Investing to Deliver Shareholder Value slide image

Investing to Deliver Shareholder Value

End notes IRH1221U/M-1946957-1/20 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 filings. BlackRock does not provide projections for its 2022 earnings, and takes no responsibility for FactSet estimates. This is presented merely to indicate how the market values organic growth. Peer organic growth estimates represent average across Citi, Goldman Sachs, KBW and Morgan Stanley analysts and BlackRock organic growth estimates based on 2. consensus. Organic asset growth represents average of quarterly annualized organic asset growth rates from 1/1/18 - 9/30/21. Organic base fee growth for BlackRock represents quarterly annualized organic base fee growth rates from 1/1/18 - 9/30/21. Peer organic asset growth rates from public filings. Slide 5 Outperformance is a result of our diversified platform 1. 2. 345 Effective fee rate for 2020. Effective fee rate represents investment advisory, administration fees and securities lending revenue earned on total average AUM. Total average AUM 2020 is calculated as the 13-point average of the month-end spot AUM amounts. Organic base fee growth rate is calculated by dividing net new base fees earned on net asset inflows by the base fee run-rate at the beginning of the period. 3-year average organic base fee growth represents average for 2019, 2020 and 9/30/21 year-to-date annualized. Percentage revenue contribution for 2020 includes base fees, securities lending, performance fees and technology services revenue. Traditional active includes all active strategies excluding illiquid alternatives. Represents Technology Services revenue. 3-year average growth rate for 2019, 2020 and 9/30/21 year-to-date versus prior year periods. Slide 6 Our strategy is guided by clients' needs and our investments are paying off Note: Figures as of 9/30/21 unless otherwise noted 1. 2. 3. 456 Source: Bloomberg for ETF industry figures. Gross fundraising includes assets counted in net inflows and committed capital. Committed capital that earns fees prior to deployment are included in NNB and AUM. Based on committed capital and fee rates as of 9/30/21. Past fee rates and future assumptions may not be indicative of future results. Future base fees expected to materialize as we deploy committed capital. Reflects gross deferred carried interest liability as disclosed in BlackRock's form 10-Ks and 10-Qs. 4. 5. ACV growth for quarter ending 9/30/21 versus prior year period. 6. Active fixed income and equity represents Taxable Fixed Income, Fundamental Active Equity and Systematic Active Equity. Source of performance information is BlackRock's third quarter 2021 earnings releases. Past performance is not indicative of future results. Please refer to page 14 of third quarter 2021 earnings release for performance disclosure detail. Slide 7 Clients are entrusting us with more of their portfolios Note: Figures are annualized. Industry sources: Simfund, Broadridge, Spence Johnson, HFR, Preqin, iMoney Net, Bloomberg, Markit, P&I, Cerulli and BlackRock estimates. Comprises Index ETFs, i.e., Equity ETFs, Fixed Income ETFs, and Alts/Other ETFs. Excludes Active ETFs and Inverse/Leveraged ETFs. 1. 1234 2. Industry tech growth represents 9/30/21 year-to-date versus prior year period total revenue growth for 10 fintech peers. Traditional active represents all active strategies excluding illiquid alternatives. 3. 4. 5. Represents dedicated sustainable investments for BlackRock, including: 1) strategies with an explicit ESG objective which may include a targeted quantifiable ESG outcome ("Broad ESG"); 2) strategies that capitalize on long-term transformative industry or societal trends through pursuit of specific E, S or G themes ("Thematic"); 3) strategies where investments are made with the intention to generate positive measurable social and environmental impact alongside financial return ("Impact") and; 4) screened strategies that incorporate BlackRock's baseline screens ("Dedicated Screened"). BlackRock's definition of impact investments is in line with the International Finance Corporation's Operating Principles for Impact Management. Industry Sustainable organic growth for mutual funds and ETFs. Sources: Simfund, Morningstar "Sustainable Investment - Overall" for US MFS; Broadridge "RI- Screened", "RI - Embedded" for Non-US MFs, iShares Global Business Intelligence "Sust.", "Sustainability related" for global ETFs; data as of Sep 2021. Excludes FoFs and closed-end funds. US Sustainable Money Market funds not included in Morningstar's flagging methodology. BlackRock 14
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