwide Net Revenues2008 Contribution to Firmwide Net Revenues

Asset ManagementAsset Management

Solid investmentSolid investmentperformance and diversifiedperformance and diversifiedproduct offeringsproduct offerings

Securities ServicesSecurities Services

FrontFront--toto--Back service offeringBack service offering

Extensive securities lendingExtensive securities lending

relationshipsrelationships

Advanced client facingAdvanced client facing

technology platformstechnology platforms


4%

FICC34%

Equities26%

AssetAssetManagementManagement

12%12%

SecuritiesSecuritiesServicesServices7%7%

InvestmentBanking

17%


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Risk ManagementRisk ManagementReduction in Key Risk ExposuresReduction in Key Risk Exposures11 ($($bnbn))

$43.0

$15.7

$5.2

$19.0

$10.9

$20.3

$8.6

$17.0

$7.7

$6.2$8.0

$53.6

2007YE 1Q08 2Q08 3Q08 4Q08 2008YE Cumulative

Reduction inExposure

Net Marks

LeveragedLoans

Residential RealEstate

Commercial RealEstate

ExposureReductions

$77.7

$24.1

1 Key Risk Exposures include leveraged loans, commercial real estate, residential real estate


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Capital ManagementCapital Management-- Growth in Book ValueGrowth in Book ValueBook Value per Common ShareBook Value per Common Share

$20.94

$32.18$36.33 $38.69

$43.60

$50.77$57.02

$90.43

$98.68

$72.62

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

CAGR

19%

CAGR

19%


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Conservative Financial PositioningConservative Financial PositioningBalance SheetBalance Sheet

Leverage and Adjusted LeverageLeverage and Adjusted LeverageTotal Assets andTotal Assets and

Adjusted Assets ($Adjusted Assets ($bnbn))

13.7x

23.7x24.3x

27.9x

8.2x

13.7x14.7x

18.6x

1Q08 2Q08 3Q08 4Q08

Gross Leverage Adj. Leverage

42% Decrease

40% Decrease$746$787

$651 $622$528

$1,120$1,189

$1,082

$885

$1,088

4Q07 1Q08 2Q08 3Q08 4Q08

Adjusted Assets Total Assets

(21)%


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Conservative Financial PositioningConservative Financial PositioningCapital and Key Risk ExposuresCapital and Key Risk Exposures

15.6%

11.6%

10.8%

2Q08 3Q08 4Q08

Key Risk ExposuresKey Risk Exposures

Relative to CapitalRelative to Capital22Tier 1 RatioTier 1 Ratio11

400bps Increase

56%

85%

134%

167%

224%

4Q07 1Q08 2Q08 3Q08 4Q08

%o

fTangibleCom

monEquity

1

Tier 1 Ratio calculated under the Basel II framework as it applied to us when we were regulated as a CSE2Key Risk Exposures include leveraged loans, commercial real estate, residential real estate


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Conservative Financial PositioningConservative Financial PositioningLiquidityLiquidity

$69$61

$88

$113 $111

9.5%8.0%

12.2%

17.7%19.3%

4Q07 1Q08 2Q08 3Q08 4Q08

Average GCE Average GCE as % of average Adjusted Assets

1

13Q08 and 4Q08 GCE includes balances held at GS Bank

1


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Unsecured LongUnsecured Long--TermTermFunding: $168bnFunding: $168bn

Hybrid Debt

23%

Prom Notes

13%

Other

12%

CP

2%

Current

LTD

50%

Unsecured ShortUnsecured Short--TermTermFunding: $53bnFunding: $53bnSecured Funding: $119bnSecured Funding: $119bn

Conservative Financial PositioningConservative Financial PositioningFunding ModelFunding Model

Liquid

Gov'ts,

Agencies,

MBS

42%

Other

Secured

Debt

9%

Loans

8%

Equities

26% Other

Fixed

Income

Securities15%

GBP

3%AUD

1%JPY

5%

CAD

1%Other

1%

EUR

28%USD

61%


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Future OpportunitiesFuture OpportunitiesLooking Beyond 2008Looking Beyond 2008

Integrated Business ModelIntegrated Business Model

Leveraging Investment Banking, Securities Division andLeveraging Investment Banking, Securities Division andPrincipal InvestingPrincipal Investing

Ability to Commit CapitalAbility to Commit Capital

Market MakingMarket Making

FinancingFinancing

Distressed InvestingDistressed Investing

Market Share ExpansionMarket Share Expansion

Investment Banking, Securities Division, Private WealthInvestment Banking, Securities Division, Private Wealth

ManagementManagement


17/17

Goldman Sachs Presentation toGoldman Sachs Presentation to

2009 Credit Suisse Financial2009 Credit Suisse FinancialServices ConferenceServices Conference

David ViniarDavid Viniar

Chief Financial OfficerChief Financial Officer

February 4, 2009February 4, 2009

Documents

2009 Credit Suisse Document