Annual Report December 31, 2015

Goldman Sachs International (unlimited company) Company Number: 02263951

GOLDMAN SACHS INTERNATIONAL (UNLIMITED COMPANY) ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2015

INDEX Part I

Part II

Strategic Report Introduction Executive Overview Business Environment Adoption of FRS 101 Critical Accounting Policy Results of Operations Balance Sheet and Funding Sources Equity Capital Management and Regulatory Capital Regulatory Developments Principal Risks and Uncertainties Risk Management Overview and Structure of Risk Management Liquidity Risk Management Market Risk Management Credit Risk Management Operational Risk Management Model Risk Management Date of Authorisation of Issue Directors’ Report and Audited Financial Statements Directors’ Report Independent Auditor’s Report Profit and Loss Account Statements of Comprehensive Income Balance Sheet Statements of Changes in Equity Statements of Cash Flows Notes to the Financial Statements Note 1. General Information Note 2. Summary of Significant Accounting Policies Note 3. Critical Accounting Estimates and Judgements Note 4. First-Time Adoption of FRS 101 Note 5. Segment Reporting Note 6. Administrative Expenses Note 7. Directors’ Emoluments Note 8. Staff Costs Note 9. Interest Payable and Similar Charges Note 10. Pension Arrangements Note 11. Share-Based Payments Note 12. Tax on Profit on Ordinary Activities Note 13. Tangible Fixed Assets Note 14. Fixed Asset Investments Note 15. Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased Note 16. Collateralised Agreements Note 17. Debtors Note 18. Deferred Tax Note 19. Collateralised Financings Note 20. Other Creditors Note 21. Provisions for Liabilities Note 22. Share Capital Note 23. Cash and Cash Equivalents Note 24. Reconciliation of Cash Flows From Operating Activities Note 25. Financial Commitments and Contingencies Note 26. Financial Risk Management and Capital Management Note 27. Financial Assets and Financial Liabilities Note 28. Offsetting of Financial Assets and Financial Liabilities 1

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GOLDMAN SACHS INTERNATIONAL (UNLIMITED COMPANY)

Strategic Report Introduction

Executive Overview

Goldman Sachs International (GSI or the company) provides a wide range of financial services to clients located worldwide. The company also operates a number of branches across Europe, the Middle East and Africa (EMEA) to provide financial services to clients in those regions.

Profit and Loss Account The profit and loss account is set out on page 53 of this annual report. The company’s profit for the financial year was $2.31 billion for 2015, an increase of 44% compared with 2014. Net revenues were $7.02 billion for 2015, 9% higher than 2014, primarily reflecting higher net revenues in Institutional Client Services and, to a lesser extent, significantly higher net revenues in Investing & Lending. These increases were partially offset by lower net revenues in Investment Banking and Investment Management.

The company’s primary regulators are the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The company’s ultimate parent undertaking and controlling entity is The Goldman Sachs Group, Inc. (Group Inc.). Group Inc. is a bank holding company and a financial holding company regulated by the Board of Governors of the Federal Reserve System (Federal Reserve Board). Group Inc., together with its consolidated subsidiaries, form “GS Group” or “the group”. GS Group is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. GS Group has a pre