Goldman Sachs: Financial Highlights

	AS OF OR FOR YEAR ENDED NOVEMBER

($ AND SHARE AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)		2002		2001

Operating Results
Net revenues
Investment banking	$	2,830	$	3,836
Trading and principal investments		5,249		6,349
Asset management and securities services		5,907		5,626

Total net revenues		13,986		15,811
Pre-tax earnings		3,253		3,696
Net earnings		2,114		2,310

Common Share Data
Diluted earnings per share	$	4.03	$	4.26
Average diluted common shares outstanding		525.1		541.8
Dividends declared per share	$	0.48	$	0.48
Book value per share⁽¹⁾		38.69		36.33

Financial Condition And Other Operating Data
Total assets	$	355,574	$	312,218
Long-term borrowings		38,711		31,016
Shareholders' equity		19,003		18,231
Leverage ratio⁽²⁾		18.7x		17.1x
Adjusted leverage ratio^(3,4)		15.2x		14.5x
Return on average shareholders' equity⁽⁵⁾		11.3%		13.0%
Return on average tangible shareholders' equity⁽⁶⁾		15.3%		17.8%

Selected Data
Total employees		19,739		22,677
Assets under management ($ in billions)	$	348	$	351

(1)	Book value per share is based on common shares outstanding, including restricted stock units granted to employees with no future service requirements, of 491.2 million as of November 2002 and 501.8 million as of November 2001.
(2)	Leverage ratio equals total assets divided by shareholders' equity.
(3)	Adjusted leverage ratio equals adjusted assets divided by tangible shareholders' equity. Adjusted assets excludes (i) low-risk collateralized assets generally associated with our matched book and securities lending businesses (which we calculate by adding our securities purchased under agreements to resell and securities borrowed, and then subtracting our nonderivative short positions), (ii) cash and securities we segregate in compliance with regulations and (iii) goodwill and identifiable intangible assets. See "Financial Information—Management's Discussion and Analysis—Capital and Funding" for further information regarding our adjusted leverage ratio calculation.
(4)	Tangible shareholders' equity equals total shareholders' equity less goodwill and identifiable intangible assets.
(5)	Return on average shareholders' equity is computed by dividing net earnings by average monthly shareholders' equity.
(6)	Return on average tangible shareholders' equity is computed by dividing net earnings by average monthly tangible shareholders' equity. See "Financial Information—Management's Discussion and Analysis—Results of Operations" for further information regarding our return on average tangible shareholders' equity calculation.