Growth and Transition Strategy Update slide image

Growth and Transition Strategy Update

Amortization of intangible assets Acquisition-related compensation costs Acquisition-related transaction costs Contingent consideration fair value adjustments U.K. lease exit costs Lease cost - Hudson Yards Compensation expense related to appreciation Reconciliation between GAAP and as adjusted ($mm, except per share data) Operating income Operating Income, GAAP basis Non-GAAP expense adjustments: Restructuring charge 2012 1,2 1,2 2013 1,2 2014 2015 1,2 2016 2017 2 2018 2 2019 2 2 2 2020 2021 2022 2 $3,524 $3,857 $4,474 $4,664 $4,565 $5,254 $5,457 $5,551 $5,695 $7,450 $6,385 76 60 91 50 97 106 147 151 37 65 20 88 24 18 18 65 53 23 34 3 (8) 28 57 6 10 7 1 (depreciation) on deferred compensation plans Reduction of indemnification asset - 50 Charitable Contribution 124 589 Contribution to STIFS PNC LTIP funding obligation Operating Income, as adjusted Product launch costs and commissions 30 22 3,574 25 33 32 30 28 4,024 4,563 4,695 4,669 15 5,269 Operating income used for operating margin measurement 3,599 18 $4,042 11 $4,574 5 $4,700 $4,669 $5,269 14 5,701 13 $5,714 5,784 61 $5,845 6,433 172 7,747 284 6,711 6 $6,605 $8,031 $6,717 Revenue Revenue, GAAP basis Distribution fees Investment advisory fees 9,337 (71) (348) Revenue used for operating margin measurement 8,918 Operating margin, GAAP basis Operating margin, as adjusted 37.7% 40.4% $10,180 (73) (332) $9,775 37.9% 41.4% $11,081 (70) (350) $10,661 40.4% 42.9% $11,401 (55) (402) $10,944 40.9% 42.9% $12,261 (1,198) (410) $10,653 37.2% 43.8% $13,600 (1,183) (480) $11,937 38.6% 44.1% $14,198 (1,155) (520) $12,523 38.4% $14,539 $16,205 45.6% (1,069) (616) $12,854 38.2% 45.5% (1,131) (704) $14,370 35.1% 46.0% $19,374 (1,521) (679) $17,174 38.5% $17,873 (1,381) (798) $15,694 35.7% 46.8% 42.8% Note: For additional information on the non-GAAP expense adjustments and explanations on the use of non-GAAP measures, see BlackRock's Form 10-K for the applicable period. 2012 to 2015 information reflects accounting guidance prior to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting Policies, in the consolidated financial statements in our 2018 Form 10-K. 1. 2. Beginning in the first quarter of 2022, the BlackRock updated its definition of operating income, as adjusted, operating margin, as adjusted, and net income attributable to BlackRock, Inc., as adjusted, to include adjustments related to amortization of intangible assets, other acquisition-related costs, including compensation costs for nonrecurring retention-related deferred compensation, and contingent consideration fair value adjustments incurred in connection with certain acquisitions. Information from 2018 to 2022 reflects updated definitions. 2012 to 2017 does not reflect updated definitions. For further information, please see pages 37-38 of our 2022 Form 10-K. BlackRock 137
View entire presentation