The Goldman Sachs Group, Inc.

and Subsidiaries
Net Revenues
(unaudited)
($ in millions)

Three Months Ended % Change From Nine Months Ended % Change From
August 30, May 31, August 31, May 31, August 31, August 30, August 31, August 31,
2002 2002 2001 2002 2001 2002 2001 2001

Investment Banking

Financial Advisory $ 315 $ 428 $ 638 (26) % (51) % $ 1,200 $ 1,689 (29) %
Underwriting 337 334 464 1 (27) 1,107 1,350 (18)

Total Investment Banking 652 762 1,102 (14) (41) 2,307 3,039 (24)

Trading and Principal Investments

FICC 1,312 1,143 1,107 15 19 3,677 3,180 16

Equities 281 418 573 (33) (51) 804 2,488 (68)
Principal Investments (100) (125) (445) N.M. N.M. (222) (580) N.M.

Total Trading and Principal

Investments 1,493 1,436 1,235 4 21 4,259 5,088 (16)

Asset Management and Securities Services

Asset Management 400 443 380 (10) 5 1,266 1,105 15

Securities Services 266 262 295 2 (10) 735 863 (15)
Commissions 838 948 649 (12) 29 2,531 2,289 11
Total Asset Management
and Securities Services 1,504 1,653 1,324 (9) 14 4,532 4,257 6

Total net revenues $ 3,649 $ 3,851 $ 3,661 (5) - $ 11,098 $ 12,384 (10)

* * *

Assets Under Supervision

(unaudited)
($ in millions)

As of % Change From As of
August 31, May 31, August 31, May 31, August 31, Nov. 30, Nov. 30,
2002 2002 2001 2002 2001 2001 2000

Assets under management $ 335,859 $ 349,876 $ 324,909 (4) % 3 % $ 350,718 $ 293,842

Other client assets 119,115 135,998 153,293 (12) (22) 152,192 197,876

Total assets under

supervision (1) $ 454,974 $ 485,874 $ 478,202 (6) (5) $ 502,910 $ 491,718

(1)
Substantially all assets under supervision are valued as of calendar month end.

6
 The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings
(unaudited)

Three Months Ended % Change From

August 30, May 31, August 31, May 31, August 31,
2002 2002 2001 2002 2001
(in millions, except per share amounts and employees)

Revenues
Investment banking $ 593 $ 705 $ 1,080 (16) % (45) %
Trading and principal investments 1,107 1,074 1,267 3 (13)
Asset management and securities services 1,253 1,399 1,049 (10) 19
Interest income 2,919 3,056 3,964 (4) (26)
Total revenues 5,872 6,234 7,360 (6) (20)

Interest expense 2,223 2,383 3,699 (7) (40)

Revenues, net of interest expense 3,649 3,851 3,661 (5) -

Operating expenses
Compensation and benefits 1,824 1,926 1,794 (5) 2
Amortization of employee initial public offering and
acquisition awards 57 83 112 (31) (49)

Brokerage, clearing and exchange fees 236 221 218 7 8

Market development 75 86 90 (13) (17)
Communications and technology 125 134 145 (7) (14)
Depreciation and amortization 161 153 160 5 1
Amortization of goodwill and other intangible assets 31 32 66 (3) (53)
Occupancy 172 144 142 19 21
Professional services and other 174 171 167 2 4
Total non-compensation expenses 974 941 988 4 (1)

Total operating expenses 2,855 2,950 2,894 (3) (1)

Pre-tax earnings 794 901 767 (12) 4

Provision for taxes 272 338 299 (20) (9)
Net earnings $ 522 $ 563 $ 468 (7) 12

Earnings per share

Basic $ 1.05 $ 1.13 $ 0.92 (7) 14
Diluted 1.00 1.06 0.87 (6) 15

Average common shares outstanding

Basic 494.9 496.8 508.1 - (3)
Diluted 520.4 531.0 539.7 (2) (4)

Employees at period end (1) 20,647 21,145 23,494 (2) (12)

Ratio of compensation and benefits to

revenues, net of interest expense 50% 50% 49%

(1)
Excludes employees of Goldman Sachs' property management subsidiaries. Substantially all of the costs of these employees are
reimbursed to Goldman Sachs by the real estate investment funds to which these companies provide property management services.

7
 The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings
(unaudited)

Nine Months Ended % Change From

August 30, August 31, August 31,
2002 2001 2001
(in millions, except per share amounts)

Revenues
Investment banking $ 2,123 $ 2,995 (29) %
Trading and principal investments 3,384 5,128 (34)
Asset management and securities services 3,810 3,462 10
Interest income 8,489 13,435 (37)
Total revenues 17,806 25,020 (29)

Interest expense 6,708 12,636 (47)

Revenues, net of interest expense 11,098 12,384 (10)

Operating expenses
Compensation and benefits 5,549 6,068 (9)
Amortization of employee initial public offering and
acquisition awards 265 371 (29)

Brokerage, clearing and exchange fees 653 619 5

Market development 231 316 (27)
Communications and technology 401 451 (11)
Depreciation and amortization 451 439 3
Amortization of goodwill and other intangible assets 94 192 (51)
Occupancy 457 453 1
Professional services and other 463 503 (8)
Total non-compensation expenses 2,750 2,973 (8)

Total operating expenses 8,564 9,412 (9)

Pre-tax earnings 2,534 2,972 (15)

Provision for taxes 925 1,159 (20)
Net earnings $ 1,609 $ 1,813 (11)

Earnings per share

Basic $ 3.24 $ 3.54 (8)
Diluted 3.04 3.33 (9)
Average common shares outstanding
Basic 497.2 512.3 (3)
Diluted 528.5 544.6 (3)

Ratio of compensation and benefits to

revenues, net of interest expense 50% 49%