Blackrock, Inc. · NYSE:BLK
Blackrock — Q1 2013 Earnings Presentation
30 slides from Blackrock's earnings presentation, Apr 16, 2013
Slide 1: Q1 2013 Earnings Press Release Supplement
Exhibit 99.2 Q1 2013 Earnings Press Release Supplement April 16, 2013
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-lookin
Slide 3: Table of Contents
Table of Contents Operating and Net Income/Diluted EPS, as adjusted Page 3 Operating Margin, as adjusted Page 4 Q1 2013 Mix by Product, Client Type, Style and Region Page 5 Global Equity Market Indices Page 6 Year-over-Year: Q1 2013 vs. Q1 2012 Pages 7-12 Sequential Quarters: Q1 2013 vs. Q4 2012 Pag
Slide 4: Q1 2013 EPS up 16% year-over-year reflecting strong revenues and operating leverage
Q1 2013 EPS up 16% year-over-year reflecting strong revenues and operating leverage • Q1 2013 includes $33 million of organizational alignment costs and $18 million of fund launch costs • Sequential results reflect seasonal factors primarily related to performance fees and payroll taxes Operating an
Slide 5: Continued year-over-year margin improvement
Continued year-over-year margin improvement • Q1 2013 includes $33 million of organizational alignment costs • Sequential results reflect seasonal factors primarily related to performance fees and payroll taxes Operating Margin, as adjusted Full Year 2012 = 40.4% 42.6% 40.7% 39.7% 40.0% 38.7% 39.3%
Slide 6: Q1 2013 mix by product, client type, style and region
Q1 2013 mix by product, client type, style and region Q1 2013 Long-term Base Fees of $2.043 billion Long-term Assets Under Management of $3.629 trillion at March 31, 2013 Product Type Client Type Style Region Institutional 32% Active 36% Equity Equity Active 55% 56% 55% Americas Americas Institution
Slide 7: Major global equity markets indices
Major global equity markets indices Spot Average March 31, Average Index Level Q1 2013 vs. Index 2013 Q1 2013 Q1 2012 Q4 2012 Q1 2012 Q4 2012 Domestic S&P 500 1,569 1,513 1,347 1,418 12.3% 6.7% Global MSCI Barra World Index 1,435 1,405 1,268 1,312 10.8% 7.1% MSCI Europe Index 101 100 90 94 11.1% 6.4
Slide 8: Year-over-year: Q1 2013 vs. Q1 2012
Exhibit 99.2 ** * * * * * * * * Year-over-year Q1 2013 vs. Q1 2012
Slide 9: EPS up 16% year-over-year driven by strong operating results
EPS up 16% year-over-year driven by strong operating results • Q1 2013 includes $33 million of organizational alignment costs and $18 million of fund launch costs Q1 2013 Compared to Q1 2012, as adjusted $0.49 $4.00 Total EPS: $0.54 $3.65 $3.50 Total EPS: ($0.05) $3.16 $3.00 Operating $2.50 Operatin
Slide 10: Year-over-year operating income reflected revenue growth and expense discipline
Year-over-year operating income reflected revenue growth and expense discipline Q1 2013 Compared to Q1 2012, as adjusted Increasing Revenue Increasing Expense For further information and reconciliation between GAAP and as adjusted, see the appendix and notes (a) through (f) in the current earnings r
Slide 11: Year-over-year revenue reflected base fee growth and strong performance fees
Year-over-year revenue reflected base fee growth and strong performance fees Total Revenue Q1 2012 $2.25 billion Q1 2013 Compared to Q1 2012 Increasing Revenue Decreasing Revenue 10
Slide 12: Year-over-year base fees reflected growth across most asset classes
Year-over-year base fees reflected growth across most asset classes Base fees Q1 2012 Q1 2013 $1.98 billion $2.13 billion Q1 2013 Compared to Q1 2012 Increasing Base Fees Decreasing Base Fees 11
Slide 13: Year-over-year expense discipline was impacted by reorganization and fund launch costs
Year-over-year expense discipline was impacted by reorganization and fund launch costs Expenses, as adjusted, by Category Q1 2012 Q1 2013 $1.42 billion $1.53 billion Q1 2013 Compared to Q1 2012, as adjusted (1) G&A and compensation & benefits expenses exclude organizational alignment costs and fund
Slide 14: Sequential Quarters: Q1 2013 vs. Q4 2012
* * * * * ** ** * * Sequential Quarters Q1 2013 vs. Q4 2012
Slide 15: Sequential results reflected base fee growth offset by seasonal factors
Sequential results reflected base fee growth offset by seasonal factors • Q1 2013 includes $33 million of organizational alignment costs and $18 million of fund launch costs • Sequential results reflect seasonal factors primarily related to performance fees and payroll taxes Q1 2013 Compared to Q4 2
Slide 16: Q1 2013 operating income reflected base fee growth offset by seasonal factors
Q1 2013 operating income reflected base fee growth offset by seasonal factors • Q1 2013 includes $33 million of organizational alignment costs and $18 million of fund launch costs • Sequential results reflect seasonal factors primarily related to performance fees and payroll taxes Q1 2013 Compared t
Slide 17: Sequential revenue driven by base fee growth offset by seasonally lower performance fees
Sequential revenue driven by base fee growth offset by seasonally lower performance fees Total Revenue Q4 2012 Q1 2013 $2.54 billion $2.45 billion Q1 2013 Compared to Q4 2012 Increasing Revenue Decreasing Revenue 16
Slide 18: Sequential base fees reflected growth in markets and long-term flows
Sequential base fees reflected growth in markets and long-term flows Base Fees Q4 2012 Q1 2013 $2.08 billion $2.13 billion Q1 2013 Compared to Q4 2012 Increasing Base Fees Decreasing Base Fees 17
Slide 19: Sequential expenses reflected reorganization and fund launch costs and lower marketing costs
Sequential expenses reflected reorganization and fund launch costs and lower marketing costs • Sequential results reflect seasonal factors primarily related to performance fees and payroll taxes Expenses, as adjusted, by Category Q4 2012 Q1 2013 $1.50 billion $1.53 billion Q1 2013 Compared to Q4 201
Slide 20: Non-operating and Capital Management
* * * * * * * * * * * Non-operating and Capital Management
Slide 21: Q1 2013 non-operating income
Q1 2013 non-operating income Q1 2013 $3 million Non-Operating Income by Category, as adjusted $51 million Net Investment Gain $30 $19 $19 $20 $7 $10 $3 $3 $0 ($10) ($20) ($30) ($40) ($50) ($48) ($60) Private Equity Real Estate Distressed Credit/ Hedge Funds/ Other Investments Net Interest Mortgage F
Slide 22: Continued commitment to sound capital management
Continued commitment to sound capital management Operating cash flow Dividends and Dividend Payout Ratio Annual incentive compensation payout in Q1 For further information and reconciliation between GAAP and as adjusted, see the previously filed Form 10-Ks Form 10-Qs and 8-Ks and the appendix to thi
Slide 23: Appendix
* * * * * * * * * Appendix
Slide 24: Q1 2013 long-term AUM up 9% from Q1 2012
Q1 2013 long-term AUM up 9% from Q1 2012 Long-term AUM Q1 2012 Non-ETF EQ Q1 2013 iShares EQ $3.345 trillion $3.629 trillion Active EQ Non-ETF FI iShares FI Active FI Multi Asset Alternatives Q1 2013 Compared to Q1 2012 (1) Net new business excludes the effect of a single low-fee non-ETP index fixed
Slide 25: Q1 2013 long-term AUM up 4% from Q4 2012
Q1 2013 long-term AUM up 4% from Q4 2012 Long-term AUM Q4 2012 Non-ETF EQ Q1 2013 iShares EQ $3.482 trillion $3.629 trillion Active EQ Non-ETF FI iShares FI Active FI Multi Asset Alternatives Q1 2013 Compared to Q4 2012 Increasing AUM Decreasing AUM 24
Slide 26: Quarterly operating income – GAAP and as adjusted
Quarterly operating income – GAAP and as adjusted Non-GAAP adjustments include a contribution to short-terminvestment funds (“STIFs”), PNC LTIP funding obligation and compensation related to appreciation (depreciation) on certain deferred compensation plans. Operating Income ($ in millions) Non-GAAP
Slide 27: Quarterly net income – GAAP and as adjusted
Quarterly net income – GAAP and as adjusted Non-GAAP adjustments include a contribution to STIFs, PNC LTIP funding obligation and income tax changes. Net Income ($ in millions) Non-GAAP Adjustments ($ in millions) GAAP as adjusted For further information and reconciliation between GAAP and as adjust
Slide 28: Quarterly non-operating income (expense) – GAAP and as adjusted
Quarterly non-operating income (expense) – GAAP and as adjusted Non-GAAP adjustments include net income (loss) attributable to non-controlling interests and compensation expense related to (appreciation) depreciation on certain deferred compensation plans. Non-Operating Income (Expense) ($ in millio
Slide 29: Cash Flow GAAP and As Adjusted
Cash Flow GAAP and As Adjusted (in millions) EST 2010 2011 2012 Q1 2012 Q1 2013 Operating Cash Flows Operating Cash flows, GAAP basis $2,488 $2,826 $2,240 ($102) $200 Less: Non-GAAP adjustments (1) (77) 178 (483) (23) - Operating Cash flows, as Adjusted $2,565 $2,648 $2,723 ($79) $200 Investing Cash
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