BlackRock : Q4 2019 Earnings Supplement

January 15, 2020

Q4 2019 Earnings

Earnings Release Supplement

A broadly diversified business

across clients, products and geographies

Assets Under Management of $7.43 trillion at December 31, 2019

Q4 2019 Total Base Fees of $3.089 billion

Client Type

Institutional

33%

Institutional

60%

Retail 28%

Retail 10%

iShares	iShares
ETFs
ETFs
39%
30%

Style

Active

27%

Active

46%

Index

36%

Index

9%

	iShares
iShares	ETFs
ETFs	39%
30%
Cash 7%	Cash 6%

Product Type

Equity Equity

52%47%

Fixed	Fixed
Income	Income
31%	28%
	Multi-asset
Multi-asset	10%
8%	Alternatives 9%
Alternatives 2%
Cash 7%	Cash 6%

Region

Americas Americas

66%66%

EMEA	EMEA
27%	28%
Asia-Pacific	Asia-Pacific
7%	6%

AUM

Base Fees

AUM

Base Fees

AUM

Base Fees

AUM

Base Fees

Note: Base Fees and AUM by region data is based on client domicile.

1

Long-term net flows

Total long-term

($ in billions)

Retail

7%	6%	4%	3%	2%	2%	4%	5%	6%		6%		7%	7%	6%	3%		0%	0%	0%	3%
7%	7%	4%	3%	2%	1%	2%	3%	5%
							$125
									$99
$81														$17
		$55			$44	$59		$52			$11										$7	$8
															$5
			$14	$11												$2					$2
																		$(3)		$(1)
	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4			Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
2017	2018	2018	2018	2018	2019	2019	2019	2019
	2017	2018	2018	2018	2018	2019	2019	2019	2019
				iShares ETFs											Institutional
19%	15%	10%	9%	10%	9%	10%	10%	11%		2%		2%	1%	0%	(2)%		(1)%	2%	3%	4%
					$81				$75						Institutional Active				Institutional Index
																				$14
$55
		$35		$34		$31	$36	$42
																		$73
			$18																				$1
															$5				$14		$8
											$12	$10	$(1)	$(8)		$15		$15
												$2		$(7)	$(14)	$(24)	$(27)				$(4)
	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4			Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
2017	2018	2018	2018	2018	2019	2019	2019	2019		2017	2018	2018	2018	2018		2019	2019	2019	2019

LTM organic asset growth rate (%)

LTM organic base fee growth rate (%)

Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets.

2

Profitability

($ in millions, except per share data)

Operating Income and Margin, as adjusted

Net Income and EPS, as adjusted

$1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000

$900 $800 $700 $600 $500 $400

$8.34

44.7% 44.1%	45.2% 44.2%				46.0%		$1,700
43.5% 41.9%	43.1%	43.5% $44.2%1,580						$7.52			$7.15
							$6.70	$6.66
$1,488							$1,502	$1,538	$1,460	$6.19		$6.08	$6.61	$6.41
	$1,443	$1,400					34.2%
	$1,378																$1,309
						$1,340
			$1,310
				$1,233	$1,278									$1,214
							$24.1,220%
									$1,100			$1,092	$1,080		$1,053		$1,119
									$1,013						$1,003
									14.2%					$975
									$980
									4.$2%860
									$740
									-5.8%
									$620
									-15.8%
Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	$500
		Q4	Q1		Q2	Q3	Q4	Q1	Q2	Q3	Q4
2017	2018	2018	2018	2018	2019	2019	2019	2019		2017	2018		2018	2018	2018	2019	2019	2019	2019

Operating Income, as adjusted

Operating Margin, as adjusted

Net Income, as adjusted

EPS, as adjusted

For further information and reconciliations between GAAP and as adjusted, see page 12 of this earnings release supplement, notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks,10-Qs and 8-Ks.

3

Capital management

(amounts in millions, except per share data)

		Share repurchases and
	weighted average diluted shares			Dividends per share
163.8	162.9	162.2	161.4	160.5	159.3	156.4	156.9			$3.30	$3.30	$3.30	$3.30
						156.4		$3.13	$3.13
					$1,566 (1)		$2.88	$2.88
								$2.50

					$500	$525
$275	$335	$300
									$100
								$0		$0
	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q4	Q1	Q2	Q3		Q4	Q1	Q2	Q3	Q4
2017	2018	2018	2018	2018	2019	2019	2019	2019		2017	2018	2018	2018	2018	2019	2019	2019	2019
			Share repurchases	Weighted average diluted shares							Dividends

1. Amount includes the impact of a $1.3 billion private transaction that closed on March 25, 2019. Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions.

4

Major market indices and exchange rates

					% Change						% Change
		Spot			12/31/19 vs.			Average			Q4 2019 vs.
	12/31/2018	9/30/2019	12/31/2019		9/30/2019	12/31/2018		Q4 2018	Q3 2019	Q4 2019		Q3 2019	Q4 2018
Equity Indices
Domestic
S&P 500	2,507	2,977	3,231		9%	29%	2,693	2,958	3,086		4%	15%
Global
MSCI Barra World Index	1,884	2,180	2,358		8%	25%	2,010	2,169	2,260		4%	12%
MSCI Europe Index	114	133	140		5%	23%	120	129	135		5%	13%
MSCI AC Asia Pacific Index	147	156	171		10%	16%	152	157	164		4%	8%
MSCI Emerging Markets Index	966	1,001	1,115		11%	15%	978	1,014	1,051		4%	7%
S&P Global Natural Resources	3,311	3,524	3,855		9%	16%	3,580	3,558	3,645		2%	2%
BLK Equity Index(1)					10%	22%						4%	10%
Fixed Income Index
Barclays U.S. Aggregate Bond Index	2,047	2,221	2,225		-%	9%	2,011	2,201	2,221		1%	10%
Foreign Exchange Rates
GBP to USD	1.28	1.23	1.33		8%	4%	1.29	1.23	1.29		5%	-%
EUR to USD	1.15	1.09	1.12		3%	(3)%	1.14	1.11	1.11		-%	(3)%

Source: Bloomberg

1. Revenue weighted composite index calculated by BlackRock to approximate the impact of market fluctuations on BlackRock's equity base fees. The index is derived from publicly available market indices that represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The market impact information for each equity portfolio used to calculate the index may be substantially different from that shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock's investment performance, and is not indicative of past or future results.

5

Quarterly revenue

($ in millions)

		73%		Base fees ex. securities lending	Percentage Change	Year-over-Year	Sequential
			Base fees ex. securities lending	10%	3%
				Securities lending
				Securities lending	31%	13%
				Performance fees	Performance fees	139%	98%
3%				Technology services revenue	Technology services revenue	35%	6%
			Distribution fees	Distribution fees	0%	0%
7%
				Advisory and other revenue	30%	69%
7%	6%	4%		Advisory and other revenue
			Total	16%	8%

Q4 2019 compared to Q4 2018

$543

Q4 2019 compared to Q3 2019

$285

$139	$71	$40	$24	$(1)	$3,977		$118	$90	$43	$19	$15	$3,977
				$3,692
$270

$3,434

Q4 2018

Base fees

Performance

Technology

Securities

Advisory and

Distribution

Q4 2019

Q3 2019

Performance

Base fees

Advisory and

Securities

Technology

Q4 2019

ex. sec

fees

services

lending

other revenue

fees

fees

ex. sec

other revenue

lending

services

lending

revenue

lending

revenue

6

Quarterly investment advisory, administration fees

and securities lending revenue

		($ in millions)
Q4 2019 compared to Q4 2018			Q4 2019 compared to Q3 2019
$310	$109

				$18	$17	$9	$3,089				$14	$12	$12	$8	$7	$4	$(5)	$3,089
	$26	$25	$19				$34	$23
						$2,980
$53

$64

$79

$2,779

Q4 2018 iShares Alts

iShares

Cash

Active Non-ETF Active

Non-ETF

Multi- Q4 2019

Q3 2019 iShares

Alts Non-ETF

Active

Cash Multi-

iShares

Non-ETF

Active Q4 2019

ETFs EQ

ETFs FI

FI

EQ

EQ

FI

Asset

ETFs EQ

FI

EQ

Asset

ETFs FI

EQ

FI

7

Quarterly expense, as adjusted

($ in millions)

18%		Employee comp. & benefits
10%		Distribution & servicing costs
50%		Direct fund expense
	General & administration
21%

Percentage Change	Year-over-Year	Sequential
Employee comp. & benefits	19%	9%
Distribution & servicing costs	4%	3%
Direct fund expense	9%	3%
General & administration	15%	34%
Amortization of intangible assets	93%	4%

1%

Amortization of intangible assets

Total	15%	11%

Q4 2019 compared to Q4 2018

$315

Q4 2019 compared to Q3 2019

$249

			$196	$2,439			$130	$2,439
							$101
			$66	$2,190	$1	$6	$11
$2,124	$14	$18	$21

Q4 2018

Amortization

Distribution

Direct fund

G&A

Employee

Q4 2019

Q3 2019

Amortization

Direct fund

Distribution

Employee

G&A

Q4 2019

of intangible

& servicing

expense

comp.

of intangible

expense

& servicing

comp.

assets

costs

& benefits

assets

costs

& benefits

Fourth quarter of 2018 expense, as adjusted, includes non-GAAP adjustments related to a restructuring charge of $60 million and PNC LTIP funding obligation of $4 million. For further information, see the item included under Non-GAAP expense adjustments on page 12 of this earnings release supplement and note (1) in the current earnings release.

8

Full year revenue

($ in millions)

	77%		Base fees ex. securities lending	Percentage Change	Year-over-Year
		Base fees ex. securities lending	2%
			Securities lending
			Securities lending	(2)%
			Performance fees	Performance fees	9%
2%			Technology services revenue	Technology services revenue	24%
		Distribution fees	Distribution fees	(7)%
7%
		Advisory and other revenue	(8)%
7%	3%4%		Advisory and other revenue
	Total	2%

2019 compared to 2018

$341

$14,198	$234	$189	$38	$(10)	$(24)	$(86)	$14,539

2018	Base fees ex.	Technology	Performance fees Securities lending Advisory and other Distribution fees	2019
	sec lending	services revenue	revenue

99

Full year investment advisory, administration fees

and securities lending revenue

($ in millions)

2019 compared to 2018

$224

$138	$78	$18	$11	$(18)	$(28)	$(54)	$(100)	$11,777
$179

$11,553

2018	Alts	iShares ETFs	Active	Non-ETF	Cash	Non-ETF	Multi-Asset iShares ETFs	Active	2019
		FI	FI	FI		EQ	EQ	EQ

1010

Full year expense, as adjusted

($ in millions)

	19%			Employee comp. & benefits
		11%		Distribution & servicing costs
			Direct fund expense
49%
	20%		General & administration

Percentage Change

Employee comp. & benefits Distribution & servicing costs Direct fund expense General & administration Amortization of intangible assets

Year-over-Year

4%

1%

(2)%

7%

94%

1%

Amortization of intangible assets

Total	4%

2019 compared to 2018

$321

$163$8,988

$8,667	$(20)	$10	$47	$48	$73

2018	Direct fund	Distribution &	Amortization of	Product launch	G&A (1)	Employee comp	2019
	expense	servicing costs	intangible assets	costs and		& benefits (1)
				comissions

(1) Amounts exclude product launch costs and commissions incurred in 2019 and 2018, which are presented separately above.

2018 expense, as adjusted, includes non-GAAP adjustments related to a restructuring charge of $60 million and PNC LTIP funding obligation of $14 million. For further information, see the item included under Non-GAAP expense adjustments on page 12 of this earnings release supplement and note (1) in the current earnings release.

1111

Reconciliation between GAAP and as adjusted

($ in millions)

		2017					2018								2019
		Q4			Q1		Q2		Q3		Q4			Q1		Q2		Q3		Q4
Operating Income
GAAP	$	1,485	$	1,375	$	1,440	$	1,396	$	1,246	$	1,233	$	1,278	$	1,502	$	1,538
Non-GAAP expense adjustments		3			3		3		4		64			-		-		-		-
As Adjusted	$	1,488	$	1,378	$	1,443	$	1,400	$	1,310	$	1,233	$	1,278	$	1,502	$	1,538
Nonoperating Income (Expense)
GAAP	$	1	$	(16)	$	(24)	$	33	$	(72)	$	125	$	57	$	(42)	$	96
Non-GAAP adjustments		(6)			(5)		(5)		13		-			(7)		(10)		-		(33)
As Adjusted	$	(5)	$	(21)	$	(29)	$	46	$	(72)	$	118	$	47	$	(42)	$	63
Net Income
GAAP	$	2,295	$	1,089	$	1,073	$	1,216	$	927	$	1,053	$	1,003	$	1,119	$	1,301
Non-GAAP adjustments		(1,282)			3		7		(2)		48			-		-		-		8
As Adjusted	$	1,013	$	1,092	$	1,080	$	1,214	$	975	$	1,053	$	1,003	$	1,119	$	1,309

Non-GAAP adjustments include amounts related to a restructuring charge, PNC LTIP funding obligations and noncash income tax matters, as applicable. The fourth quarter of 2017 includes a non-GAAP adjustment of $1.3 billion related to the Tax Cuts and Jobs Act. For further information and reconciliation between GAAP and as adjusted, see notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks,10-Qs and 8-Ks.

12

Important Notes

This presentation, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock's investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the potential for human error in connection with BlackRock's operational systems; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy and uncertainty pending any such changes; (12) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (13) the ability to attract and retain highly talented professionals; (14) fluctuations in the carrying value of BlackRock's economic investments; (15) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (16) BlackRock's success in negotiating distribution arrangements and maintaining distribution channels for its products; (17) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (18) any disruption to the operations of third parties whose functions are integral to BlackRock's exchange-traded funds platform; (19) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (20) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

This presentation also includes non-GAAP financial measures. You can find our presentations on the most directly comparable GAAP financial measures calculated in accordance with GAAP and our reconciliations on page 12 of this earnings release supplement, our current earnings release dated January 15, 2020, and BlackRock's other periodic reports, which are available on BlackRock's website at www.blackrock.com.

13