ALL PRESENTATIONS FOR PRINT · 8:00 – 8:15am Welcome Remarks Robert S. Kapito, President 8:20 –...

8:00 – 8:15am Welcome Remarks

Robert S. Kapito, President

8:20 – 8:40am Strategic Product Management: Optimizing the Platform

J. Richard Kushel, Deputy COO & Head of Strategic Product Management

8:45 – 9:15am Combined Power of Alpha & Beta

Quintin R. Price, Global Head of Alpha Strategies

Amy L. Schioldager, Global Head of Beta Strategies

9:20 – 9:50am Retail: A Global Opportunity

Robert W. Fairbairn, Global Head of Retail & iShares

9:55 – 10:10am Break

10:10 – 10:40am Institutional & BlackRock Solutions: Focused Execution

Robert L. Goldstein, Global Head of Institutional & BlackRock Solutions

10:40 – 11:00am Aladdin Platform: Sustainable Differentiation

Charles S. Hallac, COO

11:05 – 11:35am iShares: Growth from Here

Mark K. Wiedman, Global Head of iShares

11:40 – 12:10pm Delivering Shareholder Value

Gary S. Shedlin, CFO

12:10 – 12:15pm Break

12:15 – 12:45pm Luncheon

12:45 – 1:30pm Audience Discussion

1:30 – 2:00pm Closing Remarks & Final Questions

Laurence D. Fink, Chairman & CEO

Agenda

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-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to risk factors previously disclosed in BlackRock’s Securities and Exchange Commission (“SEC”) reports and those identified elsewhere in this presentation the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock’s investment products; (4) the impact of increased competition; (5) the impact of future acquisitions or divestitures; (6) the unfavorable resolution of legal proceedings; (7) the extent and timing of any share repurchases; (8) the impact, extent and timing of technological changes and the adequacy of intellectual property, information and cyber security protection; (9) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or The PNC Financial Services Group, Inc. (“PNC”); (10) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (11) the ability to attract and retain highly talented professionals; (12) fluctuations in the carrying value of BlackRock’s economic investments; (13) the impact of changes to tax legislation, including income, payroll and transaction taxes, and taxation on products or transactions, which could affect the value proposition to clients and, generally, the tax position of the Company; (14) BlackRock’s success in maintaining the distribution of its products; (15) the impact of BlackRock electing to provide support to its products from time to time and any potential liabilities related to securities lending or other indemnification obligations; and (16) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

BlackRock’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and BlackRock’s subsequent filings with the SEC, accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.

Forward-looking Statements

Welcome Remarks

Robert S. Kapito, President

BLACKROCK INVESTOR DAY 2013

Today’s goals

Deepen understanding of BlackRock1

Provide enhanced access to a broad range of senior leaders

2

3

Agenda

Strategic Product Management

iShares

Retail

Institutional & BRS

Aladdin Platform

Alpha Beta

Finance

Keynote

Robert Fairbairn Global Head of Retail & iShares

Robert Goldstein Global Head of Institutional & BRS

Richard Kushel Deputy COO & Head of SPM

Charles Hallac Chief Operating Officer

Mark Wiedman Global Head of iShares

Gary Shedlin Chief Financial Officer

Laurence Fink Chairman & CEO

Quintin Price Global Head of Alpha Strategies

Amy Schioldager Global Head of Beta Strategies

4

Today’s goals

5

Deepen understanding of BlackRock1

Provide enhanced access to a broad range of senior leaders

2

Communicate growth, differentiation and execution3

The BlackRock Principles

6

Highly differentiated asset manager

Diversified global firm with $3.9 trillion in AUM & $2.4 billion in 1Q Revenue

� Unparalleled mix of active and passive strategies to meet evolving client needs

� Industry leader in advice-oriented solutions, risk management, and innovation

Note: Charts above reflect long-term AUM at March 31, 2013 which excludes Cash Management & Advisory AUM.

7

55%34%

8%3%

Equity Fixed IncomeMulti-Asset Alternatives

Product Client Type

67%11%

22%

Institutional RetailiShares

Region

61%31%

8%

Americas EMEAAsia Pacific

Strategic Product Management: Optimizing the Platform

Rich Kushel, Deputy Chief Operating Officer

BLACKROCK INVESTOR DAY

Discipline Focus Innovation

Why Strategic Product Management?

9

� Apply fact-based objective criteria to product decisions

� Optimize decisions for clients and BlackRock

� Align distribution and investment teams

� Recognize that capacity is a dear resource

� Results driven by limited number of products

� Drive innovation to stay ahead of client needs and market opportunities

Unifying function central to optimizing product set and driving organic growth

SPM is a key differentiator for BlackRock

Balancing product breadth and complexity

10As of March 31, 2013; Source: BlackRock

US Mutual Funds

US Collective

Trusts

Non-US Mutual Funds

OtherSeparate Accounts

AUM $bn $199 $803 $775 $168 $366 $1,624

Portfolio Count

199 627 1,004 329 945 4,269

Diverse set of products & customized offerings

� $3.93tn Assets Under Management

� 7,373 Portfolios across multiple fund structures

ETFs


� What need are we fulfilling for the client?

� Is this consistent with the BlackRock Principles & our themes?

� Shift dialogue to “should we” launch this, not simply “can we”

� Margin & materiality thresholds

� Focus on scalable opportunities

Disciplined product approval process

11

Product Executive Committee

Oversees strategic product direction

Americas EMEA

Asia ex-Japan

Japan Australia

Rigorous approach to adding products to the shelf

Regional Product Development Committees

Strategic Product Management


Product rationalization creates capacity and drives focus

BlackRock’s portfolio distribution is very long-tailed

Eliminate or reposition unnecessary or underperforming products based on product health criteria

� 250 funds closed to date

� 102 funds in closure

� 188 funds scheduled to close

Embed product rationalization as a core management practice

Example: Restructuring Australia product line-up

� Closed 94 funds across asset classes eliminating product overlap

Number of closures or scheduled closures representative of pooled fundsFigures reflected as of March 31, 2013 and reflect 2012 & 2013 closures 12


1. Performance data

2. Distribution data and commentary

3. Competitive / industry landscape

Product health reviews objectively assess offerings

Five product health categories:

All four pillars of health show

positive momentum

Investment performance / asset flows are

stable

Material issues identified with

pillars of health

Critical deficiencies

identified

Recently launched or modified

products

Category Killer Performing Watch List Remediation Provisional

13

SPM serves as an objective arbiter of how our products perform:


Strategic product direction focuses firm’s efforts

14

SPM partners with the client and investment businesses to execute on strategic themes

� Ensure that the firm is aligned on key product priorities

We use BlackRock’s themes to inform our firm-wide product strategy

� Themes reflect a 3 to 5 year view on market opportunities

Income

Alternatives

OutcomesETFs

Emerging Markets Retirement


What was the situation we faced?

Innovation case study: EM Allocation Fund

15

� Multi-asset exposure

� Diversified exposure to Emerging markets

� Less volatility

Clients want…Investors continue to increase exposure

to EM…

BlackRock has unique breadth of capabilities…

-

100

200

300

400

500

US Retail Int'l Retail Institutional

Equity Debt Other

US Retail Intl Retail Global Inst’l

$179B$151B

$436B

~$760B flowed into Emerging Markets from 2010 to 2012

Global Index Equity

Pac Basin Fund. Equity

Emerging Europe & Frontiers

Index & Model-

based FI

SAE Emerging Markets

Asia Pacific Equity

Latin America

EM Debt

Global EM Equity

India Equity

EM Currency

Asia Fixed Income

BlackRock is the largest EM manager…

� BlackRock accounts for ~10% of addressable EM assets today

� AUM currently dominated by Beta strategies

� Not actively participating in active EM flows


Source: US Simfund, Global Simfund, eVestment

BlackRock Solution

� Bring together capabilities into one global EM platform (headed by Jeff Shen)

� Design differentiated product and build Asset Allocation capability to…

• Access broadest EM opportunity set

• Satisfy demand for EM exposure with less volatility

• Leverage insights of diverse investment experts

• Build upon success of Global Allocation franchise

� Launch campaign in various outlets

Innovation case study: EM Allocation Fund

16

EM Equity

EM Debt

Currency

Real Assets

Pure Alpha

EM Allocation Fund


Optimizing the key challenges

17

Complexity vs. Breadth

Discipline vs. Innovation

Combined Power of Alpha & Beta

Quintin Price, Global Head of Alpha Strategies

Amy Schioldager, Global Head of Beta Strategies


Alpha 36%

Beta 64%

Alpha 55%

Beta 45%

Alpha & Beta at BlackRock

% of 1Q13 AUM

19

BlackRock Long-Term AUM: $3.629tn

BlackRock Long-Term Base Fees: $2,043mm

% of 1Q13 Base Fees

Alpha & Beta at BlackRock

BlackRock manages a unique combination of active and passive investments on behalf of clients

Notes: Beta includes Index Equity, Index Fixed Income, and iShares.

1971 1981 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

20

Defined contribution capabilities

World Equity Benchmark

Shares (WEBS)

iShares Exchange-

Traded Funds

US Equity Index Plus

Frontier Markets

Developed IMI Strategies

EAFE Small Cap

Emerging Markets Small

Cap

Emerging Markets IMI

Commodities Smart Beta

Minimum Volatility iShares

40 Years of Index Equity Management

First 401(k) Target Date

Fund (LifePath)

Russell Index Funds

EAFE Equity Index

Securities Lending

Emerging Market Equity

Index

Index pioneer and innovator

EAFE Index Plus

DJ Select Div iShares

Client ExperienceLongevity and Innovation Performance

� 40 years of indexing experience

� Continuous innovators contribute to broadest suite of investment strategies

� Expertise results in reliable and consistent risk adjusted performance

� Scale benefits translate to lower cost for clients

� In depth consultations with clients lead to customized investment solutions

� Backed by BlackRock’s best in class research, risk and analytics, client servicing

Beta at BlackRock is Differentiated

21

Traditional

Breadth of Beta exposures with room to grow through innovation

North America Developed Emerging / FrontierGlobal

IMI

Sectors

Large Cap Low Risk Beta

Target DateSmall Cap

Index Equity Strategies

Income

Minimum Volatility

Fundamental Index

Commodities

Risk FactorsReal Estate

Non-Traditional

Across Market Exposures

Product Breadth Provides Pulse into Investor Behavior

Enhancing the Beta Investment Process

Portfolio Construction

Efficient

Trading

Performance Oversight

Benchmark Knowledge

� Index changes

� PhD staffed Research

� Advocacy

� Daily review

� Investment Review Committee

� Independent Risk Team

� Regional expertise

� Leading technology and risk models

� Rapid dividend reinvestment

� Internal crossing network

� Best execution

� Trading Strategies

� Global Trading Research Team

* Index Equity 3 Year Performance as of March 2013; see Appendix for Performance Notes

96% of AUM at/above

Performance Tolerance*

22

Providing individual product solutions and outcomes that leverage our broad spectrum of capabilities to meet evolving client needs

� Unparalleled combination of Active & Passive strategies on one platform

� Deliver solutions across Institutional, Retail and iShares clients

� Competition specializes in one or the other — we specialize in both

Combined Power of Alpha and Beta

23

ProductRisk

Spectrum

Index Enhanced Index Asset Allocation Active long-biased

Pure alpha

Beta Alpha

24

Alpha Strategy Overview

People

Performance

Product Process

Focus on the teams that Generate Alpha

25

Fixed IncomeFixed Income

Scientific Active Equity

Scientific Active Equity

Fundamental Equity

Fundamental Equity

% of AUM above benchmark / peer median

3-year

78%

92%

39%

Identifying opportunities to enhance performance, focusing our attention on them, and executing in a deliberate and effective manner

� Greater accountability, enhanced by new alignment of divisional structure

� Enhanced performance in Fixed Income over 1 & 3 years, 5 year numbers expected to strengthen

� Particularly strong performance in Emerging Markets

� New alpha sources being explored for long-term sustainable success

� Americas Equity re-stack largely complete

� New managers performing strongly overall

Performance data as of March 2013; see Appendix for Performance Notes

-6

-5

-4

-3

-2

-1

0

Addressing Underperformance: Where We Were - 3 Year

Retail Asia Ex-Jap73%ile**-3.64%

Retail Glb Emg Mkt40%ile**-2.76%

Large Cap Core76%ile*-4.54%

Flexible Equity71%ile*-3.92%

Basic Value51%ile*-2.08%

Capital Appreciation75%ile*-3.86%

Large Cap Value97%ile*-5.56%

07/31/11 09/30/12 11/30/1201/31/12 05/31/12

Ac

tive

3yr

Pe

rfo

rma

nc

e -

A-s

ha

re (

%)

Date Of Manager Change

Trailing 3yr manager performance at the manager change date. Percentile as of the manager change date *US percentile and returns sourced from Lipper ** International (UCITS) percentile and return sourced from Morningstar. All returns are net of fees and A-share class

26

Addressing Underperformance: Where We Are Since New PM Inception

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

Large Cap Core47%ile*1.12%

Large Cap Value43%ile*1.32%

Stournaras / Leavy

Andrew SwanRetail Asia Ex-Jap

21%ile**5.23%

Luiz SoaresRetail Glb Emg Mkt

47%ile**1.17%

Bart GeerBasic Value

9%ile*1.86%

Lawrence KempCapital Appreciation

73%ile*-2.08%

Tim KeefeFlexible Equity

97%ile*-5.51%

09/30/11 08/31/12 12/31/12 02/28/1303/31/12 07/31/12

Ac

tive

Pe

rfo

rma

nc

e S

inc

e In

ce

pti

on

–A

-sh

are

(%

)

Date Of Manager Change

Performance as of 05/31/13 *US percentile and return sourced from Lipper ** International (UCITS) percentile and return sourced from Morningstar . All returns are net of fees and A-share class

27

Alpha Products

Broad product set enabling solutions for range of client needs

Client Solutions

Scalable Exposure

Outcome-Oriented

High Alpha• Premium product at

premium price

• Clearly differentiated from ETFs and low tracking error

• Offering clients’ solutions for their specific needs

• Offering cheap, highly scalable solutions

• Market share driven capability

28

29

Can BlackRock Generate Consistent Alpha?

Alpha Investment Process

StructurePerformance is best delivered by

tightly knit, focused and accountableteams

ScaleSpecialist teams are strengthenedthrough interaction with each other(i.e. dialogue between growth and

value)

ResearchSpecialized dedicated teams deliver

the most insightful, relevant and timelyresearch

Trading ExecutionIn the majority of cases trade execution is a specialized skill

independent of portfolio construction

Portfolio Construction & Risk Analytics

Active Investing is evolving towards a combined approach of art and

science

� Client outsourcing more pension liabilities as they reduce size of their pension office

Leveraging The Breadth Of BlackRockClient Case Study

Challenge

BlackRock’s Solution

Client Portfolio Overview

Liability Matching EquityEMD HYCommodities Real Estate

� BlackRock delivers complete product suite • Manages 95% of Clients’ assets, as well as

provide risk management services through Aladdin platform

• Provides both active and passive options • Flexibility to shift between fund management

styles

Client increased exposure to cost-effective passive products

Further integrated with the firm through BlackRock Solutions risk reporting services

Large, global consumer electronics company

BlackRock was the ideal partner due to unparalleled breadth of capabilities and alpha and beta solutions on one platform

Alpha & Beta on One Platform

30

Alpha Beta

Key Takeaways

31

Unmatched combination of Active and Passive on one platform

People, products and investment process drive Alpha generation

Performance, client experience and innovation differentiate Beta

Past performance is not indicative of future results. The performance information shown is based on preliminarily available data. The performance information for actively managed accounts reflects U.S. open-end and closed-end mutual funds and similar EMEA-based products with respect to peer median comparisons, and actively managed institutional and high net worth separate accounts and funds located globally with respect to benchmark comparisons, as determined using objectively based internal parameters, using the most current verified information available as of March 31, 2013 (February 28, 2013 for high net worth accounts).

Accounts terminated prior to March 31, 2013 are not included. In addition, accounts that have not been verified as of April 12, 2013 have not been included. If such terminated and other accounts had been included, the performance information may have substantially differed from that shown. The performance information does not include funds or accounts that are not measured against a benchmark, any benchmark-based alternatives product, private equity products, CDOs, or accounts managed by BlackRock’s Financial Markets Advisory Group. Comparisons are based on gross-of-fee performance for U.S. retail, institutional and high net worth separate accounts and EMEA institutional separate accounts and net-of-fee performance for EMEA based retail products. The performance tracking information for institutional index accounts is based on gross-of-fee performance as of March 31, 2013, and includes all institutional accounts and all iShares funds globally using an index strategy.

AUM information is based on AUM for each account or fund in the asset class shown without adjustment foroverlapping management of the same account or fund, as of March 31, 2013. Source of performance information and peer medians is BlackRock, Inc. and is based in part on data from Lipper Inc. for U.S. funds and Morningstar, Inc. for non-U.S. funds. Fund performance reflects the reinvestment of dividends and distributions, but does not reflect sales charges.

Appendix: Performance Notes

32

Retail: A Global Opportunity

Robert Fairbairn, Global Head of Retail and iShares


33%

Global Retail at BlackRock

Global Retail at BlackRock

11%

% of 1Q13 AUM % of 1Q13 Base Fees



Global Retail represents 11% of BlackRock’s AUM and 33% of base fees

� Broad range of capabilities to meet client needs and deliver investment outcomes

Retail Retail

34

$421bn $686mm

Diversified Asset Base

40% 34% 23% 3%AUM byAssetClass

Equity Fixed Income

Multi-Asset Alternatives

64% 13% 16% 7%AUM byVehicle

Open-End MFs Closed-End MFs

SMAs Other

73% 19% 7% 1%AUM byRegion

US EMEA & UK

Asia Pacific LatAm & Iberia

BlackRock’s Retail Clients and Product Set

Financial Advisors

Insurance Distributors

Investors and Multi-Managers

Gatekeepers and Due Diligence

Consultants (e.g. Morningstar)

Direct Platforms

Private Bankers

DC Advisors & Platforms

Separately Managed Accounts (SMAs)

ETFs

Closed End Funds / Investment Trusts

Open End MF / Unit Trusts

Sub-Advisory

Tactical and Strategic Models

Unit Linked / Variable Annuities

Hedge Funds

Diverse client typesStrength across vehicles

35

BlackRock has unparalleled global reach and scale

� Presence in 68 cities across 30 countries

� Registered in 47 jurisdictions

� Over 575 Retail sales professionals globally

Global Growth Strategy in Retail

36

Enhance DistributionEvolve our Product Set

Deliver the Firm

Evolve our Product Set: Strategic Themes

37

BlackRock’s themes inform our global product strategy

� Themes reflect a 3 to 5 year view on market opportunities

Emerging Markets

ETFs

Retirement

Outcome Investing

Income

Alternatives

US Retail Alts Mutual Fund Suite NNB ($mm)

Multi-Asset Income Fund NNB ($mm)

Evolve our Product Set: US Retail

38

$126$264 $248

$412

$1,108

1Q12 2Q12 3Q12 4Q12 1Q13

Growth Strategy

$141 $161$230

$280

$515

1Q12 2Q12 3Q12 4Q12 1Q13

AUM = $2.3bn

AUM = $1.5bn

Strong Growth in Alternatives & Outcome

� Capture share in US open-end mutual fund market

� Build on traditional areas of strength

� Compete aggressively in Alternatives and Outcome Investing

Evolve our Product Set: International Retail

39

Growth Strategy

Continued product diversification:

� Alternatives

� Fixed Income

� Multi-Asset

� Passive

1Q12 1Q13

Active Equity Passive Multi-AssetActive Fixed Alternatives

1Q12 1Q13

AUM Diversification in International Retail

33% 40%

Revenue Diversification in International Retail

25% 29%

$5.4

$2.0$1.5

$1.0

Wires/Broker Dealers Direct RIA Private Bank

US Market AUM ($tn)

1Source: Industry sources and BlackRock internal estimates2Note: Wires ex-Merrill Lynch

Enhance Distribution: US Retail

40

Projected5-yr CAGR1 2-3% 4%6-7%4-5%

BLK MarketShare of AUM 3% <1%<1%<1%

Market LeaderShare of AUM

2

7-8% 10%10%+15%+

14

16

25

30

42

44

63

67

73

126

171

175

Austria

Sweden

Belgium

Netherlands

Hong Kong

France

Luxembourg

United Kingdom

Taiwan

Germany

Italy

Switzerland

Enhance Distribution: International Retail

BLKShare (%)

Cross-Border Distribution Opportunity Growth Strategy

Total market AUM ($bn)

41

6

7

8

15

10

4

5

11

10

10

10

8

Deepen existing client relationships

Penetrate new segments

Capitalize on regulatory change

4/43

5/41

5/41

3/30

2/43

7/42

5/42

5/34

4/40

3/37

4/37

5/39

BLKRank

Source: Lipper AssetWatch, as of March 31, 2013

�Uniquely equipped to deliver comprehensive solutions to Retail clients

Deliver the Firm

42

Deep Expertise, Simply Delivered

�Aligned distribution: “One BlackRock” to the client

�Consultative, thematic approach

�Asset allocation, building blocks, customized solutions

�Models and tools

�Clear, actionable investment content

Deliver the Firm: Spotlight on Aligned Distribution

Our combined distribution footprint is unparalleled as we deliver “One BlackRock” to clients

43

US Wholesalers By Firm

Source: BlackRock, Market Metrics, as of 3Q12

Externals Internals

US Wholesalers By Firm

274

184

90

250

200185

175166

104

2447

US Retail

US iShares

BlackRock PIMCO American Funds

Invesco Oppenheimer FranklinTempleton

Vanguard SPDR InvescoPowerShares

Build the BlackRock Brand

44

Differentiation in Retail

45

Global distribution opportunities

Unparalleled, diverse product set

Ability to deliver the full firm to clients

Institutional Client Business & BlackRock Solutions®

Focused Execution

BLACKROCK INVESTOR DAY

Rob Goldstein, Head of Institutional Client Business & BlackRock Solutions

Institutional Client Business at BlackRock

47

1 BlackRock’s long-term Institutional base fees for 1Q 2013

32%

67%

% of Base Fees

BlackRock Long-Term AUM: $3.629 tn

BlackRock Long-Term Base Fees: $2,043 mm

Institutional Client Business represents 67% of BlackRock’s AUM and 32% of base fees

Institutional Institutional

$2.4tn $645mm1

Diversified Across Asset Classes & Styles

AUM

Base Fees

15% 22% 21% 9% 15% 18%

Active Equity Active Fixed Income

Index Equity Index Fixed Income

Multi-Asset Alternatives

5% 22% 45% 17% 8% 3%

Institutional Client Business at BlackRock

% of AUM

Mature business serving a diverse client base

48

Institutional AUM by Client Type

45%

9%

18%

8%

18%2%

Defined Benefit

Financial Institutions

Defined Contribution

Official Institutions

Corporate/Other

Non-Profit

Institutional Client Business is organized into specialized teams focused on understanding the unique needs of each client

� With over 600 professionals in 33 cities around the globe

Institutional AUM by Region1

North America,

52%EMEA, 36%

Japan, 6%

Australia, 2%

Asia ex-Japan, 4%

Data as of March 31, 20131 AUM by market domicile

Key Questions

49

� Can the Institutional business grow, given its size and the headwinds facing defined benefit pensions plans?

� Is concentration a concern within BlackRock’s existing institutional client base?

� What do we mean when we talk about providing outcome-oriented solutions to our institutional clients?

State of the industry: A two-speed marketplace

Increasingly a ‘two-speed’ market with limited natural growth

50

(1) Source: McKinsey Global AM database, as of December 2011.

‘Two speed’ Institutional Market1

$11

$8

$6

$1

-2%

3%

5%

7%

DefinedBenefit

DefinedContribution

Insurers SovereignWealthFunds /Official

Institutions

Market AUM3Y Growth Estimate

Market AUM ($tn)

Traditional DB business in secular decline

Specialty segments growing faster

� Defined Contribution

� Insurers

� Sovereign Wealth Funds / Official Institutions

Theme-based client approach

51

2Reappraisal of your

Alternatives Allocation

� Demand institutional quality from alts managers

� Diversify among asset classes to uncover true risk and return drivers

Focus on achieving desired outcomes through

multi-asset approaches

� Allocate more effectively to reach desired goals, such as growth, downside protection, or reduction of unrewarded risk

3

Demand more from yourbeta strategies

� Make low-turnover portfolios work harder

� Maximize liquidity budget4

5Strengthen allocations to

emerging markets

� Adopt a more dynamic risk framework

� Build optimal mix of emerging market exposures across asset classes and investment styles

6Harness scientific techniques

to enhance diversificationand performance

� Systematically implement fundamental insights to optimize risk-adjusted returns

1� Revisit guidelines

� Adopt a more unconstrained, opportunistic approach

Beware the asymmetry infixed income—and prepare

for a different future

Unique combination of a diversified platform and the ability to anticipate industry and client dynamics positions us well for future growth

Growth in the Institutional Client BusinessStrategy designed to capitalize on industry dynamics

52

Institutional Growth Strategy

Growing market share in key client segments1

Continually building on our outcome-oriented approach3

Deepening existing relationships2

$652.7 $673.6

$802.6

2010 2011 2012

Financial Institutions Official Institutions DC

Dedicated client teams capture further opportunities in fast growing client segments:

� Financial Institutions

� Official Institutions

� Defined Contribution

Significant growth opportunities in key client segments

53

1

BLK Key Client Segment AUMAUM ($bn)

Focus Areas

Financial Institutions

� Business mix evolving into Fixed Income, Equity Dividend, liquid and illiquid Alts and advisory

Official Institutions

� Specialized client teams and relationships to capture opportunities

Defined Contribution

� Expand share across mid-sized plans, LifePath, Fixed Income products

Uniquely positioned to capitalize on the shift of retirement assets from Defined Benefit to Defined Contribution

� Deep capabilities across index and active

� History of expertise with DC plans

� Industry leading target-date LifePath products

Growth in the Defined Contribution segment

54

Defined Contribution Long-Term AUM ($bn)

$300.7 $330.0

$404.9

2010 2011 2012

Passive Active Multi-Asset

1

$37.3$44.0

$63.8

2010 2011 2012

LifePath AUM ($bn)

Organic Growth

+26% +19% +32%Organic Growth

+11% +11% +9%

6% 11%

83%

1 2 3+

35%

30%

35%

1 2 3+

Deepening existing client relationships

55

2

Focused on evolving our long-term client relationships across our broad capabilities

� Thought leadership, operating excellence and “client-first” thinking

� 60% of top 50 clients increased AUM in 1Q13

Opportunity to Cross-Sell

% o

f To

p 5

0 C

lie

nts

% o

f To

p 5

00

Cli

en

ts

83% of top 50 clients own 3 or more products 35% of top 500 clients own only 1 product

Note: Product definition includes Index Equity and Fixed Income, Scientific and Fundamental Active Equity, Active Fixed Income, Model-Based Fixed Income, Alternatives, Multi-Asset, and BlackRock Solutions. Product definition excludes Cash, iShares, TRIM, and Securities Lending.

As the landscape evolves, clients demand holistic portfolio solutions and multi-asset class products to achieve specific outcomes

� Analytics and advisory capabilities aligned to deliver unmatched integrated solutions

� Client Solutions team focused on complex, evolving institutional client needs

Building an outcome-oriented approach

56

3

Holistic Model

Risk Analytics

Advisory Services

Diverse Platform

Outcome-oriented solutions

Client Solutions: Case Study

57

� Pension portfolio funding gap

� Regulator restricted reliance of parent entity support

� Client required to de-risk and implement a Liability Driven Investment Portfolio

Client challenge

BlackRock’s unique approach

Tailored LDI portfolio solution (QIF)Corporate Bond Index Fund

Equity Index Fund

BlackRock has tools necessary to repeat

Training sessions to Educate Board on Asset Management

$460$510 $518

2010 2011 2012

Financial Markets Advisory

Aladdin Business

BlackRock Solutions helps clients navigate their investment processes and most complex capital markets challenges

� Aladdin Business

� Financial Markets Advisory (FMA)

BlackRock Solutions: Key differentiator & growth driver

58

BlackRock Solutions Revenue ($mm) FMA Capabilities

� One-time valuations and ongoing monitoring or strategic disposition assignments

� Managed over $160 billion of disposition mandates since ‘08

� Successfully disposed of $74.5 billion of assets on behalf of governments and private clients in 2012

$171 $212

$251 $286

$335 $374

2007 2008 2009 2010 2011 2012

$9.1 $10.0 $10.2

$13.7

2009 2010 2011 2012

Aladdin Business comprises our industry-leading investment and risk management platform, Aladdin®, and related risk reporting services

� Recurring revenue stream represents 75% of BlackRock Solutions revenue

Continue to innovate and grow Aladdin Business capabilities

� Clients implement Aladdin as single platform for global operating model

� Transformed fixed income platform into true multi-asset platform

� Continually expanding to an increasingly global set of clients

Aladdin Business

59

Over $13 Trillion Assets on Aladdin ($tn) 1Aladdin Business Revenue ($mm)

1 Includes BlackRock managed assets

Onboarded>$3T

in client assets

BlackRock Solutions is positioned to address key market themes

60

Global Investment Platform Consolidation

Clients seeking Outcome-Oriented Solutions

Clients seeking Risk Solutions across Asset Classes

Regulatory change and capital constraints across Financial Institutions

Key Themes How BlackRock Solutions Helps

• Aladdin® serves as a consolidated, scalable investment and risk management platform

• Model entire client portfolio to determine best solution for desired outcome

• Enterprise risk reporting across fixed income, equities and alternatives

• Provide customized advice, valuation, and disposition management

Key takeaways

61

ICB and BlackRock Solutions are sizeable and consistent contributors to BlackRock’s financial results

ICB and BlackRock Solutions are separate businesses that collaborate on client solutions and outcome-oriented investment approaches

Our institutional strategy is formed by industry dynamics, a close familiarity with our clients and BlackRock’s unique capabilities

Our strategy is supported by client-first thinking and “Focused

Execution”, ensuring that we deliver the best of BlackRock to our clients

Our solutions orientation means we know when to stop asking “what do you want” and start asking “what are you solving for”

Aladdin: Sustainable Differentiation

Charles S. Hallac, Chief Operating Officer


Aladdin is BlackRock’s Core Operating System

Over 10,500 employees including more than 1,600 investment professionals

$3.94tn in assets managed across more than 10,500 portfolios

BlackRock is a complex global business

64

Investment Centers

Why a common platform is at the heart of building one firm

� Simplifies large, complex business

� Presents one face to the client

� Brings together people from around the world

� Catalyzes a common culture

� Creates operational leverage for everyone

One platform, one process, one culture

65

Aladdin

Single Set of Data

Consistent Process

Shared Research

Risk Management Tools

Aladdin’s functionality supports the whole firm

Portfolio & Risk Analysis

Data Control & OperationsPortfolio Administration

Trade Execution

Risk Management,

Control & Oversight

66

• Daily risk exposure reporting• Pre-trade analytics• Trade modeling & allocation

Portfolio & Risk Analysis

• Cash & position reconciliation• Performance attribution• NAV calculation

Portfolio Administration

• Order management• Trade execution & capture• Real-time risk & cash reporting

Trade Execution

• Security data management• Trade confirmation & routing• Corporate action processing

Data Control & Oversight

• Real-time compliance monitoring• Daily exposure limit monitoring• Value-at-risk, tracking error, stress testing

Risk Management, Control & Oversight

ExternalCommunications

Data Hub &

Client Reporting

Investment

Accounting

Aladdin

Client non-investment systems

Other

investment systems

Third PartyData

Aladdin is the core operating system of the company

� Sophisticated technology fueled by a set of data integrity processes

� Common language understood by employees across the world

� Collection of tools that transforms data into information

What is Aladdin?

Enterprise modelBest-of-breed model

67

$14tn in assets managed across 170+ clients

A global platform

68

BLK Investment Centers

Aladdin Client User Base

Provides scalability and consistency

69

54 Aladdin clients

$14 trillion analyzed each day

3,000 risk factors in our models

30,000 portfolios

17,000 users

182 total assignments25 million lines of code

1.5 billion BMS messages/day700 developers

54 million Green Package reports/month

Global solution with 24x7 support

100,000,000 Monte Carlo simulations/day

96 Risk clients

Aladdin Demonstration

iShares: Growth From Here

Mark Wiedman, Global Head of iShares

35%

iShares at BlackRock

% of 1Q13 AUM

22%

iShares iShares

72



Rest of firm Rest of firm

% of 1Q13 Base Fees

1. How has the iShares business performed?

2. What is the growth outlook for ETFs?

3. What are iShares’ competitive advantages?

4. What is our strategy to win?

4 questions

73

iShares Revenue ($mm)

iShares results – powered by organic growth

74

iShares AUM & Organic Growth ($bn)

(1) 1Q13 annualized organic growth(2) 1Q13 flows only

$593

$753$803

2011 2012 1Q13

Organic Growth

14.4% 13.6%(1)

$594

$710

1Q12 1Q13

Net new business

$85.2 $25.6(2)

27%20%

Record level

We aim to be the global leader in flows and assets

75

AUM – market share

Source: BlackRock and Bloomberg

17%

36%

-33%

-4%

35%

30%

-40%

-20%

0%

20%

40%

60%

1Q

'10

2Q

'10

3Q

'10

4Q

'10

1Q

'11

2Q

'11

3Q

'11

4Q

'11

1Q

'12

2Q

'12

3Q

'12

4Q

'12

1Q

'13

iShares

StateStreet

Vanguard

Flows – market share

44%

39%

18% 18%

8%

14%

30% 29%

2009 2010 2011 2012 1Q'13

iShares

Other

StateStreet

Vanguard





4 questions

76

Over a decade and still growing strong…

77

0

700

1,400

2,100

Jan-09 Jun-09 Nov-09 Apr-10 Sep-10 Feb-11 Jul-11 Dec-11 May-12 Oct-12 Mar-13


Global ETF and iShares AUM ($ bn)

Total ETF Industry

$2,057 bn

iShares$803 bn

ETF industry and iShares both grew 27% in 2012

… and still a lot more room to grow

78

ETFs compete with 4 types of assets There is huge runway for growth ($ tn)

ETFsActive MutualFunds

Index funds / separate accounts

Single security holdings

Derivatives

(3) Global OTC CDS notional amounts outstanding. Sources: SimFund, Bank for International Settlements, Bloomberg, SIFMA. ETFs as of May 31, 2013. Mutual Funds (excluding money market funds) as of April 30, 2013. Net Credit Derivatives outstanding as of December 31, 2012. Total US Equity and Debt Securities as of March 31, 2013.

1.5

10.2

26.9

57.9

U.S. ETFs U.S. MutualFunds

Net CreditDerivatives

Outstanding

U.S. Equity& Debt

SecuritiesInstitutional

Retail





4 questions

79

1. A global brand

2. Product breadth, quality, and liquidity

3. Global footprint

4. Operating scale

…with the result of truly global growth

iShares’ competitive advantages are truly global

80

1. Our global brand

81

2. Two global and multiple local product lines

82

282funds

206funds

21funds

128funds

27funds

Fund counts as of March 31, 2013. $ figures represent client AUM (excluding iPath).

U.S.

$495bn

Canada

$52bn

Lat Am & Iberia

$49bn

EMEA

$170bn

Asia Pacific

$37bn

3. Global footprint

83

Canada

29

U.S.

328 EMEA

137

Asia Pac

58

Lat Am & Iberia

60

As of March 31, 2013. Note: US figure includes 53 in global functions. All figures include Marketing.

4. Operating scale

84

Top 10 ETF providers by AUM globally ($bn)

803

365

249

8052 38 28 28 26 25

As of March 31, 2013. Source: BlackRock and Bloomberg.

4. Operating scale

85

Top 10 ETF providers by AUM globally ($bn)

803

365

249

170

8052 38 28 28 26 25

As of March 31, 2013. Source: BlackRock and Bloomberg.

2012 iShares client growth

Result – strong growth around the world

86

2012 ETF industry product growth

11%18%

29%33%

20%

12%

10%

5%

14%

20%23%

28%

34%

47%

Lat Am &Iberia

EMEA US Canada Asia Pac

Organicgrowth

Marketgrowth

11%16% 15%

24%

39%

9%

9% 14%

12%

18%

20%

25%

29%

36%

57%

US Canada EMEA Asia Pac Lat Am& Iberia

Organicgrowth

Marketgrowth

As of December 31, 2012. Source: BlackRock and Bloomberg.





4 questions

87

5 global growth themes

88

Fixed income market growth

Innovation in ETF usage

Global market expansion

Acquisitions for productand market access

U.S. market share growth

We aim to be the leader in assets and flows in the most mature ETF market

U.S. market share: The context

89

U.S. AUM – market share

48%

41%

25% 24%

12%

19%16%

17%

2009 2010 2011 2012 1Q'13

iShares

Other

StateStreet

Vanguard

27%

31%

-86%

-8%

90%

36%

-100%

-60%

-20%

20%

60%

100%

140%

1Q

'10

2Q

'10

3Q

'10

4Q

'10

1Q

'11

2Q

'11

3Q

'11

4Q

'11

1Q

'12

2Q

'12

3Q

'12

4Q

'12

1Q

'13

iShares

StateStreet

Vanguard

U.S. flows – market share


1. iShares Core Series

2. Strategic alliance with Fidelity

3. Integration of wealth advisory sales force

4. Marketing / brand

U.S. market share: Strategies for leadership

90

Pricing in the U.S. has been broadly consistent over time

In core exposures, we have faced increasing pricing pressure

U.S. market share: The pricing story

91

As

se

t-w

eig

hte

d b

ps

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012

Int’l Equity

All U.S. ETFs

Fixed Inc

Dom Equity

Source: U.S. ETP Reference Guide. Excludes inverse and leveraged funds. Core pricing based on 84 funds classified as core exposures by BlackRock.

Average price of U.S. ETFs Average price of U.S. core exposures

As

se

t-w

eig

hte

d b

ps

23 23

2120

0

5

10

15

20

25

2009 2010 2011 2012

Launched in October 2012

U.S. market share: The iShares Core Series

92

Flows into the Core Series since launchiShares Core Series

4.6

8.33.7

0

3

6

9

Oct 15 - Dec 312012

1Q2013

Total sincelaunch

$ b

illi

on

s

Fidelity:

� The leading distributor in self-directed, with over 10 million clients

Start of the partnership:

� iShares is Fidelity’s featured index ETF brand

� Fidelity increases offering of commission-free iShares from 30 to 65

� Fidelity uses BLK as its preferred partner in ETF solution products

� BLK also acts as sub-advisor to Fidelity-branded passive sector ETFs

U.S. market share: Fidelity

93

Global market expansion: Grow in every region

94

RetailA tale of 2 cities

InstitutionsExamples of expansion segments

Sovereign Wealth Funds

Insurance

CentralBanks

Banks

Post-retrocession world

Retrocession world

U.K. Germany

Holland Switzerland

U.S. CanadaGlobal

Pension Plans

AssetManagers

Asia Pac Lat Am

Southern Europe

France

6%

0.3%

Fixed income: Raise ETF penetration

95

17%

3%

Global market and MFs as of December 2012. MFs and ETFs of December 2012.Source: The World Bank, Cerulli, BlackRock, Bloomberg.

Global market as of June 2013. MFs and ETFs as of December 2012.Source: McKinsey, Cerulli, BlackRock, Bloomberg.

Global equity market = $53tn Global fixed income market = $100tn

EquityMutualFunds

EquityETFs

Fixed IncomeMutualFunds

FixedIncomeETFs

Innovation: New applications and products

96

New applications

Pension fund converts $1.5B fixed income portfolio to ETFs

Insurer hedges with a Treasury ETF

Bank allocates its balance sheet risk capital with ETFs

Insurer uses ETFs to aggregate fixed income

New product types

Minimum VolatilityEEMV

Enhanced Beta ETFs & Factor ETFs

iSharesBondsIBCB

β

1. iShares business performance

2. The growth outlook for ETFs

3. iShares’ competitive advantages

4. Strategy to win

4 questions

97

Carefully consider the iShares Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

98

Disclosures

The information provided is not intended to be a complete analysis of every material fact respecting any strategy and has been presented for educational purposes only.

Asset allocation models and diversification do not promise any level of performance or guarantee against loss of principal.

Shares of iShares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

Mutual funds and iShares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the iShares Funds will also generate tax consequences and transaction expenses. Certain traditional mutual funds can be tax efficient as well.

When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds. The annual management fees of iShares Funds may be substantially less than those of most mutual funds. Buying and selling shares of iShares Funds will result in brokerage commissions, but the savings from lower annual fees can help offset these costs.

Index returns are for illustrative purposes only and do not represent actual iShares Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

BlackRock does not provide tax advice. Please note that (i) any discussion of US tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotionor marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from anindependent tax advisor.

99

Disclosures

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), JPMorgan Chase & Co., MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Group, S&P Dow Jones Indices LLC or Standard & Poor’s, nor are they sponsored, endorsed or issued by Barclays Capital, Inc. None of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companieslisted above.

Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 / Residential / Retail / Mortgage or Industrial / Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA / NAREIT Developed Real Estate ex-US / North America / Europe / Asia Index; all rights vest in FTSE, NAREIT and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE®” is a trademark jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE under license.

©2013 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners. iS-10011-0613

100

Not FDIC Insured • No Bank Guarantee • May Lose Value

Disclosures

Delivering Shareholder Value

Gary Shedlin, Chief Financial Officer


0

500

1,000

1,500

2,000

2,500

3,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

BLK Index S&P 500

Delivering shareholder value

102

Total Return

CAGR since BLK IPO

BLK Nth Am Fin Svcs Index

S&P 500

26% 1% 2%

MLIM BGI

Note: Index used is the S&P North America financial services sector indexSource: Factset

Drivers of shareholder value

Organic Growth

103

Operating Leverage

Capital Management

Total BLK:

Global AUM (A):

Organic AUM growth improving

104

3%

0% 1% 1%

9%

4% 3%

9%9% 9%

14%14%

5% 2% 3% 5%

0%

4%

8%

12%

16%

2010 2011 2012 Q1 2013Annualized

Institutional Retail/HNW iShares

Note: Excludes the effect of two single client low-fee institutional index fixed income outflows in 2012 and merger-related outflows in 2011 and 2010(A) Source: McKinsey & Company

Total Long Term Organic NNB Growth

0% 1% 2% --

22%

34%

12%32%

66%

34%

AUM Base Fees

Institutional

Retail

iShares

Organic revenue growth impacted by mix change

105

2012 Results(A) by Client Type

Mix change and strategic focus should result in revenue growth higher than AUM growth

� iShares and Retail represent 34% of our AUM, but represent 66% of our revenue

$3.4 trillion $7.7 billion

2x

(A) AUM and base fees for long-term assets only which do not include cash management and advisory AUM

Proven ability to leverage scale

106

$6.30 $7.13

$10.94$11.85

$13.68

38.7%38.2%

39.3% 39.7%40.4%

2008 2009 2010 2011 2012

Adjusted EPS and Operating Margin

21%CAGR

+1.7%

$3.16$3.65

38.6%40.0%

Q1 2012 Q1 2013

16%

+1.4%

For further information and reconciliation between GAAP and as adjusted, see the previously filed Form 10-Ks, Form 10-Qs, 8-Ks and the appendix to this presentation

Balance sheet is asset lite

107

$200 $158

$3 $30

$9

March 2013GAAP Assets

Separate AccountAssets / Sec Lending

Collateral

InvestmentVehicles

GoodwillIntangibles

Economic TangibleAssets

While our GAAP total assets are $200bn, tangible assets are only $9bn

Share Repurchases

Strong cash generating business

Operating cash flow, as adjusted ($bn)

$1.5

$1.2

$2.6 $2.6

$3.0

2008 2009 2010 2011 2012

Prioritization of Cash Use

108

(A)

Business Investment

Tactical Acquisitions

Dividends

19%CAGR

(A) Adjusted for ~$300m related to trading seed investment

For further information and reconciliation between GAAP and as adjusted, see the previously filed Form 10-Ks, Form 10-Qs, 8-Ks and the appendix to this presentation

Consistent and predictable capital management

109

TacticalAcquisitions

Dividends

Share Repurchases

• Claymore Investments

• Swiss Re PE Partners

• Investment for Growth

• Investment in Infrastructure

• >20% CAGR in dividend per share since 2006

• Dividend payout ratio in range of 40-50%

• Consistent share repurchase program

• Not a market timer

• Credit Suisse ETF

• MGPA

Business Investment

EPS: Impact of organic growth and operating leverage

110

EPS GrowthOperating Margin

40% 42% 44%

Org

. A

UM

G

row

th

3% 11% 12% 13%

5% 12% 14% 15%

7% 14% 15% 16%

EPS Growth

?

Market Return

Op. Leverage

?

Other Revenue

(BRS, Perf. Fees)

Organic AUM

Growth

?

Capital Mgmt

• Constant payout ratio

• Street estimates

• Target: 5%

Note: Assumptions around beta and other revenue growth consistent with street estimates. Capital management assumes constant payout ratio.

This slide is for illustrative purposes only and should not be considered a forecast.

• Street estimates

Appendix

Reconciliation to Non-GAAP Measures

112

Q1 Q12008 2009 2010 2011 2012 2012 2013

(Dollar amounts in millions, except per share data)

Operating income, GAAP basis $1,593 $1,278 $2,998 $3,249 $3,524 $815 $909

Non-GAAP expense adjustments (1) 69 292 169 143 50 10 12

Operating income, as adjusted 1,662 1,570 3,167 3,392 3,574 825 921

Closed-end fund launch costs and commissions 9 3 17 29 25 - 18

Operating income used for operating margin measurement 1,671 1,573 3,184 3,421 3,599 825 939

Revenue, GAAP basis 5,064 4,700 8,612 9,081 9,337 2,249 2,449

Non-GAAP adjustments(2)

: (742) (577) (510) (467) (419) (111) (103)

Revenue used for operating margin measurement 4,322 4,123 8,102 8,614 8,918 2,138 2,346

Operating margin, GAAP basis 31.5% 27.2% 34.8% 35.8% 37.7% 36.2% 37.1%

Operating margin, as adjusted 38.7% 38.2% 39.3% 39.7% 40.4% 38.6% 40.0%

Net income attributable to BlackRock, Inc., GAAP basis 784 875 2,063 2,337 2,458 572 632

Non-GAAP adjustments, net of tax (3) 72 146 76 (98) (20) 3 5

Net income attributable to BlackRock, Inc., as adjusted 856 1,021 2,139 2,239 2,438 575 637

Allocation of net income, as adjusted, to common shares $828 $995 $2,109 $2,218 $2,435 $574 $637

Diluted weighted-average common shares outstanding 131,376,517 139,481,449 192,692,047 187,116,410 178,017,679 181,917,864 174,561,132

Diluted earnings per common share, GAAP basis $5.78 $6.11 $10.55 $12.37 $13.79 $3.14 $3.62

Diluted earnings per common share, as adjusted $6.30 $7.13 $10.94 $11.85 $13.68 $3.16 $3.65

NOTE: For more information on the reconciliation of GAAP to as adjusted see the previously filed 10-Ks,10-Qs and 8-Ks.

(1) Non-GAAP expense adjustments include BGI transaction/integration costs, U.K. lease exit costs, a contribution to STIFs,

restructuring charges, PNC funding LTIP obligation, Merrill Lynch compensation contribution and compensation related to

appreciation (depreciation) on certain deferred compensation plans.

(3) Non-GAAP expense adjustments include BGI transaction/integration costs, U.K. lease exit costs, a contribution to STIFs,

restructuring charges, PNC funding LTIP obligation, Merrill Lynch compensation contribution and income tax law changes.

Full Year

(2) Non-GAAP adjustments include distribution and servicing costs, amortization of deferred sales commission and

reimbursable property management compensation.

Cash Flow GAAP and As Adjusted

113

(in millions) 2008 2009 2010 2011 2012

Operating Cash Flows

Operating Cash flows, GAAP basis $ 1,916 $ 1,399 $ 2,488 $ 2,826 $ 2,240

Less: Non-GAAP adjustments (1) 413 168 (77) 178 (483)

Operating Cash flows, as adjusted 1,503 1,231 2,565 2,648 2,723

Investing Cash Flows

Investing Cash flows, GAAP basis (394) (5,519) (627) (204) (266)

Less: Non-GAAP adjustments (1) (9) 31 (52) 24 (211)

Investing Cash flows, as adjusted (385) (5,550) (575) (228) (55)

Financing Cash Flows

Financing Cash flows, GAAP basis (887) 6,749 (3,170) (2,485) (944)

Less: Non-GAAP adjustments (1) (410) (185) 110 (71) 631

Financing Cash flows, as adjusted $ (477) $ 6,934 $ (3,280) $ (2,414) $ (1,575)

NOTE: For more information on the reconciliation of GAAP to as adjusted see the previously filed 10-Ks,10-Qs and 8-Ks.

(1) Non-GAAP adjustments include the impact on cash flows of consolidated sponsored investment funds and consolidated VIEs.

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