Overview of Goldman Sachs
January 2016
Cautionary Note on Forward-Looking Statements
This presentation may include forward-looking statements. These statements are not historical facts, but instead represent only the
Firm’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Firm’s control. It is
possible that the Firm’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements.
For a discussion of some of the risks and important factors that could affect the Firm’s future results and financial condition, see
“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014. You should also read the forward-looking
disclaimers in our Form 10-Q for the period ended September 30, 2015, particularly as it relates to capital and leverage ratios, and
information on the calculation of non-GAAP financial measures that is posted on the Investor Relations portion of our website:
www.gs.com. See the appendix for more information about non-GAAP financial measures in this presentation.
Certain of the information regarding the Firm’s capital ratios, risk-weighted assets, supplementary leverage ratio, total assets, level 3
assets and global core liquid assets consist of preliminary estimates. These estimates are forward-looking statements and are
subject to change, possible materially, as the Firm completes its financial statements.
Certain previously reported amounts have been conformed to the current presentation. See our Form 10-Q for the period ended
September 30, 2015 for further information.
Except as may be indicated on a particular slide, the statements in the presentation are current only as of its date – January 20,
2016.
1
Key Credit Strengths
Well-Positioned
with respect to
Regulatory
Capital Ratios
 The firm is well-positioned for capital requirements with 4Q15 Common Equity Tier 1 (CET1) ratios of 13.6% and
12.4% under the Standardized and Advanced approaches, respectively, reflecting the applicable transitional
provisions
 Our gross leverage is 9.9x as of 4Q15
 In addition, 97% of our balance sheet is marked to market or carried at amounts that approximate fair value as of
3Q15, which means our equity reflects market value
 We have in place a comprehensive and conservative set of liquidity and funding policies that allows us to
maintain significant flexibility to address both GS-specific and broader industry or market liquidity events
 Our two major liquidity and funding policies are based on the core tenets of:
Best in Class
Liquidity Risk
Management
— Substantial liquidity refers to having enough cash or highly liquid instruments on hand to meet contractual,
contingent and intraday outflows in a stressed environment
— Asset-liability management refers to having a liability profile that has sufficient term and diversification
based upon the liquidity profile of our assets
 The Basel III liquidity requirements are broadly consistent with how GS manages liquidity risk and, under the
rules approved by the U.S. federal bank regulatory agencies, we believe we are well-positioned for the Liquidity
Coverage Ratio
 A substantial portion of our balance sheet is highly liquid and we maintain significant levels of liquidity. We call
this pool of liquidity Global Core Liquid Assets or “GCLA”
— GCLA ended 4Q15 at $199 billion, reflecting about 23% of our period-end balance sheet
Global Core
Liquid Assets
— GCLA is comprised of cash, high quality and narrowly defined unencumbered assets, including U.S.
Treasuries and German, French, Japanese and United Kingdom government obligations
— GCLA is sized well in excess of our near-term contractual and contingent outflows
 As a Bank Holding Company, access to the Fed as the lender of last resort provides additional liquidity
protection, although we do not rely on this funding in our liquidity planning and stress testing
2
Key Credit Strengths (cont’d)
 Our principal objective is to fund our balance sheet and run the firm with the ability to weather stressed market
conditions without dependence on government support
 Balance sheet comprised of highly liquid assets
— Greater than 90%1 of the balance sheet was comprised of more liquid assets (e.g., cash, reverses/borrows,
U.S. government/agency and other financial instruments) as of 3Q15
Conservative
Asset-Liability
Management
— Businesses subject to conservative balance sheet limits that are reviewed regularly and monitored daily
 Liability term structure – we seek to have long-dated liabilities to reduce our refinancing risk
— Weighted Average Maturity (WAM) of approximately 9 years as of 3Q15 for long-term unsecured borrowings
— WAM >120 days for secured funding as of 3Q15 (excluding funding collateralized by highly liquid securities that are
eligible for inclusion in our GCLA)
 We maintain broad and diversified funding sources globally
 Counterparties well distributed throughout the U.S., Europe and Asia
 The balance sheet stands at $861 billion as of 4Q15, down $20 billion vs. 3Q15 and down 23% vs. 4Q07
Strong Asset
Quality
 Our asset quality has substantially improved since 4Q07 as our balance sheet reductions targeted less liquid, legacy
exposures such as Level 3 assets
— Level 3 assets2 are down by more than 50% since 4Q07 to $24 billion and represent 2.8% of our balance sheet as
of 4Q15
 From 1999-2015, net revenues have grown at a compound annual growth rate of approximately 6%
Diversified Global
Business with
Profitable Track
Record
1
2
 Average annual ROE from 1999-2015 of approximately 17%
 Our diversified business model allows us to outperform through cycles
— Although our FICC and Equities Client Execution businesses averaged 40% of net revenues from 2009 through
2015, this encompasses various products, markets, and regions designed to serve our global client base, which
includes corporations, financial institutions and governments
Excludes sum of Level 3, Other Assets and investments in funds at NAV
4Q07 Level 3 Assets included investments in funds held at NAV, 4Q15 excludes these funds
3
Goldman Sachs’ Credit Profile
Credit Ratings as of January 20, 2016
S&P
Moody's
Fitch
A-2
BBB+
BBBBB
Stable
P-2
A3
Baa2
Ba1
Stable
F1
A
ABB+
Stable
GS&Co.
Short-term debt
Long-term debt
Outlook
A-1
A
Watch Positive
N/A
N/A
N/A
F1
A+
Stable
Goldman Sachs International
Short-term debt
Long-term debt
Outlook
A-1
A
Watch Positive
P-1
A1
Stable
F1
A
Positive
Goldman Sachs Bank USA
Short-term debt
Long-term debt
Short-term deposit
Long-term deposit
Outlook
A-1
A
N/A
N/A
Watch Positive
P-1
A1
P-1
A1
Stable
F1
A+
F1+
AAStable
Goldman Sachs International Bank
Short-term debt
Long-term debt
Short-term deposit
Long-term deposit
Outlook
A-1
A
N/A
N/A
Watch Positive
P-1
A1
P-1
A1
Stable
F1
A
F1
A
Positive
GS Group Inc.
Short-term debt
Long-term debt
Subordinated debt
Preferred stock
Outlook
4
Diversified Net Revenue Mix
Diversified by Business
Average 2009 – 2015
Investing &
Lending
15%
Asia
16%
Investment
Banking
16%
Investment
Management
15%
FICC Client
Execution
31%
Securities
Services
5%
Diversified by Geography
Average 2009 – 2015
EMEA
26%
Americas
58%
Commissions
and Fees
9%
Equities Client
Execution
9%
Our goal is to continue to have leading, diverse franchise businesses
5
Financial Performance
Net Earnings ($bn) & ROE (%)1
Net Revenues ($bn)1
32.7%
32.8%
$46.0
$45.2
$13.4
$39.2
$37.7
$34.2 $34.2
$34.5
$11.6
$33.8
22.5%
$28.8
21.8%
$9.5
$8.5
$8.4
$25.2
$8.0
$7.5
$22.2
$5.6
11.5% 10.7%
$4.4
$6.1
11.2%
11.0%
7.4%
$2.3
4.9%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net Earnings
1
3.7%
ROE
In connection with becoming a bank holding company, the firm was required to change its fiscal year-end from November to December. This change in the firm’s fiscal year-end resulted in a one-month transition period. For the
one-month ended December 2008, we reported net revenues of $183 million and a net loss of $780 million
6
Our Risk Philosophy
Corporate and Senior Management Oversight
 Board of Directors and Board Committees
 Senior Management
(Chairman & CEO, President & COO, CFO)
Management Committee
 Firmwide Risk Committee (Securities Division Risk,
Investment Banking Division Risk, Credit Policy,
Operational Risk, Finance, Technology Risk,
Investment Policy, Model Risk Control, Global
Business Resilience, and Volcker Oversight)
 Firmwide Client & Business Standards Committee
(New Activity / Suitability / Reputational Risk)
 Firmwide Capital & Commitments Committees
Independent
Control and
Support
Functions
Internal Audit
RevenueProducing Units
 Senior management awareness of nature and amount of
risk incurred
 Independence of process from the business
 Fair value accounting is a critical risk mitigant and is
supported by a robust price verification process
 Minimize losses and manage risk through:
— Active management
— Risk mitigation, where possible using collateral
— Diversification
— Return hurdles matched to underlying risks
 Overall risk tolerance established by assessment of
opportunity relative to potential loss
— Qualitative and quantitative analysis, but not a
specific formulaic link
 Variety of approaches used to monitor risk exposures
 Effective risk systems, which are thorough, timely and
flexible
 While we manage risk conservatively, we are in a risktaking business and will incur losses
7
Managing Our Risk
4Q07
Balance
Sheet
$1,120bn
-23%
$861bn
Common
Equity
$40bn
1.9x
$76bn
Gross
Leverage
26.2x
-62%
9.9x
GCLA1
$61bn
3.3x
$199bn
Level 3
Assets2
1 Prior
to 4Q09, GCLA reflects loan value and subsequent periods reflect fair value
Level 3 Assets included investments in funds held at NAV, 4Q15 excludes these funds
2 4Q07
4Q15
Down by more than 50% since 4Q07
8
Balance Sheet
Overview
 Highly liquid balance sheet with 97% of our assets marked to market or carried at amounts that approximate fair value as of 3Q15
— As of 3Q15, greater than 90%1 of the balance sheet was comprised of more liquid assets (e.g., cash, reverses/borrows, U.S.
government/agency and other financial instruments)
 Businesses are subject to conservative balance sheet limits that are reviewed regularly and monitored daily, including aged
inventory limits
3Q15 Balance Sheet Allocation
Other Assets
3%
Balance Sheet Reduction: 2013 to 3Q15 ($bn)
-3%
$911
$22
$61
Investing &
Lending
10%
Institutional
Client
Services
37%
GCLA and
Cash
23%
Secured
Client
Financing
27%
Excludes sum of Level 3, Other Assets and investments in funds at NAV
$79
$91
$353
$327
$375
-10%
$263
$211
$236
$190
$191
$202
2013
2014
3Q15
GCLA and Cash
Institutional Client Services
Other Assets
1
$881
$25
$856
$22
Secured Client Financing
Investing & Lending
9
Capital Update
Shareholders’ Equity ($bn)
+15%
$86.7
$75.7
Gross Leverage
12.4x
$11.2
$6.2
9.9x
$75.5
$69.5
4Q12
Common Equity
-20%
4Q15
4Q12
4Q15
Preferred Stock
Structurally higher capital levels
 We continue to manage our balance sheet to provide a solid financial foundation as well as meet client needs and regulatory
requirements. Our equity base has meaningfully expanded and leverage has decreased to record lows
 Taking a longer-term perspective, since 4Q07 we have seen significant strengthening of our capital base with common equity
up 1.9x, while our gross leverage ratio has fallen by 62%
Capital growth coupled with active balance sheet management leaves us well-positioned for capital requirements
10
Capital Update
4Q15 Transitional CET1 Ratios1
4Q15 Standardized RWAs ($524bn)1
4Q15 Advanced RWAs ($578bn)1
13.6%
12.4%
10.0%
3.0%
Fed estimated
G-SIB
Surcharge2
3.0%
Fully Phased-in
Regulatory
Minimum
7.0%
7.0%
Standardized
Advanced
Market
Risk
20%
Credit
Risk
80%
Operational
Risk
23%
Credit Risk
59%
Market Risk
18%
Supplementary Leverage Ratio (SLR)3
 Under the Standardized approach, our CET1 ratio as of 4Q15 was
13.6% on a transitional basis and 12.9% on a fully phased-in basis
Bank
Firm
6.9%
5.9%
5.6%
4.2%
1Q14
 Under the Advanced approach, our CET1 ratio as of 4Q15 was
12.4% on a transitional basis and 11.7% on a fully phased-in basis
 Our fully phased-in SLR at the HoldCo of 5.9% as of 4Q15 and at
GS Bank USA of 6.9% as of 3Q15 are compliant with the 2018
minimums
4Q15
1Q14
3Q15
Calculated on a transitional basis based on the Federal Reserve Board’s final rules
Based on the Federal Reserve Board’s G-SIB final rule issued on 7/20/2015. The surcharge will be updated annually and may differ when the rule becomes effective
3 1Q14 SLR reflects our best estimate based on the U.S. federal bank regulatory agencies’ April 2014 proposal; 3Q15 and 4Q15 SLR based on the U.S. federal bank regulatory agencies’ final rule
1
2
11
Conservative and Comprehensive Liquidity Risk Management
Substantial Liquidity
 Our most important liquidity policy is to pre-fund
estimated potential liquidity needs in a stressed
environment
 Our GCLA consists of cash and highly-liquid
government and agency securities that would
be readily convertible to cash in a matter of
days
 GCLA size is based on:
— Modeled assessment of the firm’s liquidity
risks, including contractual, behavioral and
market-driven outflows and intraday
demands
Asset-Liability Management
 Conservative asset and liability management
to ensure stability of financing
 Focus on size and composition of assets to
determine appropriate funding strategy
 Secured and unsecured financing sufficiently
long-term relative to the liquidity profile of our
assets in order to withstand a stressed
environment without relying on asset sales
 Consistently manage overall characteristics of
liabilities, including term, diversification and
excess capacity
— Applicable regulatory requirements
— Qualitative assessment of the conditions of
the financial markets and the firm
Rigorous and conservative stress tests underpin our liquidity and asset-liability management frameworks
12
Liquidity Update
We maintain substantial liquidity
3Q15 Average GCLA by Entity
 GCLA reflects about 23% of our balance sheet as of 4Q15
 In 3Q15, approximately 75% of our average liquidity pool
was made up of U.S. government obligations, overnight cash
deposits (which are mainly at the Federal Reserve) and U.S.
federal agency obligations, with the balance in high quality
non-U.S. government obligations
GS Group
26%
Major Bank
Subsidiaries
29%
 Our GCLA is held at our parent company and each of our
major broker-dealer and bank subsidiaries to ensure that
liquidity is available to meet entity liquidity requirements
Average GCLA Trend ($bn)
We continually enhance the models that drive the size of
our GCLA
 Our Modeled Liquidity Outflow reflects potential contractual
and contingent outflows of cash or collateral
Major
BrokerDealer
Subsidiaries
45%
$183
$180
2013
2014
$188
+2.9x
since
20071
 Our Intraday Liquidity Model provides an assessment of
potential intraday liquidity needs
2015
Currently exceed the fully phased-in 100% LCR requirement
1
Prior to 4Q09, GCLA reflects loan value and subsequent periods reflect fair value
13
Asset-Liability Management
 We actively manage and monitor our asset base, with particular focus on liquidity and potential holding period
 Through our dynamic balance sheet management process, we use actual and projected asset balances to determine our funding
requirements
 We conservatively manage the overall characteristics of our funding book, with a focus on maintaining long-term, diversified
sources of financing with tenors appropriate for the anticipated holding period of our assets
 Our plans are reviewed and approved by the Firmwide Finance Committee as well as senior managers in our independent
control and support functions
Principal Sources of Funding
As of 3Q15
% of Total
Assets
Equity and
Long-term
Debt
Deposits


GCLA and Cash
23%
Secured Client
Financing
27%
Institutional Client
Services
37%


Investing & Lending
10%


Other Assets
3%

Total Assets
Secured
Funding
Financial
Instruments
Sold




$881bn
14
Diversification of Funding Sources
As of 3Q15
 Shareholders’ equity is a
significant, stable and
perpetual source of funding
 Our secured funding book is
diversified across:
— Counterparties
— Tenor
— Geography
 Term is dictated by the
composition of our fundable
assets with longer maturities
executed for less liquid assets
Collateralized
Financings
$118.2bn
Shareholders'
Equity
$87.7bn
Deposits
$91.5bn
Long-Term
Unsecured Debt
$175.8bn
 Long-term unsecured debt
is well diversified across the
tenor spectrum, currency,
investors and geography
 Weighted average maturity of
long-term debt of ~9 years
 Deposits have become a larger source
of funding
 We are focused on contractual term: 36% of
our deposits are CDs (substantially all of
which are brokered CDs) with a 3-year
weighted average maturity
Short-Term
Unsecured Debt
$41.3bn
 Short-term unsecured debt includes
$24.7bn of the current portion of our
long-term unsecured debt
15
Secured Funding Principles
We manage our secured funding liquidity risk with:
 Extending initial trade tenors and managing maturities
1
Term
 Pre-rolling and negotiating tenor extensions with clients
 Longer tenors targeted for less liquid assets
2
Diversity
3
Excess Capacity
4
GCLA
 Raising secured funding from a diverse set of funding counterparties
 Raising excess secured funding to insure against rollover risk or growth in assets to finance
 We raise excess unsecured funding and hold as GCLA to mitigate any 30-day modeled
liquidity needs
 Imposing stress test limits to ensure we do not have excessive liquidity risk even in a
severe scenario
5
Stress Tests
— “Funding-at-Risk” (FaR) uses various metrics over various time periods to evaluate the
risks in the secured funding book
— Matched book (Cash gap)
16
Unsecured Funding
 We continue to emphasize term and diversification across currency, channel and instrument
 In 2015, we raised $29.3bn of long-term unsecured vanilla funding
— $27.3bn of long-term unsecured vanilla debt
— $18.0bn of fixed-rate notes, including $4.1bn of sub-debt
— $9.3bn of floating-rate notes
— $2.0bn of fixed-to-floating non-cumulative perpetual preferreds
— 27% of YTD issuance in non-USD currencies
— Issuance conducted across the tenor spectrum, with 2, 3, 5, 7, 8, 10, and 30-year maturities, and included several notes
with non-round tenors to smooth our maturity profile
— Approximately 10 year weighted average initial maturity for 2015 issuances
 Approximately 9 year WAM for the entire unsecured LT debt portfolio as of 3Q15
GS Group Long-Term Vanilla Issuance vs. Maturities ($bn)1
2012-2015 Average
Issuance / Maturities: 125%
2015 Issuance ($29.3bn) by Currency
Scheduled Maturities
$29.2
AUD JPY
1% 1%
$29.3
$24.5
$20.3
$21.9
$19.3
$17.4
$21.1
$19.5
$20.2
$21.8
EUR
25%
USD
73%
2012
2013
2014
Vanilla Debt Issuance
1
2015
2016
Preferred Equity Issuance
Maturity values for 2016, 2017, and 2018 are as of December 31, 2015
2017
2018
Maturities
17
Deposit Growth
 Deposits have become a more meaningful share of the Firm’s funding
 In particular, GS Bank USA has raised deposits with an emphasis on long-term CDs, private bank deposits and long-term
relationships with broker-dealer aggregators that sweep their client cash to an FDIC-insured deposit at GS Bank USA
 GS International Bank, our main deposit-taking entity in Europe, raises deposits in the form of fixed term and on-demand deposits
 58% of our deposits are FDIC insured as of 3Q15
3Q15 Deposits: $91.5bn (12% of Liabilities)
Deposit Growth Trends ($bn)
Institutional
6%
+29%
$91.5
$82.9
Deposit
Sweep
Program
18%
Up 3.3x
since
4Q08
$70.7
Private
Bank
Deposits
40%
Certificates
of Deposit
36%
2013
2014
US Deposits
3Q15
International Deposits
18
Market, Credit & Operational Risk Management Policies
 Exposures and policies reviewed regularly
 Multiple risk metrics used to monitor and manage exposures
 Extensive investment in Market, Credit and Operational Risk groups
 Frequent reporting to / communication with senior management
Market Risk
Credit Risk
Operational Risk
Risk Overview
 Risk of loss from changes in
market conditions
 Risk of loss related to failure of
counterparties to fulfill financial
and contractual obligations
 Risk of loss resulting from a
failure of internal processes,
people and systems or from
external events
Management
 Allocate risk limits to business level
and control position sizes
 Set and monitor current and
potential counterparty credit
exposure levels
 Set comprehensive risk policies,
enforcing, monitoring and
measuring performance through
various benchmarks, and active
participation
Committee
Oversight
 Firmwide Risk Committee
reviews the activities of existing
businesses, approves firmwide and
business-level market risk limits
 Firmwide Risk Committee
reviews existing counterparty credit
exposures and approves firmwide
and business-level credit risk limits
 Firmwide Operational Risk
Committee provides oversight
of operational risk policies,
framework and methodologies, and
monitors the effectiveness of
operational risk management
Controls &
Active
Management
 Market Risk Management &
 Credit Risk Management &
Analysis centrally manages market
Advisory centrally manages and
risk at the firm by producing risk
controls counterparty credit
measures and monitoring against
exposures through the
market risk limits approved by risk
establishment of limits and use of
committees
collateral and netting agreements
 Operational Risk
Management & Analysis
centrally manages implementation
of the framework and business-level
managers actively manage and
monitor exposures to operational
risks
19
Market Risk-Related Metrics
($ in millions)
Average Annual Daily VaR
10% Sensitivity Table
September
2015
June
2015
Asset Categories
Equity
$218
$36
$36
$2,090
$134
$2,047
$33
$66
Debt
$1,433
$1,487
Total
$3,523
$3,534
$113
$32
$32
$86
$68
$20
$22
$14
$33
 The size of the aggregate 10%
sensitivity decreased by 33%
from 4Q07 to 3Q15
$80
$19
$17
$26
$176
$93
-$96
-$92
2009
2010
Interest Rates
$78
$21
$76
$20
$19
$30
$26
$26
$63
$51
$47
$32
$94
$72
-$66
-$54
-$51
-$45
-$47
2011
2012
2013
2014
2015
Equity Prices
Currency Rates
Commodity Prices
Diversification Effect
20
Appendix
Non-GAAP Measures
 The fully phased-in Standardized and Basel III Advanced CET1 ratios are non-GAAP measures and may not be comparable to
similar non-GAAP measures used by other companies. As of 1Q14, the supplementary leverage ratio was also a non-GAAP
measure as it was not a required regulatory disclosure at that time. We believe that these ratios are meaningful because they are
measures that we, our regulators and investors use to assess our ability to meet future regulatory capital requirements. These
ratios are based on our current interpretation, expectations and understanding of the Revised Capital Framework and may evolve
as we discuss its interpretation and application with our regulators. For a further discussion of the methodology used to calculate
the firm’s regulatory ratios, see Note 20 to the condensed consolidated financial statements in Part I, Item 1 “Financial Statements
(Unaudited)” and “Equity Capital Management and Regulatory Capital” in Part I, Item 2 “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the firm’s Quarterly Report on Form 10-Q for the period ended September 30,
2015.
21
Appendix
Non-GAAP Measures, continued
 In addition to preparing our consolidated statements of financial condition in accordance with U.S. GAAP, we prepare a balance sheet that
generally allocates assets to our businesses, which is a non-GAAP presentation and may not be comparable to similar non-GAAP
presentations used by other companies. We believe that presenting our assets on this basis is meaningful because it is consistent with the
way management views and manages risks associated with the firm’s assets and better enables investors to assess the liquidity of the
firm’s assets. The table below presents the reconciliation of the balance sheet allocation to our businesses to our U.S. GAAP balance sheet
as of September 2015.
22