Blackrock, Inc. · NYSE:BLK
Blackrock — Q4 2022 Earnings Presentation
15 slides from Blackrock's earnings presentation, Jan 13, 2023
Slide 1: Q4 2022 Earnings Release Supplement
January 13, 2023 Q4 2022 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 $8.6 trillion at December 31, 2022 Q4 2022 Base Fees and Securities Lending Revenue of $3.4 billion Client Type Style Product Type Region Active Institutional 27% 31% Active 46% Equity Equity Instituti
Slide 3: Net flows
Net flows ($ in billions) Total BlackRock Retail Long-term 5% 8% 7% 6% 6% 5% 5% 4% 3% 16% 16% 12% 8% 4% 2% (2)% 7% 14% 13% 13% 11% 8% 5% 2% 0% Long-term Cash Advisory $212 $37 $35 $172 $44 $114 $127 $39 $21 $23 $22 $2 $9 $75 $87 $81 $90 $10 $169 $21 $17 $133 $23 $146 $116 $114 $98 $69 $65 $60 $(5) $
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 $10.32 $10.68 $1,920 $10.45 $2,700 50.0% $2,600 47.3% 46.9% 47.6% 46.6% $9.52 $9.55 $2,500 45.8% $1,800 $8.04 $1,750 $8.93 $2,400 44.2% 43.7% $2,300 45.0% $7.36
Slide 5: Capital management
Capital management (amounts in millions, except per share data) Share repurchases and Dividends per share weighted-average diluted shares $4.88 $4.88 $4.88 $4.88 154.5 154.3 154.4 154.3 154.6 153.5 $4.13 $4.13 $4.13 $4.13 152.5 152.0 151.8 $3.63 $500 $500 $500 $375 $300 $300 $300 $300 $0 Q4 Q1 Q2 Q3
Slide 6: Major market indices and exchange rates
Major market indices and exchange rates % Change % Change Spot 12/31/22 vs. Average Q4 2022 vs. 12/31/2021 9/30/2022 12/31/2022 9/30/2022 12/31/2021 Q4 2021 Q3 2022 Q4 2022 Q3 2022 Q4 2021 Equity Indices Domestic S&P 500 4,766 3,586 3,840 7% (19)% 4,605 3,977 3,855 (3)% (16)% Global MSCI Barra World
Slide 7: Quarterly revenue
Quarterly revenue ($ in millions) Percentage Change Year-over-Year Sequential 76% Base fees Base fees (15)% (3)% Securities lending revenue Securities lending revenue 2% (14)% Performance fees Performance fees (31)% 178% Technology services revenue Technology services revenue 4% 4% 1% 7% Distributio
Slide 8: Quarterly investment advisory, administration fees and securities lending revenue
Quarterly investment advisory, administration fees and securities lending revenue ($ in millions) Q4 2022 compared to Q4 2021 Q4 2022 compared to Q3 2022 $(569) $(132) $102 $2 $(25) $(31) $(36) $3,968 $(80) $(98) $(201) $(202) $3,531 $7 $1 $(6) $(8) $(16) $(20) $(23) $(25) $3,399 $(42) $3,399 Q4 202
Slide 9: Quarterly expense, as adjusted
Quarterly expense, as adjusted ($ in millions) Employee comp. & benefits Percentage Change Year-over-Year Sequential 18% Employee comp. & benefits (8)% 7% Distribution & servicing costs (15)% (7)% 10% Distribution & servicing costs Direct fund expense (14)% (14)% 52% Direct fund expense Product laun
Slide 10: Full year revenue
Full year revenue ($ in millions) Percentage Change Year-over-Year 77% Base fees Base fees (6)% Securities lending revenue Securities lending revenue 8% Performance fees Performance fees (55)% Technology services revenue Technology services revenue 6% 1% 8% Distribution fees Distribution fees (9)% A
Slide 11: Full year investment advisory, administration fees and securities lending revenue
Full year investment advisory, administration fees and securities lending revenue ($ in millions) 2022 compared to 2021 $(809) $394 $77 $(60) $(75) $(79) $(115) $15,260 $(214) $(313) $(424) $14,451 2021 Cash Alts Non-ETF Non-ETF ETFs Multi- Active ETFs Active 2022 EQ FI FI Asset FI EQ EQ 10 10
Slide 12: Full year expense, as adjusted
Full year expense, as adjusted ($ in millions) Percentage Change Year-over-Year Employee comp. & benefits Employee comp. & benefits(1) (5)% 20% Distribution & servicing costs (1)% Distribution & servicing costs 11% Direct fund expense (7)% Product launch costs and commissions (98)% 50% Direct fund e
Slide 13: Alternatives client assets
Alternatives client assets ($ in billions, as of December 31, 2022) Non-Fee Client Fee Paying Paying Assets AUM Commitments Illiquid alternatives: Alternative solutions $12 $7 $5 Private equity 36 28 8 Opportunistic & credit strategies 29 25 4 Real assets: Real estate 29 28 1 Infrastructure 46 30 16
Slide 14: Reconciliation between GAAP and as adjusted
Reconciliation between GAAP and as adjusted ($ in millions) 2020 2021 2022 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Income GAAP $ 1,848 $ 1,545 $ 1,931 $ 1,935 $ 2,039 $ 1,764 $ 1,668 $ 1,526 $ 1,427 Non-GAAP expense adjustments 29 54 85 90 68 58 59 59 150 As Adjusted $ 1,877 $ 1,599 $ 2,016 $ 2,025 $ 2
Slide 15: 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