Blackrock, Inc. · NYSE:BLK
Blackrock — Investor Day (June 2021)
149 slides from Blackrock's investor day presentation, Jun 10, 2021
Slide 1: IRH0621U/M-1675207-1/171
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Slide 2: Forward-looking Statements
IRH0621U/M-1675207-1/171 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, strate
Slide 3: Listening to and delivering for clients: Our strategy
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Listening to and delivering for clients: Our strategy Rob Goldstein Mark Wiedman Chief Operating Officer & Head of BlackRock Solutions Head of International and of Corporate Strategy
Slide 4: Everything we offer clients is in the context of the whole portfolio
IRH0621U/M-1675207-1/171 Everything we offer Clients clients is in the context W E of the whole portfolio S 01 02 03 04 We start with We deliver We operate with We evolve with the client as 1BLK excellence and clients, leading provide scale them to trust us benefits to clients with more of their por
Slide 5: We offer a spectrum of capabilities from individual building blocks to fully customized solutions
IRH0621U/M-1675207-1/171 We offer a spectrum of capabilities from individual building blocks to fully customized solutions Building blocks Whole portfolios Fixed ETFs Active Cash Income Equity Active Equity Factors Tax Aladdin SMAs Private Models OCIO Multi- Markets asset Tax 5
Slide 6: Our strategy starts by understanding clients' needs
IRH0621U/M-1675207-1/171 Our strategy starts by understanding clients’ needs Client trends 1 From products to whole portfolios 2 Power shifting to those closest to end client 3 Value for money, pressure on operating efficiency 4 Data and analytics are paramount Investment drivers 5 Sustainable inves
Slide 7: Our strategy serves clients over the long-term
IRH0621U/M-1675207-1/171 Our strategy serves clients over the long-term 1 Whole portfolios 2 End client 3 Value for money 4 Data and analytics Alpha at China 5 Sustainable investing the heart 6 Search for yield 7 China 8 Retirement 7
Slide 8: Asset management revenue remains highly fragmented
IRH0621U/M-1675207-1/171 Asset management revenue remains highly fragmented Asset Management1 Sales & Trading 2 Cloud Computing 3 Revenue share of top firm in each industry: 3% 13% 32% 3% 8% 31% Clients’ 42% Whole Portfolios 58% 69% 89% BlackRock #2-5 The rest Top 5 The rest Top 5 The
Slide 9: Clients are entrusting us with more of their portfolios
IRH0621U/M-1675207-1/171 Clients are entrusting us with more of their portfolios Organic revenue growth, 20201 Growth Engines Private Markets 18% BlackRock 7% vs. 3% 9% Industry 1 BLK organic growth vs. industry1 12% Technology 2 7% 3 7% 57% ETFs 8% of our top clients have >3 BLK products (up 8 Trad
Slide 10: Our scale and culture ultimately benefit clients and shareholders
IRH0621U/M-1675207-1/171 Our scale and culture ultimately benefit clients and shareholders Alpha at the heart China 10
Slide 11: Growth, efficiency and operating excellence
IRH0621U/M-1675207-1/171 Growth, efficiency and operating excellence 20121 2018 Today2 $3.8T +58% $6.0T +50% $9.0T AUM 1 $390M +101% $785M +45% $1.1B Tech Services Revenue 10,500 +42% 14,900 +11% 16,500 Employees Note: For footnoted information, refer to slide 13. 11
Slide 12: Our culture: the BlackRock principles
IRH0621U/M-1675207-1/171 Our culture: the BlackRock principles 1 We are a fiduciary to our clients 35 million U.S. retirement savers invest in our products through their defined contribution plans1 2 We are One BlackRock Our current portfolio of over 3 270 solar and wind projects We are passionate h
Slide 13: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 8 - Asset management revenue remains highly fragmented 1. Sources: Public filings and company websites, McKinsey. As of 2020. 2. Sources: S&P Global Market Intelligence, McKinsey. As
Slide 14: Decades of growth ahead in ETFs and index investing
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Decades of growth ahead in ETFs and index investing Salim Ramji Global Head of iShares and Index Investments
Slide 15: BlackRock's global ETF and index investing business
IRH0621U/M-1675207-1/171 BlackRock’s global ETF and index investing business ETF organic growth and revenue $240B Organic asset 13% growth3 1Q21 LTM net new business 2 $6.0T $2.8T $525M $3.2T Organic base Index AUM1 14% fee growth4 1Q21 LTM net new base fees 2 $4.8B 2020 Revenue 5% Year-over- year g
Slide 16: BlackRock's global ETF business delivered nearly as much revenue growth as the next three
IRH0621U/M-1675207-1/171 BlackRock’s global ETF business delivered nearly as much revenue growth as the next three ETF issuers combined Net New Base Fees ($M) – 1Q21 LTM1 Innovation $525 We launched >170 ETFs in last three years that generated over Core Equity 20% of our organic revenue growth in la
Slide 17: We believe there are decades of growth ahead for ETFs
IRH0621U/M-1675207-1/171 We believe there are decades of growth ahead for ETFs ETFs have BlackRock’s ETF We are investing for significant room to business is the future grow different ETF penetration of the total We believe our product breadth, We are investing in innovation - equity and bond market
Slide 18: ETFs have significant room to grow
IRH0621U/M-1675207-1/171 ETFs have significant room to grow ETF industry AUM penetration 1 By market By region By client 3% of total global market 5% of total U.S. market 1% of total asset managers globally 5% of global equity market 2% of total EMEA market 11% of fee-based wealth globally 1% of glo
Slide 19: Generational shifts are propelling ETF growth
IRH0621U/M-1675207-1/171 Generational shifts are propelling ETF growth Convergence: ETFs 5G part of fabric of capital markets 4G Innovation: ETFs wrap all kinds of public investments 3G BlackRock buys BGI: Index AND Active builds a better portfolio 2G First ETFs launch: Making indexing more global a
Slide 20: We expect industry ETF AUM to reach $15T by 2025
IRH0621U/M-1675207-1/171 We expect industry ETF AUM to reach $15T by 2025 Global ETF AUM ($T) 1 $15 $8 $1 2010 2020 2025 Note: For footnoted information, refer to slides 30-31. 20
Slide 21: BlackRock's global ETF business is different
IRH0621U/M-1675207-1/171 BlackRock’s global ETF business is different Offering 1,100+ ETFs wrapping all kinds Serving over 30 million clients globally of investments iShares core equity Self-directed & retirement platforms iShares fixed income Wealth managers iShares sustainable iShares factors Ac
Slide 22: We have delivered differentiated revenue growth
IRH0621U/M-1675207-1/171 We have delivered differentiated revenue growth 2018 2019 2020 1Q21 LTM BlackRock ETF Organic Growth 1 10% 11% 8% 13% AUM 3% 6% 7% 14% Base Fee Core Equity3 Net New Base $0.9T @ 8bps Fees ($M)2 $525 7% 3-year organic base fee growth $229 $335 Strategic3 Fixed Income $1T @ 20
Slide 23: Managed model portfolios are important to ETF growth
IRH0621U/M-1675207-1/171 Managed model portfolios are important to ETF growth ETFs are a key ingredient in the $4T U.S. Our goal is for more than half of our U.S. ETF model portfolio market which is set to more flows to come from managed models than double to $10T in the next five years1,2,3 $0.1T B
Slide 24: BlackRock's sustainable ETFs and index funds are expanding the market for sustainable investing
IRH0621U/M-1675207-1/171 BlackRock’s sustainable ETFs and index funds are expanding the market for sustainable investing BlackRock sustainable AUM in ETFs and index Expanded product offering mutual funds ($B) 1 to >150 Index Mutual Funds ETFs $129 $30 Customized ETF product lines – baseline screens,
Slide 25: As barriers come down, millions of investors are adopting ETFs globally
IRH0621U/M-1675207-1/171 As barriers come down, millions of investors are adopting ETFs globally ETF flows from U.S. RIAs increased as commission ETF-based retirement savings plans are building barriers fell away, and our share remained strong an investing culture in Germany Number of Germans contri
Slide 26: BlackRock is investing through pricing to grow revenue and clients
IRH0621U/M-1675207-1/171 BlackRock is investing through pricing to grow revenue and clients Invest 1.5-2.5% of ETF revenue annually Our pricing strategy is resulting in long-term in price changes revenue growth Our pricing framework: Impact of price investments, 2015-2020 ($M)1: $800 Growth High $60
Slide 27: More institutional investors are using fixed income ETFs
IRH0621U/M-1675207-1/171 More institutional investors are using fixed income ETFs BlackRock global fixed income ETF AUM ($B) $668 $428 >50% 80 80%% of global asset managers of global and asset insurance managers firms use fixed income ETFs1 1 use and insurance firms fixed income ETFs 2018 1Q21 Note:
Slide 28: Managing complexity at scale and with precision
IRH0621U/M-1675207-1/171 Managing complexity at scale and with precision Our ETFs delivered under extreme stress We are integrating deeply into the ETF conditions in 2020 ecosystem to maintain high market quality and increase scale Greater 29% increase in iShares usage ETF trading volume (U.S. and
Slide 29: There are decades of growth ahead
IRH0621U/M-1675207-1/171 There are decades of growth ahead ETFs have BlackRock’s ETF We are investing significant room business is for the future to grow different 29
Slide 30: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 15 - BlackRock’s ETF and index investing business 1. AUM as of 3/31/21. 2. LTM “Last Twelve Months” represents last twelve months ending 3/31/21. Net new business represents net asse
Slide 31: End notes
IRH0621U/M-1675207-1/171 End notes Slide 26 - BlackRock is investing through pricing to grow revenue and clients 1. Price investment is calculated by taking the difference between the previous fund expense ratio and the new fund expense rati o from 2015 through 2020, multiplied by fund assets under
Slide 32: Building tomorrow's alternatives platform
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Building tomorrow’s alternatives platform Edwin Conway Global Head of BlackRock Alternative Investors
Slide 33: BlackRock is a top alternatives manager
IRH0621U/M-1675207-1/171 BlackRock is a top 5 alternatives manager1 Dry Organic growth and revenue powder $92B $28B $47B Organic asset 24% growth4 1Q21 LTM net new business 3 $297B alternatives client assets2 $76B $299M 1Q21 LTM net new base fees 3 25% Organic base fee growth5 $100B Illiquid Hed
Slide 34: Well positioned for future revenue growth
IRH0621U/M-1675207-1/171 Well positioned for future revenue growth Committed capital ($B) Gross carried interest balance ($M) 3 $748 $28B committed capital 1 $584 $483 ~$190M $293 future annual base fees 2 and additional carry potential $219 $152 2016 2017 2018 2019 2020 1Q21 Note: For footnoted inf
Slide 35: Alternatives industry continues to expand as investors globally increase their allocations
IRH0621U/M-1675207-1/171 Alternatives industry continues to expand as investors globally increase their allocations BlackRock has significant room 81% of investors plan to increase Alternatives expected to grow to to grow allocation to alternatives 2 $17T by 20252 $17.2T 2% 1% 2% market share 16% 26
Slide 36: As clients actively consolidate managers, BlackRock is well positioned as a multi-alternatives provider
IRH0621U/M-1675207-1/171 As clients actively consolidate managers, BlackRock is well positioned as a multi-alternatives provider 36
Slide 37: Strong fundraising momentum continues across platform
IRH0621U/M-1675207-1/171 Strong fundraising momentum continues across platform Gross fundraising ($B) 1 ~$100B raised from clients over the last 5 years Target $25 $23 $18 $20 $100B+ gross fundraise over the next 3 years $10 2016 2017 2018 2019 2020 2021 2022 2023 14 98 100+ strategies clients with
Slide 38: Comprehensive equity and debt solutions across our alternatives platform
IRH0621U/M-1675207-1/171 Comprehensive equity and debt solutions across our alternatives platform Solutions across the risk/return spectrum Income Driven Growth Driven Return Growth Equity Co-investments Equity & Secondaries Buyout Value-add Real Value-add Estate Renewable Infrastructure Core Real E
Slide 39: BlackRock is well positioned as clients look for true partnership in their alternatives managers
IRH0621U/M-1675207-1/171 BlackRock is well positioned as clients look for true partnership in their alternatives managers An integrated Transparency whole-portfolio view and technology Managing private and public market Bringing eFront and Aladdin assets on one platform together Sourcing and A high
Slide 40: Looking ahead: investing in strategic growth drivers and accelerators
IRH0621U/M-1675207-1/171 Looking ahead: investing in strategic growth drivers and accelerators Growth drivers Growth accelerators Credit Wealth Infrastructure APAC Sustainability For illustrative purposes only. 40
Slide 41: Our leading global credit platform provides solutions across the full spectrum of credit investing
IRH0621U/M-1675207-1/171 Our leading global credit platform provides solutions across the full spectrum of credit investing BlackRock’s Global Credit Platform Private Credit $500 Liquid Credit $448 3rd industry ranking3 $368 $23 $18 $328 $333 $123B client assets as of 1Q212 Revenue ($M)1 $16 $13
Slide 42: We are building a premier infrastructure platform to meet increasing client demand
IRH0621U/M-1675207-1/171 We are building a premier infrastructure platform to meet increasing client demand BlackRock Global Infrastructure Platform $172 $161 Infrastructure Debt, Equity & Solutions 7th industry ranking3 $94 $34 $33 $67 $26 $29 $23 $34B Revenue $18 client assets as of 1Q212 ($M)1
Slide 43: Supercharging our growth by staying ahead of key trends
IRH0621U/M-1675207-1/171 Supercharging our growth by staying ahead of key trends We aim to further accelerate our growth by: 1 Making alternatives 2 Delivering the best 3 Positioning for the less alternative in of BlackRock in future with Wealth APAC Sustainability How we will differentiate ourselve
Slide 44: BlackRock is making alternatives less alternative
IRH0621U/M-1675207-1/171 BlackRock is making alternatives less alternative Focusing on Investing in Doubling down high-quality strategic growth on growth opportunities, areas: accelerators: the whole infrastructure wealth, APAC portfolio and and credit and better sustainability technology We believe
Slide 45: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 33 - BlackRock is a top 5 alternatives manager 1. By client assets as of March 31, 2021. Source: peer public filings. 2. Client assets include $268B AUM and $28B committed capital as
Slide 46: Aladdin: Shaping the future
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Aladdin®: Shaping the future Sudhir Nair Global Head of the Aladdin Business
Slide 47: BlackRock's technology platform
IRH0621U/M-1675207-1/171 BlackRock’s technology platform A diverse range of solutions for various client types Technology revenue For institutional investors Aladdin Enterprise Aladdin Risk Aladdin Climate $1.1B 2020 Revenue eFront Aladdin Accounting Aladdin Studio For asset servicers 17% Revenue g
Slide 48: We have delivered strong, consistent revenue growth and expanded our client base
IRH0621U/M-1675207-1/171 We have delivered strong, consistent revenue growth and expanded our client base Technology services revenue ($M)1 Countries generating revenue Number of clients2 Aladdin 950 eFront 50 $1,139 18% CAGR $974 682 $785 $657 $588 18 180 268 2016 2017 2018 2019 2020 2016 202
Slide 49: Our mission: to make Aladdin the language of all portfolios
IRH0621U/M-1675207-1/171 Our mission: to make Aladdin® the language of all portfolios Enable clarity Drive scale and Help achieve at every point in ecosystem better outcomes the investment connectivity for investors process In pursuit of this goal, we are leveraging our user-provider model to unders
Slide 50: Aladdin transforms our clients' investment ecosystems and delivers scale benefits with flexibility
IRH0621U/M-1675207-1/171 Aladdin® transforms our clients’ investment ecosystems and delivers scale benefits with flexibility One client’s transformation on the Aladdin platform Separate business units with different Single, integrated systems and operating model processes Consolidated book No centra
Slide 51: We have significant opportunity for future growth
IRH0621U/M-1675207-1/171 We have significant opportunity for future growth ~$10B addressable market1: Aladdin Platform: Captured ~11% share of ~$10B addressable market Other: $1B Small asset managers and owners Newer Areas: $4B Mid-sized asset managers and owners, alts investors Increasing our shar
Slide 52: We are constantly investing in our platform
IRH0621U/M-1675207-1/171 We are constantly investing in our platform Talent Infrastructure Acquisitions & strategic partnerships • 67% growth of • Migrating technical • Including: dedicated Aladdin® talent infrastructure to Microsoft since 20161 Azure cloud • Tailored talent strategy for • Open acce
Slide 53: Focused on the needs of the investor of the future
IRH0621U/M-1675207-1/171 Focused on the needs of the investor of the future Whole portfolio Sustainability Flexibility without solutions at the center sacrificing scale of portfolios Integrated data Holistic advice ecosystem in wealth management 53
Slide 54: Future investor needs
IRH0621U/M-1675207-1/171 Future investor needs Whole portfolio solutions Sustainability at the The combined Managing public End-to-end center of portfolios power of Aladdin® and private market solution that and eFront® assets in the same streamlines portfolio workflows across Flexibility without the
Slide 55: Future investor needs
IRH0621U/M-1675207-1/171 Future investor needs Whole portfolio solutions Sustainability at the Quantifies Climate-adjusted Access to over center of portfolios climate risk as analytics 2,000 leading an investment risk incorporated ESG metrics into portfolio Flexibility without construction sacrifici
Slide 56: Future investor needs
IRH0621U/M-1675207-1/171 Future investor needs Whole portfolio solutions Sustainability at the Open access and Benefit from the Aladdin Provider center of portfolios interoperable scale of the Aladdin supports seamless platform through platform integration with 8 of APIs, allowing the largest asset
Slide 57: Future investor needs
IRH0621U/M-1675207-1/171 Future investor needs Scalable access to Aladdin® + non- Managed data-as- data – today’s data Aladdin data in a-service solution Whole portfolio is tomorrow’s alpha one language on solutions one platform Representative data sets: Sustainability at the center of portfolios Po
Slide 58: Future investor needs
IRH0621U/M-1675207-1/171 Future investor needs Deep content to End-to-end SMA Make Aladdin® power personalized technology core to the wealth Whole portfolio advice for individual operating system solutions client goals Sustainability at the center of portfolios Cash Advisory Flexibility without sacr
Slide 59: Continue to deliver low to mid-teens revenue growth
IRH0621U/M-1675207-1/171 Our mission: to make Aladdin® the language of all portfolios Evolving and investing in the Aladdin platform Driving long-term scalable growth Whole portfolio solutions Continue to deliver low to Sustainability at the center of portfolios mid-teens revenue growth Flexibility
Slide 60: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 48 - We have delivered strong, consistent revenue growth and expanded our client base 1. Includes the impact of eFront. 2. Joint Aladdin® & eFront clients are included within the Ala
Slide 61: Durable alpha: Delivered
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Durable alpha: Delivered Rich Kushel Head of the Portfolio Management Group
Slide 62: BlackRock active strategies
IRH0621U/M-1675207-1/171 BlackRock active strategies Positioned to generate durable alpha for clients over the long-term Organic growth and revenue $171B $444B $156B Organic asset 9% growth3 $2.3T 1Q21 LTM net new business 2 $661B Active AUM1 $705M 1Q21 LTM net new base fees 2 15% Organic base fee g
Slide 63: Active strategies have delivered strong growth and make up a large share of BlackRock's revenue
IRH0621U/M-1675207-1/171 Active strategies have delivered strong growth and make up a large share of BlackRock’s revenue BlackRock active AUM1 ($T) BlackRock active revenue 1 ($B) % of BlackRock AUM ~25% % of BlackRock revenue ~50% $2.3 $7.0 $1.2B $555B $5.8 $1.7 2017 2020 2017 2020 Note: For footno
Slide 64: BlackRock is outpacing industry growth in active
IRH0621U/M-1675207-1/171 BlackRock is outpacing industry growth in active Growing faster relative to the industry 1,2 Net new base fees are accelerating 3 ($M) 9% $705 7% 5% 4% $374 2% 2% $167 1% $110 0% 0% $27 0% (1)% ($152) 2016 2017 2018 2019 2020 1Q21 2016 2017 2018 2019 2020 1Q21 LTM LTM BlackR
Slide 65: BlackRock's market share has significant room to run
IRH0621U/M-1675207-1/171 BlackRock’s market share has significant room to run Industry active AUM ($T) and BlackRock share 1, 2 BlackRock AUM market share: 2.7% 3.0% BlackRock Industry ex-BlackRock $76 $56 2016 2020 Note: For footnoted information, refer to slides 75-76. 65
Slide 66: Strong relative performance across entire platform
IRH0621U/M-1675207-1/171 Strong relative performance across entire platform Differentiated long-term performance Growing line-up of 5-star active funds 2 % of assets above benchmark or peer median for the 5-year period as of 3/31/211 March 2016 March 2021 10 31 95% Equity 87% 84% Fixed Income 15 17
Slide 67: BlackRock active strategies are delivering durable alpha
IRH0621U/M-1675207-1/171 BlackRock active strategies are delivering durable alpha1 7.86% of cumulative alpha $49B of cumulative 3.2x For every dollar paid in fees, gross of fees over 5 years outperformance net of clients received 3.2x in alpha on a or 5.43% net of fees 2 fees over 5 years as compare
Slide 68: We expect active management to serve an increasingly important role in investor portfolios
IRH0621U/M-1675207-1/171 We expect active management to serve an increasingly important role in investor portfolios We see opportunities arising from: We see active management being used in new ways to address: Volatility Diversification Increasingly volatile markets, combined An expansive set of ac
Slide 69: Our people and our culture of continuous innovation positions us to continue delivering durable alpha
IRH0621U/M-1675207-1/171 Our people and our culture of continuous innovation positions us to continue delivering durable alpha Differentiated insight Leadership in sustainability generation Empowering better investment decisions by viewing sustainable investing as a long-term - Diverse backgrounds,
Slide 70: Differentiated insight generation
IRH0621U/M-1675207-1/171 Differentiated insight generation Our investors leverage their deep market knowledge and our 400+ 120+ investors attend the portfolio managers, collaborative intelligence to generate Daily Global Meeting strategists and meaningful investment ideas across every day to debate
Slide 71: Leadership in sustainability
IRH0621U/M-1675207-1/171 Leadership in sustainability Dedicated sustainability research teams partner with investors and researchers to understand material sustainability risks and opportunities. 100% ESG Integration across Proprietary climate data including ~5,600 strategies 3,500+ climate aware ca
Slide 72: Advanced data analytics & technology
IRH0621U/M-1675207-1/171 Advanced data analytics & technology 100+ alternative data sets integrated into our T Data Raw inputs useful for making decisions: prices, ratings, shipping info, transcripts, geolocation, texts research platform e c 1,900+ h Analytics n Data transformed into information: o
Slide 73: Leveraging our breadth & reach
IRH0621U/M-1675207-1/171 Leveraging our breadth & reach We increase the capacity of our investment teams with dedicated Liquid/ 5,227 $178B capital markets and trading platforms. Public investments deployed in primary made issuance1 Illiquid/ ~2,100 $4B Private opportunities deployed2 sourced Source
Slide 74: Well positioned to meet client demand for alpha over the long-term
IRH0621U/M-1675207-1/171 Well positioned to meet client demand for alpha over the long-term Differentiated Informed Commitment drivers of risk taking to evolving platform alpha approach ahead of clients’ needs Ability to generate durable alpha for clients and differentiated organic asset and base fe
Slide 75: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 62 - BlackRock active strategies 1. AUM as of 3/31/21. 2. LTM “Last Twelve Months” represents last twelve months ending 3/31/21. Net new business represents net asset inflows and Net
Slide 76: End notes
IRH0621U/M-1675207-1/171 End notes Slide 71 - Leadership in sustainability Source: BlackRock. Engagements from January 1, 2020 – December 31, 2020. AUM Data as of 3/31/2021. Strategies include active and advisory mandates Slide 72 - Advanced data analytics & technology Source: BlackRock Solutions. D
Slide 77: Powering the financial advisor portfolio of the future
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Powering the financial advisor portfolio of the future Martin Small Head of U.S. Wealth Advisory
Slide 78: BlackRock U.S. Wealth Advisory
IRH0621U/M-1675207-1/171 BlackRock U.S. Wealth Advisory Strong track record as trusted advisor to financial advisors Organic growth and revenue $0.1T $0.5T $176B 1Q21 LTM net new business 2 12% Organic asset growth3 $2.2T USWA AUM1 $475M 1Q21 LTM net new base fees 2 14% Organic base fee growth4 $1.6
Slide 79: We are the #2 wealth-focused asset manager
IRH0621U/M-1675207-1/171 We are the #2 wealth-focused asset manager1 45+ #1 #1 offerings generated $1B+ in mutual funds, SMAs and in fixed income and closed-end funds net new sustainable ETFs net new in net new business in 2020 business in 20201 business in 20201 ~15% $750M+ of industry advisors log
Slide 80: A leading distribution franchise for U.S. wealth intermediaries with significant room to grow share
IRH0621U/M-1675207-1/171 A leading distribution franchise for U.S. wealth intermediaries with significant room to grow share $32T U.S. Wealth industry AUM ($T) 1 $8.7 $8.6 $6.8 $4.7 $3.6 Wire Independent RIA Private bank Direct Industry: 5-year CAGR1 5% 6% 11% 5% 11% BlackRock: LTM organic asset gro
Slide 81: Strong growth in key product categories fueled by structural adoption of fee-based & managed products
IRH0621U/M-1675207-1/171 Strong growth in key product categories fueled by structural adoption of fee-based & managed products 01 By 2030, U.S. household wealth will grow to $140T, 02 Across U.S. households, ~70% of investable assets financial assets will make up 45% of total 1 are consistently inve
Slide 82: Majority of net new client money is flowing into more efficient managed product structures
IRH0621U/M-1675207-1/171 Majority of net new client money is flowing into more efficient managed product structures Percentage of net new industry client money BlackRock’s advantages allocated to the following categories (4Q20) 1 • iShares is the largest global ETFs ETF provider 50% • Efficient por
Slide 83: Accelerating adoption of managed products through model portfolios
IRH0621U/M-1675207-1/171 Accelerating adoption of managed products through model portfolios The industry model marketplace is set to more than double to $10T over the next five years 1 Managed accounts via Envestnet Fund Strategist Portfolios (“Models”): BlackRock growth in proprietary managed & thi
Slide 84: From 60/40 to 50/30/20: Powering the advisor portfolio of the future
IRH0621U/M-1675207-1/171 From 60/40 to 50/30/20: Powering the advisor portfolio of the future Well positioned with comprehensive investment solutions and capabilities Tax- managed 30% 20% bonds private markets Personalized 50% public equities Digitally- enabled Supported by the power of our platform
Slide 85: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 78 - BlackRock U.S. Wealth Advisory 1. AUM as of 3/31/21. 2. LTM “Last Twelve Months” represents last twelve months ending 3/31/21. Net new business represents net asset inflows and
Slide 86: Powering the portfolios of the future in EMEA
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Powering the portfolios of the future in EMEA Stephen Cohen Head of Europe, Middle East and Africa
Slide 87: BlackRock in EMEA
IRH0621U/M-1675207-1/171 BlackRock in EMEA Organic growth and revenue $153B Organic $593B $577B asset 9% growth2 1Q21 LTM net new business 1 $2.4T $150B EMEA AUM1 $507M 1Q21 LTM net new base fees 1 17% Organic base fee growth3 $1,073B $4.9B 2020 Revenue 19% Year-over- year growth iShares® Active
Slide 88: Deepening our local presence
IRH0621U/M-1675207-1/171 Deepening our local presence Copenhagen Edinburgh Stockholm ~5,300 25 Dublin London Brussels employees cities Amsterdam 72 countries Jersey Eindhoven Munich Clients in Vienna Paris Budapest Geneva Milan Frankfurt Belgrade Zurich 38% Madrid Tel-Aviv Lux Athens Riyadh Dubai EM
Slide 89: EMEA is undergoing a multi-year transformation as major forces disrupt the industry
IRH0621U/M-1675207-1/171 EMEA is Zero rates Regulatory undergoing a change multi-year transformation Localization Digitization as major forces disrupt the industry Sustainability 89
Slide 90: EMEA's transformation has three significant implications
IRH0621U/M-1675207-1/171 Embedding sustainability EMEA’s transformation Servicing clients efficiently and has three digitally significant implications Re-thinking investment propositions and technology 90
Slide 91: Clients want a strategic partner who understands their purpose and financial goals
IRH0621U/M-1675207-1/171 Clients want a strategic partner who understands their purpose and financial goals BlackRock is delivering: Consulting Investments Structuring Technology Activation Delivering Developing Leveraging Enabling Supporting new specialist investment our scale and business proposit
Slide 92: Creating enduring partnerships
IRH0621U/M-1675207-1/171 Creating enduring partnerships Netherlands: Retail Bank UK: Pension Schemes Client • Margin pressure • Evolving expertise required for future direction challenge • Delivering customisation without increasing of portfolios operating model risk • Complexity of internal managem
Slide 93: Leveraging our global scale and local strengths to deliver whole portfolio solutions to clients in EMEA
IRH0621U/M-1675207-1/171 Leveraging our global scale and local strengths to deliver whole portfolio solutions to clients in EMEA Global scale Diversity and Technology Local presence breadth of and talent platform 93
Slide 94: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 87 - BlackRock in EMEA 1. AUM as of 3/31/2021. LTM “Last Twelve Months” represents last twelve months ending 3/31/21. Net New Business represents net asset inflows and Net New Base F
Slide 95: China: Positioning for one of the biggest growth opportunities
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 China: Positioning for one of the biggest growth opportunities Rachel Lord Chair and Head of Asia Pacific
Slide 96: BlackRock in Asia Pacific
IRH0621U/M-1675207-1/171 BlackRock in Asia Pacific Positioning for long-term opportunities in fast growing markets Organic growth and revenue $8B $92B $375B Organic asset 17% growth3 1Q21 LTM net new business 2 ~$800B $163B APAC AUM1 $106M 1Q21 LTM net new base fees 2 12% Organic base fee growth4 $2
Slide 97: Our local presence
IRH0621U/M-1675207-1/171 Our local presence Beijing ~1,600 Seoul APAC region employees1 Shanghai Tokyo Gurgaon ~1,800 Hong Kong Taipei iHub employees1 Mumbai 28% Bengaluru APAC AUM Singapore 58% by region 14% Australia Japan Asia ex-Japan Brisbane ~70% of Melbourne APAC AUM Sydney Note: For footnote
Slide 98: The China opportunity
IRH0621U/M-1675207-1/171 The China opportunity China is too big to miss 40% of global flows are China’s opening is a watershed projected to come from China moment for global managers Global share of China in various Share of China in global net flows Largest asset management categories 1 between 202
Slide 99: Our China strategy: We have an immediate opportunity to help global clients invest in China
IRH0621U/M-1675207-1/171 Our China strategy: We have an immediate opportunity to help global clients invest in China Global investor AUM held in China funds ($B) 1 BlackRock’s positioning with global clients 2 Industry Active MF 2Y average Industry ETF & Index MF $275 organic growth Overall China AU
Slide 100: Our China strategy: We have a long-term opportunity to build a global champion in the $9T onshore market
IRH0621U/M-1675207-1/171 Our China strategy: We have a long-term opportunity to build a global champion in the $9T onshore market1 Wealth Management Providing wealth solutions Company to the emerging middle class JV with China Construction Bank and Temasek Fund Management Developing onshore China Co
Slide 101: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 96 - BlackRock in Asia Pacific Note: Asia Pacific figures for AUM, net new business, net new base fees, revenue and organic growth include figures for APAC clients invested in US and
Slide 102: Building more inclusive, resilient retirement solutions
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Building more inclusive, resilient retirement solutions Mark McCombe Chief Client Officer
Slide 103: The global retirement crisis is accelerating
IRH0621U/M-1675207-1/171 The global retirement crisis is accelerating The $70T global Global aging Lack of access Persistent low- retirement savings gap growth environment is expected to balloon to $400T by 20501 2.1B 48% 3-5% Population over With nearly half of Equities are 65 will increase global
Slide 104: Defined contribution plans have become the primary workplace retirement offering
IRH0621U/M-1675207-1/171 Defined contribution plans have become the primary workplace retirement offering Defined benefit Defined contribution Defined benefit plans are a $15T market, but have Defined contribution plans are also a $15T market been in secular decline since the 1990s (2/3 in the U.S.)
Slide 105: BlackRock's retirement platform
IRH0621U/M-1675207-1/171 BlackRock’s retirement platform A leader in the retirement industry 13% $1,600B We have 13% market share in the U.S. defined contribution investment $126B only (DCIO) market2 $3.0T #1 We are the largest defined 1 contribution investment retirement AUM only provider in the U.
Slide 106: Long history of innovation in global retirement solutions
IRH0621U/M-1675207-1/171 Long history of innovation in global retirement solutions 27 years of target BlackRock’s Global Target Date Footprint date experience United Kingdom Sweden 1997 100+ 2016 Canada Pan-Europe 2007 Netherlands Germany South Korea dedicated retirement 2020 profess
Slide 107: Opportunities for innovation that will drive future growth for BlackRock
IRH0621U/M-1675207-1/171 Opportunities for innovation that will drive future growth for BlackRock 1 2 China Sustainability By 2050, 330M Chinese Demand for ESG solutions in people will be 65 or older. retirement products will continue to China is also facing a contracting grow. labor force and under
Slide 108: LifePath Paycheck
IRH0621U/M-1675207-1/171 3 LifePath PaycheckTM An investment solution that provides a paycheck throughout retirement Designed to be provided through employers’ defined contribution plans Target date strategy that includes an allocation to innovative annuity contracts Combines an investment solution
Slide 109: BlackRock is working to build a better retirement for all
IRH0621U/M-1675207-1/171 BlackRock is working to build a better retirement for all Leveraging the scale and breadth of BlackRock’s global platform to develop innovative retirement solutions and stay ahead of clients’ evolving needs Providing a solution that Helping build a robust Bringing our leader
Slide 110: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 103 - The global retirement crisis is accelerating 1. Source: World Economic Forum White Paper: “We’ll Live to 100 – How Can We Afford It?” 2. Report on the Economic Well-Being of U.
Slide 111: Positioning BlackRock to lead in sustainable investing
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Positioning BlackRock to lead in sustainable investing Paul Bodnar Global Head of Sustainable Investing
Slide 112: BlackRock sustainable investment strategies
IRH0621U/M-1675207-1/171 BlackRock sustainable investment strategies A spectrum of sustainable investing choices for clients Organic growth and revenue $54B $54B Organic $145B asset 50% growth2 1Q21 LTM net new business 2 $353B $204M $99B Sustainable AUM1 Organic base fee growth3 158% 1Q21 LTM net n
Slide 113: Growth in sustainable investment strategies outpaced the industry in 2020
IRH0621U/M-1675207-1/171 Growth in sustainable investment strategies outpaced the industry in 2020 2020 organic asset growth 64% 27% 3% Industry total Industry sustainable BlackRock sustainable mutual funds & ETFs 1 mutual funds & ETFs 1 investment strategies2 Note: For footnoted information, refer
Slide 114: BlackRock's sustainable AUM growth was diversified across asset classes, client types and regions
IRH0621U/M-1675207-1/171 BlackRock’s sustainable AUM growth was diversified across asset classes, client types and regions $68B of sustainable net new business in 2020 By asset class By investment style By region Multi-asset Cash Cash $1B $5B $5B Active Non-ETF $9B Fixed Index Americas income Altern
Slide 115: BlackRock well-positioned to help clients invest sustainably
IRH0621U/M-1675207-1/171 BlackRock well-positioned to help clients invest sustainably We are committed to making sustainability our standard for investing ESG integration Comprehensive sustainable Integration of ESG insights and data into investment solutions 100% of active and advisory investment E
Slide 116: BlackRock's net zero commitment
IRH0621U/M-1675207-1/171 BlackRock’s net zero BlackRock believes that the climate transition creates not just risk but a historic investment opportunity commitment With the world moving to net zero, BlackRock can best serve our clients by helping them be at the forefront of that transition Potential
Slide 117: BlackRock's scaled platform enables us to offer clients more choice across the sustainability spectrum
IRH0621U/M-1675207-1/171 BlackRock’s scaled platform enables us to offer clients more choice across the sustainability spectrum $353B 250+ strategies Sustainable AUM1 $13B Impact Generate positive, measurable E and S impact alongside a $49B 20+ strategies financial return 2 Thematic Seek to capitali
Slide 118: Investing in Aladdin Climate to help clients be more climate-aware
IRH0621U/M-1675207-1/171 Investing in Aladdin Climate to help clients be more climate-aware 01 Enterprise level climate risk oversight 02 Climate-based portfolio modelling 03 Climate-based security selection including aggregate portfolio including optimization, what-if including visibility into gran
Slide 119: Investing in sustainability for BlackRock's future
IRH0621U/M-1675207-1/171 Investing in sustainability for BlackRock’s future Rigorous More data and Ability to evolve understanding of better technology and adapt ahead how sustainability to measure and of change relates to analyze investment sustainability returns risks and opportunities BlackRock i
Slide 120: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 112 - BlackRock sustainable investment strategies 1. As of 3/31/21. Represents dedicated sustainable investments, including: 1) strategies with an explicit ESG objective which ma y i
Slide 121: Investing to deliver shareholder value
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Investing to deliver shareholder value Gary Shedlin Chief Financial Officer
Slide 122: A simple framework for shareholder value
IRH0621U/M-1675207-1/171 A simple framework for shareholder value Organic growth Operating Capital leverage management EPS growth 122
Slide 123: Successful execution of our financial framework
IRH0621U/M-1675207-1/171 Successful execution of our financial framework Organic growth Operating leverage 3 Capital management $7.1 billion shares repurchased (8)% share count reduction $14.52 44.9% 5% 5% 42.9% organic asset organic base growth1 fee growth2 $8.72 +200 bps 11% CAGR 1/1/16 – 12/31/20
Slide 124: Organic asset growth higher and less volatile than peers
IRH0621U/M-1675207-1/171 Organic asset growth higher and less volatile than peers Organic asset growth 1 Standard deviation 1 5% BLK organic base fee growth 8% 5% 5% 5% 5% 6% 3% 5% 4% 4% 3% 2% 1% 1% (0)% (4)% (7)% A B C D E F G A B C D E F G BLK Industry Traditional asset manager peers Captive peers
Slide 125: Diversification supports 5% organic base fee growth target
IRH0621U/M-1675207-1/171 Diversification supports 5% organic base fee growth target Organic base fee growth trend2 2017 2018 2019 2020 1Q213 Average4 Total firm +7% +2% +5% +7% +14% +7% % of BLK total base fees 1 Illiquid 5% 11% 18% 27% 18% 28% 20% alternatives ETFs 38% 14% 3% 6% 7% 10% 8% Tradition
Slide 126: Effective fee rate has been impacted by the macro environment
IRH0621U/M-1675207-1/171 Effective fee rate has been impacted by the macro environment 17.2 0.5 basis points (0.1) 16.4 (0.4) basis points (0.3) (0.3) (0.2) 2 1Q20 Organic growth Pricing Cash waivers Sec lending Beta / FX Leap year 1Q21 Effective investments day count Effective fee rate 1 fee rate 1
Slide 127: Proven ability to leverage scale for clients & shareholders
IRH0621U/M-1675207-1/171 Proven ability to leverage scale for clients & shareholders +200 bps 44.9% 44.1% 44.3% 43.8% 43.7% 42.9% +12% $33.82 CAGR $26.93 $28.48 $22.49 $19.60 $19.27 1 2015 2016 2017 2018 2019 2020 EPS, as adjusted Operating margin, as adjusted Note: For further information and recon
Slide 128: Driving expense leverage across the firm
IRH0621U/M-1675207-1/171 Driving expense leverage across the firm Core general & administration (“G&A”) Compensation, as adjusted / net revenue 2 expense / net revenue 1,2 12.4% (130) bps 11.1% 36.3% (170) bps 35.1% 34.6% ex-MTM3 4 2015 4 2020 2015 2020 Note: For further information and reconciliati
Slide 129: G&A investments are concentrated in technology & data
IRH0621U/M-1675207-1/171 G&A investments are concentrated in technology & data G&A expense, as adjusted ($M) 2015 – 2020 Core G&A CAGR1,2 Core G&A1 Non-core G&A1 AUM ($T) $8.7 +13% CAGR 0% $4.6 $1,876 $276 +11% $1,380 (1)% Technology & data Other3 +3% $1,361 CAGR $1,600 2 2015 2020 Note: For f
Slide 130: Consistent capital management policy
IRH0621U/M-1675207-1/171 Consistent capital management policy Prioritization of cash use Cash payout & payout ratio1,2 (Figures in $B) Organic business investments 75%3 Seed & 84% 84% 84% 76% G&A Headcount co-Invest 56% $3.6 $3.8 $3.8 $2.7 $2.8 Tactical acquisitions & strategic minority investments
Slide 131: Our first priority remains to invest in our business
IRH0621U/M-1675207-1/171 Our first priority remains to invest in our business Organic Inorganic Strategic minority Human capital investments Technology & data Tactical acquisitions Brand Seed & co-investments 131
Slide 132: Effectively using our balance sheet to support future growth
IRH0621U/M-1675207-1/171 Effectively using our balance sheet to support future growth Revenue from seeded & co-invested funds ($B) 1 $2.52 +207% $0.8 Portfolio value ($B)1 $3.1 Economic seed Co-investment, including +121% unfunded commitments $1.6 $1.4 $0.6 $1.5 $0.8 2015 2020 Note: For footnoted in
Slide 133: Inorganic investments accelerate organic growth and support strategic initiatives
IRH0621U/M-1675207-1/171 Inorganic investments accelerate organic growth and support strategic initiatives Tactical acquisitions Strategic minority investments Technology Alternatives Global distribution Whole portfolio 133
Slide 134: $3.8B returned to shareholders in 2020
IRH0621U/M-1675207-1/171 $3.8B returned to shareholders in 2020 Consistent Dividends share repurchases 134
Slide 135: Steady dividend increases
IRH0621U/M-1675207-1/171 Steady dividend increases $16.52 $14.52 $13.20 $12.02 18% $10.00 CAGR $9.16 $8.72 $7.72 $6.72 $6.00 $5.50 $4.00 $3.12 $3.12 $2.68 $1.68 $1.00 $1.20 $0.80 2003 1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E Note: For footnoted inf
Slide 136: Consistent share repurchase program since 2013
IRH0621U/M-1675207-1/171 Consistent share repurchase program since 2013 171M shares 12/31/12 (11)% 153M shares 12/31/20 $10B+ repurchased $379 average price +21% compound annual per share return1 Note: For footnoted information, refer to slides 140-141. 136
Slide 137: BlackRock was purposefully built to perform in any market environment
IRH0621U/M-1675207-1/171 BlackRock was purposefully built to perform in any market environment 137
Slide 138: BlackRock has delivered differentiated organic base fee growth across various market environments
IRH0621U/M-1675207-1/171 BlackRock has delivered differentiated organic base fee growth across various market environments S&P 500 returns 30% 11% (1)% 10% 19% (6)% 29% 16% Avg: 5% 7% 7% 5% 6% 6% 5% Organic base fee growth1 2% 1% 2013 2014 2015 2016 2017 2018 2019 2020 YoY as adj. margin 100 150 0 9
Slide 139: BlackRock will continue to invest to drive long-term shareholder value
IRH0621U/M-1675207-1/171 BlackRock will continue to invest to drive long-term shareholder value Leading investment management technology Diverse, global investment capabilities Organic growth Unmatched global scale Operating Capital leverage management EPS growth Exceptional leadership team 139
Slide 140: End notes
IRH0621U/M-1675207-1/171 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 123 - Successful execution of our financial framework 1. Organic asset growth rate is calculated by dividing net asset inflows over beginning of period assets. 5% reflects average ov
Slide 141: End notes
IRH0621U/M-1675207-1/171 End notes Slide 130 - Consistent capital management policy 1. Dividend and share repurchases from BlackRock’s 10-K for each applicable year. 2. Payout ratio equals (total dividends and share repurchases) / (GAAP net income). 3. Represents Payout Ratio excluding the impact of
Slide 142: Investing for the future
IRH0621U/M-1675207-1/171 BlackRock Investor Day 2021 Investing for the future Larry Fink Chairman and Chief Executive Officer
Slide 143: Key investment areas driving future growth
IRH0621U/M-1675207-1/171 Key investment areas driving future growth Client-focused mindset to anticipate client needs Investment Platform Technology & Data Distribution ▪ New product expansion ▪ Whole portfolio, including ▪ Local footprints ETFs and private markets ▪ Index customization Regional ▪ P
Slide 144: Investing for the future in our people and our platform
IRH0621U/M-1675207-1/171 Investing for the future in our people our people and our platform to deliver long-term value for all stakeholders 144
Slide 145: Appendix
IRH0621U/M-1675207-1/171 Appendix LIMITED DISTRIBUTION 145
Slide 146: Reconciliation between GAAP and as adjusted
IRH0621U/M-1675207-1/171 Reconciliation between GAAP and as adjusted ($mm, except per share data) (2) (2) 2013 2014 2015(2) 2016 2017 2018 2019 2020 Operating income Operating Income, GAAP basis $3,857 $4,474 $4,664 $4,565 $5,254 $5,457 $5,551 $5,695 Non-GAAP expense adjustments: Restructuring charg
Slide 147: Reconciliation between GAAP and as adjusted
IRH0621U/M-1675207-1/171 Reconciliation between GAAP and as adjusted(1) (3) 2015 2020 Revenue: Revenue, GAAP basis $11,401 $16,205 Non-GAAP adjustments: Distribution fees (55) (1,131) Investment advisory fees (402) (704) Revenue used for operating margin measurement $10,944 $14,370 Compensation Expe
Slide 148: Performance notes
IRH0621U/M-1675207-1/171 Performance notes Past performance is not indicative of future results. Except as specified, the performance information shown is as of March 3 1, 2021 and is based on preliminary data available at that time. The performance data shown reflects information for all actively a
Slide 149: Important notes
IRH0621U/M-1675207-1/171 Important notes The opinions expressed herein are as of June 2021 and are subject to change at any time due to changes in the market, the eco nomic or regulatory environment or for other reasons. The information should not be construed as research or relied upon in making in