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8:00 – 8:15am Welcome Remarks
Robert S. Kapito, President
8:20 – 8:40am Strategic Product Management: Optimizing the Platform
J. Richard Kushel, Deputy COO & Head of Strategic Product Management
8:45 – 9:15am Combined Power of Alpha & Beta
Quintin R. Price, Global Head of Alpha Strategies
Amy L. Schioldager, Global Head of Beta Strategies
9:20 – 9:50am Retail: A Global Opportunity
Robert W. Fairbairn, Global Head of Retail & iShares
9:55 – 10:10am Break
10:10 – 10:40am Institutional & BlackRock Solutions: Focused Execution
Robert L. Goldstein, Global Head of Institutional & BlackRock Solutions
10:40 – 11:00am Aladdin Platform: Sustainable Differentiation
Charles S. Hallac, COO
11:05 – 11:35am iShares: Growth from Here
Mark K. Wiedman, Global Head of iShares
11:40 – 12:10pm Delivering Shareholder Value
Gary S. Shedlin, CFO
12:10 – 12:15pm Break
12:15 – 12:45pm Luncheon
12:45 – 1:30pm Audience Discussion
1:30 – 2:00pm Closing Remarks & Final Questions
Laurence D. Fink, Chairman & CEO
Agenda
This presentation, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
In addition to risk factors previously disclosed in BlackRock’s Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this presentation the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or The PNC Financial Services Group, Inc. (“PNC”); (10) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (11) the ability to attract and retain highly talented professionals; (12) fluctuations in the carrying value of BlackRock’s economic investments; (13) 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; (14) BlackRock’s success in maintaining the distribution of its products; (15) 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 (16) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q 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.
Forward-looking Statements
Welcome Remarks
Robert S. Kapito, President
BLACKROCK INVESTOR DAY 2013
Today’s goals
Deepen understanding of BlackRock1
Provide enhanced access to a broad range of senior leaders
2
3
Agenda
Strategic Product Management
iShares
Retail
Institutional & BRS
Aladdin Platform
Alpha Beta
Finance
Keynote
Robert Fairbairn Global Head of Retail & iShares
Robert Goldstein Global Head of Institutional & BRS
Richard Kushel Deputy COO & Head of SPM
Charles Hallac Chief Operating Officer
Mark Wiedman Global Head of iShares
Gary Shedlin Chief Financial Officer
Laurence Fink Chairman & CEO
Quintin Price Global Head of Alpha Strategies
Amy Schioldager Global Head of Beta Strategies
4
Today’s goals
5
Deepen understanding of BlackRock1
Provide enhanced access to a broad range of senior leaders
2
Communicate growth, differentiation and execution3
The BlackRock Principles
6
Highly differentiated asset manager
Diversified global firm with $3.9 trillion in AUM & $2.4 billion in 1Q Revenue
� Unparalleled mix of active and passive strategies to meet evolving client needs
� Industry leader in advice-oriented solutions, risk management, and innovation
Note: Charts above reflect long-term AUM at March 31, 2013 which excludes Cash Management & Advisory AUM.
7
55%34%
8%3%
Equity Fixed IncomeMulti-Asset Alternatives
Product Client Type
67%11%
22%
Institutional RetailiShares
Region
61%31%
8%
Americas EMEAAsia Pacific
Strategic Product Management: Optimizing the Platform
Rich Kushel, Deputy Chief Operating Officer
BLACKROCK INVESTOR DAY
Discipline Focus Innovation
Why Strategic Product Management?
9
� Apply fact-based objective criteria to product decisions
� Optimize decisions for clients and BlackRock
� Align distribution and investment teams
� Recognize that capacity is a dear resource
� Results driven by limited number of products
� Drive innovation to stay ahead of client needs and market opportunities
Unifying function central to optimizing product set and driving organic growth
SPM is a key differentiator for BlackRock
Balancing product breadth and complexity
10As of March 31, 2013; Source: BlackRock
US Mutual Funds
US Collective
Trusts
Non-US Mutual Funds
OtherSeparate Accounts
AUM $bn $199 $803 $775 $168 $366 $1,624
Portfolio Count
199 627 1,004 329 945 4,269
Diverse set of products & customized offerings
� $3.93tn Assets Under Management
� 7,373 Portfolios across multiple fund structures
ETFs
Discipline Focus Innovation
� What need are we fulfilling for the client?
� Is this consistent with the BlackRock Principles & our themes?
� Shift dialogue to “should we” launch this, not simply “can we”
� Margin & materiality thresholds
� Focus on scalable opportunities
Disciplined product approval process
11
Product Executive Committee
Oversees strategic product direction
Americas EMEA
Asia ex-Japan
Japan Australia
Rigorous approach to adding products to the shelf
Regional Product Development Committees
Strategic Product Management
Discipline Focus Innovation
Product rationalization creates capacity and drives focus
BlackRock’s portfolio distribution is very long-tailed
Eliminate or reposition unnecessary or underperforming products based on product health criteria
� 250 funds closed to date
� 102 funds in closure
� 188 funds scheduled to close
Embed product rationalization as a core management practice
Example: Restructuring Australia product line-up
� Closed 94 funds across asset classes eliminating product overlap
Number of closures or scheduled closures representative of pooled fundsFigures reflected as of March 31, 2013 and reflect 2012 & 2013 closures 12
Discipline Focus Innovation
1. Performance data
2. Distribution data and commentary
3. Competitive / industry landscape
Product health reviews objectively assess offerings
Five product health categories:
All four pillars of health show
positive momentum
Investment performance / asset flows are
stable
Material issues identified with
pillars of health
Critical deficiencies
identified
Recently launched or modified
products
Category Killer Performing Watch List Remediation Provisional
13
SPM serves as an objective arbiter of how our products perform:
Discipline Focus Innovation
Strategic product direction focuses firm’s efforts
14
SPM partners with the client and investment businesses to execute on strategic themes
� Ensure that the firm is aligned on key product priorities
We use BlackRock’s themes to inform our firm-wide product strategy
� Themes reflect a 3 to 5 year view on market opportunities
Income
Alternatives
OutcomesETFs
Emerging Markets Retirement
Discipline Focus Innovation
What was the situation we faced?
Innovation case study: EM Allocation Fund
15
� Multi-asset exposure
� Diversified exposure to Emerging markets
� Less volatility
Clients want…Investors continue to increase exposure
to EM…
BlackRock has unique breadth of capabilities…
-
100
200
300
400
500
US Retail Int'l Retail Institutional
Equity Debt Other
US Retail Intl Retail Global Inst’l
$179B$151B
$436B
~$760B flowed into Emerging Markets from 2010 to 2012
Global Index Equity
Pac Basin Fund. Equity
Emerging Europe & Frontiers
Index & Model-
based FI
SAE Emerging Markets
Asia Pacific Equity
Latin America
EM Debt
Global EM Equity
India Equity
EM Currency
Asia Fixed Income
BlackRock is the largest EM manager…
� BlackRock accounts for ~10% of addressable EM assets today
� AUM currently dominated by Beta strategies
� Not actively participating in active EM flows
Discipline Focus Innovation
Source: US Simfund, Global Simfund, eVestment
BlackRock Solution
� Bring together capabilities into one global EM platform (headed by Jeff Shen)
� Design differentiated product and build Asset Allocation capability to…
• Access broadest EM opportunity set
• Satisfy demand for EM exposure with less volatility
• Leverage insights of diverse investment experts
• Build upon success of Global Allocation franchise
� Launch campaign in various outlets
Innovation case study: EM Allocation Fund
16
EM Equity
EM Debt
Currency
Real Assets
Pure Alpha
EM Allocation Fund
Discipline Focus Innovation
Optimizing the key challenges
17
Complexity vs. Breadth
Discipline vs. Innovation
Combined Power of Alpha & Beta
Quintin Price, Global Head of Alpha Strategies
Amy Schioldager, Global Head of Beta Strategies
BLACKROCK INVESTOR DAY 2013
Alpha 36%
Beta 64%
Alpha 55%
Beta 45%
Alpha & Beta at BlackRock
% of 1Q13 AUM
19
BlackRock Long-Term AUM: $3.629tn
BlackRock Long-Term Base Fees: $2,043mm
% of 1Q13 Base Fees
Alpha & Beta at BlackRock
BlackRock manages a unique combination of active and passive investments on behalf of clients
Notes: Beta includes Index Equity, Index Fixed Income, and iShares.
1971 1981 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20
Defined contribution capabilities
World Equity Benchmark
Shares (WEBS)
iShares Exchange-
Traded Funds
US Equity Index Plus
Frontier Markets
Developed IMI Strategies
EAFE Small Cap
Emerging Markets Small
Cap
Emerging Markets IMI
Commodities Smart Beta
Minimum Volatility iShares
40 Years of Index Equity Management
First 401(k) Target Date
Fund (LifePath)
Russell Index Funds
EAFE Equity Index
Securities Lending
Emerging Market Equity
Index
Index pioneer and innovator
EAFE Index Plus
DJ Select Div iShares
Client ExperienceLongevity and Innovation Performance
� 40 years of indexing experience
� Continuous innovators contribute to broadest suite of investment strategies
� Expertise results in reliable and consistent risk adjusted performance
� Scale benefits translate to lower cost for clients
� In depth consultations with clients lead to customized investment solutions
� Backed by BlackRock’s best in class research, risk and analytics, client servicing
Beta at BlackRock is Differentiated
21
Traditional
Breadth of Beta exposures with room to grow through innovation
North America Developed Emerging / FrontierGlobal
IMI
Sectors
Large Cap Low Risk Beta
Target DateSmall Cap
Index Equity Strategies
Income
Minimum Volatility
Fundamental Index
Commodities
Risk FactorsReal Estate
Non-Traditional
Across Market Exposures
Product Breadth Provides Pulse into Investor Behavior
Enhancing the Beta Investment Process
Portfolio Construction
Efficient
Trading
Performance Oversight
Benchmark Knowledge
� Index changes
� PhD staffed Research
� Advocacy
� Daily review
� Investment Review Committee
� Independent Risk Team
� Regional expertise
� Leading technology and risk models
� Rapid dividend reinvestment
� Internal crossing network
� Best execution
� Trading Strategies
� Global Trading Research Team
* Index Equity 3 Year Performance as of March 2013; see Appendix for Performance Notes
96% of AUM at/above
Performance Tolerance*
22
Providing individual product solutions and outcomes that leverage our broad spectrum of capabilities to meet evolving client needs
� Unparalleled combination of Active & Passive strategies on one platform
� Deliver solutions across Institutional, Retail and iShares clients
� Competition specializes in one or the other — we specialize in both
Combined Power of Alpha and Beta
23
ProductRisk
Spectrum
Index Enhanced Index Asset Allocation Active long-biased
Pure alpha
Beta Alpha
24
Alpha Strategy Overview
People
Performance
Product Process
Focus on the teams that Generate Alpha
25
Fixed IncomeFixed Income
Scientific Active Equity
Scientific Active Equity
Fundamental Equity
Fundamental Equity
% of AUM above benchmark / peer median
3-year
78%
92%
39%
Identifying opportunities to enhance performance, focusing our attention on them, and executing in a deliberate and effective manner
� Greater accountability, enhanced by new alignment of divisional structure
� Enhanced performance in Fixed Income over 1 & 3 years, 5 year numbers expected to strengthen
� Particularly strong performance in Emerging Markets
� New alpha sources being explored for long-term sustainable success
� Americas Equity re-stack largely complete
� New managers performing strongly overall
Performance data as of March 2013; see Appendix for Performance Notes
-6
-5
-4
-3
-2
-1
0
Addressing Underperformance: Where We Were - 3 Year
Retail Asia Ex-Jap73%ile**-3.64%
Retail Glb Emg Mkt40%ile**-2.76%
Large Cap Core76%ile*-4.54%
Flexible Equity71%ile*-3.92%
Basic Value51%ile*-2.08%
Capital Appreciation75%ile*-3.86%
Large Cap Value97%ile*-5.56%
07/31/11 09/30/12 11/30/1201/31/12 05/31/12
Ac
tive
3yr
Pe
rfo
rma
nc
e -
A-s
ha
re (
%)
Date Of Manager Change
Trailing 3yr manager performance at the manager change date. Percentile as of the manager change date *US percentile and returns sourced from Lipper ** International (UCITS) percentile and return sourced from Morningstar. All returns are net of fees and A-share class
26
Addressing Underperformance: Where We Are Since New PM Inception
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
Large Cap Core47%ile*1.12%
Large Cap Value43%ile*1.32%
Stournaras / Leavy
Andrew SwanRetail Asia Ex-Jap
21%ile**5.23%
Luiz SoaresRetail Glb Emg Mkt
47%ile**1.17%
Bart GeerBasic Value
9%ile*1.86%
Lawrence KempCapital Appreciation
73%ile*-2.08%
Tim KeefeFlexible Equity
97%ile*-5.51%
09/30/11 08/31/12 12/31/12 02/28/1303/31/12 07/31/12
Ac
tive
Pe
rfo
rma
nc
e S
inc
e In
ce
pti
on
–A
-sh
are
(%
)
Date Of Manager Change
Performance as of 05/31/13 *US percentile and return sourced from Lipper ** International (UCITS) percentile and return sourced from Morningstar . All returns are net of fees and A-share class
27
Alpha Products
Broad product set enabling solutions for range of client needs
Client Solutions
Scalable Exposure
Outcome-Oriented
High Alpha• Premium product at
premium price
• Clearly differentiated from ETFs and low tracking error
• Offering clients’ solutions for their specific needs
• Offering cheap, highly scalable solutions
• Market share driven capability
28
29
Can BlackRock Generate Consistent Alpha?
Alpha Investment Process
StructurePerformance is best delivered by
tightly knit, focused and accountableteams
ScaleSpecialist teams are strengthenedthrough interaction with each other(i.e. dialogue between growth and
value)
ResearchSpecialized dedicated teams deliver
the most insightful, relevant and timelyresearch
Trading ExecutionIn the majority of cases trade execution is a specialized skill
independent of portfolio construction
Portfolio Construction & Risk Analytics
Active Investing is evolving towards a combined approach of art and
science
� Client outsourcing more pension liabilities as they reduce size of their pension office
Leveraging The Breadth Of BlackRockClient Case Study
Challenge
BlackRock’s Solution
Client Portfolio Overview
Liability Matching EquityEMD HYCommodities Real Estate
� BlackRock delivers complete product suite • Manages 95% of Clients’ assets, as well as
provide risk management services through Aladdin platform
• Provides both active and passive options • Flexibility to shift between fund management
styles
Client increased exposure to cost-effective passive products
Further integrated with the firm through BlackRock Solutions risk reporting services
Large, global consumer electronics company
BlackRock was the ideal partner due to unparalleled breadth of capabilities and alpha and beta solutions on one platform
Alpha & Beta on One Platform
30
Alpha Beta
Key Takeaways
31
Unmatched combination of Active and Passive on one platform
People, products and investment process drive Alpha generation
Performance, client experience and innovation differentiate Beta
Past performance is not indicative of future results. The performance information shown is based on preliminarily available data. The performance information for actively managed accounts reflects U.S. open-end and closed-end mutual funds and similar EMEA-based products with respect to peer median comparisons, and actively managed institutional and high net worth separate accounts and funds located globally with respect to benchmark comparisons, as determined using objectively based internal parameters, using the most current verified information available as of March 31, 2013 (February 28, 2013 for high net worth accounts).
Accounts terminated prior to March 31, 2013 are not included. In addition, accounts that have not been verified as of April 12, 2013 have not been included. If such terminated and other accounts had been included, the performance information may have substantially differed from that shown. The performance information does not include funds or accounts that are not measured against a benchmark, any benchmark-based alternatives product, private equity products, CDOs, or accounts managed by BlackRock’s Financial Markets Advisory Group. Comparisons are based on gross-of-fee performance for U.S. retail, institutional and high net worth separate accounts and EMEA institutional separate accounts and net-of-fee performance for EMEA based retail products. The performance tracking information for institutional index accounts is based on gross-of-fee performance as of March 31, 2013, and includes all institutional accounts and all iShares funds globally using an index strategy.
AUM information is based on AUM for each account or fund in the asset class shown without adjustment foroverlapping management of the same account or fund, as of March 31, 2013. Source of performance information and peer medians is BlackRock, Inc. and is based in part on data from Lipper Inc. for U.S. funds and Morningstar, Inc. for non-U.S. funds. Fund performance reflects the reinvestment of dividends and distributions, but does not reflect sales charges.
Appendix: Performance Notes
32
Retail: A Global Opportunity
Robert Fairbairn, Global Head of Retail and iShares
BLACKROCK INVESTOR DAY 2013
33%
Global Retail at BlackRock
Global Retail at BlackRock
11%
% of 1Q13 AUM % of 1Q13 Base Fees
BlackRock Long-Term AUM: $3.629tn
BlackRock Long-Term Base Fees: $2,043mm
Global Retail represents 11% of BlackRock’s AUM and 33% of base fees
� Broad range of capabilities to meet client needs and deliver investment outcomes
Retail Retail
34
$421bn $686mm
Diversified Asset Base
40% 34% 23% 3%AUM byAssetClass
Equity Fixed Income
Multi-Asset Alternatives
64% 13% 16% 7%AUM byVehicle
Open-End MFs Closed-End MFs
SMAs Other
73% 19% 7% 1%AUM byRegion
US EMEA & UK
Asia Pacific LatAm & Iberia
BlackRock’s Retail Clients and Product Set
Financial Advisors
Insurance Distributors
Investors and Multi-Managers
Gatekeepers and Due Diligence
Consultants (e.g. Morningstar)
Direct Platforms
Private Bankers
DC Advisors & Platforms
Separately Managed Accounts (SMAs)
ETFs
Closed End Funds / Investment Trusts
Open End MF / Unit Trusts
Sub-Advisory
Tactical and Strategic Models
Unit Linked / Variable Annuities
Hedge Funds
Diverse client typesStrength across vehicles
35
BlackRock has unparalleled global reach and scale
� Presence in 68 cities across 30 countries
� Registered in 47 jurisdictions
� Over 575 Retail sales professionals globally
Global Growth Strategy in Retail
36
Enhance DistributionEvolve our Product Set
Deliver the Firm
Evolve our Product Set: Strategic Themes
37
BlackRock’s themes inform our global product strategy
� Themes reflect a 3 to 5 year view on market opportunities
Emerging Markets
ETFs
Retirement
Outcome Investing
Income
Alternatives
US Retail Alts Mutual Fund Suite NNB ($mm)
Multi-Asset Income Fund NNB ($mm)
Evolve our Product Set: US Retail
38
$126$264 $248
$412
$1,108
1Q12 2Q12 3Q12 4Q12 1Q13
Growth Strategy
$141 $161$230
$280
$515
1Q12 2Q12 3Q12 4Q12 1Q13
AUM = $2.3bn
AUM = $1.5bn
Strong Growth in Alternatives & Outcome
� Capture share in US open-end mutual fund market
� Build on traditional areas of strength
� Compete aggressively in Alternatives and Outcome Investing
Evolve our Product Set: International Retail
39
Growth Strategy
Continued product diversification:
� Alternatives
� Fixed Income
� Multi-Asset
� Passive
1Q12 1Q13
Active Equity Passive Multi-AssetActive Fixed Alternatives
1Q12 1Q13
AUM Diversification in International Retail
33% 40%
Revenue Diversification in International Retail
25% 29%
$5.4
$2.0$1.5
$1.0
Wires/Broker Dealers Direct RIA Private Bank
US Market AUM ($tn)
1Source: Industry sources and BlackRock internal estimates2Note: Wires ex-Merrill Lynch
Enhance Distribution: US Retail
40
Projected5-yr CAGR1 2-3% 4%6-7%4-5%
BLK MarketShare of AUM 3% <1%<1%<1%
Market LeaderShare of AUM
2
7-8% 10%10%+15%+
14
16
25
30
42
44
63
67
73
126
171
175
Austria
Sweden
Belgium
Netherlands
Hong Kong
France
Luxembourg
United Kingdom
Taiwan
Germany
Italy
Switzerland
Enhance Distribution: International Retail
BLKShare (%)
Cross-Border Distribution Opportunity Growth Strategy
Total market AUM ($bn)
41
6
7
8
15
10
4
5
11
10
10
10
8
Deepen existing client relationships
Penetrate new segments
Capitalize on regulatory change
4/43
5/41
5/41
3/30
2/43
7/42
5/42
5/34
4/40
3/37
4/37
5/39
BLKRank
Source: Lipper AssetWatch, as of March 31, 2013
�Uniquely equipped to deliver comprehensive solutions to Retail clients
Deliver the Firm
42
Deep Expertise, Simply Delivered
�Aligned distribution: “One BlackRock” to the client
�Consultative, thematic approach
�Asset allocation, building blocks, customized solutions
�Models and tools
�Clear, actionable investment content
Deliver the Firm: Spotlight on Aligned Distribution
Our combined distribution footprint is unparalleled as we deliver “One BlackRock” to clients
43
US Wholesalers By Firm
Source: BlackRock, Market Metrics, as of 3Q12
Externals Internals
US Wholesalers By Firm
274
184
90
250
200185
175166
104
2447
US Retail
US iShares
BlackRock PIMCO American Funds
Invesco Oppenheimer FranklinTempleton
Vanguard SPDR InvescoPowerShares
Build the BlackRock Brand
44
Differentiation in Retail
45
Global distribution opportunities
Unparalleled, diverse product set
Ability to deliver the full firm to clients
Institutional Client Business & BlackRock Solutions®
Focused Execution
BLACKROCK INVESTOR DAY
Rob Goldstein, Head of Institutional Client Business & BlackRock Solutions
Institutional Client Business at BlackRock
47
1 BlackRock’s long-term Institutional base fees for 1Q 2013
32%
67%
% of Base Fees
BlackRock Long-Term AUM: $3.629 tn
BlackRock Long-Term Base Fees: $2,043 mm
Institutional Client Business represents 67% of BlackRock’s AUM and 32% of base fees
Institutional Institutional
$2.4tn $645mm1
Diversified Across Asset Classes & Styles
AUM
Base Fees
15% 22% 21% 9% 15% 18%
Active Equity Active Fixed Income
Index Equity Index Fixed Income
Multi-Asset Alternatives
5% 22% 45% 17% 8% 3%
Institutional Client Business at BlackRock
% of AUM
Mature business serving a diverse client base
48
Institutional AUM by Client Type
45%
9%
18%
8%
18%2%
Defined Benefit
Financial Institutions
Defined Contribution
Official Institutions
Corporate/Other
Non-Profit
Institutional Client Business is organized into specialized teams focused on understanding the unique needs of each client
� With over 600 professionals in 33 cities around the globe
Institutional AUM by Region1
North America,
52%EMEA, 36%
Japan, 6%
Australia, 2%
Asia ex-Japan, 4%
Data as of March 31, 20131 AUM by market domicile
Key Questions
49
� Can the Institutional business grow, given its size and the headwinds facing defined benefit pensions plans?
� Is concentration a concern within BlackRock’s existing institutional client base?
� What do we mean when we talk about providing outcome-oriented solutions to our institutional clients?
State of the industry: A two-speed marketplace
Increasingly a ‘two-speed’ market with limited natural growth
50
(1) Source: McKinsey Global AM database, as of December 2011.
‘Two speed’ Institutional Market1
$11
$8
$6
$1
-2%
3%
5%
7%
DefinedBenefit
DefinedContribution
Insurers SovereignWealthFunds /Official
Institutions
Market AUM3Y Growth Estimate
Market AUM ($tn)
Traditional DB business in secular decline
Specialty segments growing faster
� Defined Contribution
� Insurers
� Sovereign Wealth Funds / Official Institutions
Theme-based client approach
51
2Reappraisal of your
Alternatives Allocation
� Demand institutional quality from alts managers
� Diversify among asset classes to uncover true risk and return drivers
Focus on achieving desired outcomes through
multi-asset approaches
� Allocate more effectively to reach desired goals, such as growth, downside protection, or reduction of unrewarded risk
3
Demand more from yourbeta strategies
� Make low-turnover portfolios work harder
� Maximize liquidity budget4
5Strengthen allocations to
emerging markets
� Adopt a more dynamic risk framework
� Build optimal mix of emerging market exposures across asset classes and investment styles
6Harness scientific techniques
to enhance diversificationand performance
� Systematically implement fundamental insights to optimize risk-adjusted returns
1� Revisit guidelines
� Adopt a more unconstrained, opportunistic approach
Beware the asymmetry infixed income—and prepare
for a different future
Unique combination of a diversified platform and the ability to anticipate industry and client dynamics positions us well for future growth
Growth in the Institutional Client BusinessStrategy designed to capitalize on industry dynamics
52
Institutional Growth Strategy
Growing market share in key client segments1
Continually building on our outcome-oriented approach3
Deepening existing relationships2
$652.7 $673.6
$802.6
2010 2011 2012
Financial Institutions Official Institutions DC
Dedicated client teams capture further opportunities in fast growing client segments:
� Financial Institutions
� Official Institutions
� Defined Contribution
Significant growth opportunities in key client segments
53
1
BLK Key Client Segment AUMAUM ($bn)
Focus Areas
Financial Institutions
� Business mix evolving into Fixed Income, Equity Dividend, liquid and illiquid Alts and advisory
Official Institutions
� Specialized client teams and relationships to capture opportunities
Defined Contribution
� Expand share across mid-sized plans, LifePath, Fixed Income products
Uniquely positioned to capitalize on the shift of retirement assets from Defined Benefit to Defined Contribution
� Deep capabilities across index and active
� History of expertise with DC plans
� Industry leading target-date LifePath products
Growth in the Defined Contribution segment
54
Defined Contribution Long-Term AUM ($bn)
$300.7 $330.0
$404.9
2010 2011 2012
Passive Active Multi-Asset
1
$37.3$44.0
$63.8
2010 2011 2012
LifePath AUM ($bn)
Organic Growth
+26% +19% +32%Organic Growth
+11% +11% +9%
6% 11%
83%
1 2 3+
35%
30%
35%
1 2 3+
Deepening existing client relationships
55
2
Focused on evolving our long-term client relationships across our broad capabilities
� Thought leadership, operating excellence and “client-first” thinking
� 60% of top 50 clients increased AUM in 1Q13
Opportunity to Cross-Sell
% o
f To
p 5
0 C
lie
nts
% o
f To
p 5
00
Cli
en
ts
83% of top 50 clients own 3 or more products 35% of top 500 clients own only 1 product
Note: Product definition includes Index Equity and Fixed Income, Scientific and Fundamental Active Equity, Active Fixed Income, Model-Based Fixed Income, Alternatives, Multi-Asset, and BlackRock Solutions. Product definition excludes Cash, iShares, TRIM, and Securities Lending.
As the landscape evolves, clients demand holistic portfolio solutions and multi-asset class products to achieve specific outcomes
� Analytics and advisory capabilities aligned to deliver unmatched integrated solutions
� Client Solutions team focused on complex, evolving institutional client needs
Building an outcome-oriented approach
56
3
Holistic Model
Risk Analytics
Advisory Services
Diverse Platform
Outcome-oriented solutions
Client Solutions: Case Study
57
� Pension portfolio funding gap
� Regulator restricted reliance of parent entity support
� Client required to de-risk and implement a Liability Driven Investment Portfolio
Client challenge
BlackRock’s unique approach
Tailored LDI portfolio solution (QIF)Corporate Bond Index Fund
Equity Index Fund
BlackRock has tools necessary to repeat
Training sessions to Educate Board on Asset Management
$460$510 $518
2010 2011 2012
Financial Markets Advisory
Aladdin Business
BlackRock Solutions helps clients navigate their investment processes and most complex capital markets challenges
� Aladdin Business
� Financial Markets Advisory (FMA)
BlackRock Solutions: Key differentiator & growth driver
58
BlackRock Solutions Revenue ($mm) FMA Capabilities
� One-time valuations and ongoing monitoring or strategic disposition assignments
� Managed over $160 billion of disposition mandates since ‘08
� Successfully disposed of $74.5 billion of assets on behalf of governments and private clients in 2012
$171 $212
$251 $286
$335 $374
2007 2008 2009 2010 2011 2012
$9.1 $10.0 $10.2
$13.7
2009 2010 2011 2012
Aladdin Business comprises our industry-leading investment and risk management platform, Aladdin®, and related risk reporting services
� Recurring revenue stream represents 75% of BlackRock Solutions revenue
Continue to innovate and grow Aladdin Business capabilities
� Clients implement Aladdin as single platform for global operating model
� Transformed fixed income platform into true multi-asset platform
� Continually expanding to an increasingly global set of clients
Aladdin Business
59
Over $13 Trillion Assets on Aladdin ($tn) 1Aladdin Business Revenue ($mm)
1 Includes BlackRock managed assets
Onboarded>$3T
in client assets
BlackRock Solutions is positioned to address key market themes
60
Global Investment Platform Consolidation
Clients seeking Outcome-Oriented Solutions
Clients seeking Risk Solutions across Asset Classes
Regulatory change and capital constraints across Financial Institutions
Key Themes How BlackRock Solutions Helps
• Aladdin® serves as a consolidated, scalable investment and risk management platform
• Model entire client portfolio to determine best solution for desired outcome
• Enterprise risk reporting across fixed income, equities and alternatives
• Provide customized advice, valuation, and disposition management
Key takeaways
61
ICB and BlackRock Solutions are sizeable and consistent contributors to BlackRock’s financial results
ICB and BlackRock Solutions are separate businesses that collaborate on client solutions and outcome-oriented investment approaches
Our institutional strategy is formed by industry dynamics, a close familiarity with our clients and BlackRock’s unique capabilities
Our strategy is supported by client-first thinking and “Focused
Execution”, ensuring that we deliver the best of BlackRock to our clients
Our solutions orientation means we know when to stop asking “what do you want” and start asking “what are you solving for”
Aladdin: Sustainable Differentiation
Charles S. Hallac, Chief Operating Officer
BLACKROCK INVESTOR DAY 2013
Aladdin is BlackRock’s Core Operating System
Over 10,500 employees including more than 1,600 investment professionals
$3.94tn in assets managed across more than 10,500 portfolios
BlackRock is a complex global business
64
Investment Centers
Why a common platform is at the heart of building one firm
� Simplifies large, complex business
� Presents one face to the client
� Brings together people from around the world
� Catalyzes a common culture
� Creates operational leverage for everyone
One platform, one process, one culture
65
Aladdin
Single Set of Data
Consistent Process
Shared Research
Risk Management Tools
Aladdin’s functionality supports the whole firm
Portfolio & Risk Analysis
Data Control & OperationsPortfolio Administration
Trade Execution
Risk Management,
Control & Oversight
66
• Daily risk exposure reporting• Pre-trade analytics• Trade modeling & allocation
Portfolio & Risk Analysis
• Cash & position reconciliation• Performance attribution• NAV calculation
Portfolio Administration
• Order management• Trade execution & capture• Real-time risk & cash reporting
Trade Execution
• Security data management• Trade confirmation & routing• Corporate action processing
Data Control & Oversight
• Real-time compliance monitoring• Daily exposure limit monitoring• Value-at-risk, tracking error, stress testing
Risk Management, Control & Oversight
ExternalCommunications
Data Hub &
Client Reporting
Investment
Accounting
Aladdin
Client non-investment systems
Other
investment systems
Third PartyData
Aladdin is the core operating system of the company
� Sophisticated technology fueled by a set of data integrity processes
� Common language understood by employees across the world
� Collection of tools that transforms data into information
What is Aladdin?
Enterprise modelBest-of-breed model
67
$14tn in assets managed across 170+ clients
A global platform
68
BLK Investment Centers
Aladdin Client User Base
Provides scalability and consistency
69
54 Aladdin clients
$14 trillion analyzed each day
3,000 risk factors in our models
30,000 portfolios
17,000 users
182 total assignments25 million lines of code
1.5 billion BMS messages/day700 developers
54 million Green Package reports/month
Global solution with 24x7 support
100,000,000 Monte Carlo simulations/day
96 Risk clients
Aladdin Demonstration
iShares: Growth From Here
Mark Wiedman, Global Head of iShares
35%
iShares at BlackRock
% of 1Q13 AUM
22%
iShares iShares
72
BlackRock Long-Term AUM: $3.629tn
BlackRock Long-Term Base Fees: $2,043mm
Rest of firm Rest of firm
% of 1Q13 Base Fees
1. How has the iShares business performed?
2. What is the growth outlook for ETFs?
3. What are iShares’ competitive advantages?
4. What is our strategy to win?
4 questions
73
iShares Revenue ($mm)
iShares results – powered by organic growth
74
iShares AUM & Organic Growth ($bn)
(1) 1Q13 annualized organic growth(2) 1Q13 flows only
$593
$753$803
2011 2012 1Q13
Organic Growth
14.4% 13.6%(1)
$594
$710
1Q12 1Q13
Net new business
$85.2 $25.6(2)
27%20%
Record level
We aim to be the global leader in flows and assets
75
AUM – market share
Source: BlackRock and Bloomberg
17%
36%
-33%
-4%
35%
30%
-40%
-20%
0%
20%
40%
60%
1Q
'10
2Q
'10
3Q
'10
4Q
'10
1Q
'11
2Q
'11
3Q
'11
4Q
'11
1Q
'12
2Q
'12
3Q
'12
4Q
'12
1Q
'13
iShares
StateStreet
Vanguard
Flows – market share
44%
39%
18% 18%
8%
14%
30% 29%
2009 2010 2011 2012 1Q'13
iShares
Other
StateStreet
Vanguard
1. How has the iShares business performed?
2. What is the growth outlook for ETFs?
3. What are iShares’ competitive advantages?
4. What is our strategy to win?
4 questions
76
Over a decade and still growing strong…
77
0
700
1,400
2,100
Jan-09 Jun-09 Nov-09 Apr-10 Sep-10 Feb-11 Jul-11 Dec-11 May-12 Oct-12 Mar-13
Source: BlackRock and Bloomberg
Global ETF and iShares AUM ($ bn)
Total ETF Industry
$2,057 bn
iShares$803 bn
ETF industry and iShares both grew 27% in 2012
… and still a lot more room to grow
78
ETFs compete with 4 types of assets There is huge runway for growth ($ tn)
ETFsActive MutualFunds
Index funds / separate accounts
Single security holdings
Derivatives
(3) Global OTC CDS notional amounts outstanding. Sources: SimFund, Bank for International Settlements, Bloomberg, SIFMA. ETFs as of May 31, 2013. Mutual Funds (excluding money market funds) as of April 30, 2013. Net Credit Derivatives outstanding as of December 31, 2012. Total US Equity and Debt Securities as of March 31, 2013.
1.5
10.2
26.9
57.9
U.S. ETFs U.S. MutualFunds
Net CreditDerivatives
Outstanding
U.S. Equity& Debt
SecuritiesInstitutional
Retail
1. How has the iShares business performed?
2. What is the growth outlook for ETFs?
3. What are iShares’ competitive advantages?
4. What is our strategy to win?
4 questions
79
1. A global brand
2. Product breadth, quality, and liquidity
3. Global footprint
4. Operating scale
…with the result of truly global growth
iShares’ competitive advantages are truly global
80
1. Our global brand
81
2. Two global and multiple local product lines
82
282funds
206funds
21funds
128funds
27funds
Fund counts as of March 31, 2013. $ figures represent client AUM (excluding iPath).
U.S.
$495bn
Canada
$52bn
Lat Am & Iberia
$49bn
EMEA
$170bn
Asia Pacific
$37bn
3. Global footprint
83
Canada
29
U.S.
328 EMEA
137
Asia Pac
58
Lat Am & Iberia
60
As of March 31, 2013. Note: US figure includes 53 in global functions. All figures include Marketing.
4. Operating scale
84
Top 10 ETF providers by AUM globally ($bn)
803
365
249
8052 38 28 28 26 25
As of March 31, 2013. Source: BlackRock and Bloomberg.
4. Operating scale
85
Top 10 ETF providers by AUM globally ($bn)
803
365
249
170
8052 38 28 28 26 25
As of March 31, 2013. Source: BlackRock and Bloomberg.
2012 iShares client growth
Result – strong growth around the world
86
2012 ETF industry product growth
11%18%
29%33%
20%
12%
10%
5%
14%
20%23%
28%
34%
47%
Lat Am &Iberia
EMEA US Canada Asia Pac
Organicgrowth
Marketgrowth
11%16% 15%
24%
39%
9%
9% 14%
12%
18%
20%
25%
29%
36%
57%
US Canada EMEA Asia Pac Lat Am& Iberia
Organicgrowth
Marketgrowth
As of December 31, 2012. Source: BlackRock and Bloomberg.
1. How has the iShares business performed?
2. What is the growth outlook for ETFs?
3. What are iShares’ competitive advantages?
4. What is our strategy to win?
4 questions
87
5 global growth themes
88
Fixed income market growth
Innovation in ETF usage
Global market expansion
Acquisitions for productand market access
U.S. market share growth
We aim to be the leader in assets and flows in the most mature ETF market
U.S. market share: The context
89
U.S. AUM – market share
48%
41%
25% 24%
12%
19%16%
17%
2009 2010 2011 2012 1Q'13
iShares
Other
StateStreet
Vanguard
27%
31%
-86%
-8%
90%
36%
-100%
-60%
-20%
20%
60%
100%
140%
1Q
'10
2Q
'10
3Q
'10
4Q
'10
1Q
'11
2Q
'11
3Q
'11
4Q
'11
1Q
'12
2Q
'12
3Q
'12
4Q
'12
1Q
'13
iShares
StateStreet
Vanguard
U.S. flows – market share
Source: BlackRock and Bloomberg
1. iShares Core Series
2. Strategic alliance with Fidelity
3. Integration of wealth advisory sales force
4. Marketing / brand
U.S. market share: Strategies for leadership
90
Pricing in the U.S. has been broadly consistent over time
In core exposures, we have faced increasing pricing pressure
U.S. market share: The pricing story
91
As
se
t-w
eig
hte
d b
ps
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012
Int’l Equity
All U.S. ETFs
Fixed Inc
Dom Equity
Source: U.S. ETP Reference Guide. Excludes inverse and leveraged funds. Core pricing based on 84 funds classified as core exposures by BlackRock.
Average price of U.S. ETFs Average price of U.S. core exposures
As
se
t-w
eig
hte
d b
ps
23 23
2120
0
5
10
15
20
25
2009 2010 2011 2012
Launched in October 2012
U.S. market share: The iShares Core Series
92
Flows into the Core Series since launchiShares Core Series
4.6
8.33.7
0
3
6
9
Oct 15 - Dec 312012
1Q2013
Total sincelaunch
$ b
illi
on
s
Fidelity:
� The leading distributor in self-directed, with over 10 million clients
Start of the partnership:
� iShares is Fidelity’s featured index ETF brand
� Fidelity increases offering of commission-free iShares from 30 to 65
� Fidelity uses BLK as its preferred partner in ETF solution products
� BLK also acts as sub-advisor to Fidelity-branded passive sector ETFs
U.S. market share: Fidelity
93
Global market expansion: Grow in every region
94
RetailA tale of 2 cities
InstitutionsExamples of expansion segments
Sovereign Wealth Funds
Insurance
CentralBanks
Banks
Post-retrocession world
Retrocession world
U.K. Germany
Holland Switzerland
U.S. CanadaGlobal
Pension Plans
AssetManagers
Asia Pac Lat Am
Southern Europe
France
6%
0.3%
Fixed income: Raise ETF penetration
95
17%
3%
Global market and MFs as of December 2012. MFs and ETFs of December 2012.Source: The World Bank, Cerulli, BlackRock, Bloomberg.
Global market as of June 2013. MFs and ETFs as of December 2012.Source: McKinsey, Cerulli, BlackRock, Bloomberg.
Global equity market = $53tn Global fixed income market = $100tn
EquityMutualFunds
EquityETFs
Fixed IncomeMutualFunds
FixedIncomeETFs
Innovation: New applications and products
96
New applications
Pension fund converts $1.5B fixed income portfolio to ETFs
Insurer hedges with a Treasury ETF
Bank allocates its balance sheet risk capital with ETFs
Insurer uses ETFs to aggregate fixed income
New product types
Minimum VolatilityEEMV
Enhanced Beta ETFs & Factor ETFs
iSharesBondsIBCB
β
1. iShares business performance
2. The growth outlook for ETFs
3. iShares’ competitive advantages
4. Strategy to win
4 questions
97
Carefully consider the iShares Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
98
Disclosures
The information provided is not intended to be a complete analysis of every material fact respecting any strategy and has been presented for educational purposes only.
Asset allocation models and diversification do not promise any level of performance or guarantee against loss of principal.
Shares of iShares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.
Mutual funds and iShares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the iShares Funds will also generate tax consequences and transaction expenses. Certain traditional mutual funds can be tax efficient as well.
When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds. The annual management fees of iShares Funds may be substantially less than those of most mutual funds. Buying and selling shares of iShares Funds will result in brokerage commissions, but the savings from lower annual fees can help offset these costs.
Index returns are for illustrative purposes only and do not represent actual iShares Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
BlackRock does not provide tax advice. Please note that (i) any discussion of US tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotionor marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from anindependent tax advisor.
99
Disclosures
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), JPMorgan Chase & Co., MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Group, S&P Dow Jones Indices LLC or Standard & Poor’s, nor are they sponsored, endorsed or issued by Barclays Capital, Inc. None of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companieslisted above.
Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 / Residential / Retail / Mortgage or Industrial / Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA / NAREIT Developed Real Estate ex-US / North America / Europe / Asia Index; all rights vest in FTSE, NAREIT and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE®” is a trademark jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE under license.
©2013 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners. iS-10011-0613
100
Not FDIC Insured • No Bank Guarantee • May Lose Value
Disclosures
Delivering Shareholder Value
Gary Shedlin, Chief Financial Officer
BLACKROCK INVESTOR DAY 2013
0
500
1,000
1,500
2,000
2,500
3,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
BLK Index S&P 500
Delivering shareholder value
102
Total Return
CAGR since BLK IPO
BLK Nth Am Fin Svcs Index
S&P 500
26% 1% 2%
MLIM BGI
Note: Index used is the S&P North America financial services sector indexSource: Factset
Drivers of shareholder value
Organic Growth
103
Operating Leverage
Capital Management
Total BLK:
Global AUM (A):
Organic AUM growth improving
104
3%
0% 1% 1%
9%
4% 3%
9%9% 9%
14%14%
5% 2% 3% 5%
0%
4%
8%
12%
16%
2010 2011 2012 Q1 2013Annualized
Institutional Retail/HNW iShares
Note: Excludes the effect of two single client low-fee institutional index fixed income outflows in 2012 and merger-related outflows in 2011 and 2010(A) Source: McKinsey & Company
Total Long Term Organic NNB Growth
0% 1% 2% --
22%
34%
12%32%
66%
34%
AUM Base Fees
Institutional
Retail
iShares
Organic revenue growth impacted by mix change
105
2012 Results(A) by Client Type
Mix change and strategic focus should result in revenue growth higher than AUM growth
� iShares and Retail represent 34% of our AUM, but represent 66% of our revenue
$3.4 trillion $7.7 billion
2x
(A) AUM and base fees for long-term assets only which do not include cash management and advisory AUM
Proven ability to leverage scale
106
$6.30 $7.13
$10.94$11.85
$13.68
38.7%38.2%
39.3% 39.7%40.4%
2008 2009 2010 2011 2012
Adjusted EPS and Operating Margin
21%CAGR
+1.7%
$3.16$3.65
38.6%40.0%
Q1 2012 Q1 2013
16%
+1.4%
For further information and reconciliation between GAAP and as adjusted, see the previously filed Form 10-Ks, Form 10-Qs, 8-Ks and the appendix to this presentation
Balance sheet is asset lite
107
$200 $158
$3 $30
$9
March 2013GAAP Assets
Separate AccountAssets / Sec Lending
Collateral
InvestmentVehicles
GoodwillIntangibles
Economic TangibleAssets
While our GAAP total assets are $200bn, tangible assets are only $9bn
Share Repurchases
Strong cash generating business
Operating cash flow, as adjusted ($bn)
$1.5
$1.2
$2.6 $2.6
$3.0
2008 2009 2010 2011 2012
Prioritization of Cash Use
108
(A)
Business Investment
Tactical Acquisitions
Dividends
19%CAGR
(A) Adjusted for ~$300m related to trading seed investment
For further information and reconciliation between GAAP and as adjusted, see the previously filed Form 10-Ks, Form 10-Qs, 8-Ks and the appendix to this presentation
Consistent and predictable capital management
109
TacticalAcquisitions
Dividends
Share Repurchases
• Claymore Investments
• Swiss Re PE Partners
• Investment for Growth
• Investment in Infrastructure
• >20% CAGR in dividend per share since 2006
• Dividend payout ratio in range of 40-50%
• Consistent share repurchase program
• Not a market timer
• Credit Suisse ETF
• MGPA
Business Investment
EPS: Impact of organic growth and operating leverage
110
EPS GrowthOperating Margin
40% 42% 44%
Org
. A
UM
G
row
th
3% 11% 12% 13%
5% 12% 14% 15%
7% 14% 15% 16%
EPS Growth
?
Market Return
Op. Leverage
?
Other Revenue
(BRS, Perf. Fees)
Organic AUM
Growth
?
Capital Mgmt
• Constant payout ratio
• Street estimates
• Target: 5%
Note: Assumptions around beta and other revenue growth consistent with street estimates. Capital management assumes constant payout ratio.
This slide is for illustrative purposes only and should not be considered a forecast.
• Street estimates
Appendix
Reconciliation to Non-GAAP Measures
112
Q1 Q12008 2009 2010 2011 2012 2012 2013
(Dollar amounts in millions, except per share data)
Operating income, GAAP basis $1,593 $1,278 $2,998 $3,249 $3,524 $815 $909
Non-GAAP expense adjustments (1) 69 292 169 143 50 10 12
Operating income, as adjusted 1,662 1,570 3,167 3,392 3,574 825 921
Closed-end fund launch costs and commissions 9 3 17 29 25 - 18
Operating income used for operating margin measurement 1,671 1,573 3,184 3,421 3,599 825 939
Revenue, GAAP basis 5,064 4,700 8,612 9,081 9,337 2,249 2,449
Non-GAAP adjustments(2)
: (742) (577) (510) (467) (419) (111) (103)
Revenue used for operating margin measurement 4,322 4,123 8,102 8,614 8,918 2,138 2,346
Operating margin, GAAP basis 31.5% 27.2% 34.8% 35.8% 37.7% 36.2% 37.1%
Operating margin, as adjusted 38.7% 38.2% 39.3% 39.7% 40.4% 38.6% 40.0%
Net income attributable to BlackRock, Inc., GAAP basis 784 875 2,063 2,337 2,458 572 632
Non-GAAP adjustments, net of tax (3) 72 146 76 (98) (20) 3 5
Net income attributable to BlackRock, Inc., as adjusted 856 1,021 2,139 2,239 2,438 575 637
Allocation of net income, as adjusted, to common shares $828 $995 $2,109 $2,218 $2,435 $574 $637
Diluted weighted-average common shares outstanding 131,376,517 139,481,449 192,692,047 187,116,410 178,017,679 181,917,864 174,561,132
Diluted earnings per common share, GAAP basis $5.78 $6.11 $10.55 $12.37 $13.79 $3.14 $3.62
Diluted earnings per common share, as adjusted $6.30 $7.13 $10.94 $11.85 $13.68 $3.16 $3.65
NOTE: For more information on the reconciliation of GAAP to as adjusted see the previously filed 10-Ks,10-Qs and 8-Ks.
(1) Non-GAAP expense adjustments include BGI transaction/integration costs, U.K. lease exit costs, a contribution to STIFs,
restructuring charges, PNC funding LTIP obligation, Merrill Lynch compensation contribution and compensation related to
appreciation (depreciation) on certain deferred compensation plans.
(3) Non-GAAP expense adjustments include BGI transaction/integration costs, U.K. lease exit costs, a contribution to STIFs,
restructuring charges, PNC funding LTIP obligation, Merrill Lynch compensation contribution and income tax law changes.
Full Year
(2) Non-GAAP adjustments include distribution and servicing costs, amortization of deferred sales commission and
reimbursable property management compensation.
Cash Flow GAAP and As Adjusted
113
(in millions) 2008 2009 2010 2011 2012
Operating Cash Flows
Operating Cash flows, GAAP basis $ 1,916 $ 1,399 $ 2,488 $ 2,826 $ 2,240
Less: Non-GAAP adjustments (1) 413 168 (77) 178 (483)
Operating Cash flows, as adjusted 1,503 1,231 2,565 2,648 2,723
Investing Cash Flows
Investing Cash flows, GAAP basis (394) (5,519) (627) (204) (266)
Less: Non-GAAP adjustments (1) (9) 31 (52) 24 (211)
Investing Cash flows, as adjusted (385) (5,550) (575) (228) (55)
Financing Cash Flows
Financing Cash flows, GAAP basis (887) 6,749 (3,170) (2,485) (944)
Less: Non-GAAP adjustments (1) (410) (185) 110 (71) 631
Financing Cash flows, as adjusted $ (477) $ 6,934 $ (3,280) $ (2,414) $ (1,575)
NOTE: For more information on the reconciliation of GAAP to as adjusted see the previously filed 10-Ks,10-Qs and 8-Ks.
(1) Non-GAAP adjustments include the impact on cash flows of consolidated sponsored investment funds and consolidated VIEs.