Goldman Sachs 2003 Annual Report Download - page 10

8GOLDMAN SACHS 2003 ANNUAL REPORT
Letter to Shareholders
ing in the United States. Ayco enables us to develop
further our high-net-worth and asset management
businesses by using its extensive portfolio of financial
planning capabilities, including tax, estate and charita-
ble planning services.
We also made two acquisitions of power generation
assets. In October, we acquired East Coast Power, owner
of the 940-megawatt cogeneration facility in Linden,
New Jersey, which sells some 80% of its power to
the New York City market. In the same month, we
announced the acquisition of Cogentrix Energy, an
independent power producer based in Charlotte, North
Carolina, adding interests in 26 power plants and 3,300
megawatts of generating capacity to our portfolio.
These generation facilities were acquired to comple-
ment our existing commodity trading and merchant
energy restructuring capabilities. Of course, ownership
of physical power assets brings incremental responsi-
bilities of which we are particularly mindful.
BOARD OF DIRECTORS
In June, we announced that Claes Dahlbäck, nonexec-
utive Chairman of Investor AB, and Edward M. Liddy,
Chairman of the Board, President and Chief Executive
Officer of The Allstate Corporation, were joining
our Board of Directors. Claes and Ed are both distin-
guished business leaders as well as thoughtful corpo-
rate directors, and we welcome the contributions they
are already making to the Board. The Board has also
nominated Lois D. Juliber, Chief Operating Officer
of the Colgate-Palmolive Company, to stand for elec-
tion to our Board of Directors at the March 31 Annual
Meeting. In addition, John Thain and John Thornton
retired as directors and we thank them for their service
on our Board and to our shareholders.
OUTLOOK
On balance, 2003 proved to be a more favorable oper-
ating environment than we expected at the beginning
of the year. Markets rose, economic growth improved
in most major economies and business confidence rose.
Although we expect these trends to continue in
2004, we cannot, of course, predict with certainty
what global events, economic or political, in fact will
shape the markets in which we work. But, we can—
and will—pursue a strategy that permits us to seize
business opportunities in an environment of continuing
uncertainty and possible volatility. We owe you, our
shareholders, nothing less. In terms of our own industry,
it is clear that, if anything, regulatory scrutiny has
intensified in the U.S. and in other countries around
the world. We anticipate that this will continue to be a
feature of the environment in which we operate.
That said, we look forward with confidence to
2004 and beyond. Our franchise is stronger than ever.
Our people remain focused, dedicated and enthusiastic.
We are committed to serving you, our shareholders, by
delivering long-term growth and by producing real
value for our clients through products and services
that strengthen the global capital markets and support
economic growth.
henry m. paulson, jr.
Chairman and Chief Executive Officer
lloyd c. blankfein
President and Chief Operating Officer