Slide 1: Q4 2011 Earnings Press Release Supplement
Q4 2011 Earnings Press Release Supplement January 19, 2012 Exhibit 99.2
Slide 2: Full year 2011 diluted EPS up 8% despite market volatility
Full year 2011 diluted EPS up 8% despite market volatility 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 (e) in the current earnings release, 2
Slide 3: Full year 2011 operating margin improved
Full year 2011 operating margin improved Operating Margin, as adjusted 39.1% 39.7% 40.0% 40.1% 40.7% 38.4% 37.4% 38.7% 38.2% 36.8% 38.9% 38.8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 For further information and reconciliation between GAAP and as adjusted, see notes (a) through (e) in the current earnings release, 2
Slide 4: Global markets no longer aligned: US Positive; Others Negative
Global markets no longer aligned: US- Positive; Others- Negative 1,000 1,100 1,200 1,300 1,400 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 MSCI World Index S&P 500 MSCI Emerging Markets Q4 11 vs. Q4 10 Average : MSCI World Index 5% MSCI Emerging Markets 17% S&P 2% Q4 11 vs. Q3 11 Average: MSCI World Index 4% MSCI Emerg
Slide 5: Year-over-year Q4 2011 vs. Q4 2010
Year-over-year Q4 2011 vs. Q4 2010
Slide 6: Year-over-year EPS decline explained by market effects
Year-over-year EPS decline explained by market effects Q4-11 Compared to Q4-10, as adjusted $3.14 $3.35 Operating EPS: Operating EPS: ($0.21) ($0.15) ($0.30) $0.20 $0.70 $1.20 $1.70 $2.20 $2.70 $3.20 Q4-10 EPS Operating EPS Non Operating EPS Q4-11 EPS Total EPS: $3.06 Total EPS: $3.42 Non-Operating:
Slide 7: Year-over-year operating income benefited from cost controls muting market pressures
Year-over-year operating income benefited from cost controls muting market pressures Q4-11 Compared to Q4-10, as adjusted ($121) million $0 For further information and reconciliation between GAAP and as adjusted, see notes (a) through (e) in the current earnings release. Decreasing Expenses Decreasi
Slide 8: Year-over-year market stress masked benefits of organic growth in AUM and BRS
Year-over-year market stress masked benefits of organic growth in AUM and BRS Q4-11 Compared to Q4-10 Total Revenue ($266) million Q4-10 $2.49 billion Q4-11 $2.23 billion 79% 13% 3% 5% Base Fees Performance Fees BRS and Advisory Other Revenue 83% 7% 7% 3% Decreasing Revenue Increasing Revenue $0 $2,
Slide 9: Market effects on year-over-year base fees balanced by organic growth and product mix
Market effects on year-over-year base fees balanced by organic growth and product mix Q4-11 Compared to Q4-10 Base fees Decreasing Base Fees Increasing Base Fees ($88) million Q4-11 $1.86 billion Q4-10 $1.95 billion $1,951 $1,863 $15 $8 $4 $1 $1 ($2) ($30) ($38) ($47) $1,700 $1,800 $1,900 $2,000 Q4-
Slide 10: 9% year-over-year expense decline across all expense categories
9% year-over-year expense decline across all expense categories Expenses, as adjusted, by Category Q4-11 Compared to Q4-10, as adjusted Increasing Expenses Decreasing Expenses For further information and reconciliation between GAAP and as adjusted, see notes (a) through (e) in the current earnings r
Slide 11: Sequential Quarters Q4 2011 vs. Q3 2011
Sequential Quarters Q4 2011 vs. Q3 2011
Slide 12: Sequential EPS reflects improved non-operating EPS
Sequential EPS reflects improved non-operating EPS $3.14 $3.12 Q4-11 Compared to Q3-11, as adjusted Operating EPS: Operating EPS: $0.21 $0.02 ($0.30) $0.20 $0.70 $1.20 $1.70 $2.20 $2.70 $3.20 $3.70 Q3-11 EPS Operating EPS Non-Operating EPS Q4-11 EPS $0.23 Increasing EPS For further information and r
Slide 13: Sequential operating income stable
Sequential operating income stable Q4-11 Compared to Q3-11, as adjusted ($8) million $0 For further information and reconciliation between GAAP and as adjusted, see notes (a) through (e) in the current earnings release. Increasing Expense Increasing Revenue $849 $841 $2 ($10) $600 $700 $800 $900 Q3-
Slide 14: Sequential revenue driven by growth in performance fees and BRS offset by market effects
Sequential revenue driven by growth in performance fees and BRS offset by market effects Q4-11 Compared to Q3-11 Total Revenue $2 million Decreasing Revenue $0 Increasing Revenue Q4-11 $2.23 billion Q3-11 $2.23 billion $2,227 $2,225 $32 ($86) $56 $2,000 $2,200 Q3-11 Performance Fees BRS & Advisory B
Slide 15: Sequential base fee decline reflected organic growth offset by market effects
Sequential base fee decline reflected organic growth offset by market effects Base Fees Q4-11 Compared to Q3-11 ($86) million Decreasing Base Fees Increasing Base Fees $0 Q3-11 $1.95 billion Q4-11 $1.86 billion $1,700 $1,800 $1,900 $2,000 $1,863 $1,949 ($46) ($24) ($9) ($6) ($5) ($3) ($1) $1 $7 Q3-1
Slide 16: Sequential expenses remained relatively stable
Sequential expenses remained relatively stable Expense, as adjusted, by Category Q4-11 Compared to Q3-11, as adjusted Increasing Expenses Decreasing Expenses $0 Q3-11 $1.38 billion For further information and reconciliation between GAAP and as adjusted, see notes (a) through (e) in the current earni
Slide 17: Non-operating and cash flow
Non-operating and cash flow
Slide 18: Q4 2011 net investment gains driven by private equity valuations
Q4 2011 net investment gains driven by private equity valuations Q4-11 $21 million Non-Operating Expense by Category, as adjusted For further information and reconciliation between GAAP and as adjusted, see notes (a) through (e) in the current earnings release. $14 $0 $3 ($1) $2 ($39) ($40) ($30) ($
Slide 19: Strong 2011 operating cash flow and payout ratio
Strong 2011 operating cash flow and payout ratio Payout ratio reflects dividend growth and $2.6 billion of buybacks 2011 Operating cash flow exceeded 2010 Notes: (A) Payout ratio = (dividends + share repurchases) / GAAP net income. $0.7 $0.6 $1.9 $1.4 $2.5 $2.9 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Est
Slide 20: AUM and flows
AUM and flows
Slide 21: Year-over-year AUM declines driven by equity markets
Year-over-year AUM declines driven by equity markets Q4-10 Compared to Q4-11 Total AUM $0 ($20) billion Q4-10 $3.561 trillion Q4-11 $3.513 trillion 5% 3% 8% 4% 17% 26% 13% 3% 12% 9% Index EQ iShares EQ Active EQ Index FI iShares FI Active FI Multi Asset Alternatives Cash Advisory 6% 3% 7% 3% 18% 25%
Slide 22: Sequential AUM growth driven by flows and markets
Sequential AUM growth driven by flows and markets Q3-11 Compared to Q4-11 Total AUM $0 $168 billion Q3-11 $3.345 trillion Q4-11 $3.513 trillion 6% 3% 7% 4% 19% 24% 12% 4% 13% 8% Index EQ iShares EQ Active EQ Index FI iShares FI Active FI Multi Asset Alternatives Cash Advisory 6% 3% 7% 3% 18% 25% 12%
Slide 23: Appendix
Appendix
Slide 24: Quarterly operating income – GAAP and as adjusted
Quarterly operating income – GAAP and as adjusted Operating Income ($ in millions) Non-GAAP Adjustments ($ in millions) GAAP as adjusted Non-GAAP adjustments include BGI integration costs, PNC LTIP funding obligation, Merrill Lynch compensation contribution, UK lease exit costs, restructuring charge
Slide 25: 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 BGI integration costs, PNC LTIP funding obligation, Merrill Lynch compensation contribution, UK lease exit costs, restructuring charges, income tax law changes and
Slide 26: 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) depr
Slide 27: Forward-looking statements
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, strategies or expectations. For
Slide 28: BLACKROCK
BLACKROCK