Slide 1: Q2 2012 Earnings Press Release Supplement
Q2 2012 Earnings Press Release Supplement July 18, 2012 Exhibit 99.2
Slide 2: 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- looki
Slide 3: Table of Contents
Table of Contents Operating and Net Income/Diluted EPS, as adjusted Pg. 3 Operating Margin, as adjusted Pg. 4 Q2 2012 Mix by product, client type, style and region Pg. 5 Market Indices Pg. 6 Year-over-Year: Q2 2012 vs. Q2 2011 Pg. 7-12 Sequential Quarters: Q2 2012 vs. Q1 2012 Pg. 13-18 Non-operating
Slide 4: Operating income remained strong despite market environment
Operating income remained strong despite market environment Operating and Net Income, as adjusted ($ in millions) Diluted Earnings Per Share, as adjusted For further information and reconciliation between GAAP and as adjusted, see the appendix, notes (a) through (f) in the current earnings release a
Slide 5: Sequential operating margin improvement
Sequential operating margin improvement Operating Margin, as adjusted 40.0% 38.6% 39.2% 40.1% 39.7% 37.4% 38.7% 38.2% 36.8% 39.3% 39.1% Q1 Q2 Q3 Q4 Q1 Q2 For further information and reconciliation between GAAP and as adjusted, see the appendix, notes (a) through (f) in the current earnings release a
Slide 6: Q2 2012 mix by product, client type, style and region
Q2 2012 mix by product, client type, style and region Alternatives 9% Alternatives 3% Institutional Index 12% Institutional Index 43% Asia-Pacific 8% Asia -Pacific 11% iShares 31% iShares 20% Q2 2012 Long-term Base Fees of $1.902 billion generated from Long-term Assets Under Management of $3.255 tri
Slide 7: Major non-US equity markets trended lower in Q2 2012
Major non-US equity markets trended lower in Q2 2012 Index Average Index Level Q2 12 vs. Q2 11 Q1 12 Q2 12 Q2 11 Q1 12 S&P 500 1,319 1,347 1,350 2.3% MSCI Barra World Index 1,332 1,268 1,233 (7.4%) MSCI Europe Index (9.4%) MSCI AC Asia Pacific Index (12.4%) MSCI Emerging Markets Index 1,158 1,026 (1
Slide 8: Year-over-year Q2 2012 vs. Q2 2011
Year-over-year Q2 2012 vs. Q2 2011
Slide 9: Year-over-year EPS growth
Year-over-year EPS growth Q2-12 Compared to Q2-11, as adjusted $3.27 $3.09 Operating EPS: Operating EPS: $0.18 ($0.08) ($0.50) $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 Q2-11 EPS Operating EPS Non-Operating EPS Q2-12 EPS Total EPS: $3.10 Total EPS: $3.00 Non-Operating: ($0.09) For further info
Slide 10: Year-over-year operating income reflected market effects and expense discipline
Year-over-year operating income reflected market effects and expense discipline Q2-12 Compared to Q2-11, as adjusted For further information and reconciliation between GAAP and as adjusted, see the appendix and notes (a) through (f) in the current earnings release. Decreasing Expenses Decreasing Rev
Slide 11: Year-over-year revenue reflected market effects and strong demand for BRS services
Year-over-year revenue reflected market effects and strong demand for BRS services Q2-12 Compared to Q2-11 Total Revenue ($118) million Q2-11 $2.35 billion Q2-12 $2.23 billion Decreasing Revenue Increasing Revenue 90% 2% 5% 3% Base Fees Performance Fees BRS and Advisory Other Revenue/ Distribution F
Slide 12: Year-over-year base fees reflected a shift towards fixed income iShares
Year-over-year base fees reflected a shift towards fixed income iShares Q2-12 Compared to Q2-11 Base fees ($110) million Decreasing Base Fees Increasing Base Fees Q2-12 $1.99 billion Q2-11 $2.10 billion $0 $1,990 $2,100 ($107) ($33) ($20) ($8) $8 $9 $30 $1,900 $2,000 $2,100 $2,200 Q2-11 iShares Fixe
Slide 13: Year-over-year expenses declined across all major expense categories
Year-over-year expenses declined across all major expense categories Expenses, as adjusted, by Category Q2-12 Compared to Q2-11, as adjusted Increasing Expenses Decreasing Expenses Q2-12 $1.40 billion For further information and reconciliation between GAAP and as adjusted, see the appendix and notes
Slide 14: Sequential Quarters Q2 2012 vs. Q1 2012
Sequential Quarters Q2 2012 vs. Q1 2012
Slide 15: Sequential EPS reflected market conditions
$3.27 $3.10 Sequential EPS reflected market conditions Q2-12 Compared to Q1-12, as adjusted Operating EPS: Operating EPS: ($0.23) $0.17 ($0.50) $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 Q1-12 EPS Operating EPS Non-Operating EPS Q2-12 EPS Increasing EPS For further information and reconciliatio
Slide 16: Q2 2012 operating income improvement reflected seasonal factors and market effects
Q2 2012 operating income improvement reflected seasonal factors and market effects Q2-12 Compared to Q1-12, as adjusted $7 million $0 For further information and reconciliation between GAAP and as adjusted, see the appendix and notes (a) through (f) in the current earnings release. Decreasing Expens
Slide 17: Sequential revenue stable
Sequential revenue stable Q2-12 Compared to Q1-12 Total Revenue ($20) million Decreasing Revenue Increasing Revenue Q2-12 $2.23 billion Q1-12 $2.25 billion $0 $2,229 $2,249 $8 ($2) $13 ($39) $2,000 $2,200 $2,400 Q1-12 Base Fees BRS & Advisory Other Revenue / Distribution Fees Performance Fees Q2-12
Slide 18: Sequential base fees reflected seasonal factors, fixed income demand and market effects
Sequential base fees reflected seasonal factors, fixed income demand and market effects Base Fees Q2-12 Compared to Q1-12 $1,990 $1,977 ($24) ($7) ($7) ($6) ($1) $6 $9 $10 $33 $1,800 $1,900 $2,000 Q1-12 Institutional Index Equity Institutional Index Fixed Income iShares Fixed Income Active Fixed Inc
Slide 19: Sequential expenses declined overall despite higher brand campaign costs
Sequential expenses declined overall despite higher brand campaign costs Expense, as adjusted, by Category Q2-12 Compared to Q1-12, as adjusted Increasing Expenses Decreasing Expenses For further information and reconciliation between GAAP and as adjusted, see the appendix and notes (a) through (f)
Slide 20: Non-operating and cash flow
Non-operating and cash flow
Slide 21: Q2 2012 non-operating expense
Q2 2012 non-operating expense Q2-12 $43 million Non-Operating Expense by Category, as adjusted For further information and reconciliation between GAAP and as adjusted, see the appendix and notes (a) through (f) in the current earnings release. ($4) $4 $3 ($2) ($44) ($50) ($40) ($30) ($20) ($10) $0 $
Slide 22: Operating cash flow and payout ratio
Operating cash flow and payout ratio Payout Ratio Operating cash flow $2.8 $2.5 $1.4 $1.9 $0.7 $0.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 YTD Q2 Est. YTD Q2 2/17/06 2/27/07 2/15/08 N/A Dividend Change Declared: Excludes $2.5 bn June 2011 buyback of 13.6 million shares GAAP as adjusted Excludes $1.0 bn
Slide 23: Appendix
Appendix
Slide 24: Q2 2012 long-term AUM reflected modest long-term inflows and market declines
Q2 2012 long-term AUM reflected modest long-term inflows and market declines Q2-11 Compared to Q2-12 Long-term AUM $0 ($24) billion Q2-11 $3.279 trillion Q2-12 $3.255 trillion $3,279 $8 $8 $7 ($47) $3,255 $3,100 $3,200 $3,300 $3,400 Q2-11 Net New Business Acquisition Market FX Q2-12 Decreasing AUM I
Slide 25: Q2 2012 long-term AUM reflected decline in global markets
Q2 2012 long-term AUM reflected decline in global markets Q1-12 Compared to Q2-12 Long-term AUM Q2-12 $3.255 trillion Decreasing AUM Increasing AUM Q1-12 $3.345 trillion 7% 3% 9% 13% 5% 14% 30% 19% Index EQ iShares EQ Active EQ Index FI iShares FI Active FI Multi Asset Alternatives 8% 3% 8% 14% 6% 1
Slide 26: Quarterly operating income – GAAP and as adjusted
Quarterly operating income – GAAP and as adjusted Operating Income ($ in millions) Non-GAAP Adjustments ($ in millions) GAAP as adjusted Non-GAAP adjustments include PNC LTIP funding obligation, Merrill Lynch compensation contribution, UK lease exit costs, restructuring charges, and compensation rel
Slide 27: Quarterly net income – GAAP and as adjusted
Quarterly net income – GAAP and as adjusted Net Income ($ in millions) Non-GAAP Adjustments ($ in millions) Non-GAAP adjustments include PNC LTIP funding obligation, Merrill Lynch compensation contribution, UK lease exit costs, restructuring charges, income tax law changes and a state tax election G
Slide 28: Quarterly non-operating income – GAAP and as adjusted
Quarterly non-operating income – GAAP and as adjusted Non-Operating Income (Expense) ($ in millions) Non-GAAP Adjustments ($ in millions) GAAP as adjusted Non-GAAP adjustments include net income (loss) attributable to non-controlling interests and compensation expense related to (appreciation) depre
Slide 29: Cash Flow GAAP and As Adjusted
Cash Flow GAAP and As Adjusted Cash Flow GAAP and As Adjusted (in millions) YTD Q2 2011 EST YTD Q2 2012 Operating Cash Flows Operating Cash flows, GAAP basis $721 $587 $1,916 $1,399 $2,488 $2,826 $717 $900 Less: Non-GAAP adjustments (1) (337) (77) Operating Cash flows, as Adjusted $700 $924 $1,503 $
Slide 30: BlackRock
BLACKROCK