Goldman Sachs : Q4 Strategic Update

Strategic Update

January 19, 2021

2020 Financial Highlights

Net Revenues			EPS		ROE 1		ROTE 1
2020	$44.6bn		2020	$24.74		2020	11.1%		2020	11.8%
4Q	$11.7bn		4Q	$12.08		4Q	21.1%		4Q	22.5%

Highlights

Highest FY net revenues since 2009		Record Assets Under Supervision

#1 in Announced and Completed M&A2 #1 in Equity and equity-related offerings2

Highest Global Markets net revenues since 2010

Record 4Q net revenues and strong momentum going into 2021

1

Steady Progress Towards Our Medium-Term Goals

Medium-Term Targets1

2020 Progress

Profitability

>13% ROE

■ 11.1% ROE (+390bps ex-litigation)

>14% ROTE

■ 11.8% ROTE2 (+410bps ex-litigation)

	Funding		$100bn in deposit growth	■ $70bn raised across channels
	Optimization		$1.0bn in revenues	■ Limited progress due to rate environment
				■ 65.0% efficiency ratio (-760bps ex-litigation)
	Efficiency &		~60% efficiency ratio
	Expenses		$1.3bn expense plan	■ Achieved approximately half of $1.3bn expense plan
				■ Well positioned with CET1 ratio of 14.7%
	Capital		13-13.5% CET1 ratio	■ Sold or announced $4bn of private equity sales to
				reduce capital intensity
			We remain committed to our medium- and long-term targets

2

Reaffirmed Strategic Direction

Grow and
Strengthen	Diversify our Products	Operate More
Existing	and Services	Efficiently
Businesses

Higher Wallet Share	More	Higher
across Broader Client Set	Durable Earnings	Margins and Returns

3

Delivering One Goldman Sachs to Our Clients

Asset

Management

GlobalInvestment

MarketsBanking

Consumer

• Wealth Management

Clients Turn to Goldman Sachs

at Times of Disruption

Quality of People and Advice

Thought Leadership

Digital Client Engagement

Best in Class Client Experience

Reinforcing our purpose to advance sustainable economic growth and financial opportunity

4

Investment Banking

Investor Day Goals

2020 Progress

Grow Share in Core Business

Expand Client

Footprint

Transaction

Banking

Maintain and

improve share:

IB Fees: #1

M&A: #1

Equity: #1

Debt: Top 4 Wallet Share

Expand Share

with Clients $500mm-2bn

Longer-term4:

$50bn Deposits

$1bn Revenues

	Revenues			#1 Announced &
	$3.1bn	Advisory
		Completed M&A1
	$3.4bn	Equity U/W		#1 Equity & Equity-Related1
	$2.7bn	Debt U/W		#4 Debt U/W Wallet Share2
	$800+mm	Added ~300 clients in 2020
	Revenue
	Generation	Expanded coverage by ~2,700 corporates
	from Footprint
	since 2017
	Expansion3

~$135mm	2Q20		~225 clients		$29bn
Platform
in Revenues				deposits
Launch		3 partnerships

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Global Markets

Investor Day Goals	2020 Progress

Deepen and

Broaden Client

Base

Leverage Risk

Expertise,

Financing and Technology to Serve Clients

Optimize

Resource

Consumption

Ranked #2 in both FICC and Equities globally1

Take Top

3 Position with Top 3 position with 64 of the top 100 clients2 Top 100 Clients

		120bps of wallet share gain vs 20191
Increase Client		Record Financing
Financing
Deploy Technology		Revenues in FICC
		+36%
Platforms
Superior Risk		Record Prime YE	Total Monthly
	Balances in Equities	Active Users3
Intermediation

Medium-term:	~$400mm		14.1%
$700mm Expense
Expense efficiencies achieved
Opportunity	6.8%
	Medium-term
	~$1.25bn
		target of 10%
$2bn Capital	Capital reallocated to
Optimization	2019 ROE	2020 ROE
accretive opportunities

6

Asset Management

Investor Day Goals

2020 Progress

Continued

Growth with

Asset

Allocators

Grow 3rd Party Alternatives

Longer-term:

$250bn Net

Traditional Inflows

(Fixed Income and Equity)

$100bn Net

Alternative Inflows

($150bn Gross Fundraising)

Longer-term:

$2.1tn Firmwide AUS

$286bn Firmwide AUS Growth

Long-term fee based inflows of $42bn

			~$40bn			Additional
			Gross commitments across:			2021 Priorities:
					Growth Equity
		Corporate Equity	Private Credit
				Infrastructure
			Real Estate	Multi-Asset			ESG

Optimize Capital

$4bn Capital

Reduction

$4bn

Sold or announced sales of on-balance sheet positions

Expect $2bn of

related capital reduction

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Consumer & Wealth Management

Investor Day Goals	2020 Progress

Grow Premier

UHNW Business

Globally

Expand our

HNW Platform

Increase client-facing

professionals

Earn additional

wallet share from clients

Leverage corporate

relationships and

expand HNW

franchise reach

Hired >100 client-facing professionals1 in 2020; solid expansion despite slowed plans due to COVID

Hosted 250+ events2, driving engagement with >190K clients and other participants

$17bn of AUS inflows with total client assets3 exceeding $1tn

>4K Client referrals4 ($7bn+ AUS opportunity)

+33 Corporates added Serve ~55% of Fortune 100

Build Leading

Digital

Consumer Bank

Scale existing

products, launch new

products, embed

capabilities in partner

ecosystems

Loan/Cards ($bn)
			$20+
$5	$7	$8
2018	2019	2020	2024
			Target

Deposits ($bn)	$125+
		$97
$36	$60
2018	2019	2020	2024
			Target

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Consumer | Build Leading Digital Consumer Bank

Integrated & Self-Reinforcing Strategy

Go-to-market strategies

MarcusLarge

Direct Partnerships

State-of-the-art

Product / Platform

Spend		Borrow	Save / Invest
Checking	Credit	Loans	Savings	Invest
(2021)	Cards	(2021)

New Products & Partnerships

Invest1Spend1

Borrow

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Funding Optimization

1	Further diversify funding mix via deposits		$1.0+ billion
2	Enhance asset-liability management
3	Optimize liquidity pool		in revenue uplift over medium term

Deposits1	$70bn
~50%
	deposit growth
Wholesale	across channels
Unsecured	in 2020
~50%

% of Firm Assets in Bank Entities2

~15%	~25%
as of 4Q17	as of 4Q20

Remain on target for 30bps funding improvement
Liability
Liability	Acceleration of
MixMix	Liability
	liability mix-shift
	Mix
Liability	Material shift
LiabilityPricing	in rate
Pricing	environment	Liability
		Pricing
Investor Day		Current
Projection		Projection

10

Focused On Expense Efficiencies

On track to generate $1.3bn in run-rate expense savings over the medium term

Streamlined

Organization

• Disciplined approach to organizational design
• Enhanced focus on spans and layers

	Investment in						Centralized Expense
	Automation and			Real Estate Strategy
					Management
	Infrastructure
	Extracting benefit from		 Footprint consolidation in		 Uplifting integrated
	front-to-back			London and Bengaluru			planning capabilities
	reengineering programs			Expanded presence in			Extracting benefit from
	Increased straight-			strategic locations			procure-to-pay solution
	through-processing

• Reduced cost per trade

Achieved approximately half of our medium-term plan in 2020

11

Dynamic Capital Management

Capital Management Philosophy

Prudent capital management in context of evolving regulatory landscape

Prioritize deploying capital to support client activity and grow our businesses

Return excess capital in the form of dividends and buybacks

CET1 Ratio Target

13.0-13.5%1

Stress

Capital Buffer

5.0-5.5%

G-SIB

3.0%

Minimum

4.5%

Key Forward Drivers

• Stress Capital Buffer

Achievement of capital efficiencies from planned sales of on-balance sheet investments; ongoing engagement with FRB on stress loss modeling

• G-SIB

Expected surcharge of 3.0% effective Jan 1 2023 as we continue to deploy balance sheet to support client financing activity

• Management Buffer

Estimated buffer of 50-100bps to anticipate client opportunities and potential volatility

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Clear Strategic Direction

Grow and Strengthen Existing Businesses

Expand our global footprint:

Investment Banking, Global Markets,

Ultra High Net Worth

Increase financing activities

Grow asset management

Higher Wallet Share

across Broader Client Set

Diversify our Products

and Services

Build Transaction Banking

Grow third party Alternatives

Scale digital Consumer Banking, High Net Worth and Mass Affluent

More Durable

Earnings

Operate More

Efficiently

Increase organizational and

process efficiency

Remix to lower cost

deposit funding

Optimize capital footprint

Higher Margins

and Returns

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Strategic Update

January 19, 2021

End Notes

These notes refer to the financial metrics and/or defined term presented on:

Slide 1:

1. Return on average common shareholders' equity (ROE) is calculated by dividing net earnings applicable to common shareholders by average monthly common shareholders' equity. Return on average tangible common shareholders' equity (ROTE) is calculated by dividing net earnings applicable to common shareholders by average monthly tangible common shareholders' equity. Tangible common shareholders' equity is calculated as total shareholders' equity less preferred stock, goodwill and identifiable intangible assets. Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally and that tangible common shareholders' equity is meaningful because it is a measure that the firm and investors use to assess capital adequacy. ROTE and tangible common shareholders' equity are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies.

The table below presents a reconciliation of average common shareholders' equity to average tangible common shareholders' equity:

	AVERAGE FOR THE
		YEAR ENDED
Unaudited, $ in millions	DECEMBER 31, 2020
Total shareholders' equity	$	91,779
Preferred stock		(11,203)
Common shareholders' equity		80,576
Goodwill and identifiable intangible assets		(4,855)
Tangible common shareholders' equity	$	75,721

2. Source: Dealogic - January 1, 2020 through December 31, 2020

Slide 2:

1. Medium-termrefers to 3 year time horizon from December 31, 2019
2. ROTE is a non-GAAP measure and may not be comparable to similar non-GAAP measures used by other companies. See end note 1 for slide 1 for further information about ROTE, including the reconciliation of average common shareholders' equity to average tangible common shareholders' equity.

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End Notes

These notes refer to the financial metrics and/or defined term presented on:

Slide 5:

1. Source: Dealogic - January 1, 2020 through December 31, 2020
2. Debt U/W wallet share as measured by reported revenues, per peer filings as of September 30, 2020. Peers include JPM, BAC, C, MS, CS, DBS and BARC
3. Americas and EMEA advisory, underwriting and derivatives net revenues from footprint expansion clients accrued in 2020
4. Longer-termrefers to 5 year time horizon from December 31, 2019

Slide 6:

1. Source: McKinsey institutional client analytics for 3Q20 YTD. Analysis excludes captive wallets
2. Sources: Client Ranking / Scorecard / Feedback and / or McKinsey revenue ranking (data as of 1H20 or 3Q20 as applicable)
3. Unique users within the prior 30 days, as of December 15, 2020 vs. December 15, 2019. The use of these dates represents recent usage before the seasonal slowdown at year end

Slide 8:

1. Includes Advisors, Content Specialists and Client Service Specialists
2. Includes global cross-divisional events and webinars to which PWM clients had access
3. Total client assets includes AUS, brokerage assets, and consumer deposits
4. Represents bi-lateral referrals between Private Wealth Management and Personal Financial Management (PFM) and eligible Corporate employees referred to PFM

Slide 9:

Note: Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA and Goldman Sachs & Co. LLC. All loans and deposit products are provided by Goldman Sachs Bank USA. Member FDIC. Brokerage and investment advisory services offered by Marcus by Goldman Sachs are provided by Goldman Sachs & Co. LLC. Member SIPC.

1. Certain functionality displayed is not currently available but may not be available in the future. Visuals are for illustrative purposes only

Slide 10:

1. As of December 31, 2020
2. Excludes assets related to other GS affiliates

Slide 12:

1. Targets may change as regulatory landscape and firm business mix evolve

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Cautionary Note on Forward-Looking Statements

Statements about the firm's target metrics, including its target ROE, ROTE, efficiency ratio and CET1 capital ratios, and how they can be achieved (including resumption of share repurchases), and statements about future operating expense (including future litigation expense), efficiency ratio reductions and expense savings initiatives, the impact of the COVID-19 pandemic on its business, results, financial position and liquidity, amount and composition of future Assets under Supervision, planned debt issuances, growth of deposits and other funding, asset liability management and funding strategies and associated interest expense savings, future geographic location of its employees, and the timing and profitability of its business initiatives, including its launch of new businesses or new activities, its ability to increase its market share in incumbent businesses and its ability to achieve more durable revenues and higher returns from these initiatives, are forward- looking statements, and it is possible that the firm's actual results may differ, possibly materially, from the targeted results indicated in these statements.

Forward looking statements, including those about the firm's target ROE, ROTE, efficiency ratio, and expense savings, and how they can be achieved, are based on the firm's current expectations regarding its business prospects and are subject to the risk that the firm may be unable to achieve its targets due to, among other things, changes in the firm's business mix, lower profitability of new business initiatives, increases in technology and other costs to launch and bring new business initiatives to scale, and increases in liquidity

requirements. Statements about the firm's target ROE, ROTE and CET1 capital ratios, and how they can be achieved, are based on the firm's current expectations regarding the

capital requirements applicable to the firm and are subject to the risk that the firm's actual capital requirements may be higher than currently anticipated because of, among other factors, changes in the regulatory capital requirements applicable to the firm resulting from changes in regulations or the interpretation or application of existing regulations or changes in the nature and composition of the firm's activities or its expectations around the sale of assets. Statements about the projected growth of the firm's deposits and other funding, asset liability management and funding strategies and associated interest expense savings are subject to the risk that actual growth and savings may differ, possibly materially from that currently anticipated due to, among other things, changes in interest rates and competition from similar products. Statements about the timing, profitability, benefits and other prospective aspects of business and expense savings initiatives, the achievability of medium and long-term targets, the level and composition of more durable revenues and increases in market share are based on the firm's current expectations regarding its ability to implement these initiatives and achieve these targets and goals and may change, possibly materially, from what is currently expected. Statements about the effects of the COVID-19 pandemic on the firm's business, results, financial position and liquidity are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Due to the inherent uncertainty in these forward-looking

statements, investors should not place undue reliance on the firm's ability to achieve these results.

For information about some of the risks and important factors that could affect the firm's future results, financial condition and liquidity and the forward-looking statements above, see "Risk Factors" in Part II, Item 1A of the firm's Quarterly Report on Form 10-Q for the period ended September 30, 2020 and in Part I, Item 1A of the firm's Annual Report on Form 10-K for the year ended December 31, 2019. You should also read the cautionary notes on forward-looking statements in the firm's Quarterly Report on Form 10-Q for the period ended September 30, 2020 and Earnings Results Presentation for the Full Year and Fourth Quarter 2020.

The statements in the presentation are current only as of January 19, 2021 and the firm does not undertake to update forward-looking statements to reflect the impact of subsequent events or circumstances.

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