Blackrock, Inc. · NYSE:BLK
Blackrock — Debt Investor Presentation (April 2019)
19 slides from Blackrock's debt investor presentation, Apr 17, 2019
Slide 1: Fixed Income Investor Presentation April 2019
Fixed Income Investor Presentation April 2019 Exhibit 99.1
Slide 2: Forward-looking Statements
Forward-looking Statements 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. For
Slide 3: BlackRock Overview
BlackRock Overview BlackRock is the world’s largest and most diverse asset manager and technology service provider. BlackRock manages $5.98tn in assets on behalf of clients worldwide and provides technology services to many of the world’s most sophisticated asset owners, investors and wealth manager
Slide 4: A Broadly Diversified Business Across Clients, Products and Geographies
A Broadly Diversified Business Across Clients, Products and Geographies Note: Base Fees and AUM by region data is based on client domicile. Client Type Style Product Type Region 2018 Total Base Fees of $11.6 billion Assets Under Management of $5.98 trillion at December 31, 2018
Slide 5: BlackRock Value Drivers
BlackRock Value Drivers Organic Growth Operating Leverage Capital Management Organic Growth Operating Leverage Capital Management 4% organic asset growth 4% organic base fee growth 41.4% 44.3% 12/31/13 – 12/31/18 2013 2018 +290BPS 40%-50% target dividend payout on net income Consistent share repurch
Slide 6: Diverse Platform Continues to Deliver Consistent Growth
Diverse Platform Continues to Deliver Consistent Growth ($ in billions) CAGR 12% CAGR 10% 1 LTM organic asset growth rate (%) $1.7bn Positive Operating Leverage Organic AUM Growth Consistent and Predictable Capital Management Double Digit Earnings Growth (as adjusted) LTM organic base fee growth rat
Slide 7: Driving Strong and Consistent Results Compared to Peers
Driving Strong and Consistent Results Compared to Peers Long-Term Organic AUM Growth(1) Standard Deviation(1) Mean(1) Represents the average of peer group consisting of BLK’s seven largest US publicly traded traditional peers and excludes BLK. Mean and standard deviation of growth rates over last 20
Slide 8: Diversification Supports Growth Strategy
Diversification Supports Growth Strategy Total Firm Illiquid Alternatives iShares 15% 11% 18% 2015 2016 2017 2018 Traditional 4% 7% 14% 3% 7% 6% 2% 0% -3% +6% +1% +7% +2% 9% Average 8% 2% +4% -3% 2014 7% 5% +6% Lower Growth Higher Growth Note: Organic base fee growth rate calculated by dividing net
Slide 9: Strategically Differentiated Through Technology
Strategically Differentiated Through Technology Scaled distribution Alpha generation Product innovation Customized holistic solutions Technology-Enabled Revenue wealth ® ® Provider Direct Technology Revenue
Slide 10: Proven Ability to Leverage Scale
Proven Ability to Leverage Scale 290bps +10% CAGR EPS and Operating Margin, as adjusted ($ per share, unless otherwise noted) For further information and reconciliation between GAAP and non-GAAP EPS and Operating Margin, see the previously filed Form 10-Ks, 8-Ks, earnings releases and the presentati
Slide 11: Asset-Lite Balance Sheet
Asset-Lite Balance Sheet Adjustments Separate Account Assets and Collateral reflect segregated client assets held for purposes of funding U.K. pension contracts and separate account collateral received under securities lending arrangement in which BlackRock has no economic interest. BlackRock record
Slide 12: Steady Cash Flows and Credit Metrics Trends
Steady Cash Flows and Credit Metrics Trends EBITDA ($mm) Adjusted Free Cash Flows(1) ($mm) Tangible Equity ($mm)(2) Total Debt ($mm) / Gross Leverage Liquidity(4) ($mm) Net Debt(3) ($mm) / Net Leverage Adjusted free cash flow represents net increase (decrease) in cash, cash equivalents and restricte
Slide 13: BlackRock Fixed Income Considerations
BlackRock Fixed Income Considerations Broad-based investment and technology platform provides diverse revenue streams and more stable cash flows during periods of market volatility Resilient business model with high recurring revenues, strong cash flow and low capex, generating over $4bn of free cas
Slide 14: Appendix
Appendix
Slide 15: Reconciliation Between GAAP and As Adjusted
Reconciliation Between GAAP and As Adjusted For further information and reconciliation between GAAP and non-GAAP measures, see notes (1) through (3) in our earnings release for the three months ended December 31, 2018 as well as previously filed Form 10-Ks and 8-Ks. Results for 2016 and 2017 were re
Slide 16: Reconciliation Between GAAP Balance Sheet and Economic Balance Sheet
Reconciliation Between GAAP Balance Sheet and Economic Balance Sheet Amounts represent the portion of assets and liabilities of Consolidated Sponsored Investment Products attributable to non-controlling interests. Includes deferred tax liability related to goodwill / intangibles. Balances may not fo
Slide 17: EBITDA and Adjusted Free Cash Flows
EBITDA and Adjusted Free Cash Flows Calculation of Adjusted Free Cash Flows Results for 2017 & 2016 were recast to reflect the adoption of the new revenue recognition standard. Results for 2015 and 2014 reflect accounting guidance prior to the adoption of the new revenue recognition standard. Calcul
Slide 18: Tangible Equity, Net Debt and Liquidity
Tangible Equity, Net Debt and Liquidity Calculation of Net Debt Calculation of Liquidity Calculation of Tangible Equity Adjusted cash consists of GAAP cash and cash equivalents less cash held by consolidated VREs.
Slide 19: Important Notes
Important Notes The opinions expressed herein are as of April 2019 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