Blackrock, Inc. · NYSE:BLK
Blackrock — Q2 2023 Earnings Presentation
12 slides from Blackrock's earnings presentation, Jul 14, 2023
Slide 1: Q2 2023 Earnings Release Supplement
July 14, 2023 Q2 2023 Earnings Earnings Release Supplement
Slide 2: A broadly diversified business across clients, products and geographies
A broadly diversified business across clients, products and geographies Assets Under Management of $9.4 trillion at June 30, 2023 Q2 2023 Base Fees and Securities Lending Revenue of $3.6 billion Client Type Style Product Type Region Active Institutional 27% 31% Active 46% Equity Equity Institutional
Slide 3: Net flows
Net flows ($ in billions) Total BlackRock Retail Long-term 7% 6% 6% 5% 5% 4% 3% 3% 4% 16% 16% 12% 8% 4% 2% (2)% (3)% (2)% 13% 13% 11% 8% 5% 2% 0% 0% 0% Long-term Cash Advisory $212 $44 $114 $21 $23 $22 $75 $87 $110 $81 $90 $8 $80 $10 $169 $21 $17 $146 $4 $23 $23 $0.3 $98 $114 $103 $60 $69 $65 $57 $(
Slide 4: Profitability
Profitability ($ in millions, except per share data) Operating Income and Margin, as adjusted Net Income and EPS, as adjusted $2,040 $11.34 $10.45 $10.68 $2,700 $1,920 50.0% $2,600 46.9% 47.6% 46.6% $9.55 $2,500 $1,800 $9.52 $9.28 $1,750 $8.93 $2,400 44.2% 43.7% $2,300 42.5% 45.0% $7.36 $7.93 $2,200
Slide 5: Capital management
Capital management (amounts in millions, except per share data) Share repurchases and Dividends per share weighted-average diluted shares $5.00 $5.00 $4.88 $4.88 $4.88 $4.88 154.4 154.3 154.6 153.5 $4.13 $4.13 $4.13 152.5 152.0 151.8 151.3 150.7 $500 $500 $500 $375 $375 $375 $300 $300 $300 Q2 Q3 Q4
Slide 6: Major market indices and exchange rates
Major market indices and exchange rates % Change % Change Spot 6/30/23 vs. Average Q2 2023 vs. 6/30/2022 3/31/2023 6/30/2023 3/31/2023 6/30/2022 Q2 2022 Q1 2023 Q2 2023 Q1 2023 Q2 2022 Equity Indices Domestic S&P 500 3,785 4,109 4,450 8% 18% 4,104 3,999 4,208 5% 3% Global MSCI Barra World Index 2,54
Slide 7: Quarterly revenue
Quarterly revenue ($ in millions) Percentage Change Year-over-Year Sequential 77% Base fees Base fees (3)% 3% Securities lending revenue Securities lending revenue 15% 10% Performance fees Performance fees 11% 115% Technology services revenue Technology services revenue 8% 6% 1% 7% Distribution fees
Slide 8: Quarterly investment advisory, administration fees and securities lending revenue
Quarterly investment advisory, administration fees and securities lending revenue ($ in millions) Q2 2023 compared to Q2 2022 Q2 2023 compared to Q1 2023 $(77) $109 $11 $(1) $(6) $(6) $3,688 $35 $(14) $(21) $(31) $(44) $3,611 $17 $14 $14 $9 $6 $4 $1 $3,611 $3,502 $24 $20 Q2 2022 ETFs Non-ETF ETFs Ca
Slide 9: Quarterly expense, as adjusted
Quarterly expense, as adjusted ($ in millions) Employee comp. & benefits Percentage Change Year-over-Year Sequential 19% Employee comp. & benefits -% 1% Distribution & servicing costs Distribution & servicing costs (9)% 3% 12% Direct fund expense 13% 9% 51% Direct fund expense -% 1% General & admini
Slide 10: Alternatives client assets
Alternatives client assets ($ in billions, as of June 30, 2023) Non-Fee Client Fee Paying Paying Assets AUM Commitments Illiquid alternatives: Alternative solutions $12 $7 $5 Private equity 38 31 7 Opportunistic & credit strategies 29 28 1 Real assets: Real estate 30 29 1 Infrastructure 48 33 15 Rea
Slide 11: Reconciliation between GAAP and as adjusted
Reconciliation between GAAP and as adjusted ($ in millions) 2021 2022 2023 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Operating Income GAAP $ 1,931 $ 1,935 $ 2,039 $ 1,764 $ 1,668 $ 1,526 $ 1,427 $ 1,438 $ 1,615 Non-GAAP expense adjustments 85 90 68 58 59 59 150 73 60 As Adjusted $ 2,016 $ 2,025 $ 2,107 $ 1,822 $ 1
Slide 12: Important notes
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-lookin