BlackRock : Q3 2020 Earnings Supplement

October 13, 2020

Q3 2020 Earnings

Earnings Release Supplement

A broadly diversified business

across clients, products and geographies

Assets Under Management of $7.81 trillion at September 30, 2020

Q3 2020 Total Base Fees of $3.225 billion

Client Type

Style

Product Type

Region

	Institutional
	33%
Institutional
60%
	Retail
	29%
Retail
10%
iShares	iShares
ETFs
ETFs
38%
30%

Active 27%

Index 35%

iShares

ETFs 30%

Cash 8%

Active 47%

Index 9%

iShares

ETFs 38%

Cash 6%

Equity Equity

48%47%

Fixed	Fixed
Income	Income
33%	28%
	Multi-asset
Multi-asset	9%
8%	Alternatives 10%
Alternatives 3%
Cash 8%	Cash 6%

Americas Americas

66%65%

EMEA	EMEA
27%	29%
Asia-Pacific	Asia-Pacific
7%	6%

AUM

Base Fees

AUM

Base Fees

AUM

Base Fees

AUM

Base Fees

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

1

Net flows

Total BlackRock

($ in billions)

Retail Long-term

3%	2%		2%	4%	5%	7%	6%	5%	6%	6%		3%	0%	0%	0%		3%	2%	4%	6%
3%	2%		1%	2%	3%	5%	4%	5%	7%
					Long-term			Cash		Advisory
						$151				$129				$129													$16	$20
						$26							$3
									$30			$100	$28
		$50		$65		$84	$14
					$24											$8
		$6		$6	$125	$32		$35									$7
			$99		$98	$2				$2
$11	$44		$59		$52	$53	$62
																				$(1)						$(2)
($3) ($15)									($19)							$(3)
	Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3			Q3	Q4	Q1	Q2	Q3		Q4	Q1	Q2	Q3
2018	2018		2019	2019	2019	2019	2020	2020	2020	2018	2018	2019	2019	2019	2019	2020	2020	2020
						iShares ETFs										Institutional Long-term
9%	10%		9%	10%	10%	11%	9%	9%	9%	0%		(2)%	(1)%	2%	3%		4%	2%	0%	0%
		$81							$75									Institutional Active				Institutional Index
																		$14
							$42				$51	$41
$34				$31	$36																		$7
											$14				$(1)		$14	$73			$1			$30
															$(8)	$15		$8		$15	$(2)	$3
															$(24)	$(27)			$(4)				$(29)	$(8)
	Q3	Q4	Q1	Q2		Q3	Q4	Q1	Q2	Q3			Q3	Q4	Q1	Q2	Q3		Q4	Q1	Q2	Q3
2018	2018	2019	2019	2019	2019	2020	2020	2020	2018	2018	2019	2019	2019		2019	2020	2020	2020
		LTM organic asset growth rate (%)			LTM organic base fee growth rate (%)

Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets. LTM organic base fee (ex. securities lending) growth rate is calculated by dividing net new base fees earned on net asset inflows for the LTM period by the base fee run-rate at the beginning of the period.

2

Profitability

($ in millions, except per share data)

Operating Income and Margin, as adjusted

Net Income and EPS, as adjusted

$2,000 $1,900 $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000

$900 $800 $700 $600 $500

								47.0% $1,700											$9.22
44.2%	43.5% 41.9% 43.1%	46.0%	43.5%	41.7% 43.7%								$8.34
		$44.2%1,580	$7.52						$7.85
								$1,757	$1,460					$7.15		$6.60		$1,418
													$6.61	$6.41
									34.2%			$6.08		$1,309
					$1,538				$1,340
				$1,502
								$1,214								$1,214
$1,400							$1,406		$24.1,220%
$1,310
	$1,278			$1,273									$1,119
		$1,233				$1,100
										$1,053	$1,003		$1,032
									14.2%			$975
									$980
									4.$2%860
									$740
									-5.8%
									$620
									-15.8%
Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	$500
		Q3	Q4		Q1	Q2	Q3	Q4	Q1	Q2	Q3
2018	2018	2019	2019	2019	2019	2020	2020	2020		2018	2018		2019	2019	2019	2019	2020	2020	2020

Operating Income, as adjusted

Operating Margin, as adjusted

Net Income, as adjusted

EPS, as adjusted

For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (4) in the current earnings release as well as previously filed Form 10-Ks,10-Qs and 8-Ks.

3

Capital management

(amounts in millions, except per share data)

Share repurchases and

weighted average diluted shares

161.4 160.5 159.3 156.4 156.4 156.9 156.4 154.7 153.7 $1,566 (1)

$1,113(2)

$500	$525
							$400
				$0	$100	$0
							$0
Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2018	2018	2019	2019	2019	2019	2020	2020	2020
		Share repurchases	Weighted average diluted shares

Dividends per share

$3.63 $3.63 $3.63

$3.30 $3.30 $3.30 $3.30

$3.13 $3.13

Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2018	2018	2019	2019	2019	2019	2020	2020	2020

Dividends

1. Amount includes a $1.3 billion private transaction that closed on March 25, 2019.
2. Amount includes a $1.1 billion repurchase from PNC that closed on May 15, 2020.

Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions.

4

Major market indices and exchange rates

					% Change						% Change
		Spot			9/30/20 vs.			Average			Q3 2020 vs.
	9/30/2019	6/30/2020	9/30/2020	6/30/2020	9/30/2019		Q3 2019	Q2 2020	Q3 2020		Q2 2020	Q3 2019
Equity Indices
Domestic
S&P 500	2,977	3,100	3,363		8%	13%	2,958	2,930	3,319		13%	12%
Global
MSCI Barra World Index	2,180	2,202	2,367		7%	9%	2,169	2,073	2,348		13%	8%
MSCI Europe Index	133	120	120		- %	(10)%	129	115	122		6%	(5)%
MSCI AC Asia Pacific Index	156	158	170		8%	9%	157	149	169		13%	8%
MSCI Emerging Markets Index	1,001	995	1,082		9%	8%	1,014	930	1,084		17%	7%
S&P Global Natural Resources	3,524	3,104	3,165		2%	(10)%	3,558	2,959	3,265		10%	(8)%
BLK Equity Index(1)					6%	6%						11%	6%
Fixed Income Index
Barclays U.S. Aggregate Bond Index	2,221	2,362	2,376		1%	7%	2,201	2,335	2,382		2%	8%
Foreign Exchange Rates
GBP to USD	1.23	1.24	1.29		4%	5%	1.23	1.24	1.29		4%	5%
EUR to USD	1.09	1.12	1.17		4%	7%	1.11	1.10	1.17		6%	5%

Source: Bloomberg

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

5

Quarterly revenue

($ in millions)

		70%		Base fees ex. securities lending	Percentage Change	Year-over-Year	Sequential
				Base fees ex. securities lending	9%	11%
				Securities lending
				Securities lending	2%	(27)%
				Performance fees	Performance fees	340%	375%
1%				Technology services revenue	Technology services revenue	9%	1%
7%				Distribution fees	Distribution fees	7%	14%
6%	12%	4%		Advisory and other revenue	Advisory and other revenue	(32)%	8%
			Total	18%	20%

Q3 2020 compared to Q3 2019

$677

Q3 2020 compared to Q2 2020

$721

$242	$23	$18	$3	$(20)	$4,369	$316	$35	$4	$3	$(57)	$4,369

	$411	$420
$3,692		$3,648

Q3 2019 Performance

Base fees

Technology

Distribution

Securities

Advisory and Q3 2020

Q2 2020 Performance

Base fees

Distribution

Technology

Advisory and

Securities

Q3 2020

fees

ex. sec

services

fees

lending

other revenue

fees

ex. sec

fees

services

other revenue

lending

lending

revenue

lending

revenue

6

Quarterly investment advisory, administration fees

and securities lending revenue

($ in millions)

Q3 2020 compared to Q3 2019				Q3 2020 compared to Q2 2020
	$245							$259
				$1						$19	$(7) $(14)
	$15	$8	$2	$(4)	$3,225	$34	$(16)	$3,225
$45									$36
$46									$43
$66									$76
$66									$88

$2,980	$2,966

Q3 2019 Alts Active

iShares

Cash Non-ETF iShares

Active

Multi-

Non-ETF Q3 2020

Q2 2020 iShares

Active

Alts iShares

Active

Multi-

Cash Non-ETFNon-ETF Q3 2020

EQ

ETFs FI

FI ETFs EQ

FI

Asset

EQ

ETFs EQ

EQ

ETFs FI

FI

Asset

EQ

FI

7

Quarterly expense, as adjusted

($ in millions)

Employee comp. & benefits

17%

Distribution & servicing costs

54%	10%		Direct fund expense
	18%		General & administration
1%			Amortization of intangible assets

Percentage Change	Year-over-Year	Sequential
Employee comp. & benefits	27%	22%
Distribution & servicing costs	7%	6%
Direct fund expense	8%	4%
General & administration	20%	19%
Amortization of intangible assets	(4)%	-%
Total	19%	17%

Q3 2020 compared to Q3 2019

$422

Q3 2020 compared to Q2 2020

$370

					$297	$2,612			$256	$2,612
					$83				$83
$2,190	$(4)	$(1)	$18	$29	$2,242	$(7)	$11	$27

Q3 2019

G&A (1)

Amortization

Direct fund

Distribution

Product

Employee

Q3 2020

Q2 2020

G&A (1)

Direct fund

Distribution

Product

Employee

Q3 2020

of intangible

expense

& servicing

launch

comp.

expense

& servicing

launch

comp.

assets

costs

costs and

& benefits (1)

costs

costs and

& benefits (1)

comissions

commissions

(1) Amounts exclude product launch costs and commissions incurred in Q3 2020, which are presented separately.

8

Reconciliation between GAAP and as adjusted

($ in millions)

		2018						2019								2020
		Q3		Q4			Q1		Q2		Q3		Q4			Q1		Q2		Q3
Operating Income
GAAP	$	1,396	$	1,246	$	1,233	$	1,278	$	1,502	$	1,538	$	684	$	1,406	$	1,757
Non-GAAP expense adjustments		4		64			-		-		-		-			589		-		-
As Adjusted	$	1,400	$	1,310	$	1,233	$	1,278	$	1,502	$	1,538	$	1,273	$	1,406	$	1,757
Nonoperating Income (Expense)
GAAP	$	33	$	(72)	$	125	$	57	$	(42)	$	96	$	(71)	$	357	$	224
Non-GAAP adjustments		13		-			(7)		(10)		-		(33)			57		(188)		(153)
As Adjusted	$	46	$	(72)	$	118	$	47	$	(42)	$	63	$	(14)	$	169	$	71
Net Income
GAAP	$	1,216	$	927	$	1,053	$	1,003	$	1,119	$	1,301	$	806	$	1,214	$	1,364
Non-GAAP adjustments		(2)		48			-		-		-		8			226		-		54
As Adjusted	$	1,214	$	975	$	1,053	$	1,003	$	1,119	$	1,309	$	1,032	$	1,214	$	1,418

Non-GAAP adjustments include amounts related to the charitable contribution of BlackRock's remaining 20% stake in PennyMac Financial Services, Inc., restructuring charge, PNC LTIP funding obligations and noncash income tax matters, as applicable. For further information and reconciliation between GAAP and as adjusted, see notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks,10-Qs and 8-Ks.

9

Important Notes

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

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

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) a pandemic or health crisis, including the COVID-19 pandemic, and its impact on financial institutions, the global economy or capital markets, as well as BlackRock's products, clients, vendors and employees, and BlackRock's results of operations, the full extent of which may be unknown; (2) the introduction, withdrawal, success and timing of business initiatives and strategies; (3) 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"); (4) the relative and absolute investment performance of BlackRock's investment products; (5) BlackRock's ability to develop new products and services that address client preferences; (6) the impact of increased competition; (7) the impact of future acquisitions or divestitures; (8) BlackRock's ability to integrate acquired businesses successfully; (9) the unfavorable resolution of legal proceedings; (10) the extent and timing of any share repurchases; (11) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (12) attempts to circumvent BlackRock's operational control environment or the potential for human error in connection with BlackRock's operational systems; (13) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock;

1. changes in law and policy and uncertainty pending any such changes; (15) 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; (16) the ability to attract and retain highly talented professionals; (17) fluctuations in the carrying value of BlackRock's economic investments; (18) 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; (19) BlackRock's success in negotiating distribution arrangements and maintaining distribution channels for its products; (20) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (21) any disruption to the operations of third parties whose functions are integral to BlackRock's exchange-traded funds ("ETF") platform; (22) 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 (23) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

This presentation also includes non-GAAP financial measures. You can find our presentations on the most directly comparable GAAP financial measures calculated in accordance with GAAP and our reconciliations on page 9 of this earnings release supplement, our current earnings release dated October 13, 2020, and BlackRock's other periodic reports, which are available on BlackRock's website at www.blackrock.com.

10