Blackrock, Inc. · NYSE:BLK
Blackrock — Investor Day (June 2023)
20 slides from Blackrock's investor day presentation, June 2023
Slide 1: Driving value for our shareholders
Martin Small Chief Financial Officer and Global Head of Corporate Strategy Driving value for our shareholders Investor Day 2023
Slide 2: We have a longstanding framework for delivering shareholder value
We have a longstanding framework for delivering shareholder value Organic growth Operating Capital leverage management EPS growth 120
Slide 3: Successful execution of our financial framework
Successful execution of our financial framework Organic growth Operating margin (as adj.) Capital management $7.9 billion shares repurchased (7)% share count reduction 46.8% in 2021 $19.52 44.1% Primarily 5% 5% 2022 beta organic asset organic base 42.8% impact growth1 fee growth2 $10.00 10% CAGR 1/1
Slide 4: Organic asset growth higher and less volatile than peers
Organic asset growth higher and less volatile than peers Organic asset growth1 Standard deviation1 9% 5% BLK organic base fee growth 7% 6% 7% 5% 5% 5% 5% 4% 4% 3% 1% 1% (1%) (5%) (6%) A B C D E F G A B C D E F G BLK Traditional Asset Manager Peers Captive Peers BLK Traditional Asset Manager Peers Ca
Slide 5: Diversified platform supports 5% organic base fee growth target
Diversified platform supports 5% organic base fee growth target 7% 3–Year Average BlackRock Organic Base Fee Growth 2 Effective Fee 17 8 31 27 67 12 4 Rates (bps)1 19% 14% 12% 3–Year 7% Avg Organic 6% Base Fee Growth 4% 6% Rates2 Strategic Core 1% Equity Precision ETFs Active ex–Illiquid Alts4 Illiq
Slide 6: Our ability to meet client needs continues to scale our AUM
Our ability to meet client needs across a variety of market environments continues to scale our AUM 9% CAGR $9.1T Net inflows ($B) $540 $429 $391 $367 $307 $2.9T $3.8T $120 $194 $150 $202 $124 $110 increase from net inflows Market / FX movements ($B) $1,025 $856 $770 $752 $386 $134 $220 $385 $2.2T a
Slide 7: Differentiated organic growth and margin over the long-term
Differentiated organic growth and margin over the long–term, with near–term results impacted by historic market headwinds 20121 2021 2022 $3.8T AUM +163% (14)% $2.5T of net inflows $10.0T $307B of net inflows $8.6T $9.3B Revenue +109% 1 $19.4B (8)% $17.9B 40.4% Margin as adj. +640bps1 46.8% (400)bps
Slide 8: Consistent capital management policy to invest first and then return cash to shareholders
Consistent capital management policy to invest first and then return cash to shareholders Prioritization of cash use Cash payout & payout ratio1,2 (Figures in $B) Organic business investments 94% 84% 84% 76% 100% 6 63% G&A Headcount Seed & Co–invest 5 $4.9 50% 4 $3.6 $3.8 $3.8 $3.7 0% Tactical acqui
Slide 9: Using our balance sheet to support profitable growth
Using our balance sheet to support profitable growth Seed1 Co–invest1 Revenues from seeded funds ($B) Revenues from co–invested funds ($B) $0.9 $1.8 $0.2 $0.82 Seed portfolio ($B) 26% Co–investment portfolio ($B), including 25% IRR on unfunded commitments IRR on shareholder shareholder $2.6 $2.3 cap
Slide 10: Increasing co-investment portfolio as private markets scales
Increasing co–investment portfolio as private markets scales, delivering revenue growth and profitability for shareholders Scaling private markets Carry increasingly contributing to revenue Significant potential performance fees Private markets gross fundraise1 ($B) Carry performance fees ($M) Gross
Slide 11: Inorganic investments accelerate organic growth
Inorganic investments accelerate organic growth, support strategic initiatives, and deliver return for shareholders Tactical acquisitions Strategic minority investments 1 Technology Alternatives 1 Global Distribution Whole Portfolio 1. Subject to customary regulatory and closing conditions. Acquisit
Slide 12: Steady dividend increases
Steady dividend increases $20.00 $19.52 $16.52 $14.52 17% $13.20 CAGR $12.02 $10.00 $9.16 $8.72 $7.72 $6.72 $6.00 $5.50 $4.00 $3.12 $3.12 $2.68 $1.68 $0.80 $1.00 $1.20 1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Ann'd Note: For footnoted
Slide 13: Share repurchase program since 2013
Share repurchase program since 2013 171M shares outstanding 12/31/12 (13)% 150M shares outstanding 12/31/22 $13B+ repurchased $428 average price per share +15% compound annual return1 Note: For footnoted information, refer to slide 136. 131
Slide 14: BlackRock has delivered differentiated organic base fee growth across various market environments
BlackRock has delivered differentiated organic base fee growth across various market environments… S&P 500 Returns 30% 11% (1)% 10% 19% (6)% 29% 16% 27% (19)% 11% Avg: 5% 7% 7% 5% 6% 6% 5% Organic base fee growth1 2% 1% 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YoY as adj. 100 150 – 90 30
Slide 15: Driving BlackRock stock outperformance over the long-term
…driving BlackRock stock outperformance over the long–term Total return to shareholders1 319% 251% 106% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3/31/23 2022 BLK S&P 500 Large-Cap Traditional Peers Note: For footnoted information, refer to slide 136. 133
Slide 16: Access, Service, Expertise: continue to invest and leverage our scale
BlackRock will 1BLK Platform continue to invest and Organic growth leverage our scale to drive Operating Capital Service Access long–term leverage management shareholder value EPS growth Expertise 134
Slide 17: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 121 – Successful execution of our financial framework 1. Organic asset growth rate is calculated by dividing net asset inflows over beginning of period assets. 5% reflects average over the 5–year period. 2.
Slide 18: End notes
End notes These notes refer to the financial metrics and/or defined term presented on: Slide 128 – Increasing co–investment portfolio as private markets scales, delivering revenue growth and profitability for shareholders 1. Gross fundraising includes assets counted in net inflows and committed capi
Slide 19: Reconciliation between GAAP and as adjusted
Reconciliation between GAAP and as adjusted ($mm, except per share data) 2012 1,2 2013 1,2 2014 1,2 2015 1,2 2016 2 2017 2 2018 2 2019 2 2020 2 2021 2 2022 2 Operating income Operating Income, GAAP basis $3,524 $3,857 $4,474 $4,664 $4,565 $5,254 $5,457 $5,551 $5,695 $7,450 $6,385 Non-GAAP expense ad
Slide 20: Important notes
Important notes The opinions expressed herein are as of June 2023 and are subject to change at any time due to changes in the market, the economic or regulatory environment or for other reasons. The information should not be construed as research or relied upon in making investment decisions or be u