Blackrock, Inc. · NYSE:BLK
Blackrock — Q3 2019 Earnings Presentation
11 slides from Blackrock's earnings presentation, Oct 15, 2019
Slide 1: Q3 2019 Earnings
October 15, 2019 Q3 2019 Earnings Earnings Release Supplement
Slide 2: A broadly diversified business across clients, products and geographies
A broadly diversified business across clients, products and geographies Assets Under Management of $6.96 trillion at September 30, 2019 Q3 2019 Total Base Fees of $2.980 billion Client Type Style Product Type Region Active Institutional 27% 32% Active Equity Equity Institutional 47% 50% 48% 61% Amer
Slide 3: Long-term net flows
Long-term net flows ($ in billions) Total long-term Retail 7% 7% 6% 4% 3% 2% 2% 4% 5% 3% 6% 7% 7% 6% 3% 0% 0% 0% 5% 7% 7% 4% 3% 2% 1% 2% 3% $125 $76 $81 $17 $55 $59 $52 $11 $44 $7 $7 $5 $14 $11 $2 $2 $(1) $(3) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2018 2018 2018 2018 2019 2
Slide 4: Profitability
Profitability ($ in millions, except per share data) Operating Income and Margin, as adjusted Net Income and EPS, as adjusted $1,700 $7.52 $7.15 45.1% 44.7% 44.1% 45.2% 44.2% $1,580 $1,700 43.5% 46.0% $6.70 $6.66 $6.61 $6.41 41.9% 43.1% 44.2% $6.19 $6.08 $1,600 $1,460 $5.90 $1,502 $1,500 $1,488 $1,4
Slide 5: Capital management
Capital management (amounts in millions, except per share data) Share repurchases and weighted average diluted shares Dividends per share 163.8 163.8 162.9 162.2 161.4 160.5 159.3 $3.30 $3.30 $3.30 156.4 156.4 $3.13 $3.13 (1) $2.88 $2.88 $1,566 $2.50 $2.50 $500 $525 $335 $300 $275 $275 $100 $0 Q3 Q4
Slide 6: Major market indices and exchange rates
Major market indices and exchange rates % Change % Change Spot 9/30/19 vs. Average Q3 2019 vs. 9/30/2018 6/30/2019 9/30/2019 6/30/2019 9/30/2018 Q3 2018 Q2 2019 Q3 2019 Q2 2019 Q3 2018 Equity Indices Domestic S&P 500 2,914 2,942 2,977 1% 2% 2,848 2,882 2,958 3% 4% Global MSCI Barra World Index 2,184
Slide 7: Quarterly revenue
Quarterly revenue ($ in millions) Percentage Change Year-over-Year Sequential 77% Base fees ex. securities lending Base fees ex. securities lending 4% 3% Securities lending Securities lending (6)% -% Performance fees Performance fees (20)% 89% Technology services revenue Technology services revenue
Slide 8: Quarterly investment advisory, administration fees and securities lending revenue
Quarterly investment advisory, administration fees and securities lending revenue ($ in millions) Q3 2019 compared to Q3 2018 Q3 2019 compared to Q2 2019 $97 $77 $36 $5 $(1) $(10) $(13) $(14) $46 $2,980 $12 $6 $5 $2 $2,980 $13 $48 $17 $22 $2,883 $2,903 Q3 2018 Alts iShares Active Cash Non-ETF Multi-
Slide 9: Quarterly expense, as adjusted
Quarterly expense, as adjusted ($ in millions) Employee comp. & benefits Percentage Change Year-over-Year Sequential 19% 2% 3% Employee comp. & benefits Distribution & servicing costs Distribution & servicing costs 5% 3% 11% Direct fund expense Direct fund expense (4)% (5)% 51% General & administrat
Slide 10: Reconciliation between GAAP and as adjusted
Reconciliation between GAAP and as adjusted ($ in millions) 2017 2018 2019 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Operating Income GAAP $ 1,389 $ 1,485 $ 1,375 $ 1,440 $ 1,396 $ 1,246 $ 1,233 $ 1,278 $ 1,502 Non-GAAP expense adjustments 4 3 3 3 4 64 - - - As Adjusted $ 1,393 $ 1,488 $ 1,378 $ 1,443 $ 1,400 $ 1,
Slide 11: 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