Investor
Day 2023
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 expression.
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 report, 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 (“AUM”); (3) the relative and absolute
investment performance of BlackRock’s investment products; (4) BlackRock’s ability to develop new products and services that address client preferences; (5) the impact of increased competition; (6) the impact of future acquisitions or
divestitures; (7) BlackRock’s ability to integrate acquired businesses successfully; (8) the unfavorable resolution of legal proceedings; (9) the extent and timing of any share repurchases; (10) the impact, extent and timing of technological
changes and the adequacy of intellectual property, data, information and cybersecurity protection; (11) attempts to circumvent BlackRock’s operational control environment or the potential for human error in connection with BlackRock’s
operational systems; (12) the impact of legislative and regulatory actions and reforms, regulatory, supervisory or enforcement actions of government agencies and governmental scrutiny relating to BlackRock; (13) changes in law and
policy and uncertainty pending any such changes; (14) any failure to effectively manage conflicts of interest; (15) damage to BlackRock’s reputation; (16) geopolitical unrest, terrorist activities, civil or international hostilities, including
the war between Russia and Ukraine, and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (17) a pandemic or health crisis, and related
impact on BlackRock’s business, operations and financial condition; (18) climate–related risks to BlackRock's business, products, operations and clients; (19) the ability to attract, train and retain highly qualified and diverse
professionals; (20) fluctuations in the carrying value of BlackRock’s economic investments; (21) 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; (22) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (23) the failure by key
third–party providers of BlackRock to fulfill their obligations to the Company; (24) operational, technological and regulatory risks associated with BlackRock’s major technology partnerships; (25) any disruption to the operations of third
parties whose functions are integral to BlackRock’s exchange–traded funds (“ETFs”) platform; (26) 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 (27) the impact of problems, instability or failure of other financial institutions or the failure or negative performance of products offered by other financial institutions.
BlackRock’s Annual Report on Form 10–K and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and
identify additional factors that can affect forward–looking statements. The information contained on the Company’s website is not a part of this presentation, and therefore, is not incorporated herein by reference.
BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s ongoing operating results may be enhanced if
investors have additional non–GAAP financial measures. Management reviews non–GAAP financial measures to assess ongoing operations and considers them to be helpful, for both management and investors, in evaluating
BlackRock’s financial performance over time. Management also uses non–GAAP financial measures as a benchmark to compare its performance with other companies and to enhance the comparability of this information for the
reporting periods presented. Non–GAAP measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non–GAAP financial
measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Non–GAAP measures may not be comparable to other similarly titled measures of other companies.
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 in the
appendix to this presentation, as well as BlackRock’s other periodic reports which are available on BlackRock’s website at www.blackrock.com. The information provided on our website is not part of this presentation, and
therefore, is not incorporated herein by reference.
Forward–looking Statements
Important Notes
As indicated in this presentation, certain financial information for 2012 to 2015 reflects accounting guidance prior to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting
Policies, in the consolidated financial statements in our 2018 Form 10–K. Beginning in the first quarter of 2022, BlackRock updated its definitions of operating income, as adjusted, operating margin, as adjusted, and net income
attributable to BlackRock, Inc., as adjusted. Information from 2018–2022 reflects the updated definitions. Information for 2012–2017 does not reflect the updated definitions.
Please note this presentation includes footnotes. For footnoted information, including end notes regarding non–GAAP and other relevant information and reconciliation to GAAP, please open the full presentation PDF on BlackRock’s
website at www.blackrock.com.
2
Investor
Day 2023
Strategy: Delivering
platforms for performance
to clients
Martin Small
Chief Financial Officer and Global Head of Corporate Strategy
People using iShares ETFs
2
40 million
Invested across private
markets in last two years
3
>$50 billion
Americans with retirement
assets managed by BLK
4
35 million
ETFs offered with 85+ new
ETFs launched in 2022
6
1,300+
Aladdin users
5
130,000+
Leading insurers rely on
our product and services
7
400+
How we serve them
Our strategy is serving clients with excellence
Who we serve
1
Wealth management
Pension plans
Insurance companies
Governments & official institutions
Asset managers
Corporate treasurers
Foundations, endowments & family offices
$9.1T
“Units of Trust”
Note: For footnoted information, refer to slide 10.
4
Providing scale across
asset management &
technology
Delivering strong
investment
performance
Translating our
efficiency
to savings
for our clients
We are a platform for performance
Savings in fixed income
execution costs vs. market
average
5
25%
Saved for iShares investors
through fee reductions
since 2015
6
$600M
Private markets deals
reviewed in 2022
3
9,000
Risk factors monitored
by Aladdin
4
3,000
Active AUM above peer
median or benchmark for
5–yr period
1
81%
4– and 5–star active funds
2
165
Note: For footnoted information, refer to slide 10. Past performance is not indicative of future results.
5
30%
41%
51%
2019 2022 2025E
Model
Portfolios
✓ Models–based advisors grow faster (vs. rep as
PM, brokerage)
✓ Reduce costs of maintaining in–house CIO staff
Aladdin
✓ Move to unified tech stack
✓ Positive network effects
✓ Opportunity for client margin premium
BlackRock’s “cloud–like” platforms fuel value for clients
Spend on cloud computing
2
Spend on traditional IT
2
• Access innovation & scale
• Faster deployment
• Cost restructuring & efficiencies
• Improve business agility
• Enhance resilience
• Positive network effects
iShares
✓ EM exposures instantly access 24 countries
1
✓ Derivatives replacement, reduce collateral
management costs
Institutional
Outsourcing
✓ Use scale of BLK trading, research, portfolio
management & investment servicing
✓ Cost variabilization & efficiency
One BlackRock – Platform Use Cases
Trends with asset owners match industrial
change driving “on–prem” to “cloud”
Cloud computing spend to grow ~1.5x vs.
traditional IT from 2019 to 2025E
Note: For footnoted information, refer to slide 11.
6
Our strategy continues to deliver
1. Alpha
at the
heart
$400B+ NNB generated from
mega–mandates
1
in last 3 years
$100B+ AUM transition
investing platform
4
$1.1B in 3–year ETF NNBF –
more than the next three ETF
issuers combined
5
$82B in private markets
gross fundraising since 2021
2
8% 3–year Active average
organic asset growth driven
by whole portfolio solutions
6
12% 3–year
technology revenue CAGR
3
Note: For footnoted information, refer to slide 11.
7
Bring strategy to life via access, expertise, and service
Markets, portfolios & advisory
Excellent performance, in
investments & operations
Sourcing, breadth & new markets
1. Alpha
at the
heart
8
Asset management revenue remains highly fragmented
3%
7%
90%
31%
69%
74%
26%
3%
Clients’
Whole
Portfolios
Asset Management
1
BlackRock #2–5 The rest
8%
Investment Banking
2
Top 5
The rest
33%
Cloud Computing
3
Top 5
The rest
Revenue share of top
firm in each industry:
Note: For footnoted information, refer to slide 11.
9
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 4 – Our strategy is serving clients with excellence
1. AUM as of 3/31/2023. Client split as of FY2022.
2. Data as of 12/31/2022. Source: Broadridge, ExtraETF, AMF, Le Monde, Wisdom Tree, Finanzas, Italian Association of Asset Managers. The 40 million figure estimates the number of individual investors in iShares ETFs from
platform data across United States, European Union, United Kingdom, Canada, and Japan from the aforementioned sources. U.S. iShares investors estimated based on an empirical analysis of aggregate brokerage accounts in
the U.S. that hold iShares ETFs at the ticker level, and BlackRock estimates.
3. Refers to capital deployed from 1/1/2021 to 12/31/2022 in private markets strategies.
4. Data as of 12/31/2021. The overall number of Americans is calculated based on estimates of participants in BlackRock’s Defined Contribution (DC) and Defined Benefit (DB) plan clients. The Defined Contribution number is
estimated based on data from FERS as well as BrightScope for active participants across 401(k) and 403(b). Defined Contribution includes plans with over $100M+ in assets where participants have access to one or more
BlackRock funds; some may not be invested with BlackRock. The Defined Benefit number is estimated based on data from public filings and Pension & Investments for the total number of participants across the 20 largest U.S.
Defined Benefit plans that are not also Defined Contribution clients of BlackRock.
5. Data as of May 2023.
6. Data as of 12/31/2022.
7. Data as of 3/31/2023.
Slide 5 – We are a platform for performance
1. Source: BlackRock. Represents all active AUM for the 5–year period ending 3/31/2023. Please see appendix of this presentation for performance notes. Past performance is not indicative of future results. Please refer to page 12
of first quarter 2023 earnings release for performance disclosure detail.
2. Source: Morningstar Fund data as of 3/31/2023. Includes all BLK global active mutual funds (385 total). % AUM is calculated out of BLK funds that have any star rating, and does not include the AUM of non–rated funds as of
3/31/2023. Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars,
the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for up to three time periods— three–, five–, and 10 years—and these ratings are combined to
produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. They’re a useful tool for identifying funds worthy of
further research, but shouldn’t be considered buy or sell recommendations.
3. Source: BlackRock. Figures for 2022.
4. Source: BlackRock. Figures for 2022.
5. Source: BlackRock analysis of all Fixed Income High Yield and Investment Grade Credit, FX, and Equity trades excluding derivatives for 2022 as of 12/31/2022. BlackRock Execution Cost is the average difference between: the
actual price achieved on the trade and the benchmark price. For Equity and FX, benchmark price is the market price ,based on exchange data at the time when the PM submitted the order. For Fixed Income, benchmark price is the
previous day’s closing price. The Market Half Spread (or Expected Cost) is an estimate of the average execution cost of a market participant. For Fixed Income, Market Half Spread is estimated quarterly for each sector and
maturity bucket based on a consensus opinion of BlackRock traders as well as a set of over 10 broker dealers. For FX, brokers provide Market Half Spread quarterly on a consensus basis for each currency pair and size range. For
Equity, BlackRock calculates Market Expected Cost using an average of multiple independent broker models. Subject to change.
6. BlackRock as of December 2022. Cumulative cost–savings figure is calculated by taking the difference between the previous fund expense ratio and the new fund expense ratio from 2015 through December 2022, multiplied by
the fund assets under management at the time of the fund reduction. Methodology does not account for compounding savings over time.
10
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 6 – BlackRock’s "cloud–like" platforms fuel value for clients
1. iShares exposures accounted for coming from total countries listed in MSCI EM Index as of May 2023. MSCI EM Index accounts for large and mid–cap representation across 24 emerging markets (EM) countries.
2. Source: Gartner.
Slide 7 – Our strategy continues to deliver
1. Represent last three years ending 3/31/2023. Mega mandates reflect client outsourcing assignments greater than $5 billion in assets.
2. Gross fundraise figures from 1/1/2021 through 3/31/2023.
3. BLK Form 10–Ks for respective years. 3–year CAGR represents 12/31/2019 to 12/31/2022.
4. Data as of 3/31/2023.
5. Source: BlackRock, Bloomberg, covers the period from 4/1/2020 to 3/31/2023. Net new base fees represents annualized base fee revenue earned on net asset inflows.
6. Represents last three years ending 3/31/2023. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets.
Slide 9 – Asset management revenue remains highly fragmented
1. Source: Company filings for public peers with revenue data as of 12/31/2022. Private peers data based on AUM from websites with BlackRock estimate of average fee rate to calculate revenue. Total asset management industry
2022 revenue estimate from McKinsey Performance Lens.
2. Source: Dealogic. Investment banking revenue with data for year ending 12/31/2022.
3. Source: Synergy Research Group. Cloud provider revenue market share for year ending 12/31/2022.
11
Platform as a Service
Rob Goldstein
Chief Operating Officer
Investor
Day 2023
The only “Platform as a Service” (PaaS)
in asset management
Fundamental
Fixed Income
High
Alpha
Fundamental
Equities
Secondaries
Municipals Private Credit
Event
Driven
Decarb &
Transition
Financial
Institutions
Systematic
Infrastructure
Private Equity
Partners
Liability–
Driven
Multi–
Asset
Real
Estate
Cash
Management
Americas Institutional
EMEA Wealth
Asia–Pacific Retirement
Financial Markets Advisory
Markets & trading Investment operations Corporate operations
Client segments
One BlackRock
Combining the “pieces of
the puzzle” enables unique
product innovation
& Index
Fundamental
Fixed Income
Financial
Institutions
Liability–
Driven
Municipals
High
Alpha
Fundamental
Equities
Secondaries
Private
Credit
Systematic
Multi–
Asset
Event
Driven
Real
Estate
Infrastructure
Decarb &
Transition
Cash
Management
Private
Equity
Partners
Enables clients to grow and
expand over time while
remaining within the
BlackRock Ecosystem
Aladdin – the “language of
portfolios” – as the core
foundation provides
operating leverage
Investment teams
We are a platform for scale…
13
100+
languages
spoken
3
60+
BLK
offices
3
30+
countries
globally
3
Dedicated capital markets function
to unlock unique deal flow
Asset classes across the
Whole Portfolio
Investment strategies spanning
global markets
Public
Markets
Private
Markets
Active
Technology
Tools
Cash
Index
ServiceExpertise
1BLK: Seamless connectivity
across businesses
Investment platform that
shares insights globally
…with the unique ability to service clients no matter their requirements
Access
19,500
employees
1
Industry–leading financial
advisory capabilities
Unified, scaled markets and
operations functions
are tech and
data
professionals
2
33%
are investment
professionals
2
26%
dedicated to client
relationships
2
16%
25%
are corporate
and business
operations
professionals
2
Note: For footnoted information, refer to slide 20.
14
The BlackRock Ecosystem in action
Client Case Study: Insurance Company
1
2020
Aladdin Risk implemented for the whole portfolio
Advisory: Started investment and insurance
advisory discussions
2023
Entire portfolio managed end–to–end on the
Aladdin Enterprise platform, including eFront
$28B of core fixed income allocations
$3B of investment grade private placements
Client
AUM
~$55B
BLK AUM
$1B
Client
AUM
~$65B
BLK AUM
$1B
Client
AUM
~$55B
BLK AUM
$32B+
2017
$1B infrastructure
debt mandate
New Client
Note: For footnoted information, refer to slide 20.
15
Combining capabilities unlocks innovation across investment strategies
Investments Case Study: Private Equity Partners + BlackRock Systematic Investing
Leveraging BlackRock’s Systematic Model to identify and catalyze private equity investments
Private Equity Partners
1
195
Investment
professionals
$46B
In client
commitments
20+
Years of
history
BlackRock Systematic Investing
2
220+
Person team
$224B
In client
assets
35+
Years of
history
Fundamental Value
Analyst Sentiment
Earnings Quality
Flows
Macro Themes
Big Data
Machine Learning
1985 1990 1995 2000 2005 2010 2015 2017 Today
Evolution of private data science
Natural language processing (NLP):
NLP can assist users with the collection of reporting data for
quarterly reporting documents
3
Machine Learning (ML):
ML can be used to help managers source transactions and enhance
existing due diligence processes, transforming unstructured data into organized knowledge
4
Research driven process elevates investment insight using cutting edge technology
Note: For footnoted information, refer to slide 20.
PE / VC
16
• “Whole Portfolio” is expanding the Aladdin pipeline –
40% of new Aladdin clients leverage eFront
1
• Insight data business has grown from ~$6M to ~$30M
ACV and models over 12,000 funds and 141,000
underlying assets
2
Aladdin Community
• Monitoring assets across private equity businesses
• Centralized deal management across all private
markets
• 2.25M transactions booked on eFront
3
• 1000+ eFront users
4
BlackRock
Unlocking operating leverage through Aladdin
Technology Case Study: Aladdin–izing Alternatives
Next generation Private
Credit solution
New solutions for Asset
Servicers: eFront Provider
Enriched private markets
analytics
More and more private
markets fund operations at
BLK on eFront
What’s coming
Note: For footnoted information, refer to slide 20.
Acquired
in 2019 to bring
into Aladdin
private markets
17
3%
3%
7%
90%
BlackRock #2-5 The rest
43%
57%
Top 5 The rest
Revenue share
of top firm in
each industry:
Asset
Management
2
U.S.
Credit
Card
Issuers
3
Market share (revenue) of industry, %
13%
80%
16%
76%
$75T
$108T
Top 5
Rest of
industry
7%
8%
BLK
Clients are consolidating to trusted providers, with room to grow
15%
Market share of asset management industry AUM, %
1
Note: For footnoted information, refer to slide 20.
2016 2022
18
The PaaS value proposition is resonating with clients more and more
No firm has been able to offer the “whole
portfolio”
Asset managers have historically been
designed around their skills as opposed to the
needs of the client
Individual relationships with several providers
are expensive from a client perspective
We start with the client, always –
their needs are our north star
We work together
as One BlackRock
We operate with excellence, passing
scale benefits through to our clients
We evolve with our clients, leading them
to trust us with more of their portfolio
of our 25 largest clients have
increased their BLK wallet
share in the last five years
1
68%
>$5B whole–portfolio
outsourcing mega mandates
won by BLK since 2019
1
~20
in NNB
1
$400B+
Our platform goal is to make it “better, faster, and cheaper” for the client to expand within the BLK ecosystem
=
The BLK Model
Note: For footnoted information, refer to slide 20.
19
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 14 – …with the unique ability to service clients no matter their requirements
1. BlackRock 1Q23 10–Q filing.
2. BlackRock as of 3/31/23.
3. BlackRock 2022 Annual Report.
Slide 15 – The BlackRock Ecosystem in action
1. BlackRock as of 3/31/23.
Slide 16 – Combining capabilities unlocks innovation across investment strategies
1. BlackRock as of 3/31/23. Represents cumulative commitments raised since inception.
2. BlackRock as of 3/31/23.
3. eFront – “AI2 : Alternative Investments Meet Artificial Intelligence.”
4. eFront – “AI2 : Alternative Investments Meet Artificial Intelligence.”
Slide 17 – Unlocking operating leverage through Aladdin
1. BlackRock as of 3/31/23.
2. BlackRock, reflects ACV growth from acquisition close to 3/31/23. Underlying assets defined as portfolio companies and properties.
3. BlackRock as of 3/31/23.
4. BlackRock as of 3/31/23.
Slide 18 – Clients are consolidating to trusted providers, with room to grow
1. Source: 2022 asset management industry total AUM is forecasted scenario data from McKinsey Performance Lens.
2. Source: Company filings for public peers with revenue data as of 12/31/2022. Private peers data based on AUM from websites with BlackRock estimate of average fee rate to calculate revenue.
Total asset management industry 2022 revenue estimate from McKinsey Performance Lens.
3. Source: IBISWorld Credit Card Issuing Industry Report, 2022.
Slide 19 – The PaaS value proposition is resonating with clients more and more
1. BlackRock as of 3/31/23.
20
Outsourcing:
A scale engine for our clients
Stephen Cohen
Head of Europe, Middle East and Africa
Investor
Day 2023
$200B+
1Q23 LTM net new business
2
$400B+
3–year net new business
2
$500B+
5–year net new business
2
Mega mandates
2
organic growth
$252B
$73B
$280B
$114B
BlackRock’s outsourcing platform
22
$719B
Outsourcing AUM
1
Note: For footnoted information, refer to slide 29.
Outsourced CIO
EMEA & APAC Wealth Solutions
Insurance
1
Managed Models
Regulatory change Competitive pressure
Portfolio of the future Scalable growth Focus on core
strengths
Challenging macro
environment
23
The investment management industry is seeing rapid and
multi–dimensional transformation…
… changing the needs of our clients
24
Regulatory change Competitive pressure Challenging macro
environment
Portfolio of the future Scalable growth Focus on core
strengths
Clients are looking to scaled asset managers to provide a whole platform of
investment management and technology services
$2.9
$5.3
Whole portfolio
outsourcing is
growing faster
than the
industry
AUM ($T)
Global whole portfolio solutions market
1
CAGR
16%
Note: For footnoted information, refer to slide 29.
2017
2022
25
Local
Presence and
Talent
TechnologyGlobal Scale Diversity and
Breadth of
Platform
Trusted
Execution
Delivering outsourcing solutions to clients
26
BlackRock is well–positioned for growth in outsourcing through
our global scale, broad investment platform and technology
Clients are entrusting us with their portfolios in every region
27
Wealth Managers
Corporate Pensions
Asia–Pacific
State Pensions
Insurance Companies
Corporate Pensions
Endowments
Family Offices
Asset Managers
Private Banks
U.S., Canada & LatAm
Wealth Managers
Corporate Pensions
Pensions Consolidator
Insurance Companies
Family Offices
Charities
Europe, Middle East & Africa
Support our
clients’ long–term
growth
By delivering scale and
service, we grow as
clients grow
Expanding into
new markets
Across regions and
client types
Creating
enhanced value
for our clients
And a scalable
platform for
BlackRock
Driving
innovation
Combining
investment and
technology
BlackRock is driving investment management and
technology transformation for our clients
28
End notes
29
These notes refer to the financial metrics and/or defined term presented on:
Slide 22 – BlackRock’s outsourcing platform
1. AUM as of 3/31/23. Insurance assets represent AUM associated with insurance mandates greater than $5B in assets.
2. Mega mandates reflect client outsourcing assignments greater than $5B over last for 1, 3 and 5 year periods ending 3/31/23.
Slide 25 – Whole portfolio outsourcing is growing faster than the industry
1. Sources: Cerulli for Wealth SMAs, as of Q2 2022; P&I for OCIO, as of 1Q22; Morningstar for U.S. unaffiliated models, as of Q1 2022. Does not include Wealth Solutions due to lack of data
availability.
Innovating Aladdin®
for the future
Sudhir Nair
Global Head of Aladdin
Investor
Day 2023
$1.4B
2022 revenue
1
12%
3–year revenue CAGR
2
98%
3–year average client retention
3
Technology revenue
BlackRock’s Aladdin® technology solves for key aspects of the
investment process
For institutional investors
Aladdin Enterprise Aladdin Risk Aladdin Climate
eFront
Aladdin Accounting Aladdin Studio
For wealth managers
Aladdin Wealth
For asset servicers
Aladdin Provider
Note: For footnoted information, refer to slide 41.
31
Industry dynamics are reshaping the investment landscape
End Investors
Demand custom–tailored portfolios at high value for money
Wealth Managers & Distributors
Serve end clients with a high–quality value proposition
Investment Managers
Need technology to operate horizontally and efficiently
Technology & Data Providers
Deliver solutions that are integrated and cost–effective
32
BlackRock delivers
differentiated growth
through technology innovation
Expanding the
suite of capabilities
Pursuing new
client segments
Creating a
platform with 3
rd
party partners
Enabling
technology
transformations
Expanding the
suite of capabilities
Pursuing new
client segments
Creating a
platform with 3
rd
party partners
Enabling
technology
transformations
BlackRock delivers
differentiated growth
through technology innovation
Expanding the
suite of capabilities
End–to–end capabilities
Multi–asset
Sustainability
+
+
+
Expanding the
suite of capabilities
Pursuing new
client segments
Creating a
platform with 3
rd
party partners
Enabling
technology
transformations
BlackRock delivers
differentiated growth
through technology innovation
Pursuing new
client segments
U.S. → Global
Public markets → Private markets
Institutional → Wealth
Expanding the
suite of capabilities
Pursuing new
client segments
Creating a
platform with 3
rd
party partners
Enabling
technology
transformations
BlackRock delivers
differentiated growth
through technology innovation
Creating a platform with
3
rd
party partners
Technology
partners
Asset servicing
network
Strategic
investments
1
Note: For footnoted information, refer to slide 41.
$1.4B
ACV
2
in 2022
17
New large client
wins
4
in 2022
11%
3–Year ACV
CAGR
3
$0.8
$1.0
$1.1
$1.3
$1.4
Aladdin® is a high–quality, fast–growing technology business
that fuels BlackRock's growth
Technology services revenues
1
($B)
15%
CAGR
20192018 2020 2021 2022
37
Note: For footnoted information, refer to slide 41. Annual Contract Value (ACV) represents forward–looking recurring subscription fees under client contracts for the next twelve months at the end of a respective quarter, assuming all client contracts that
come up for renewal are renewed. ACV excludes nonrecurring fees such as implementation and consulting fees.
~11% of market captured
Of ~$12.5B addressable market
Market share increasing
By continuously investing in our platform and
solving for client needs
Continued growth expected
From winning new clients, expanding to
adjacent markets and creating a network of
ecosystem partners
The market opportunity for Aladdin® continues to grow
~$5B
Large institutional &
wealth managers
~$12.5B addressable market
1
:
Note: For footnoted information, refer to slide 41.
Aladdin
®
Platform:
~$1.4B
~$6B
Smaller
institutions
38
Enabling a
Whole Portfolio
ecosystem
Opening Aladdin®
Empowering our
clients through
data
Leading in
sustainability
Investing in our engineering talent
Our strategy targets the needs of the future investor
Leveraging new technology
39
BlackRock is
leading through
innovation
Aladdin® is
interwoven into
BlackRock’s
strategy
Technology
revenues are
diversified
Low to mid–teen
long–term
growth target
We are delivering on our mission to make Aladdin®
the language of portfolios
40
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 31 – BlackRock’s Aladdin® technology solves for key aspects of the investment process
1. Technology services revenue per BLK 2022 Form 10–K filing. Revenue as of 12/31/2022.
2. BLK Form 10–K filings for respective years. 3–year CAGR represents 2019–2022.
3. Client retention represents annual contract value 'ACV' at the beginning of the year less client attrition during the year, divided by ACV at the beginning of the year. ACV represents forward–looking
recurring subscription fees under client contracts for the next twelve months at the end of a respective quarter, assuming all client contracts that come up for renewal are renewed. ACV excludes
nonrecurring fees such as implementation and consulting fees. Management believes ACV is an effective metric for reviewing BlackRock’s technology services’ ongoing contribution to its operating
results and provides comparability of this information among reporting periods while also providing a useful supplemental metric for both management and investors of BlackRock’s growth in
technology services revenue over time, as it is linked to the net new business in technology services. ACV represents forward–looking, annualized estimated value of the recurring subscription fees
under client contracts, assuming all client contracts that come up for renewal are renewed, unless we received a notice of termination, even though such notice may not be effective until a later date.
ACV also includes the annualized estimated value of new sales, for existing and new clients, when we execute client contracts, even though the recurring fees may not be effective until a later date and
excludes nonrecurring fees such as implementation and consulting fees.
Slide 36 – Creating a platform with 3
rd
party partners
1. Subject to customary regulatory and closing conditions. Minority investment in Avaloq expected to close in 2Q 2023.
Slide 37 – Aladdin® is a high-quality, fast–growing technology business that fuels BlackRock's growth
1. BLK Form 10–K filings for the period 2018–2022.
2. ACV represents forward–looking recurring subscription fees under client contracts for the next twelve months at the end of a respective quarter, assuming all client contracts that come up for
renewal are renewed. ACV excludes nonrecurring fees such as implementation and consulting fees. See note on slide 37 for more information on ACV.
3. Represents CAGR for 2019–2022. See note on slide 37 for more information on ACV.
4. Large clients represent new mandates over $1 million annual subscription revenues signed in 2022.
Slide 38 – The market opportunity for Aladdin® continues to grow
1. McKinsey and P&I data as of year–end 2022 and internal BlackRock estimates.
41
A scale growth platform to access
an expanding world of investments
Salim Ramji
Global Head of iShares and Index Investments
Investor
Day 2023
$719B
3–year ETF net new business
2
10
%
3–year average ETF
organic asset growth
3
$1.1B
3–year ETF organic revenue growth
2
$5.7B
FY 2022 ETF revenue
5
ETF organic asset and revenue growth
8
%
3–year average ETF
organic revenue growth
4
3–year compounded
annual ETF growth rate
8
%
$6.8B
FY 2022 Total ETF & Index revenue
5
ETF & Index Investing at BlackRock is a scale growth platform
$3.1T
$2.9T
$5.9T
ETF & Index AUM
1
Institutional Separate Accounts, Index Mutual Funds & Sub–Advisory
ETFs
Note: For footnoted information, refer to slide 54.
43
iShares Factor ETFs
iShares Thematic ETFs
iShares Sustainable and Transition ETFs
iShares Core ETFs
Over 1,300 ETF choices to access a world of investments
2
P
iShares Fixed Income ETFs
iShares Precision ETFs
BlackRock Alpha–Seeking ETFs
BlackRock and third–party managed model portfolios
ETF technology access to
more investments
Custom/direct indexing,
active risk, voting choice
Leading ETF quality &
tracking performance
Algos & automation
across trading processes
Shift to multiple ETF
servicers & providers
BlackRock’s ETF & Index Investing platform is differentiated
Individual investors through digital wealth platforms
Wealth managers primarily through model portfolios
Asset managers through active use cases of ETFs
Asset owners: insurers, official institutions and pensions
iShares ETFs are used by 40 million people globally
1
Note: For footnoted information, refer to slide 54.
A scaled ETF & Index Investing “engine” that delivers performance, customization, and scale
44
iShares generated high single–digit organic revenue growth,
driven by strategic product segments
iShares ETF product segments:
30%
50%
27%
33%
15%
13%
37%
35%
60%
AUM Revenue 3Y organic
revenue growth
$5.7B $1.1B
Note: For footnoted information, refer to slide 54.
$3.1T
8%
organic
revenue
growth
5
17 bps
8 bps
31 bps
18 bps
1 3
4
Effective
fee rate
2
Strategic ETF segments
Enabling clients to efficiently access:
• An expanding universe of Fixed Income exposures
• Sources of return from active risk benchmarks
(Factor, Sustainable/Transition, Thematic)
Core equity ETFs
• Serves buy–and–hold clients with low cost ETFs
• Grows assets and revenues
Precision ETFs
• Targeted, liquid exposures for tactical allocators
• Market–driven growth
14%
7%
4%
45
$279
$296
$314
$318
$462
$1,108
ETF Issuer #6 ETF Issuer #5 ETF Issuer #4 ETF Issuer #3 ETF Issuer #2 iShares ETFs
iShares generated over $1.1 billion in organic revenue growth, more
than the next three ETF issuers combined
Strategic ETF segments
Fixed Income, Factor,
Sustainable/Transition,
Thematic
Core Equity ETFs
Precision ETFs
3 year organic revenue growth ($M)
1
Leveraged Active IndexIndex Index
Note: For footnoted information, refer to slide 54.
46
4
8
12
19
1
2
3
6
$5T
$10T
$15T
$25T
2018 1Q23 2025P 2030P
Projected ETF industry AUM ($T)
4
We expect the ETF industry to grow to $25T of AUM by 2030
Fixed Income ETFs Equity ETFs
Fixed income: ETFs modernizing the bond
market with more clients seeking efficiency
Model portfolios: $4.2T market growing
16% with ETFs expanding share in wealth
2
Technology: ETFs unlocking access to an
expanding world of active & index investing
Industry trends driving ETF adoption
Digital wealth: $17T market growing 15% as
ETFs become the preferred vehicle
1
<1% fixed income
<3% equities
<2% fixed income
<7% equities
<3% fixed income
<9% equities
ETFs still a small % of global capital markets
3
<5% fixed income
<10% equities
Note: For footnoted information, refer to slide 54.
47
Modernize the bond
market by unlocking
client use cases for
fixed income ETFs
to generate returns
more efficiently.
Enable wealth and
asset manager CIOs to
build and customize
managed models with
iShares and BlackRock
ETFs.
Increase investment
access for tens of millions
of people by making
iShares central on
digital wealth platforms.
01
Generate a majority of ETF
flows through models
1
Triple fixed income ETF assets
to $2.5T by 2030
1
Triple ETF assets in digital
wealth to $1T by 2030
1
02 03
BlackRock’s platform improves clients’ access to investments and
unlocks multiple trillion–dollar growth opportunities
Note: For footnoted information, refer to slide 54.
48
$0.2T
$0.35T
$0.7T
$1.0T
2018 2022 2027T 2030T
Triple ETF assets in digital wealth to $1T by 2030
Global iShares ETF AUM
on digital wealth platforms ($T)
1
Increase investment access for tens of millions of people by
making iShares central on digital wealth platforms
1
Note: For footnoted information, refer to slide 55.
3x
Digital wealth is a global growth channel
iShares is growing adoption through
commission–free trading globally
Tens of millions of people use iShares
ETFs on digital wealth platforms globally
Millions of iShares ETF savings plans are
being adopted across Europe
iShares is investing in greater awareness
with the mass affluent
49
Managed models are growing and our breadth of ETFs
are playing an expanded role in portfolios
U.S. managed
model industry size ($T)
2
2022 2027E
33%
>50%
2020 2022
Enable wealth and asset manager CIOs to build and customize
managed models with iShares and BlackRock ETFs
2
Note: For footnoted information, refer to slide 55.
U.S. iShares flows from
managed models (%)
1
A majority of iShares ETF flows are now from managed
models, especially third party managed models
>2x
Wealth models (home office & advisor–driven) & asset manager models
BlackRock managed models
$4.2T
>$9.0T
U.S. managed model industry invested in ETFs
U.S. managed model industry invested in mutual funds, SMAs & other investments
50
Triple fixed income ETF assets to $2.5T by 2030
Global iShares fixed income
ETF AUM ($T)
6
Modernize the bond market by unlocking client use cases for
fixed income ETFs to generate returns more efficiently
6 of 10
largest U.S.
Insurance
companies use
iShares fixed
income ETFs
4
Liquidity: 8 of the top 10 most liquid
fixed income ETFs are iShares
2
Choice: ~500 ETFs tracking slices of
the global bond market
1
Access: lower trading costs vs.
underlying bond trading
Performance: active processes to
generate tracking and liquidity
$0.4T
$0.8T
$1.6T
$2.5T
2018 1Q23 2027T 2030T
Unique features of iShares are unlocking active client use cases
Note: For footnoted information, refer to slide 55.
3
9 of 10
largest asset
managers use
iShares fixed
income ETFs
3
43
Official institutions,
including 21 central
banks use iShares
fixed income ETFs
5
3x
51
ETF technology for active
& outcome strategies
Expansion of
custom / direct indexing
& active risk
Tokenization as a new
investment wrapper
More efficient access to
digital & alternatives
Market modernization &
ETF on–ramps
ETF technology access to
more investments
>1,000 benchmarks tracked
across countries, sectors &
asset classes
1
Custom / direct indexing,
active risk, voting choice
Custom/direct indexing: ~$150B
2
Active risk benchmarks: $1.1T
3
Voting choice: $2.2T
4
Leading ETF quality &
tracking performance
Exchange bid–ask spreads are
half the industry average in
Europe & the U.S.
5
Algos & automation
across trading processes
Systems–driven, rules–based
approach enables scale &
customization
Shift to multiple ETF
servicers & providers
Adds scale, diversification &
increased operating leverage
for BlackRock
BlackRock’s ETF & Index Investing “engine”
Our investment “engine” enables performance and customization at scale
Our platform enables innovative access to new markets and growth opportunities
Note: For footnoted information, refer to slide 55.
BlackRock’s investment “engine” delivers performance and
customization at scale and innovative access to new markets
52
A differentiated
ETF & Index business
• Efficient access for tens of millions
of people
• Breadth of high quality
investments
• Leading organic revenue growth,
driven by strategic segments
Multiple trillion–dollar
growth opportunities
• Triple ETF assets in digital wealth
worldwide
• Generate a majority of ETF flows
through managed models
• Triple fixed income ETF assets by
unlocking client use cases
Scale investment “engine”
enabling innovation
• Leading performance &
customization at scale
• Diversity of service providers &
operating leverage
• Innovative access to new markets
and investments
ETF & Index Investing at BlackRock is a scale growth platform to
access an expanding world of investments
53
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 43 – ETF & Index Investing at BlackRock is a scale growth platform
1. Source: BlackRock, as of March 31, 2023.
2. Source: BlackRock, as of March 31, 2023. Net new business (NNB) represents net asset inflows and organic revenue growth represents net new base fees (NNBF) earned on net asset inflows.
3. Source: BlackRock, as of March 31, 2023. Organic asset growth rate calculated by dividing net new business (NNB) over beginning of period AUM and averaging annual growth rates over the thirty–six month period.
4. Source: BlackRock, as of March 31, 2023. Organic revenue growth rate calculated by dividing net new base fees (NNBF) earned on net new business (NNB) by the base fee run–rate at the beginning of period and averaging annual
growth rates over the thirty–six month period.
5. Revenue includes base fees and from securities lending revenue.
Slide 44 – BlackRock’s ETF & Index Investing platform is differentiated
1. The nearly 40 million figure estimates the number of individual investors that are using iShares ETFs. Sources:
• United States: Sources: Broadridge Financial Solutions, as of March 31, 2023. BlackRock estimate, as of March 31, 2023. Approximately 33 million people use iShares based on a ticker–level analysis of unique, anonymized
individual brokerage account numbers that hold at least one iShares ETF and have an account balance greater than $0.
• Europe: Sources: ExtraETF, as of March 2022: “2026 ETF Savings Plans Market: How Retail Investors Invest in ETFs.” BlackRock estimate, as of March 31, 2023. Approximately 50% of iShares clients in Europe invest in iShares
ETFs through savings plans.
2. Source: BlackRock, as of March 31, 2023.
Slide 45 – iShares generated high single–digit organic revenue growth, driven by strategic product segments
1. Source: BlackRock, Bloomberg, as of March 31, 2023.
2. Source: BlackRock, as of March 31, 2023. Effective fee rate represents the annualized effective fee rate, defined as run–rate base fees: individual product NAVs multiplied by individual product TER, aggregated and divided by total
segment assets under management.
3. Source: BlackRock, Bloomberg, as of March 31, 2023. Run–rate revenue represents the base fee run–rate at the beginning of period.
4. Source: BlackRock, for the thirty–six month period between April 1, 2020 and March 31, 2023. Organic revenue growth represents net new base fees (NNBF) earned on net asset inflows.
5. Source: BlackRock, as of March 31, 2023. Three year organic revenue growth rate calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of period and averaging over the three
year period.
Slide 46 – iShares generated over $1.1 billion in organic revenue growth, more than the next three ETF issuers combined
1. Source: BlackRock, Bloomberg. Organic revenue growth represents annualized base fee revenue earned on net asset inflows. Data covers the period between April 1, 2020 to March 31, 2023.
Slide 47 – We expect the ETF industry to grow to $25T of AUM by 2030
1. Source: BlackRock, as of March 31, 2023.
2. Sources: Broadridge Global Advisory Services, as of May 31, 2023: “U.S. advisor sold asset management: this time it’s personal”. BlackRock, as of March 31, 2023: “A Model Moment for Asset Managers”. Managed model portfolio
market sizing includes both ETF and non–ETF allocations within managed models.
3. Source: SIFMA Capital Markets Factbook, as of December 31, 2022. Figures represent the equity and bond market sizes globally.
4. Source: BlackRock, as of March 31, 2023. Estimates include 2025 and 2030 scenario calculations based on proprietary research. Subject to change. The figures are for illustrative purposes only and there is no guarantee the projections
will come to pass.
Slide 48 – BlackRock’s platform improves clients’ access to investments and unlocks multiple trillion–dollar growth opportunities
1. 2030 represents target. Multi–trillion dollar growth opportunities described are for illustrative purposes only and are subject to change. There is no guarantee the figures will occur in the time periods described.
54
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 49 – Increase investment access for tens of millions of people by making iShares central on digital wealth platforms
1. Source: BlackRock, as of March 31, 2023. 2027T and 2030T are targets. Estimates include 2027 and 2030 scenario calculations based on proprietary research. Growth opportunities described are for illustrative purposes only and are
subject to change. There is no guarantee the figures will occur in the time periods described.
Slide 50 – Enable wealth and asset manager CIOs to build and customize managed models with iShares and BlackRock ETFs
1. Third–party flows include wealth models, including advisor–driven models created by financial advisors, e.g., Rep as PM and RIAs and home office models created by centralized, in–house investment teams at wealth managers. Third–
party flows also include models managed by other asset managers that distribute models through wealth managers. Source: BlackRock, iShares Global Business Intelligence, as of March 31, 2023.
2. $4.2T U.S. model portfolio industry size includes: $2.1T of advisor–driven models; $1.6T of home–office models; $415B third–party asset manager models; and $114B of BlackRock–managed models, primarily captured in BlackRock
Retail and ETF AUM. Growth opportunities described are for illustrative purposes only and are subject to change. Sources:
• Wealth models. Advisor–driven: Broadridge Global Advisory Services, as of May 2023: “U.S. advisor sold asset management: this time it’s personal”. Home office models: Cerulli, as of December 2022: “U.S. Asset Allocation Model
Portfolios 2022: Model Customization and Tax Optimization”, as of December 31, 2022.
• Third–party asset manager models. “U.S. Asset Allocation Model Portfolios 2022: Model Customization and Tax Optimization”, as of December 31, 2022.
• BlackRock managed models. BlackRock, as of March 31, 2023.
Slide 51 – Modernize the bond market by unlocking client use cases for fixed income ETFs to generate returns more efficiently
1. Source: BlackRock, as of March 31, 2023.
2. Source: Bloomberg, for the period between January 1, 2022 and December 31, 2022. BigXYT, for the period between January 1, 2022 and December 31, 2022.
3. Source: BlackRock, as of December 31, 2022. Analysis of SEC 13–F filings for U.S. domiciled asset managers and BlackRock analysis of self–reported holdings by asset managers in Europe and Asia. Top 10 global asset managers
determined by Pensions & Investments.
4. Source: BlackRock, S&P Global Intelligence and Bloomberg, as of December 31, 2022. Analysis of filings with the National Association of Insurance Commissioners (NAIC) and the Securities and Exchange Commission (SEC).
5. Source: BlackRock, as of March 31, 2023. Estimate based on client engagements, as of March 31, 2023.
6. Source: BlackRock, estimates as of March 31, 2023. 2027T and 2030T are targets. Growth opportunities described are for illustrative purposes only and are subject to change. There is no guarantee the figures will occur in the time
periods described.
Slide 52 – BlackRock’s investment “engine” delivers performance and customization at scale and innovative access to new markets
1. Source: BlackRock, iShares Global Business Intelligence, as of March 31, 2023.
2. Source: BlackRock, Aperio, as of March 31, 2023. ~$150B in custom/direct indexing includes AUM managed in index equity SMAs by Aperio for wealth management clients and in custom/direct indexing mandates. All client transitions
to custom/direct indexing have been funded.
3. Source: BlackRock, as of March 31, 2023. $1.1T of ETFs managed against active risk benchmarks include: factor–based investment strategies that target specific drivers of return (growth, value, momentum, and minimum volatility
indexes); sustainable strategies that encompass exclusionary screens, optimization or various metrics that tilt toward a client’s unique ESG objective; thematic benchmarks that aim to capture long–term secular trends; capped indexes
that include modified market cap–weighted, optimized country or optimized sector benchmarks; additional indexes with alt–weighted methodologies (e.g., equal–weighted).
4. Source: BlackRock, as of March 31, 2023. $2.2T includes client funds participating in BlackRock Voting Choice. Assets include index equity assets held in multi–asset fund of funds strategies. Certain institutional pooled funds that
implement Systematic Active Equity (SAE) strategies are also eligible for BlackRock Voting Choice but are not displayed in the chart. Eligible SAE institutional pooled funds and separate accounts amount to $102B in eligible Voting
Choice assets.
5. Source: BlackRock, as of March 31, 2023. Exchange bid–ask spreads defined as ETF trading costs as compared to the industry average in both Europe and the United States.
55
Growth beyond the U.S.
Building BlackRock in local markets
Rachel Lord
Chair and Head of APAC
Investor
Day 2023
$628B
3–year net new business
2
7
%
3–year avg.
organic
asset growth
3
$1.0B
3–year net new base fees
4
3–year Avg.
Organic base
fee growth
5
6
%
$8.3B
2022 Revenue
6
3–year
CAGR
7
4
%
Non–U.S. organic growth and revenue
BlackRock’s international platform
$428B
$927B
$1,138B
$130B
$245B
$463B
$133B
Americas ex–U.S.
UK
Europe ex–UK
Middle East & Africa
Asia ex–Japan
Japan
Australasia
Note: For footnoted information, refer to slide 63.
$3.5T
non–US
client assets
1
57
Americas ex-US Asia ex–Japan AustralasiaJapanMiddle East &
Africa
UK Europe ex–UK
We have deep local presence
Strong Regional Connectivity
1
Note: For footnoted information, refer to slide 63.
58
$400B+ AUM
~400 employees
$900B+ AUM
~3,700 employees
$1.1T+ AUM
~2,300 employees
$100B+ AUM
50+ employees
$200B+ AUM
3,700+ employees
$400B+ AUM
~400+ employees
$100B+ AUM
~200+ employees
Powered by our localized approach and global platform
Global platform
✓ Global investment capabilities
✓ Global client specialization
✓ Operational and risk platform
✓ Technology
✓ Insights and thought leadership
Localized approach
✓ Investing strengths
✓ Market expertise
✓ Client relationships
✓ Client service
✓ Country leaders
4%
6%
BlackRock
(excluding U.S.)
Industry
(excluding U.S.)
Outpacing the broader industry
3–Year Organic Asset Growth, 2020–2022
1
(%)
How we drive growth and create value for our clients
and shareholders
Note: For footnoted information, refer to slide 63.
59
Outsourcing and
Asset Allocation
Wealth
Distribution
Private Markets
Technology
Global & Local
ETFs
Opportunity in developed local markets
Growth in local markets driven by key
strategic focus areas…
…with non–U.S. markets continuing to
drive market share gains
Germany
Industry
2
BlackRock
1
$4.4T AUM$191B AUM
+10% org. growth +4% org. growth
Japan
$5.4T AUM$463B AUM
+15% org. growth +8% org. growth
Australia &
New Zealand
$2.2T AUM$133B AUM
+15% org. growth +4% org. growth
Note: For footnoted information, refer to slide 63.
60
Opportunity in fast–growing local markets
How we differentiate ourselves
Positioning for the future
China
• Building our presence in a
growing market for retirement
products
• Expanding local reach
through JV and wholly–owned
domestic businesses
+9.5%
projected growth of China
asset management industry
through 2030
3
Building offshore presence
India
• Driving investment in public
and private markets
• Leading international investor
in Indian public markets
$6.8B+
of Indian exposures for
global investors
2
Partnering in infrastructure
Saudi Arabia
• Decades–old institutional
business, with local team
established in 2019
• Newly established
infrastructure platform with
strong pipeline for future
investment
$15B+
investment in natural
gas pipelines
Embedded local asset manager
Mexico
• Diverse platform across local
and international ETFs, mutual
funds, private markets, and
risk management technology
530+
BlackRock ETFs and mutual
funds locally distributed
1
Note: For footnoted information, refer to slide 63.
61
Manager
consolidation
Clients increasingly
focusing on fewer partners
amid cost pressures
Regional
investing
Increasingly localized
product offering
Global and local
insights
Combining macro thought
leadership with regional
knowledge
Growth of
wealth markets
Emergence of digital
distribution products in
growing markets
APAC
Sustainable
investing
Sustainable products
driving a tectonic shift in
capital
Portfolio
customization
Significant growth in
customized portfolios and
OCIO
Government
policy
Ambitious government
agendas, but fragmented
regulation
Digital revolution
in wealth
New generation of individual
savers moving into
investment products
62
EMEA
We see regional industry trends as strong tailwinds for
BlackRock to consolidate share
End notes
63
These notes refer to the financial metrics and/or defined term presented on:
Slide 57 – BlackRock’s international platform
1. AUM as of 3/31/23. AUM refers to client assets in each region.
2. Represents last 3 years ending 3/31/23. Net new business represents net asset inflows.
3. Represents last 3 years ending 3/31/23. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets.
4. Represents last 3 years ending 12/31/22. Net new base fees represents net new base fees earned on net asset inflows.
5. Organic base fee growth rate calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of period.
6. Revenue includes base, securities lending and performance fees.
7. 3–year CAGR represents 2020–2022.
Slide 58 – We have deep local presence
1. Data as of 3/31/23. AUM refers to client assets in each region.
Slide 59 – How we drive growth and create value for our clients and shareholders
1. Source: Broadridge for industry data. Represents last 3 years ending 12/31/22. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets.
Slide 60 – Opportunity in developed local markets
1. AUM as of 3/31/23. Organic growth reflects organic asset growth over the last 3 years (2020–2022) to align with industry data.
2. Source: BVI, Japan Investment Advisers Association; The Investment Trusts Association Japan, Rainmaker, RBNZ, and BlackRock FMA for industry data. AUM as of 3/31/23. Organic growth reflects
organic asset growth over the last 3 years (2020–2022) due to data availability.
Slide 61 – Opportunity in fast–growing local markets
1. Source: BlackRock. Data as of 4/30/23.
2. Source: BlackRock. Data as of 12/31/22.
3. Source: CICC estimates as of August 2022.
Active for the portfolio
of the future
Rich Kushel
Head of the Portfolio Management Group
Investor
Day 2023
$570B
3–year net new business
2
8
%
3–year average
organic asset growth
3
$1.1B
3–year net new base fees
2
$7.3B
2022 Base and Performance Fees
5
Organic growth and revenue
3–year CAGR
6
(15)
%
7
%
(2)
%
7
%
3–year average organic
base fee growth
4
$411B
$1,099B
$758B
$207B
Equity Fixed Income Multi–asset Alternatives
$2.5T
Active AUM
1
BlackRock active strategies
Note: For footnoted information, refer to slide 76.
65
$1,947
$2,251
$2,606
$2,317
$2,474
2.9%
3.0%
3.1%
3.2%
2019 2020 2021 2022 1Q23
BlackRock Active AUM ($B) % Market Share
BlackRock active market share
2
Note: For footnoted information, refer to slide 76.
BlackRock is growing faster than the industry, and has
significant room to grow share
7%
5%
12%
5%
12%
2%
1%
4%
(1%)
2019 2020 2021 2022 1Q23
Ann'd
BlackRock Organic Growth Industry Organic Growth
BlackRock and industry active organic asset growth
1
Note: For footnoted information, refer to slide 76.
66
# Funds % of AUM
Equity
73 60
%
Fixed
Income
45 59
%
Multi–Asset &
Alternatives
47 57
%
Strong lineup of 4– and 5–star active mutual funds
2
78%
90%
90%
83%
66%
71%
81%
64%
90%
Fundamental Equity Systematic Equity Taxable Fixed Income
3/31/2018 3/31/2020 3/31/2023
Differentiated long–term performance
% of assets above benchmark or peer median for the 5–year period
1
Note: For footnoted information, refer to slides 76. Past performance is not indicative of future results
Strong relative performance across active platform
Note: For footnoted information, refer to slide 76. Past performance is not indicative of future results.
67
EMEA & APAC Wealth Solutions AUM ($B)BlackRock–Managed Models ($B)
1
$34
$114
2018 1Q23
BlackRock-Managed Model AUM ($B)
33%
CAGR
BlackRock Outsourced CIO AUM ($B)
$1
$73
2018 1Q23
BlackRock Int'l Wealth AUM ($B)
$110
$252
2018 1Q23
BlackRock OCIO AUM ($B)
22%
CAGR
174%
CAGR
BlackRock’s whole portfolio business is delivering outcomes for
clients, and unlocking new channels for delivering active
Note: For footnoted information, refer to slide 76.
68
>$9.0T
$2.1
$1.6
$0.4
Potential
Opportunity
Advisor Driven Home Office Third-Party
U.S. Model Adoption and Addressable Market ($T)
2
2022 industry estimates
5–year expected growth
$4.2
>2x
1.4
2.7
1.4
2.3
2017 2022
Outsourced CIO and U.S. Wealth SMA Industry ($T)
1
CAGR
(2017–2022):
U.S. Wealth SMAs
11%
Outsourced CIO
15%
$2.9
$5.1
13%
CAGR
Note: For footnoted information, refer to slides 76.
Accelerating demand for whole portfolio solutions
and model portfolios
Note: For footnoted information, refer to slide 76.
69
\
U.S. Advisor Segments and Model Outsourcing
2
0%
10%
20%
5% 7% 9% 11% 13% 15% 17%
Broker
Dealers
Home
Office
RIA
Industry AUM Growth Rate
% of assets
that are
outsourced
models
Traditional
model buyers
increasingly
saturated
5%
7%
17%
67%
Advisor Industry Model Industry 3rd-Party Model
Industry
BLK Models
Organic CAGR
(2019–2021)
U.S. Model Portfolio Solutions Industry
1
BLK outpaced the industry 4x
BlackRock model growth outpacing the industry, with
additional channels to drive growth
Note: For footnoted information, refer to slide 76.
70
Custom Model Solutions (CMS): differentiated outcome–
oriented capabilities through mass customization
Scaled
infrastructure
through
Aladdin
BlackRock
building
blocks
Strong RIA
relationships
Custom
models
$23B
Q1 2023 AUM
$8B
NNB in 2022 and Q1 2023
$15M
NNBF in 2022 and Q1 2023
71
Account
size
Qualified Illiquid & other
Below $500K
(13%)
$500K – $2M
(51%)
$2M–$5M
(16%)
Over $5M
(20%)
Taxable
Difficult to reach
(UHNW, Illiquids)
% of each RIA
firm assets
26%
38%
36%
Expanding custom model offerings to grow share
with RIA clients
Whole portfolio expanded reach
(with Aperio, Munis, tax)
Current CMS reach
Typical RIA Custom Model Solutions Client
1
:
Asset Breakdown
Note: For footnoted information, refer to slide 76.
72
Manager
research
Client
reporting
Models
infrastructure
Investment
tools
We win in whole portfolios by managing complexity for our
clients, leveraging our technology to scale
Scalable
Strategic, robust, performant
solutions
Flexible
Easily extendable and designed for
varying client use–cases
Integrated
Scaled across our Aladdin platform
73
World–class investment building
blocks designed to meet evolving
client needs
Active Equities
Multi–Asset
Private Markets
iShares & Index
Cash Management
Active Fixed Income
Combining our investment solutions with asset allocation
expertise to deliver investment outcomes for clients
Portfolio
construction &
asset allocation
expertise
74
Delivering
traditional active
strategies through
whole portfolios
Unlocking new
markets to deliver
alpha in innovative
ways for clients
Effectively
managing
complexity and
delivering alpha
at scale through
technology
Ability to generate durable alpha for clients and differentiated organic
asset and base fee growth for shareholders over the long–term
Well positioned to meet evolving client demand for active over
the long–term
75
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 65 – BlackRock active strategies
1. AUM as of 3/31/23.
2. Represents last three years ending 3/31/23. Net new business represents net asset inflows and Net new base fees represents net new base fees earned on net asset inflows.
3. Represents last three years ending 3/31/23. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets.
4. Represents last three years ending 3/31/23. Organic base fee growth rate calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of period.
5. Revenue includes base, securities lending and performance fees.
6. 3–year CAGR represents compounded annual growth rate for the three years ending 2022.
Slide 66 – BlackRock is growing faster than the industry, and has significant room to grow share
1. Source: Simfund for U.S. MFs, Broadridge for non–U.S. MFs and Institutional, Bloomberg for ETFs, HFR for Hedge Funds and Preqin for Illiquid Alts. BlackRock 1Q23 organic growth is annualized.
2. Source: McKinsey Performance Lens, as of YE 2021. 2022 Industry AUM per McKinsey estimates.
Slide 67 – Strong relative performance across active platform
1. Source of performance information is BlackRock’s first quarter 2023, first quarter 2020 and first quarter 2018 earnings releases. Please see appendix of this presentation for performance notes. Past performance
is not indicative of future results. Please refer to page 12 of first quarter 2023 earnings release for performance disclosure detail.
2. Source: Morningstar Fund data as of 3/31/2023. Includes all BLK global active mutual funds. % AUM is calculated out of BLK funds that have any star rating, and does not include the AUM of non–rated funds as
of 3/31/2023. Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds
receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for up to three time periods— three–, five–, and 10 years—
and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance.
They’re a useful tool for identifying funds worthy of further research, but shouldn’t be considered buy or sell recommendations.
Slide 68 – BlackRock’s whole portfolio business is delivering outcomes for clients, and unlocking new channels for delivering active
1. AUM in BlackRock managed models is primarily captured in BlackRock ETF and Retail AUM; underlying assets are in BlackRock ETFs and mutual funds.
Slide 69 – Accelerating demand for whole portfolio solutions and model portfolios
1. Sources: Cerulli for Wealth SMAs, as of Q2 2022; P&I for OCIO, as of Q1 2022. Excludes Affiliated Wealth Solutions due to lack of data availability.
2. Source: Broadridge Advisory Services, 2023.
Slide 70 – BlackRock model growth outpacing the industry, with additional channels to drive growth
1. Source: Cerulli 2021 U.S. Asset Allocation Model Portfolios.
2. Sources: Cerulli “The State of U.S. Retail and Institutional Asset Management 2022” and Cerulli “U.S. Asset Allocation Model Portfolios 2022”.
Slide 72 – Expanding custom model offerings to grow share with RIA clients
1. Source: Cerulli; BlackRock estimates.
76
Built on Bonds
Rick Rieder
Chief Investment Officer of Global Fixed Income
Investor
Day 2023
$727B
3–year net new business
2
10
%
3–year average organic
asset growth
3
$576M
3–year net new base fees
2
$3.5B
2022 Base and Performance Fees
5
(2)
%
(15)
%
3–year CAGR
6
2
%
3–year average organic
base fee growth
4
6
%
$1.1T
$1.6T
BlackRock fixed income
$2.7T
Fixed Income AUM
1
Active Fixed Income
ETF & Non–ETF Index Fixed Income
$683B
Cash Management AUM
$30B
Private Credit Client AUM
across fixed income, cash, and
private credit
$3.4T
Fixed Income organic growth and revenue
Note: For footnoted information, refer to slide 87.
78
Platform delivers fixed income solutions…
BlackRock
Fixed
Income
Technology and
risk management
Market access
Insights
Breadth and
diversity of platform
Liquidity
Tier liquidity in cash allocations
to diversify and enhance yield
profile
Core Allocations
Access yield and equity
diversification through broad
and flexible exposures
Returns & Income
Seek higher returns by targeting
less liquid and opportunistic
exposures
Delivering
investment
outcomes for
clients’ needs
79
$87B
of capital invested
in primary issuance
1
8400+
primary market
sourcing
opportunities
annually
1
6600
fixed income
trades each day
1
25%
savings in
execution costs
compared to
market average
2
Average fill rates
pro–rata allocations
3
2x
… and scale benefits to clients
Proprietary deal sourcing for unique and
bespoke investment opportunities
01
Strength of access to and execution of deal flow
unlocked by of our vast global counterparty network
02
Deeper liquidity, lower trading costs through our
market reach and pricing expertise
03
Note: For footnoted information, refer to slide 87.
80
• Strategic Income Opportunities Fund
• Total Return Fund
• Strategic Global Bond Fund
• Global Allocation Fund
• BGF Fixed Income Global Opportunities Fund
• Euro Bond Fund
• Sustainable Euro Bond Fund
• Euro Corporate Fund
• Sustainable Euro Corporate Fund
• Sustainable Fixed Income Strategies Fund
• High Yield Bond Fund
• BGF USD High Yield Bond Fund
March 2023
4
– & 5–star fixed
income funds
45
4
– & 5–star fixed
income
AUM (%)
59
%
Active platform is backed by strong long–term investment
performance and award–winning investment teams
77%
90%
90%
1 Year 3 Year 5 Year
12 Fixed Income Funds awarded Gold
medals by Morningstar
2
Strong line–up of 4– and 5–star active
bond funds
2
Long–term performance
1
% of taxable fixed income assets above benchmark or
peer median as of 3/31/23
Note: For footnoted information, refer to slide 87. Past performance is not indicative of future results.
81
$79
$264
$158
$230
$250
2018 2019 2020 2021 2022
Leading fixed income franchise with significant room to grow
ETFs Active – Institutional Active – Retail Non–ETF Index
Fixed income net inflows ($B)
Organic asset growth
1
1% 5% 7% (2)%
Industry:
7%
Market share
1,2
37% 16% 17%
>100%
24%
Organic asset growth
4% 7% 9% 9%
BlackRock:
14%
Note: For footnoted information, refer to slide 87.
82
A historic evolution of the capital stack and return
opportunities in Fixed Income…
The size of capital markets generally resembles a funnel, until
you get to the large equity base
1
$3,217
$1,464
$3,573
$1,378
But for over 2 decades now, investors have been rewarded for taking on more volatility as the returns have very much been
concentrated down towards the bottom (the deep end of the pool)
1.1%
0.1%
2
3
0.3%
And of course, that makes sense as at pretty much any time over the last 15 years, the Yield
profile looked something like this…
4
0.1%
But today, it’s a very different picture in which more risk does not necessarily equate to higher reward…
3
Note: For footnoted information, refer to slide 87. Index definitions are found on slide 88. Index returns are shown for illustrative purposes only. It is not possible to invest directly in an index. Past performance is not indicative of future results.
83
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Yield (%)
Fixed Income Yields: May 2023
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Yield (%)
Fixed Income Yields: Dec 2021
The range of yields available across major Fixed Income asset classes has more than doubled in the last 18 months alone
1
The HY Index, with 2011 members, is an incredible illustration of how an index
average cannot fully describe the dispersion (and opportunity) within
1
…while the index trades at 460bps (along with 5%
of the constituents)
Half the index trades below 300 or above 800…
bps
Across 10 major global Fixed Income asset classes, owning the best returning asset and selling
the worst has created increasingly large alpha – in 2019, there was virtually no differentiation!
1
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2015 2016 2017 2018 2019 2020 2021 2022
Return (%)
Return: Long Best less Short Worst Asset US Agg Return
… and as opposed to the past 10 years, returns come with dispersion and volatility making
active management of these yields a valuable part of a total Fixed Income allocation…
Note: For footnoted information, refer to slide 87. Index definitions are found on slide 88. Index returns are shown for illustrative purposes only. It is not possible to invest directly in an index. Forecasts are based on estimates and assumptions. There
is no guarantee that they will be achieved. Past performance is not indicative of future results.
84
As illustrated above, it has
been a pretty rare point in
time over the past 15 years
when ‘small ball’ or high
quality, large chunks of
short duration assets and
high levels of liquidity
threw off so much income…
Multiple tools are now available to provide return, diversification,
and stability to complement a broad investment portfolio…
A 2020 similar portfolio depicts the contrast…
FX-
Hedged
Yield
Carry on
Yield
Portfolio
C+E %
US Bills (Cash) 0.15%
0.15% 25%
MBS 30 1.56% 1.56% 5%
US IG 10Y 2.31% 3.18% 20%
Euro IG 3-5Y 2.94% 3.32% 10%
Euro IG 7-10Y 3.16% 3.34% 10%
US High Yield BB 5.09% 5.09% 5%
Euro High Yield BB 5.46% 5.46% 10%
Euro High Yield B 7.88% 7.88% 5%
EMBI BB 5.86% 5.86% 5%
Mexico 2Y Unhedged 4.61% 4.61% 5%
Portfolio Yield 2.9%
Portfolio Carry 3.1%
Portfolio Vol 3.3%
FX-
Hedged
Yield
Carry on
Yield
Portfolio
C+E %
US Bills (Cash) 0.15%
0.15% 25%
MBS 30 1.56% 1.56% 5%
US IG 10Y 2.31% 3.18% 20%
Euro IG 3-5Y 2.94% 3.32% 10%
Euro IG 7-10Y 3.16% 3.34% 10%
US High Yield BB 5.09% 5.09% 5%
Euro High Yield BB 5.46% 5.46% 10%
Euro High Yield B 7.88% 7.88% 5%
EMBI BB 5.86% 5.86% 5%
Mexico 2Y Unhedged 4.61% 4.61% 5%
Portfolio Yield 2.9%
Portfolio Carry 3.1%
Portfolio Vol 3.3%
2
Significance Date
Today 6/9/2023
*1 year ago (Q1 22) 3/31/2022
*End of 2021
12/31/2021
*End of 2020
12/31/2020
*End of 2019
12/31/2019
*Peak 2018 stress
12/24/2018
*End of 2017
12/31/2017
*Feb 2016 peak stress 2/15/2016
*China de-val 8/24/2015
*End of 2014
12/31/2014
*End of 2013
12/31/2013
*End of 2012
12/31/2012
US 10Y Yield
3.74
2.34
1.51
0.91
1.92
2.74
2.41
1.75
2.00
2.17
3.03
1.76
US IG 3Y Yield
5.58
3.19
1.45
0.73
2.20
3.62
2.51
2.32
1.81
1.83
1.33
1.26
US HY BB
Yield
8.57
6.01
4.21
4.18
5.19
8.07
5.72
9.98
7.56
5.03
4.62
4.69
EUR HY
BB Yield
(FX Hedged)
8.48
5.81
3.63
3.73
4.72
7.93
4.76
6.92
5.10
4.02
3.82
5.63
Mexico 2Y
Yield
10.26
8.31
7.21
4.37
6.74
8.59
7.59
3.90
4.26
3.56
3.70
4.71
Brazil 2Y Yield
10.94
12.16
11.10
4.34
4.92
7.80
7.78
15.16
14.02
13.08
12.17
7.75
EUR IG
1-3Y Yield
(FX Hedged)
6.35
2.33
0.76
0.76
2.31
3.62
2.29
1.78
1.21
0.87
1.17
1.77
US 3m Yield
5.24
0.48
0.03
0.06
1.54
2.37
1.38
0.28
0.02
0.04
0.07
0.04
Sample Portfolio as of 6/09/23
FX-Hedged
Yield
Carry on
Yield
% MV
US 6m 5.36% 5.36% 25%
CP 9-12m 5.75% 5.75% 15%
MBS 30 5.50% 5.50% 10%
US IG 3Y 5.58% 5.58% 15%
Euro IG 3-5Y 6.28% 6.17% 15%
US High Yield BB 7.06% 7.06% 5%
Euro High Yield BB 8.49% 8.49% 10%
Mexico 2Y Unhedged 10.25% 9.17% 3%
Brazil 2Y Unhedged 10.94% 9.58% 2%
Portfolio Carry 6.2%
Portfolio Vol (Last 3m) 2.0%
Portfolio Vol (Long Term) 1.7%
1
1
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Average 2010-2022 0.62 2.25 2.06 2.21 5.98 5.80 5.65 9.94
Note: For footnoted information, refer to slide 87. Index definitions are found on slide 88. * FX–Hedged Yield = Index Yield + 3M forward exchange rate (given the asset is non–USD denominated). ** Carry = FX Hedged Yield + Yield Roll + Spread.
Index returns are shown for illustrative purposes only. It is not possible to invest directly in an index. Past performance is not indicative of future results.
85
We see the full opportunity set
Providing investors with a fulsome toolkit to
achieve the investment outcomes they need
We invest across the full spectrum
Creating a mosaic of market activity
We share insights globally
Collaborating across sectors,
geographies and teams
Diversity and connectivity of our fixed income platform
positions us to deliver outcomes for clients and grow our share
Active
1
$1.1T
Diversified platform seeking
to offer attractive risk–adjusted
returns through fundamental,
systematic and credit strategies
Index & ETFs
1
$1.6T
Fixed income index franchise
across ETFs, pooled vehicles and
SMAs
Private Credit
1
$30B
Patient capital that seeks higher
returns by targeting less liquid
and opportunistic exposures
Cash
1
$683B
Optimization liquidity
strategies which seek to
preserve capital and
enhance yield
Note: For footnoted information, refer to slide 87.
86
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 78 – BlackRock fixed income
1. AUM as of 3/31/23.
2. Represents last 36 months ending 3/31/23. Net new business represents net asset inflows and Net new base fees represents net new base fees earned on net asset inflows.
3. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets.
4. Organic base fee growth rate calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of period.
5. Revenue includes base, securities lending and performance fees.
6. 3–year CAGR represents 2020–2022.
Slide 80 – … and scale benefits to clients
1. Source: BlackRock Capital Markets; Annual figures as of 2022.
2. Execution cost is the average difference between the actual price achieved on the trade and the previous day’s closing price. Average savings estimated as the difference between BlackRock execution
cost and market half spread, an estimate of the average execution cost of a market participant. Market half spread is estimated quarterly for each sector and maturity bucket based on a consensus
opinion of BlackRock traders and a set of over 10 broker dealers.
3. Source: BlackRock Capital Markets; represents 2022 average fill rate vs. pro–rata allocation for Investment Grade Credit.
Slide 81 – Active platform is backed by strong long–term investment performance and award–winning investment teams
1. Source of performance information is BlackRock’s first quarter 2023 earnings releases. Please see appendix of this presentation for performance notes. Past performance is not indicative of future
results. Please refer to page 12 of first quarter 2023 earnings release for performance disclosure detail.
2. Source: Morningstar Fund data as of 3/31/2023. Includes all BLK global active fixed income mutual funds. % AUM is calculated out of BLK active fixed income mutual funds that have any star rating,
and does not include the AUM of non–rated funds as of 3/31/2023.
Slide 82 – Leading fixed income franchise with significant room to grow
1. Source: Simfund for U.S. MFs, Broadridge for non–U.S. MFs and Global Institutional, Bloomberg for ETFs.
2. Based on industry and BlackRock fixed income net flows for each of the respective periods.
Slide 83 – A historic evolution of the capital stack and return opportunities in Fixed Income…
1. Source: Federal Reserve as of 12/31/2022 and CBO, as of 5/12/2023.
2. Source: Bloomberg as of 5/26/2023.
3. Source: Bloomberg as of 5/24/2023.
4. Source: Bloomberg as of 5/28/2013.
Slide 84 –… and as opposed to the past 10 years, returns come with dispersion and volatility making active management of these yields a valuable part of a total Fixed Income allocation…
1. Source: Bloomberg as of 5/26/2023.
Slide 85 –Multiple tools are now available to provide return, diversification, and stability to complement a broad investment portfolio…
1. Source: Bloomberg as of 5/22/2023.
2. Source: Bloomberg as of 12/31/2022.
Slide 86 – Diversity and connectivity of our fixed income platform enables us to deliver outcomes for clients and grow our share
1. AUM as of 3/31/23.
87
1
–3Y IG = Bloomberg US Corporate 1–3 Yr Index
AAA CMBS
= Bloomberg CMBS Investment Grade: AAA Total Return Index
ABS
= Bloomberg US Agg ABS Index
Brazil 2Y
= Brazil Government Generic Bond 2 Year
CMBS
= Bloomberg US Agg CMBS Index
Deposits + MMF
= Bloomberg US Treasury Bills: 1–3 Months
EMBI BB
= JP Morgan EMBI Diversified Credit BB Index
EUR HY B
= Bloomberg Euro HY B Rating Only Index
EUR HY BB
= Bloomberg Euro HY BB Rating Only Index
EUR IG 1
–3Y= Bloomberg Euro–Aggregate: Corporate –– 1–3 Year TR CHF Index
EUR IG 3
–5Y = Bloomberg Euro–Aggregate: Corporate –– 3–5 Year TR CHF Index
EUR IG 7
–10Y = Bloomberg Euro–Aggregate: Corporate –– 7–10 Year TR CHF Index
European Agg
= Bloomberg Pan–European Aggregate Index
Global Agg
= Bloomberg Global–Aggregate Index
Global Emerging Markets
= Bloomberg EM Hard Currency Aggregate Index
IG
= Bloomberg US Corporate Index
Japan Agg
= Bloomberg Japanese Aggregate Index
MBS
= Bloomberg US MBS Index
MBS 30
= Bloomberg US MBS 30 Yr
Mexico 2y
= Mexico Generic 2 Year
Munis
= Bloomberg Municipal Bond Index
S&P
= S&P 500 Index
Treasury (1
–3Y) = Bloomberg US Agg 1–3 Year
US 10Y
= US Generic Govt 10 Yr
US 3m
= US Generic Govt 3 Mth
US 6m
= US Generic Govt 6 Mth
US Agency
= Bloomberg US Agg Agency Index
US Aggregate
= Bloomberg US Aggregate Index
US HY
= Bloomberg US Corporate High Yield Index
US IG 10Y
= JP Morgan JULI 10 Yr Index
US IG 3Y
= JP Morgan JULI 3 Yr Index
US Long Corp
= Bloomberg US Long Credit Index
US MBS
= Bloomberg US MBS Index
US Securitized
= Bloomberg US Securitized: MBS/ABS/CMBS Index
US Treasury
= Bloomberg US Treasury Index
US CMBS Aggregate
= Bloomberg CMBS Investment Grade Index
US Corp BB
= Bloomberg Ba US High Yield Index
Indices
88
Private Markets:
Essential building blocks of the modern portfolio
Edwin Conway
Global Head of Equity Private Markets
Investor
Day 2023
$2.2B
2022 Revenue
5
3–year CAGR
6
12
%
BlackRock alternatives
Organic growth and revenue
$156B
$81B
$83B
Private markets
7
Hedge funds and hedge fund solutions
Liquid credit
$320B
alternatives
client assets
1
$102B
3–year gross fundraise
2
12
%
3–year average
organic asset growth
3
$412M
3–year net new base fees
3
10
%
3–year average organic
base fee growth
4
Note: For footnoted information, refer to slide 99.
90
$30B
Private credit
$46B
Infrastructure
$30B
Real estate
$12B
Multi-alternatives
$38B
Private equity
BlackRock Private Markets
$156B client assets
We have designed a private markets platform that seeks to
deliver outperformance and investment outcomes for clients
Note: For footnoted information, refer to slide 99.
91
$83
$98
$110
$138
$152
$156
2018 2019 2020 2021 2022 1Q23
14%
348
488
577
668
741
201
70
136
83
208
296
21
$418
$624
$660
$876
$1,037
$222
2018 2019 2020 2021 2022 1Q23
Base Fees Performance Fees
+26%
CAGR
Our Private Markets platform has delivered double-digit
growth in client assets and revenue
Private markets revenue ($M)
1
Private markets client assets ($B)
1
+16%
CAGR
Note: For footnoted information, refer to slide 99.
92
Multi–alternatives
platform providing:
Access to high quality
opportunities
Improved transparency
An integrated view
Target doubling private markets revenue in 5 years
Well positioned for future revenue growth
$483
$1,458
2019 1Q23
+40%
CAGR
Gross carried interest balance ($M)
3
$260M
future annual base fees
2
and additional carry potential
$33B
committed but not yet
deployed capital
1
Committed capital ($M) Ongoing fundraising and deployment
Note: For footnoted information, refer to slide 99.
93
26–28%
18–20%
13–15%
2–3%
11–13%
3–5%
Endow. SWF DB Insurers UHNW HNW
Institutions Wealth
28–30%
20–22%
16–18%
4–5%
15–17%
8–10%
Expected 2025 Allocations
$4
$9
$18
2015 2021 2027E
Industry AUM is expanding as investors continue to increase
allocations to private markets
Investor asset allocations to private alternatives
1
Private markets industry assets
expected to grow to $18T by 2027
2
4
8
+15%
CAGR
+12%
CAGR
+8%
Real estate
+10%
Private equity
+11%
Private credit
+13%
Infrastructure
2021 – 2027E CAGR
X
Note: For footnoted information, refer to slide 99.
94
Our flagship franchises are steadily scaling
Fundraising on track to meet 2021 investor day target ($B)
1
Successfully scaling successor funds ($B)
2
Investor Day 2021
$100B+ 3–year gross fundraise target from ’21–’23
$82B
Raised
$1
$3
$5
$7.5
$1
$2
$5
$7.0
Fund I Fund II Fund III Fund IV
Targets
Diversified Infrastructure Climate Infrastructure
X
Note: For footnoted information, refer to slide 99.
95
Sponsor
Connectivity
Traveloka
Private credit
Corporate
Partnerships
Gigapower – BLK Infra + AT&T
Infrastructure
Structuring
Capabilities
Virgin Voyages
Private credit
Scale Platform
Deployment
Waratah Super Battery
Infrastructure
Additional
Value Creation
Summit Companies
Private equity
We tap into the broader BlackRock
ecosystem to drive fund performance and
help our clients meet their objectives with
whole portfolio solutions
Our differentiated deal flow
1
in private markets is a key driver
of performance and our value proposition to clients
~9,000
Deals reviewed in
2022
2
~5%
Deals invested
2
Sample BlackRock private markets deals
3
X
Note: For footnoted information, refer to slide 99.
96
31.6%
Long Term
Private Capital
13.5%
BlackRock Global
Infrastructure Fund III
11.1%
Global Renewable
Power Fund III
These differentiated capabilities continue to translate into long–
term investment performance, driving outcomes for clients
Note: This slide depicts the performance since inception of the predecessor vehicles for flagship BlackRock Alternatives strategies which may be broadly marketed, and as such is a non–representative subset of the larger universe of
strategies managed. This excludes funds that are too early to have meaningful performance. Past performance is not indicative of future results. Diversified infrastructure and Climate Infrastructure are predecessor funds, Long term
private capital is open ended and represents current performance. Past performance is not indicative of future results.
Long Term Private Capital
(private equity flagship)
Diversified Infrastructure Climate Infrastructure
Net IRR of select flagship strategies, most recent vintages
97
Our strategy
Positioned to lead the industry in constructing whole portfolios
across public and private markets on behalf of clients
Evolving to drive better investment outcomes for
clients
Build whole portfolio client solutions
Leverage new structures and partnerships
to provide alternatives to wealth clients
Be the leading transition capital private
markets provider
Deliver alpha generating private market
investment strategies to clients at scale
Whole Portfolio
Multi–Alternatives
Solutions
Integrated view of underlying
drivers of risk & return across
public and private markets
Access & Capital
Markets
Wide and deep industry
footprint to source and
underwrite transactions, and
deliver outperformance
Technology
Aladdin and eFront deliver
investment insights drawn
from public and private
markets data
Partnership
Grounded in solving client
needs
98
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 90 – BlackRock alternatives
1. Client Assets figures as of 3/31/23. Client assets includes AUM and non–fee paying committed capital. Committed capital are non–fee paying and are not included in AUM. These commitments are expected to generate fees and will
be counted in AUM and flows as the capital is deployed over time.
2. Represents last three years ending 12/31/22. Gross fundraising includes assets counted in net inflows and committed capital. Committed capital that earns fees during the commitment stage is included in net flows and AUM.
Fundraising data includes alternative solutions, hedge fund solutions, private equity solutions, opportunistic and private credit, Long Term Private Capital, real estate and infrastructure.
3. Represents last three years ending 3/31/23. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets.
4. Represents last three years ending 3/31/23. Organic base fee growth rate calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of period.
5. Revenue includes base, securities lending and performance fees.
6. 3–year CAGR represents compounded annual growth rate for three years ending in 2022.
7. Private Markets represents illiquid alternatives.
Slide 91 – We have designed a private markets platform that seeks to deliver outperformance and investment outcomes for clients
Note: Client assets figures as of 3/31/23. Client assets includes AUM and non–fee paying committed capital.
Slide 92 – Our Private Markets platform has delivered double digit growth in client assets and revenue
1. Source: BlackRock as of 3/31/23.
Slide 93 – Well positioned for future revenue growth
1. Committed capital as of 3/31/23. Committed capital are non–fee paying and are not included in AUM. These commitments are expected to generate fees and will be counted in AUM and flows as the capital is deployed over time.
2. Based on fee rates as of 3/31/23. Past fee rates and future assumptions may not be indicative of future results. Future base fees expected to materialize as we deploy committed capital.
3. Reflects gross deferred carried interest liability as disclosed in BlackRock Form 10–Ks and 10–Q for the applicable time period.
Slide 94 – Industry AUM is expanding as investors continue to increase allocations to private markets
1. Source: Oliver Wyman: Allocations as of 2020. https://www.oliverwyman.com/our–expertise/insights/2021/jun/competing–for–growth.html.
2. Source: Preqin “The Future of Alternatives in 2027” Report. Private Markets include Total Alternatives excluding Hedge funds.
Slide 95 – Our flagship franchises are steadily scaling
1. Gross Fundraise figures from 1/1/21 through 3/31/23.
2. Fund targets are not guaranteed and subject to change. Diversified and Climate Infrastructure funds I through III are closed.
Slide 96 – Our differentiated deal flow in private markets is a key driver of performance and our value proposition to clients
1. Differentiated deal flows refers to deal sourcing that is proprietary or part of a limited investor process.
2. Source: BlackRock. Figures for 2022.
3. Deal examples reflect recent, publicly known investments across H2 2022 and Q1 2023 corresponding with the relevant BlackRock capability. Deal examples are not indicative of all sourced or funded deals.
99
Transition Investing:
Unlocking new markets for clients
Dickon Pinner
Head of Transition Capital
Jessica Tan
Head of Sustainable and Transition Solutions
Investor
Day 2023
40%
Electric vehicle share of
global passenger vehicle
sales by 2030
2
Consumer preferences
The transition to a low–carbon economy will transform
economies, sectors, and business models…
79%
Reduction in battery costs
over the past decade
1
Technology Policy
>$470B
U.S. pledged
transition funding
3
~€635B
EU pledged climate
funding
3
Note: For footnoted information, refer to slide 111.
101
…and we expect the transition to spur significant capital
investment
$3.5 - 4 Trillion
invested per year on average through 2050,
across high and low carbon
2
Note: For footnoted information, refer to slide 111.
$2.3 Trillion
invested per year on average in energy
supply and demand, increasing to…
1
2015 - 2021
2023 - 2050
102
Enablers and facilitators
The transition requires connecting sources of capital to
investible transition opportunities globally
Uses of capital
Physical world
Sources of capital
Financial world
BlackRock
103
This presents opportunities – and challenges – across the
corporate lifecycle
Note: Not an exhaustive list of financing instruments available in each of these categories.
Transition
Public Markets
Index & Active
High Yield &
Investment Grade
Transition
Infrastructure
Core, Core+, and
Value–Add Equity
Infrastructure Debt
Transition
Scale–up
Private Equity
Direct Lending
Transition
Launch
Venture Capital &
Growth Equity
Venture Debt
104
A 35–year track–record
Anticipating client needs
Managing investment risk
Investing for the long–term
Building investor–centric analytics
Working across the whole portfolio
Opening new markets
Client Choice
We start with the client
Performance
We seek the best risk–
adjusted returns within the
mandates clients give us
Research
We underpin our work with research, data, and analytics
Consistent approach across platform
Our approach to transition investing builds on our history
of delivering investment outcomes for clients
105
BlackRock Transition Investing
1
Our $100B+ transition platform spans asset classes
Index
$50B
Active
$40B
Private Markets
$17B
Whole portfolio advisory
Proprietary research, technology, & analytics
Corporate network & sourcing capabilities
Note: For footnoted information, refer to slide 111.
106
Index
Broad
strategies
Targeted
strategies
Active
Low Carbon Transition ReadinessParis Aligned Benchmark
Climate Transition Benchmark
Green Bonds
Future of Transport
Clean Energy
Self–Driving EV and Tech
Circular Economy
Sustainable Energy
BlackRock’s options across index and active allow clients to
invest in the transition to a low–carbon economy based on their
investment objectives
Note: Not an exhaustive list of products available in each of these categories.
107
Decarbonization Partners
Late venture capital / early-stage growth equity investments that
advance decarbonization solutions
Climate Infrastructure
Renewable power generation assets, transition–enabling infrastructure, and
climate–related investments in emerging markets
Diversified Infrastructure
Capitalizing on decarbonization, decentralization, and digitalization
Private
Markets
Our teams
We have a diversified private markets platform –
with more in the pipeline
108
Gas & Blue Hydrogen
Transmission & Battery
Storage
EV Charging
LNG Carriers
Onshore Wind
EMEA
1
Americas
1
CO
2
Capture
Battery Storage
Renewable Natural Gas
Hydrogen/Carbon Black
Solar PV
Waste Management
Offshore Wind
Solar PV
Renewables Portfolio
Battery Storage
Pipeline
APAC
1
BlackRock provides clients with
access to global transition
investment opportunities
Note: For footnoted information, refer to slide 111.
109
Service Access Expertise Deliver as
One BlackRock
Our whole portfolio transition platform helps our clients
navigate and invest in the transition to a low-carbon economy
110
End notes
111
All $ figures in this presentation are given in USD.
These notes refer to the financial metrics and/or defined term presented on:
Slide 101 – The transition to a low-carbon economy will transform economies, sectors, and business models…
1. BloombergNEF, Top 10 Energy Storage Trends in 2023.
2. BloombergNEF, Electric Vehicle Outlook 2022. This figure reflects the report’s Economic Transition Scenario.
3. BII, Rocky Mountain Institute, and European Commission, December 2022.
Slide 102 – …and we expect the transition to spur significant capital investment
1
. International Energy Agency, World Energy Investment 2023.
2. BlackRock Investment Institute Transition Scenario, June 2023.
Slide 106 – Our $100B+ transition platform spans asset classes
1. Transition AUM: Private market funds and transition deals and public market portfolios whose principal strategy either through portfolio objective or investment selection focuses on preparing for,
being aligned to, benefitting from and/or contributing to the transition to a low carbon economy. Some transition projects may be in funds that also invest in non–transition assets. Investments are
made by BlackRock’s funds, and it is generally not possible to invest directly into a single project.
Slide 109 – BlackRock provides clients with access to global transition investment opportunities
1. BlackRock, March 2023. The selected highlighted investments illustrate various BlackRock Investment Teams' capabilities across various sectors and markets.
Bringing it together for
clients
Mark Wiedman
Head of the Global Client Business
Investor
Day 2023
What we deliver to clients
Defined benefit
Defined contribution
Asset managers
Insurers
Sovereign wealth funds
Central banks
Family offices
Foundations & endowments
Corporate treasurers
Institutions
(~46% of revenue)
1
Wealth managers
Private banks
Independent advisors
Retail banks
Brokers
Digital platforms /
Individual investors
Wealth
(~54% of revenue)
1
Units of trust
Platform as a service
Whole portfolios
Outsourcing
Aladdin
Custom models
iShares
Active
Bonds
Private markets
Transition
113
Note: For footnoted information, refer to slide 118.
What clients want
Look deeper . . .
Sustainable
investing /
transition to low
carbon economy
Margin
pressure
Yield and cash
Rise of the
digital investor
Data and
analytics
Thirst for
private markets
From products
to whole
portfolios
Outsourcing
Customization
Portfolio reset
amid regime
change
Professionalization
Rising rates
and inflation
Client
trends
Do more with fewer
Investments and…
• Portfolio counsel
• Commercial advice and help
• Technology
• Operating efficiency
A more intimate relationship
114
Our mission: deepening partnerships with our clients across
investment and commercial needs
Product
provider
Strategic
consultant
Portfolio
constructor
Business
co–builder
115
Global strategy, locally delivered
Bringing One BlackRock together Where the magic happens
1
116
Note: For footnoted information, refer to slide 118.
2019–2022
(average)
2023–2027
(projected/
target)
Industry organic asset growth
1,2,3
3% 3%
Industry organic base fee revenue
growth
1,2,3
4% 3%
BlackRock organic base fee revenue
growth
1,4
5% 5%
BlackRock share of industry base
fee revenues
1,4
2.8% 3.1%
How we grow with clients – our 5% ambition
Target
Target
117
Note: For footnoted information, refer to slide 118. Past performance not indicative of future results.
End notes
These notes refer to the financial metrics and/or defined term presented on:
Slide 113 – What we deliver to clients
1. Revenue as of fiscal year 2022. Revenue includes base, securities lending and performance fees.
Slide 116 – Global strategy, locally delivered
1. Source: BlackRock. Office locations as of 12/31/2022.
Slide 117 – How we grow with clients – our 5% ambition
1. Industry & BlackRock representative of Long–Term mandates only.
2. Industry Sources (2019–2022): Simfund for U.S. MFs, Broadridge for non–U.S. MFs and global Institutional; GBI for global ETFs, HFR for global HFs, Cerulli for Wealth SMAs, Preqin for Illiquid Alts.
3. Industry Sources (Projection): Estimates based on McKinsey. Excludes beta.
4. BlackRock (Target): Assumes 5% organic base fee growth from 2023–2027. Excludes beta. Share of industry target assumes industry base fee organic growth from 2023-2027 of 3%, see note 3 above. Target figures are subject
to risks and there is no guarantee that such growth rates will be achieved in the time periods described.
118
Driving value for our
shareholders
Martin Small
Chief Financial Officer and Global Head of Corporate Strategy
Investor
Day 2023
EPS growth
Operating
leverage
Capital
management
We have a longstanding framework for delivering
shareholder value
Organic growth
120
Successful execution of our financial framework
44.1
%
42.8
%
2017
3
2022
$10.00
$19.52
2017
Dividend
2022
Dividend
5%
organic asset
growth
1
5%
organic base
fee growth
2
1/1/18 – 12/31/22
$7.9 billion shares repurchased
(7)% share count reduction
Organic growth Operating margin (as adj.)
Capital management
Note: Represents as adjusted operating margin. 2017 operating margin, as adjusted, does not reflect the updated definition effective beginning in 1Q22. Periods subsequent to 2017 reflect the updated definition of operating margin, as
adjusted. For reconciliation between GAAP and as adjusted, see the previously filed Forms 10–K, 10–Q and 8–K and the appendix to this presentation on slide 137. For footnoted information, refer to slide 135.
46.8
%
in 2021
Primarily
2022 beta
impact
Average
Average
Average…
10%
CAGR
121
5%
(6%)
(5%)
(1%)
1%
1%
5%
7%
5% BLK organic
base fee growth
Organic asset growth higher and less volatile than peers
Organic asset growth
1
Standard deviation
1
BLK
A B C D E F G
Traditional Asset Manager Peers
Captive Peers
Represents the 5–year average of BlackRock’s 5 largest U.S. publicly traded asset management peers and 2 captive asset managers
3%
4%
5%
4%
5%
6%
7%
9%
BLK
A B C D E F G
Traditional Asset Manager Peers Captive Peers
Note: For footnoted information, refer to slide 135.
122
Diversified platform supports 5% organic base fee growth target
14%
7%
4%
6%
19%
6%
1%
12%
% Contribution
to 2022 Revenue
3
Strategic
Core
Equity
ETFs
Illiquid
Alts
Non–
ETF Index
Cash
3–Year
Avg Organic
Base Fee Growth
Rates
2
Effective Fee
Rates (bps)
1
17
8
31
27 67 412
Active ex–Illiquid Alts
4
Tech
5
(FY 2022)
Precision
35% 38% 8%5% 8%6%
3–Year Average BlackRock Organic Base Fee Growth
2
7%
123
Note: For footnoted information, refer to slide 135.
$3.8T
$9.1T
Our ability to meet client needs across a variety of market
environments continues to scale our AUM
12/31/12 3/31/23
9%
CAGR
$120
$194
$150
$202
$367
$124
$429
$391
$540
$307
$110
$386
$134
($159)
$220
$770
($464)
$1,025
$856
$752
($1,722)
$385
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23
Net inflows ($B)
Market / FX movements ($B)
$2.2T
appreciation
from
markets/FX
$2.9T
increase from
net inflows
124
Differentiated organic growth and margin over the long–term,
with near–term results impacted by historic market headwinds
2012
1
2021 2022
(14)%
$307B of net inflows
+163%
$2.5T of net inflows
$3.8T
$10.0T
+109% (8)%
$9.3B
$19.4B
+640bps (400)bps
40.4%
46.8%
$8.6T
AUM
$17.9B
Revenue
42.8%
Margin as adj.
Note: Represents as adjusted operating margin. For reconciliation between GAAP and as adjusted, see the previously filed Forms 10–K, 10–Q and 8–K and the appendix to this presentation on slides 137.
For footnoted information, refer to slides 135.
1
1
125
Dividends
Share repurchases
Tactical acquisitions &
strategic minority investments
Organic business investments
G&A Headcount Seed & Co–invest
Consistent capital management policy to invest first and then
return cash to shareholders
$3.6
$3.8
$3.8
$3.7
$4.9
84%
84%
76%
63%
94%
(150%)
(100%)
(50%)
0%
50%
100%
0
1
2
3
4
5
6
2018 2019 2020 2021 2022
Dividends and share repurchases Payout ratio
Prioritization of cash use
Cash payout & payout ratio
1,2
(Figures in $B)
Note: For footnoted information, refer to slide 135.
126
$0.2
$0.8
2
Using our balance sheet to support profitable growth
Revenues from seeded funds ($B)
$0.9
$1.8
$1.9
$2.3
2017
2022
Co–investment portfolio ($B), including
unfunded commitments
$0.7
$2.6
2017
2022
Revenues from co–invested funds ($B)
Seed
1
Co–invest
1
Seed portfolio ($B)
26%
IRR on
shareholder
capital
25%
IRR on
shareholder
capital
Note: For footnoted information, refer to slide 135.
127
Increasing co–investment portfolio as private markets scales,
delivering revenue growth and profitability for shareholders
Private markets gross fundraise
1
($B)
$23
$25
$42
$35
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
2019 2020 2021 2022
$483
$1,458
2019 1Q23
Carry increasingly contributing to revenue Significant potential performance fees
$75
$49
$159
$263
2019 2020 2021 2022
Carry performance fees ($M)
Gross carried interest balance
2
($M)
Scaling private markets
Note: For footnoted information, refer to slide 136.
128
Inorganic investments accelerate organic growth, support
strategic initiatives, and deliver return for shareholders
Tactical acquisitions Strategic minority investments
1. Subject to customary regulatory and closing conditions. Acquisition of Kreos Capital is expected to close in 3Q 2023, and minority investment in Avaloq expected to close in 2Q 2023.
Technology Alternatives
Global Distribution Whole Portfolio
1
1
129
Steady dividend increases
$0.80
$1.00
$1.20
$1.68
$2.68
$3.12 $3.12
$4.00
$5.50
$6.00
$6.72
$7.72
$8.72
$9.16
$10.00
$12.02
$13.20
$14.52
$16.52
$19.52
$20.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23
Ann'd
17%
CAGR
1
Note: For footnoted information, refer to slide 136.
130
Share repurchase program since 2013
(13)%
$13B+
repurchased
$428
average price per share
+15%
compound annual return
1
Note: For footnoted information, refer to slide 136.
171M
shares outstanding
12/31/12
150M
shares outstanding
12/31/22
131
5%
6% 6%
1%
7%
2%
5%
7%
11%
0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
S&P 500 Returns
30% 11% (1)% 10% 19% (6)% 29% 16% 27% (19)%
Organic base
fee growth
1
YoY as adj.
margin
∆ (bps)
2,3
100 150 – 90 30 150 (10) 50 80 (400)
BlackRock has delivered differentiated organic base fee growth
across various market environments…
Avg: 5%
Note: 2012–2017 operating margin, as adjusted, do not reflect the updated definition effective beginning in 1Q22. Periods subsequent to 2017 reflect the updated definition of operating margin, as adjusted. For further information and
reconciliation between GAAP and as adjusted operating margin, see the previously filed Form 10–Ks, 8–Ks, earnings releases and the presentation appendix on slides 137. For footnoted information, refer to slide 136.
132
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
BLK S&P 500 Large-Cap Traditional Peers
…driving BlackRock stock outperformance over the long–term
Total return to shareholders
1
251%
319%
106%
Note: For footnoted information, refer to slide 136.
3/31/23
133
BlackRock will
continue to
invest and
leverage our
scale to drive
long–term
shareholder
value
EPS growth
Operating
leverage
Capital
management
Organic growth
Access
Service
1BLK Platform
Expertise
134
End notes
135
These notes refer to the financial metrics and/or defined term presented on:
Slide 121 – Successful execution of our financial framework
1. Organic asset growth rate is calculated by dividing net asset inflows over beginning of period assets. 5% reflects average over the 5–year period.
2. Organic base fee growth rate is calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of the period. 5% reflects average over the 5–year period.
3. Beginning in the first quarter of 2022, the Company updated its definition of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include adjustments related
to amortization of intangible assets, other acquisition–related costs, including compensation costs for nonrecurring retention–related deferred compensation, and contingent consideration fair value adjustments incurred in
connection with certain acquisitions. For further information, please see pages 37–38 of our 2022 Form 10–K. 2017 results do not reflect updated definition for operating margin, as adjusted. The company estimates that for 2017,
such adjustments primarily include amortization of intangible assets and acquisition–related compensation costs of $89 million and $20 million, respectively, and that the adjustments for acquisition–related transaction costs and
contingent consideration fair value adjustments are not material.
Slide 122 – Organic asset growth higher and less volatile than peers
1. Organic asset growth and standard deviation represents quarterly organic asset growth rates from 1/1/18 – 12/31/22. Organic base fee growth for BlackRock represents quarterly organic base fee growth rates from 1/1/18 –
12/31/22. Peer organic growth rates and standard deviation calculated from information available in public filings.
Slide 123 – Diversified platform supports 5% organic base fee growth target
1. Effective fee rate for 2022. Effective fee rate represents base fees and securities lending revenue earned on total average AUM. Total average AUM 2022 is calculated as the 13–point average of the month–end spot AUM amounts.
2. Organic base fee growth rate is calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of the period. 3–year LTM average organic base fee growth represents average for trailing
twelve months for 1Q21, 1Q22, and 1Q23.
3. Percentage revenue contribution for 2022 includes base fees, securities lending, performance fees and technology services revenue.
4. Includes all active strategies excluding illiquid alternative.
5. Represents Technology Services Revenue. 3–year average growth rate represents CAGR for the three years ending in 2022.
Slide 125 – Differentiated organic growth and margin over the long–term, with near–term results impacted by historic market headwinds
1. 2012 information reflects accounting guidance prior to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting Policies, in the consolidated financial statements in our
2018 Form 10–K.
Slide 126 – Consistent capital management policy to invest first and then return cash to shareholders
1. Dividend and share repurchases from BlackRock’s Form 10–K for each applicable year.
2. Payout ratio equals (total dividends and share repurchases) / (GAAP net income).
Slide 127 – Using our balance sheet to support profitable growth
1. Revenues from products that have received seed or co–investments over $1M in 2009 through 2022. Revenue includes base and performance fees. Portfolio value for as of year–end for both time periods.
2. 2022 revenue includes ~$260M of future annual base fee from $33B of committed capital.
These notes refer to the financial metrics and/or defined term presented on:
Slide 128 – Increasing co–investment portfolio as private markets scales, delivering revenue growth and profitability for shareholders
1. Gross fundraising includes assets counted in net inflows and committed capital. Committed capital that earns fees during the commitment stage is included in NNB and AUM. Fundraising data includes alternative solutions, hedge
fund solutions, private equity solutions, opportunistic and private credit, Long Term Private Capital, real estate and infrastructure.
2. Reflects gross deferred carried interest liability as disclosed in BlackRock form 10–Ks and 10–Q for the applicable time period.
Slide 130 – Steady dividend increases
1. 2003 dividend per share is annualized.
Slide 131 – Share repurchase program since 2013
1. Represents time period from 12/31/12 to 12/31/2022.
Slide 132 – BlackRock has delivered differentiated organic base fee growth across various market environments…
1. Organic base fee growth rate is calculated by dividing net new base fees earned on net asset inflows by the base fee run–rate at the beginning of the period.
2. 2013 to 2015 information reflects accounting guidance prior to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting Policies, in the consolidated financial statements
in our 2018 Form 10–K.
3. 2018 to 2021 reflects recast financials for updated definition of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include adjustments related to
amortization of intangible assets, other acquisition–related costs, including compensation costs for non–recurring retention–related deferred compensation, and contingent consideration fair value adjustments incurred in
connection with certain acquisitions. For further information, please see pages 37–38 of our 2022 Form 10–K.
Slide 133 – …driving BlackRock stock outperformance over the long–term
1. Source: FactSet as of 3/31/2023. Total return assumes reinvestment of all dividends. Past performance is not indicative of future results.
2. Note: Large–Cap Traditional Peers refers to publicly traded large–cap asset managers (AB, AMG, BEN, IVZ and TROW).
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End notes
2012
1,2
2013
1,2
2014
1,2
2015
1,2
2016
2
2017
2
2018
2
2019
2
2020
2
2021
2
2022
2
Operating income
Operating Income, GAAP basis $3,524 $3,857 $4,474 $4,664 $4,565 $5,254 $5,457 $5,551 $5,695 $7,450 $6,385
Non-GAAP expense adjustments:
Restructuring charge - - - - 76 - 60 - - - 91
Amortization of intangible assets - - - - - - 50 97 106 147 151
Acquisition-related compensation costs - - - - - - 37 65 20 88 24
Acquisition-related transaction costs - - - - - - 18 18 - - -
Contingent consideration fair value adjustments - - - - - - 65 53 23 34 3
U.K. lease exit costs (8) - - - - - - - - - -
Lease cost - Hudson Yards - - - - - - - - - 28 57
Compensation expense related to appreciation
(depreciation) on deferred compensation plans
Reduction of indemnification asset - - 50 - - - - - - - -
Charitable Contribution - 124 - - - - - - 589 - -
Contribution to STIFs 30 - - - - - - - - - -
PNC LTIP funding obligation 22 33 32 30 28 15 14 - - - -
Operating Income, as adjusted 3,574 4,024 4,563 4,695 4,669 5,269 5,701 5,784 6,433 7,747 6,711
Product launch costs and commissions 25 18 11 5 - - 13 61 172 284 6
Operating income used for operating margin measurement 3,599 $4,042 $4,574 $4,700 $4,669 $5,269 $5,714 $5,845 $6,605 $8,031 $6,717
Revenue
Revenue, GAAP basis 9,337 $10,180 $11,081 $11,401 $12,261 $13,600 $14,198 $14,539 $16,205 $19,374 $17,873
Distribution fees (71) (73) (70) (55) (1,198) (1,183) (1,155) (1,069) (1,131) (1,521) (1,381)
Investment advisory fees (348) (332) (350) (402) (410) (480) (520) (616) (704) (679) (798)
Revenue used for operating margin measurement 8,918 $9,775 $10,661 $10,944 $10,653 $11,937 $12,523 $12,854 $14,370 $17,174 $15,694
Operating margin, GAAP basis 37.7% 37.9% 40.4% 40.9% 37.2% 38.6% 38.4% 38.2% 35.1% 38.5% 35.7%
Operating margin, as adjusted 40.4% 41.4% 42.9% 42.9% 43.8% 44.1% 45.6% 45.5% 46.0% 46.8% 42.8%
-
-
-
-
-
6
10
7
1
-
-
($mm, except per share data)
Reconciliation between GAAP and as adjusted
137
Note: For additional information on the non–GAAP expense adjustments and explanations on the use of non–GAAP measures, see BlackRock's Form 10–K for the applicable period.
1. 2012 to 2015 information reflects accounting guidance prior to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting Policies, in the consolidated financial statements in our 2018
Form 10–K.
2. Beginning in the first quarter of 2022, the BlackRock updated its definition of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include adjustments related to amortization
of intangible assets, other acquisition–related costs, including compensation costs for nonrecurring retention–related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions.
Information from 2018 to 2022 reflects updated definitions. 2012 to 2017 does not reflect updated definitions. For further information, please see pages 37–38 of our 2022 Form 10–K.
Important notes
The opinions expressed herein are as of June 2023 and are subject to change at any time due to changes in the market, the economic or regulatory environment or for other reasons. The information should not be construed as
research or relied upon in making investment decisions or be used as legal advice. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking
to a professional adviser before making an investment decision. This material may contain ‘forward–looking’ information that is not purely historical in nature. Such information may include, among other things, projections and
forecasts. There is no guarantee that any forecasts made will come to pass.
The information and opinions contained herein are derived from proprietary and non–proprietary sources deemed by BlackRock to be reliable, but are not necessarily all inclusive and are not guaranteed as to accuracy or
completeness. Certain of the information presented herein is for illustrative purposes only. No part of this material may be reproduced, stored in any retrieval system or transmitted in any form or by any means, electronic, mechanical,
recording or otherwise, without the prior written consent of BlackRock.
This material is solely for informational purposes and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund (nor shall any such shares be offered or sold to any person) in any
jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction.
Investing involves risks including possible loss of principal
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
©2023 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, BUILD ON BLACKROCK, ALADDIN, iSHARES, iBONDS, iRETIRE, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD,
BUILT FOR THESE TIMES, FutureAdvisor, Cachematrix, eFront, the iShares Core Graphic, CoRI and the CoRI logo are registered and unregistered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All
other marks are the property of their respective owners.
© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar
nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Performance notes
Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 31, 2023 and is based on preliminary data available at that time. The performance data shown reflects
information for all actively and passively managed equity and fixed income accounts, including U.S. registered investment companies, European–domiciled retail funds and separate accounts for which performance data is available,
including performance data for high net worth accounts available as of February 28, 2023. The performance data does not include accounts terminated prior to March 31, 2023 and accounts for which data has not yet been verified. If
such accounts had been included, the performance data provided may have substantially differed from that shown.
Performance comparisons shown are gross–of–fees for institutional and high net worth separate accounts, and net–of–fees for retail funds. The performance tracking shown for index accounts is based on gross–of–fees
performance and includes all institutional accounts and all iShares® funds globally using an index strategy. AUM information is based on AUM available as of March 31, 2023 for each account or fund in the asset class shown without
adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.
Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.
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