Slide 1: Q1 2011 Earnings Press Release Supplement
Exhibit 99.2 Q1 2011 Earnings Press Release Supplement April 21, 2011
Slide 2: Strong operating income includes continued growth of base fees
Strong operating income includes continued growth of base fees Sequential operating results are affected by the timing of performance fee recognition Operating and Net Income, as Adjusted ($ in millions) Diluted Earnings Per Share, as Adjusted $962 $819 $3.42 $727 $741 $737 $2.96 $2.75 $670 $2.40 $2
Slide 3: Margin remains strong post BGI transaction
Margin remains strong post BGI transaction Q4 margin includes the seasonal effect of performance fees Operating Margins, as Adjusted Full Year 2010 = 39.3% 40.7% 38.7% 38.9% 38.8% 39.1% 38.2% 38.4% 37.4% 36.8% 2007 2008 2009 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Pro Forma For further informat
Slide 4: Equity markets continued to trend higher above 2010 levels
Equity markets continued to trend higher above 2010 levels Equity markets in Q1 2011 were slightly higher on average than Q1 2010 and Q4 2010 Q1-10 Average: 1,124 Q4-10 Average: 1,205 Q1-11 Average: 1,303 1,400 1,300 1,200 1,100 1,000 900 800 12/31/09 1/31/10 2/28/10 3/31/10 9/30/10 10/31/10 11/30/1
Slide 5: Year over year operating results continue to grow driven by base fees
Year over year operating results continue to grow driven by base fees Q1-11 Compared to Q1-10, as Adjusted $3.40 Total EPS: $0.07 $0.12 $0.37 $2.96 $2.90 Total EPS: $2.40 $2.40 $1.90 Operating $0.56 Operating EPS: EPS: $1.40 $2.42 $2.79 $0.90 Tax Adjustment EPS: $0.12 $0.40 Non-Operating Non-Operati
Slide 6: Sequential results effected by magnitude of Q4 performance locks
Sequential results effected by magnitude of Q4 performance “locks” Q1-11 Compared to Q4-10, as Adjusted $4.00 Total EPS: $3.50 $3.42 Total EPS: $0.12 $2.96 $3.00 ($0.56) ($0.02) $2.50 Operating Operating EPS: EPS: $2.00 ($0.46) $3.35 $2.79 $1.50 $1.00 Tax Adjustment EPS: $0.12 $0.50 Non-Operating No
Slide 7: Year over year revenue growth of 14%
Year over year revenue growth of 14% Total Revenue Q1-10 Q1-11 87% 86% Base Fees Base Fees $1.99 billion $2.28 billion Performance Fees Performance Fees 4% BRS and Advisory 4% BRS and Advisory 6% 6% 3% Other Revenue 4% Other Revenue Q1-11 Compared to Q1-10 Increasing Revenue 6
Slide 8: Magnitude of performance fees in Q4 exceeds first 3 quarters
Magnitude of performance fees in Q4 exceeds first 3 quarters Total Revenue Q4-10 79% Q1-11 86% Base Fees $2.49 billion Base Fees $2.28 billion Performance Fees Performance Fees 4% BRS and Advisory 3% BRS and Advisory 5% 6% 4% Other Revenue 13% Other Revenue Q1-11 Compared to Q4-10 $2,600 $2,493 $33
Slide 9: Base fees are higher in all long-term asset classes
Base fees are higher in all long-term asset classes Q1-11 Base Fees $1.98 billion 25% Active Fixed Income 3% iShares/ ETP Fixed Income 4% Institutional Index Fixed Income 14% Active Equity 22% iShares/ ETP Equity 6% Institutional Index Equity Multi-Asset 9% 6% Alternatives 11% Cash Q1-11 Compared to
Slide 10: Base fees continue to grow primarily due to improved markets and long-term flows
Base fees continue to grow primarily due to improved markets andlong-term flows Q1-11 Base Fees $1.98 billion 25% Active Fixed Income 3% iShares/ ETP Fixed Income 4% Institutional Index Fixed Income 14% Active Equity 22% iShares/ ETP Equity Institutional Index Equity 6% Multi-Asset 9% 6% Alternative
Slide 11: Expense growth due to continued growth in the business
Expense growth due to continued growth in the business Q1-11 Expense, as Adjusted, by Category $1.46 billion 7% 2% Employee Comp. & Benefits 10% Distribution & Servicing Costs Amort. of Deferred Sales Commissions 55% Direct Fund Expenses 23% General & Administration Amortization of Intangibles 3% Q1
Slide 12: Lower expenses in Q1 due to certain Q4 G&A costs
Lower expenses in Q1 due to certain Q4 G&A costs Q1-11 Expense, as Adjusted, by Category $1.46 billion 7% 2% Employee Comp. & Benefits 10% Distribution & Servicing Costs Amort. of Deferred Sales Commissions 55% Direct Fund Expenses 23% General & Administration Amortization of Intangibles 3% Q1-11 Co
Slide 13: Continued investment gains driven by markets
Continued investment gains driven by markets Q1-11 Investment Gain, as Adjusted, by Category $43 million Distressed Credit/ Mortgage 19% Private Equity 63% Hedge Funds/ Funds of Hedge Funds 9% Real Estate 2% Other Investments 7% Q1-11 Non-Operating Income by Category, as Adjusted $43 million Investm
Slide 14: Increase in dividend supported by substantial cash flow
Increase in dividend supported by substantial cash flow 83% 64% 56% 53% 50% 48% 48% 44% $5.50 33% $4.00 $3.12 $3.12 $2.68 $1.68 $1.20 $1.00 $0.80 2003 2004 2005 2006 2007 2008 2009 2010 2011 Dividend Change N/A 2/26/04 2/15/05 2/17/06 2/27/07 2/15/08 N/A 2/25/10 3/7/11 Declared: Dividend (A) Payout
Slide 15: Appendix
Appendix
Slide 16: Quarterly operating income – GAAP and as Adjusted
Quarterly operating income – GAAP and as Adjusted Non-GAAP adjustments include BGI integration costs, PNC LTIP funding obligation, Merrill Lynch compensation contribution, restructuring charges, and compensation related to appreciation (depreciation) on deferred compensation plans Operating Income (
Slide 17: Quarterly net income – GAAP and as Adjusted
Quarterly net income – GAAP and as Adjusted Non-GAAP adjustments include BGI integration costs, PNC LTIP funding obligation, Merrill Lynch compensation contribution, restructuring charges, and income tax law changes Net Income ($ in millions) Non-GAAP Adjustments ($ in millions) $670 $582 $537 $657
Slide 18: Quarterly non-operating income – GAAP and as Adjusted
Quarterly non-operating income – GAAP and as Adjusted Non-GAAP adjustments include net income (loss) attributable to non-controlling interests, and compensation expense related to (appreciation) depreciation on deferred compensation plans Non-Operating Income ($ in millions) Non-GAAP Adjustments ($
Slide 19: 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 20: Forward-looking statements
Forward-looking statements 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
Slide 21: BlackRock
BLACKROCK