Growth and Transition Strategy Update slide image

Growth and Transition Strategy Update

End notes These notes refer to the financial metrics and/or defined term presented on: Slide 65 BlackRock active strategies 1. AUM as of 3/31/23. 2. 3. 4. 5. 6. Represents last three years ending 3/31/23. Net new business represents net asset inflows and Net new base fees represents net new base fees earned on net asset inflows. Represents last three years ending 3/31/23. Organic asset growth rate calculated by dividing net asset inflows over beginning of period assets. Represents last three years ending 3/31/23. Organic base fee growth rate calculated by dividing net new base fees earned on net asset inflows by the base fee run-rate at the beginning of period. Revenue includes base, securities lending and performance fees. 3-year CAGR represents compounded annual growth rate for the three years ending 2022. Slide 66 - BlackRock is growing faster than the industry, and has significant room to grow share 1. 2. Source: Simfund for U.S. MFs, Broadridge for non-U.S. MFS and Institutional, Bloomberg for ETFs, HFR for Hedge Funds and Preqin for Illiquid Alts. BlackRock 1Q23 organic growth is annualized. Source: McKinsey Performance Lens, as of YE 2021. 2022 Industry AUM per McKinsey estimates. Slide 67 - Strong relative performance across active platform 1. 2. Source of performance information is BlackRock's first quarter 2023, first quarter 2020 and first quarter 2018 earnings releases. Please see appendix of this presentation for performance notes. Past performance is not indicative of future results. Please refer to page 12 of first quarter 2023 earnings release for performance disclosure detail. Source: Morningstar Fund data as of 3/31/2023. Includes all BLK global active mutual funds. % AUM is calculated out of BLK funds that have any star rating, and does not include the AUM of non-rated funds as of 3/31/2023. Morningstar rates funds from one to five stars based on how well they've performed (after adjusting for risk) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for up to three time periods- three-, five-, and 10 years- and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. They're a useful tool for identifying funds worthy of further research, but shouldn't be considered buy or sell recommendations. Slide 68 - BlackRock's whole portfolio business is delivering outcomes for clients, and unlocking new channels for delivering active 1. AUM in BlackRock managed models is primarily captured in BlackRock ETF and Retail AUM; underlying assets are in BlackRock ETFs and mutual funds. Slide 69 - Accelerating demand for whole portfolio solutions and model portfolios 1. 2. Sources: Cerulli for Wealth SMAs, as of Q2 2022; P&I for OCIO, as of Q1 2022. Excludes Affiliated Wealth Solutions due to lack of data availability. Source: Broadridge Advisory Services, 2023. Slide 70 BlackRock model growth outpacing the industry, with additional channels to drive growth 1. 2. Source: Cerulli 2021 U.S. Asset Allocation Model Portfolios. Sources: Cerulli "The State of U.S. Retail and Institutional Asset Management 2022" and Cerulli "U.S. Asset Allocation Model Portfolios 2022". Slide 72 Expanding custom model offerings to grow share with RIA clients 1. Source: Cerulli; BlackRock estimates. BlackRock 76
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