Slide 1: Q4 2018 Earnings
Q4 2018 Earnings Earnings Release Supplement January 16, 2019 7/13/2017 10:27 AM BlackRock
Slide 2: A broadly diversified business across clients, products and geographies
A broadly diversified business across clients, products and geographies Assets Under Management of $5.98 trillion at December 31, 2018 Q4 2018 Total Base Fees of $2.779 billion Client Type Investment Style Product Type Region Active Institutional 27% 31% Active Equity Equity 49% 48% 50% Americas Ins
Slide 3: Long-term net flows
Long-term net flows ($ in billions) Total long-term Retail 4% 5% 7% 7% 7% 6% 4% 3% 2% (2)% (1)% 1% 3% 6% 7% 7% 6% 3% 1% 2% 5% 5% 7% 7% 4% 3% 2% $94 $88 $80 $81 $76 $17 $55 $44 $11 $7 $7 $5 $14 $5 $11 $2 $(2) $(3) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2018 201
Slide 4: Profitability
Profitability ($ in millions, except per share data) Operating Income and Margin, as adjusted Net Income and EPS, as adjusted $1,340 $7.52 44.5% 45.1% 44.7% 44.1% 45.2% $1,600 42.6% 43.9% 44.2% 43.5% 44.2% $6.66 $1,500 $1,488 $1,220 $6.70 $1,214 $1,443 $6.19 $1,393 $1,378 $1,400 $6.08 $1,400 $5.90 3
Slide 5: Capital management
Capital management (amounts in millions, except per share data) Share repurchases and $4.50 Dividends per share weighted average diluted shares $4.00 $3.50 165.9 164.9 164.1 163.8 163.8 162.9 162.2 161.4 $3.13 $3.13 160.5 $3.00 $2.88 $2.88 $525 $500 $2.50 $2.50 $2.50 $2.50 $2.50 $2.29 $2.00 $335 $30
Slide 6: Major market indices and exchange rates
Major market indices and exchange rates % Change % Change Average Spot 12/31/2018 vs. Average Q4 2018 vs. 12/31/2017 9/30/2018 12/31/2018 9/30/2018 12/31/2017 Q4 2017 Q3 2018 Q4 2018 Q3 2018 Q4 2017 Equity Indices Domestic S&P 500 2,674 2,914 2,507 (14)% (6)% 2,604 2,848 2,693 (5)% 3% Global MSCI Ba
Slide 7: Quarterly revenue
Quarterly revenue ($ in millions) Percentage Change Year-over-Year Sequential 77% Base fees ex. securities lending Base fees ex. SL (4)% (3)% Securities lending Securities lending (14)% (19)% Performance fees Performance fees (65)% (34)% Technology services revenue Technology services revenue 15% 2%
Slide 8: Quarterly investment advisory, administration fees and securities lending revenue
Quarterly investment advisory, administration fees and securities lending revenue ($ in millions) Q4 2018 compared to Q4 2017 Q4 2018 compared to Q3 2018 $(118) $(104) $17 $8 $(5) $(8) $(24) $22 $2,897 $(27) $2,883 $7 $6 $(3) $(9) $(11) $(40) $(16) $(61) $(20) $(58) $2,779 $2,779 Q4 2017 Alts Active
Slide 9: Quarterly expense, as adjusted
Quarterly expense, as adjusted ($ in millions) Employee comp. & benefits Percentage Change Year-over-Year Sequential 20% Employee comp. & benefits (11)% (7)% Distribution & servicing costs 10% Distribution & servicing costs (3)% 3% Direct fund expense Direct fund expense (5)% (10)% 48% General & adm
Slide 10: Full year revenue
Full year revenue ($ in millions) Percentage Change Year-over-Year 77% Base fees ex. securities lending Base fees ex. SL 6% Securities lending Securities lending 5% Performance fees Performance fees (31)% Technology services revenue Technology services revenue 19% 2% Distribution fees Distribution f
Slide 11: Full year investment advisory, administration fees and securities lending revenue
Full year investment advisory, administration fees and securities lending revenue ($ in millions) 2018 compared to 2017 $685 $19 $17 $5 $11,553 $43 $49 $100 $123 $329 $10,868 2017 iShares ETFs Active Alts Cash Non-ETF Multi-Asset iShares ETFs Non-ETF 2018 EQ FI FI FI EQ Results for 2017 were recast
Slide 12: Full year expense, as adjusted
Full year expense, as adjusted ($ in millions) Employee comp. & benefits Percentage Change Year-over-Year 19% Distribution & servicing costs Employee comp. & benefits 2% 11% Distribution & servicing costs 1% Direct fund expense 12% Direct fund expense 50% General & administration General & administr
Slide 13: Reconciliation between GAAP and as adjusted
Reconciliation between GAAP and as adjusted ($ in millions) 2016 2017 2018 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Income GAAP $ 1,222 $ 1,143 $ 1,237 $ 1,389 $ 1,485 $ 1,375 $ 1,440 $ 1,396 $ 1,246 Non-GAAP adjustments 7 4 4 4 3 3 3 4 64 As Adjusted $ 1,229 $ 1,147 $ 1,241 $ 1,393 $ 1,488 $ 1,378 $ 1,
Slide 14: 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