Blackrock, Inc. · NYSE:BLK
Blackrock — 2021 Goldman Sachs US Financial Services Conference
20 slides from Blackrock's conference presentation, Dec 7, 2021
Slide 1: Investing to deliver shareholder value
IRH1221U/M-1946957-1/20 Gary Shedlin Chief Financial Officer December 7, 2021 Investing to deliver shareholder value 1
Slide 2: Forward-looking Statements
IRH1221U/M-1946957-1/20 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, strateg
Slide 3: We have a longstanding framework for delivering shareholder value
IRH1221U/M-1946957-1/20 We have a longstanding framework for delivering shareholder value Organic growth Operating Capital leverage management EPS growth 3
Slide 4: Consistent organic growth drives value
IRH1221U/M-1946957-1/20 Consistent organic growth drives value 2022 Organic asset growth vs P/E regression1 Organic asset growth2 23x BLK 6% BLK organic base 20x fee growth 17x 2022E Cash P/E 5% 14x A E 1% 1% 0% 11x 8x D C B 5x (6%) (6%) (5%) 0% 5% 10% A B C D E 2022E Organic Asset Growth BLK Tradit
Slide 5: Outperformance is a result of our diversified platform
IRH1221U/M-1946957-1/20 Outperformance is a result of our diversified platform Effective Fee 20 8 34 27 74 13 4 Rates (bps)1 22% 18% 18% 17% 3-Year Avg Organic Base 6% 7% Fee Growth Rates 2 2% Core 2% Strategic Equity Precision ETFs Traditional Active4 Illiquid Cash Non- Tech5 Alts ETF Index % Contr
Slide 6: Our strategy is guided by clients' needs and our investments are paying off
IRH1221U/M-1946957-1/20 Our strategy is guided by clients’ needs and our investments are paying off ETFs Active ▪ 80%+ of active fixed income and ▪ #1 share of industry net new base fees1 equity AUM above benchmark or peer median over 5-yrs6 ▪ #1 share of AUM in ▪ 78% of US active mutual fund AUM st
Slide 7: Clients are entrusting us with more of their portfolios
IRH1221U/M-1946957-1/20 Clients are entrusting us with more of their portfolios 9/30 YTD organic base fee growth: BlackRock vs Industry 43% For Sustainable: Organic Asset Growth shown BLK Industry 21% 20% 16% 13% 13% 14% 12% 9% 8% 7% 2% 2 4,5 ETFs 1 Private Technology Traditional Whole Portfolio Sus
Slide 8: We are widening our competitive moat
IRH1221U/M-1946957-1/20 We are widening our competitive moat 11% BLK Organic base fee 5% growth 7% premium vs industry 5% 4% BLK 3% 2% 6% 1% 3% 3% Industry 2% 2016-2018 2019 2020 2021 YTD 1 Note: For footnoted information, refer to slides 14-15. 8
Slide 9: We are also delivering operating leverage
IRH1221U/M-1946957-1/20 We are also delivering operating leverage +86% AUM $5.1T $9.5T As of 9/30/21 +38% Employees 13,000 18,000 As of 9/30/21 45.4% 43.8% +160bps Operating Margin, as adjusted 2016 9/30/21 LTM Note: Operating margin, as adjusted is a non-GAAP measure. For further information and re
Slide 10: Compensation expense reflects our strong performance
IRH1221U/M-1946957-1/20 Compensation expense reflects our strong performance Compensation, as adjusted / Net revenue 1 Compensation expense drivers 3 Organic base 2% 11% Operating leverage from scale and fee growth expense discipline Performance $0.4B $1.2B2 fees • Technology and automation • Role o
Slide 11: G&A investments support our growth engines and reflect our operational excellence
IRH1221U/M-1946957-1/20 G&A investments support our growth engines and reflect our operational excellence G&A expense, as adjusted / Net revenue 1 Core G&A drivers Tech, data and other portfolio services 13.7% 13.1% 13.1% 13.0% 1.3% • Aladdin cloud migration Non-core G&A2 0.9% 1.9% 2.5% • Market dat
Slide 12: Commitment to invest first and then return cash to shareholders
IRH1221U/M-1946957-1/20 Commitment to invest first and then return cash to shareholders Capital management strategy Key drivers 1 Organic business investments • Headcount to support strategic growth areas • Approximately $3.5B in seed and co- Seed & investments 2 Headcount G&A Co-Invest • Hudson Yar
Slide 13: Continuing to invest to drive long-term shareholder value
IRH1221U/M-1946957-1/20 Continuing to invest to drive long-term shareholder value Leading investment management technology Diverse, global investment capabilities Organic growth Unmatched global scale Operating Capital leverage management EPS growth Exceptional leadership team Note: For illustrative
Slide 14: End notes
IRH1221U/M-1946957-1/20 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 4 - Consistent organic growth drives value 1. As of 11/30/21. Cash P/E based on earnings estimates from FactSet and adjusted for intangible amortization expense from compa ny public f
Slide 15: End notes
IRH1221U/M-1946957-1/20 End notes These notes refer to the financial metrics and/or defined term presented on: Slide 8 - We are widening our competitive moat Note: Industry sources: Simfund, Broadridge, Spence Johnson, HFR, Preqin, iMoneyNet , Bloomberg, Markit, P&I, Cerulli and Bla ckRock estimates
Slide 16: Appendix
IRH1221U/M-1946957-1/20 Appendix LIMITED DISTRIBUTION 16
Slide 17: Reconciliation between GAAP and as adjusted
IRH1221U/M-1946957-1/20 Reconciliation between GAAP and as adjusted(1) (Figures ($mm, inper except $M)share data) 2016 9/30/21 LTM Operating income Operating Income, GAAP basis $4,565 $7,259 Non-GAAP expense adjustments: Restructuring charge 76 - PNC LTIP funding obligation 28 - Operating Income, as
Slide 18: Reconciliation between GAAP and as adjusted
IRH1221U/M-1946957-1/20 Reconciliation between GAAP and as adjusted(1) (Figures in $M) 2018 2019 2020 9/30/21 YTD Revenue: Revenue, GAAP basis $14,198 $14,539 $16,205 $14,268 Non-GAAP adjustments: Distribution fees (1,155) (1,069) (1,131) (1,110) Investment advisory fees (520) (616) (704) (503) Reve
Slide 19: Performance notes
IRH1221U/M-1946957-1/20 Performance notes Past performance is not indicative of future results. Except as specified, the performance information shown is as of Septemb er 30, 2021 and is based on preliminary data available at that time. The performance data shown reflects information for all activel
Slide 20: Important notes
IRH1221U/M-1946957-1/20 Important notes The opinions expressed herein are as of December 2021 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
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