BlackRock : Q4 2020 Earnings Supplement

January 14, 2021

Q4 2020 Earnings

Earnings Release Supplement

A broadly diversified business

across clients, products and geographies

Assets Under Management of $8.68 trillion at December 31, 2020

Q4 2020 Total Base Fees of $3.393 billion

Client Type

Style

Product Type

Region

Institutional

32%

Institutional

59%

Retail

30%

Retail 10%

ISHARES

ISHARES ETFs

ETFs

31% 38%

Active 26%

Index 35%

ISHARES

ETFs

31%

Cash 8%

Active

48%

Index 8%

ISHARES

ETFs

38%

Cash 6%

Equity Equity

51% 48%

Fixed	Fixed
Income
Income
30%	27%
	Multi-asset
Multi-asset	9%
8%
Alternatives 3%	Alternatives 10%
Cash 8%	Cash 6%

Americas Americas

65% 65%

EMEA	EMEA
28%	29%

Asia-Pacific	Asia-Pacific
7%
6%

AUM

Base Fees

AUM

Base Fees

AUM

Base Fees

AUM

Base Fees

Note: Base fees include investment advisory, administration fees and securities lending revenue. Base Fees and AUM by region data is based on client domicile.

1

Net flows

($ in billions)

						Total BlackRock											Retail Long-term
2%	2%		4%	5%	7%	6%	5%	6%	5%	3%		0%	0%	0%	3%		2%	4%	6%	10%
2%	1%		2%	3%	5%	4%	5%	7%	7%
					Long-term			Cash		Advisory															$35
					$151
					$26		$129				$129	$127
										$100	$3		$2											$20
		$65				$30		$9
$50			$84	$14			$28												$16
$6	$6		$125	$32				$35	$24		$116								$8
			$99				$98							$7
								$62
$44	$59			$52				$53								$2
										($19)					$(3)	$(1)					$(2)
	Q4	Q1	Q2	Q3		Q4	Q1	Q2	Q3	Q4			Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
2018	2019		2019	2019	2019	2020	2020	2020	2020	2018	2019	2019	2019	2019	2020	2020	2020	2020
						ISHARES ETFs										Institutional Long-term
10%	9%		10%	10%	11%	9%	9%	9%	8%	(2)%	(1)%	2%	3%	4%		2%	0%	0%	0%
$81													$79					Institutional Active				Institutional Index
					$75										$14
						$42					$51
					$36							$41														$7
		$31																$73
										$14									$14			$1					$30	$1
																				$15		$(2)
																$(8)	$15				$3
																$8
															$(27)			$(4)			$(29)	$(8)		$1
	Q4	Q1	Q2	Q3		Q4	Q1	Q2	Q3	Q4			Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2020	2020	2020	2020	2018	2019	2019	2019	2019		2020	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)

$2,100 $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

Operating Income and Margin, as adjusted			Net Income and EPS, as adjusted
										$1,940
43.5% 41.9% 43.1%	46.0%	43.5% 41.7% 43.7%	47.0%	46.6%	$1,820									$10.18
				$44.2%1,700							$9.22
								$1,848									$1,573
							$1,757		$1,580
													$8.34		$7.85
										34.2%
																	$1,418
				$1,538						$1,460			$7.15		$6.60
			$1,502								$6.61	$6.41		$1,309
						$1,406				$1,340
									24.2% $6.08						$1,214
$1,310		$1,278								$1,220
$1,233			$1,273								$1,119
											$1,053
										$14.2%1,100		$1,003			$1,032
										$975
										$980
										4.2%
										$860
										$740
										-5.8%
										$620
										-15.8%
										$500
Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
2018	2019	2019	2019	2019	2020	2020	2020	2020		2018	2019	2019	2019	2019	2020	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 12 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

160.5 159.3 156.4 156.4 156.9 156.4 154.7 153.7 154.5

$1,566(1)

(2)

$1,113

$525

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

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.

Dividends per share

$3.63 $3.63 $3.63 $3.63

$3.30 $3.30 $3.30 $3.30

$3.13

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

Dividends

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

4

Major market indices and exchange rates

					% Change						% Change
		Spot			12/31/20 vs.			Average			Q4 2020 vs.
	12/31/2019	9/30/2020	12/31/2020	9/30/2020	12/31/2019		Q4 2019	Q3 2020	Q4 2020		Q3 2020	Q4 2019
Equity Indices
Domestic
S&P 500	3,231	3,363	3,756		12%	16%	3,086	3,319	3,558		7%	15%
Global
MSCI Barra World Index	2,358	2,367	2,690		14%	14%	2,260	2,348	2,525		8%	12%
MSCI Europe Index	140	120	132		10%	(6)%	135	122	126		3%	(7)%
MSCI AC Asia Pacific Index	171	170	200		18%	17%	164	169	185		9%	13%
MSCI Emerging Markets Index	1,115	1,082	1,291		19%	16%	1,051	1,084	1,190		10%	13%
S&P Global Natural Resources	3,855	3,165	3,853		22%	-%	3,645	3,265	3,497		7%	(4)%
BLK Equity Index(1)					15%	15%						8%	11%
Fixed Income Index
Barclays U.S. Aggregate Bond Index	2,225	2,376	2,392		1%	8%	2,221	2,382	2,378		-%	7%
Foreign Exchange Rates
GBP to USD	1.33	1.29	1.36		5%	2%	1.29	1.29	1.32		2%	2%
EUR to USD	1.12	1.17	1.23		5%	10%	1.11	1.17	1.19		2%	7%

Source: Bloomberg

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

5

Quarterly revenue

($ in millions)

	73%		Base fees ex. securities lending	Percentage Change	Year-over-Year	Sequential
		Base fees ex. securities lending	12%	6%
			Securities lending	Securities lending	(22)%	(14)%
			Performance fees	Performance fees	75%	(21)%
1%			Technology services revenue	Technology services revenue	11%	8%
7%			Distribution fees	Distribution fees	16%	9%
7%	3%		Advisory and other revenue	Advisory and other revenue	(55)%	12%
9%			Total	13%	2%

Q4 2020 compared to Q4 2019				Q4 2020 compared to Q3 2020
	$501												$109
		$31									$26	$23		$5	$(22)	$(113)
$180	$44	$(38)		$(58)	$4,478	$190
					$4,369								$4,478
$342

$3,977

Q4 2019

Base fees

Performance

Distribution

Technology

Securities

Advisory and Q4 2020

Q3 2020

Base fees

Distribution

Technology

Advisory and

Securities

Performance Q4 2020

ex. sec

fees

fees

services

lending

other revenue

ex. sec

fees

services

other revenue

lending

fees

lending

revenue

lending

revenue

6

Quarterly investment advisory, administration fees

and securities lending revenue

		($ in millions)
Q4 2020 compared to Q4 2019			Q4 2020 compared to Q3 2020
$304	$168

	$26	$23	$15	$(3)	$(13)	$3,393			$22	$16	$5	$(4)	$(5)	$(7)	$3,393
$42							$44	$29
$44
							$68
$72
							$3,225

$98

$3,089

Q4 2019 Active

Alts iShares

iShares Cash

Active

Multi-

Non-ETFNon-ETF Q4 2020

Q3 2020 iShares

Active

Alts

Multi-

Active

iShares

Non-ETFNon-ETF Cash Q4 2020

EQ

ETFs FI

ETFs EQ

FI

Asset

FI

EQ

ETFs EQ

EQ

Asset

FI

ETFs FI

FI

EQ

7

Quarterly expense, as adjusted

($ in millions)

19%

11%

51%

18%

Employee comp. & benefits

Distribution & servicing costs

Direct fund expense

General & administration

Percentage Change	Year-over-Year	Sequential
Employee comp. & benefits	11%	(5)%
Distribution & servicing costs	15%	11%
Direct fund expense	16%	10%
General & administration	(8)%	3%
Amortization of intangible assets	(7)%	-%

1%

Amortization of intangible assets

Total	8%	1%

Q4 2020 compared to Q4 2019

$191

$129 $2,630

$2,439	$(41)	$(2)	$38	$67

Q4 2019	G&A	Amortization	Direct fund	Distribution	Employee	Q4 2020
		of intangible	expense	& servicing	comp.
		assets		costs	& benefits

Q4 2020 compared to Q3 2020

$18

$2,612	$(83)		$93	$2,630
	$(67)	$26	$49

Q3 2020	Product	Employee	Direct fund	Distribution	G&A (1)	Q4 2020
	launch	comp.	expense	& servicing
	costs and	& benefits (1)		costs
	commissions

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

8

74%

1%

7%

7%

7% 4%

Full year revenue

($ in millions)

	Base fees ex. securities lending	Percentage Change	Year-over-Year
	Base fees ex. securities lending	7%
	Securities lending	Securities lending	6%
	Performance fees	Performance fees	145%
	Technology services revenue	Technology services revenue	17%
	Distribution fees	Distribution fees	6%
	Advisory and other revenue	Advisory and other revenue	(29)%
	Total	11%

2020 compared to 2019

$1,666

	$165	$62	$35	$(77)	$16,205
$654

$827

$14,539

2019	Base fees ex.	Performance fees	Technology	Distribution fees Securities lending Advisory and other	2020
	sec lending		services revenue	revenue

99

Full year investment advisory, administration fees

and securities lending revenue

($ in millions)

2020 compared to 2019

$862

$156	$58	$39	$15	$4	$(3)	$12,639

$172

$183

$238

$11,777

2019	Alts	Active	Cash	iShares ETFs	Non-ETF	Active	Multi-Asset iShares ETFs	Non-ETF	2020
		EQ		FI	FI	FI	EQ	EQ

1010

Full year expense, as adjusted

($ in millions)

Employee comp. & benefits

18%

Distribution & servicing costs

11%

Percentage Change	Year-over-Year
Employee comp. & benefits	13%
Distribution & servicing costs	9%
	9%

51%

19%

Direct fund expense

General & administration

Direct fund expense
General & administration	7%
Amortization of intangible assets	9%

1%

Amortization of intangible assets

Total	10%

2020 compared to 2019

$933

$567 $9,921

$150

$8,988	$9	$11	$85	$111

2019	Amortization of	G&A (1)	Direct fund	Product launch	Distribution &	Employee comp	2020
	intangible assets		expense	costs and	servicing costs	& benefits (1)
				comissions

1. Amounts exclude product launch costs and commissions incurred in 2020 and 2019, which are presented separately above.

2020 expense, as adjusted, excludes a $589 million expense in connection with the charitable contribution of BlackRock 's remaining 20% stake in PennyMac Financial Services, Inc. (the Charitable Contribution"). For further information, see the item included under Non-GAAP expense adjustments on page 12 of this earnings release supplement and note (1) in the current earnings release.

1111

Reconciliation between GAAP and as adjusted

($ in millions)

		2018					2019								2020
		Q4			Q1		Q2		Q3		Q4			Q1		Q2		Q3		Q4
Operating Income
GAAP	$	1,246	$	1,233	$	1,278	$	1,502	$	1,538	$	684	$	1,406	$	1,757	$	1,848
Non-GAAP expense adjustments		64			-		-		-		-			589		-		-		-
As Adjusted	$	1,310	$	1,233	$	1,278	$	1,502	$	1,538	$	1,273	$	1,406	$	1,757	$	1,848
Nonoperating Income (Expense)
GAAP	$	(72)	$	125	$	57	$	(42)	$	96	$	(71)	$	357	$	224	$	319
Non-GAAP adjustments		-			(7)		(10)		-		(33)			57		(188)		(153)		(192)
As Adjusted	$	(72)	$	118	$	47	$	(42)	$	63	$	(14)	$	169	$	71	$	127
Net Income
GAAP	$	927	$	1,053	$	1,003	$	1,119	$	1,301	$	806	$	1,214	$	1,364	$	1,548
Non-GAAP adjustments		48			-		-		-		8			226		-		54		25
As Adjusted	$	975	$	1,053	$	1,003	$	1,119	$	1,309	$	1,032	$	1,214	$	1,418	$	1,573

Non-GAAP adjustments include amounts related to the Charitable Contribution, 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.

12

Important Notes

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

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

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission ("SEC") reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (1) a pandemic or health crisis, including the COVID-19 pandemic, and its continued 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, civil unrest, 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 12 of this earnings release supplement, our current earnings release dated January 14, 2021, and BlackRock's other periodic reports, which are available on BlackRock's website at www.blackrock.com.

13