8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 14, 2016

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	001-33099	32-0174431
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

55 East 52nd Street, New York, New York	10055
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 810-5300

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On July 14, 2016, BlackRock, Inc. (the “Company”) reported results of operations for the three and six months ended June 30, 2016. A copy of the earnings release issued by the Company is attached as Exhibit 99.1. In addition, a copy of the Company’s Earnings Release Supplement for the quarter ended June 30, 2016 is being furnished as Exhibit 99.2 to this Form 8-K.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1	Earnings release dated July 14, 2016 issued by the Company
99.2	Second Quarter 2016 Earnings — Earnings Release Supplement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BlackRock, Inc.
	(Registrant)
Date: July 14, 2016	By:	/s/ Gary Shedlin
		Gary S. Shedlin
		Senior Managing Director and
		Chief Financial Officer

EXHIBIT INDEX

99.1	Earnings release dated July 14, 2016 issued by the Company
99.2	Second Quarter 2016 Earnings — Earnings Release Supplement

EX-99.1

Exhibit 99.1

Tom Wojcik, Investor Relations	Brian Beades, Media Relations
212.810.8127	212.810.5596

BlackRock Reports Second Quarter 2016 Diluted EPS of $4.73, or $4.78 as adjusted

• AUM of $4.9 trillion, up 4% year-over-year and 3% sequentially

• $2 billion of long-term net inflows in the second quarter of 2016, and $126 billion over the last twelve months, demonstrate strength of diversified business model

• 2% decline in base fees year-over-year, driven by mix shift from equities to fixed income and cash

• 13% growth in Aladdin^® revenue from the second quarter of 2015 reflects continued demand for risk management

• 2% decline in diluted EPS (4% as adjusted) year-over-year reflects mix shift and lower performance fees

• Consistent capital management with $275 million of quarterly share repurchases

FINANCIAL RESULTS

(in millions, except per share data)	Q2 2016			Q2 2015			Change			Q1 2016			Change			Six Months Ended June 30,
																2016			2015			Change
AUM	$	4,890,121		$	4,721,294			4	%	$	4,737,165			3	%	$	4,890,121		$	4,721,294			4	%
GAAP basis:
Revenue	$	2,804		$	2,905			(3	)%	$	2,624			7	%	$	5,428		$	5,628			(4	)%
Operating income	$	1,173		$	1,238			(5	)%	$	963			22	%	$	2,136		$	2,305			(7	)%
Operating margin		41.8	%		42.6	%		(80	) bps		36.7	%		510	bps		39.4	%		41.0	%		(160	) bps
Net income(1)	$	789		$	819			(4	)%	$	657			20	%	$	1,446		$	1,641			(12	)%
Diluted EPS	$	4.73		$	4.84			(2	)%	$	3.92			21	%	$	8.66		$	9.69			(11	)%
Weighted average diluted shares		166.6			169.1			(1	)%		167.4			—	%		167.0			169.4			(1	)%
As Adjusted:
Operating income(2)	$	1,179		$	1,248			(6	)%	$	1,047			13	%	$	2,226		$	2,325			(4	)%
Operating margin(2)		43.9	%		44.9	%		(100	) bps		41.6	%		230	bps		42.8	%		43.2	%		(40	) bps
Net income(1) (2)	$	797		$	838			(5	)%	$	711			12	%	$	1,508		$	1,668			(10	)%
Diluted EPS(2)	$	4.78		$	4.96			(4	)%	$	4.25			12	%	$	9.03		$	9.85			(8	)%

⁽¹⁾  Net income represents net income attributable to BlackRock, Inc.

⁽²⁾ See notes (1) through (4) to the Condensed Consolidated Statements of Income and Supplemental Information on pages 13 through 15 for more information on as adjusted items and the reconciliation to GAAP.

New York, July 14, 2016 — BlackRock, Inc. (NYSE: BLK) today reported financial results for the three and six months ended June 30, 2016.

“Our clients are facing unprecedented challenges as they attempt to navigate the current investment environment,” said Chairman and Chief Executive Officer Laurence D. Fink. “Political and macroeconomic uncertainty, historically low yields and elevated market volatility are leading clients to pause, as evidenced by more than $55 trillion in bank deposits in the US, China and Japan alone.

“BlackRock generated $2 billion of long-term net flows in the quarter and $126 billion of inflows over the last twelve months, despite the impact of market headwinds and a slowdown in client activity. Beta and mix shift favored fixed income and cash relative to equities, and impacted second quarter base fees year-over-year.

“This market environment is creating greater opportunities for BlackRock to engage with clients – leading to more frequent and substantive conversations than ever before. Clients are seeking advice, goal-oriented investment solutions and risk management and technological expertise. The differentiated platform we have purposely built at BlackRock is resonating with clients. Our combination of active, index and alternative investment capabilities, powered by Aladdin’s industry-leading technology and risk management, positions us well to capture flows when client activity accelerates.

“We are seeing increasing evidence that our recent strategic investments are driving growth. iShares generated $16 billion of net new business during the quarter, with significant strength in fixed income and ‘smart-beta’ ETFs, as clients utilize these tools to manage risk and minimize volatility. We saw another strong quarter of capital raising in infrastructure, bringing total invested and committed capital to $8 billion, providing clients access to attractive long-term returns and stimulating needed economic growth. Finally, Aladdin revenue grew 13% year-over-year. The increasing

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impact of technology on our industry continues to drive demand, as we signed one of our largest ever institutional clients during the quarter, and we remain focused on meeting the growing need for technology solutions in the retail sector.

“Now more than ever, BlackRock is uniquely positioned to provide innovative solutions to our clients’ complex investment and technology needs. Our focus remains on investing for the future so BlackRock can help clients meet their financial goals and deliver long-term value for shareholders.”

RESULTS BY CLIENT TYPE (in millions), (unaudited)	Q2 2016 Net flows			June 30, 2016 AUM		Q2 2016 Base Fees(1)		June 30, 2016 AUM % of Total			Q2 2016 Base Fees(1) % of Total
Retail	$	(6,292	)	$	544,427	$	806		12	%		34	%
iShares		15,675			1,154,122		845		26	%		36	%
Institutional:
Active		(6,717	)		1,009,721		479		22	%		20	%
Index		(1,129	)		1,796,654		240		40	%		10	%
Total institutional		(7,846	)		2,806,375		719		62	%		30	%
Total long-term	$	1,537		$	4,504,924	$	2,370		100	%		100	%

RESULTS BY PRODUCT TYPE (in millions), (unaudited)	Q2 2016 Net flows			June 30, 2016 AUM		Q2 2016 Base Fees(1)		June 30, 2016 AUM % of Total			Q2 2016 Base Fees(1) % of Total
Equity	$	(2,215	)	$	2,432,558	$	1,236		54	%		52	%
Fixed income		5,494			1,566,656		655		34	%		28	%
Multi-asset		(3,099	)		386,520		291		9	%		12	%
Alternatives		1,357			119,190		188		3	%		8	%
Total long-term	$	1,537		$	4,504,924	$	2,370		100	%		100	%

RESULTS BY INVESTMENT STYLE (in millions), (unaudited)	Q2 2016 Net flows			June 30, 2016 AUM		Q2 2016 Base Fees(1)		June 30, 2016 AUM % of Total			Q2 2016 Base Fees(1) % of Total
Active	$	(12,812	)	$	1,510,424	$	1,277		34	%		54	%
Index and iShares		14,349			2,994,500		1,093		66	%		46	%
Total long-term	$	1,537		$	4,504,924	$	2,370		100	%		100	%

⁽¹⁾  Base fees include investment advisory, administration fees and securities lending revenue.

Long-Term Business Highlights

Long-term net inflows of $4.1 billion and $9.3 billion from clients in the Americas and EMEA regions, respectively, were partially offset by net outflows of $11.9 billion from clients in Asia-Pacific. At June 30, 2016, BlackRock managed 63% of its long-term AUM for investors in the Americas and 37% for clients in EMEA and Asia-Pacific.

A discussion of the Company’s net flows by client type for the second quarter of 2016 is presented below.

¡ Retail long-term net outflows of $6.3 billion reflected net outflows of $2.7 billion and $3.6 billion from the United States and internationally, respectively. Fixed income saw net inflows of $2.3 billion, paced by flows into municipals and core bond funds. Equity net outflows of $4.9 billion were primarily related to outflows from international equities driven by market uncertainty and de-risking. Multi-asset net outflows of $2.6 billion were largely due to outflows from world allocation strategies.

¡ iShares long-term net inflows of $15.7 billion were driven by fixed income net inflows of $10.0 billion, diversified across corporate, emerging market and municipal bond funds. Equity net inflows of $3.4 billion reflected strong flows into the Core Series and Minimum Volatility funds. Commodities iShares generated $2.1 billion of net inflows.

¡ Institutional active long-term net outflows of $6.7 billion were primarily due to fixed income net outflows of $7.0 billion, driven by client re-allocation activity.

¡ Institutional index long-term net outflows of $1.1 billion reflected equity net outflows of $1.2 billion.

Cash management AUM increased 28% to $374.7 billion, primarily reflecting $80.6 billion in AUM acquired in the BofA^® Global Capital Management transaction.

Advisory AUM ended the second quarter at $10.5 billion.

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INVESTMENT PERFORMANCE AT JUNE 30, 2016 ⁽¹⁾ 

	One-year period			Three-year period			Five-year period
Fixed Income:
Actively managed AUM above benchmark or peer median
Taxable		53	%		80	%		91	%
Tax-exempt		46	%		48	%		70	%
Index AUM within or above applicable tolerance		93	%		99	%		99	%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental		63	%		67	%		51	%
Scientific		40	%		82	%		92	%
Index AUM within or above applicable tolerance		96	%		98	%		98	%

⁽¹⁾  Past performance is not indicative of future results. The performance information shown is based on preliminary available data. Please refer to page 16 for performance disclosure detail.

Teleconference, Webcast and Presentation Information

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts on Thursday, July 14, 2016 at 8:30 a.m. (Eastern Time). Members of the public who are interested in participating in the teleconference should dial, from the United States, (800) 374-0176, or from outside the United States, (706) 679-8281, shortly before 8:30 a.m. and reference the BlackRock Conference Call (ID Number 38298849). A live, listen-only webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by 12:30 p.m. (Eastern Time) on Thursday, July 14, 2016 and ending at midnight on Thursday, July 28, 2016. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 38298849. To access the webcast, please visit the investor relations section of www.blackrock.com.

About BlackRock

BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At June 30, 2016, BlackRock’s AUM was $4.890 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares^® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions^®. As of June 30, 2016, the firm had approximately 12,700 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com | Twitter: @blackrock_news | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

										Three Months
	Three Months Ended									Ended
	June 30,									March 31,
	2016			2015			Change			2016			Change
Revenue
Investment advisory, administration fees and securities lending revenue	$	2,489		$	2,534		$	(45	)	$	2,359		$	130
Investment advisory performance fees		74			136			(62	)		34			40
BlackRock Solutions and advisory		172			161			11			171			1
Distribution fees		11			13			(2	)		11			—
Other revenue		58			61			(3	)		49			9
Total revenue		2,804			2,905			(101	)		2,624			180
Expense
Employee compensation and benefits		977			1,012			(35	)		947			30
Distribution and servicing costs		109			105			4			97			12
Amortization of deferred sales commissions		9			12			(3	)		10			(1	)
Direct fund expense		195			191			4			188			7
General and administration		316			312			4			318			(2	)
Restructuring charge		—			—			—			76			(76	)
Amortization of intangible assets		25			35			(10	)		25			—
Total expense		1,631			1,667			(36	)		1,661			(30	)
Operating income		1,173			1,238			(65	)		963			210
Nonoperating income (expense)
Net gain (loss) on investments		20			6			14			(2	)		22
Interest and dividend income		6			5			1			5			1
Interest expense		(51	)		(52	)		1			(51	)		—
Total nonoperating income (expense)		(25	)		(41	)		16			(48	)		23
Income before income taxes		1,148			1,197			(49	)		915			233
Income tax expense		353			371			(18	)		268			85
Net income		795			826			(31	)		647			148
Less:
Net income (loss) attributable to noncontrolling interests		6			7			(1	)		(10	)		16
Net income attributable to BlackRock, Inc.	$	789		$	819		$	(30	)	$	657		$	132
Weighted-average common shares outstanding
Basic		164,758,612			166,616,558			(1,857,946	)		165,388,130			(629,518	)
Diluted		166,639,290			169,114,759			(2,475,469	)		167,398,938			(759,648	)
Earnings per share attributable to BlackRock, Inc. common stockholders (4)
Basic	$	4.79		$	4.92		$	(0.13	)	$	3.97		$	0.82
Diluted	$	4.73		$	4.84		$	(0.11	)	$	3.92		$	0.81
Cash dividends declared and paid per share	$	2.29		$	2.18		$	0.11		$	2.29		$	—
Supplemental information:
AUM (end of period)	$	4,890,121		$	4,721,294		$	168,827		$	4,737,165		$	152,956
Shares outstanding (end of period)		164,463,297			166,379,267			(1,915,970	)		165,174,069			(710,772	)
GAAP:
Operating margin		41.8	%		42.6	%		(80	) bps		36.7	%		510	bps
Effective tax rate		30.9	%		31.2	%		(30	) bps		29.0	%		190	bps
As adjusted:
Operating income (1)	$	1,179		$	1,248		$	(69	)	$	1,047		$	132
Operating margin (1)		43.9	%		44.9	%		(100	) bps		41.6	%		230	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	(31	)	$	(50	)	$	19		$	(38	)	$	7
Net income attributable to BlackRock, Inc. (3)	$	797		$	838		$	(41	)	$	711		$	86
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4)	$	4.78		$	4.96		$	(0.18	)	$	4.25		$	0.53
Effective tax rate		30.6	%		30.1	%		50	bps		29.6	%		100	bps

See pages 13-15 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

(in millions, except shares and per share data), (unaudited)

	Six Months Ended
	June 30,
	2016			2015			Change
Revenue
Investment advisory, administration fees and securities lending revenue	$	4,848		$	4,924		$	(76	)
Investment advisory performance fees		108			244			(136	)
BlackRock Solutions and advisory		343			308			35
Distribution fees		22			30			(8	)
Other revenue		107			122			(15	)
Total revenue		5,428			5,628			(200	)
Expense
Employee compensation and benefits		1,924			1,993			(69	)
Distribution and servicing costs		206			204			2
Amortization of deferred sales commissions		19			25			(6	)
Direct fund expense		383			380			3
General and administration		634			651			(17	)
Restructuring charge		76			—			76
Amortization of intangible assets		50			70			(20	)
Total expense		3,292			3,323			(31	)
Operating income		2,136			2,305			(169	)
Nonoperating income (expense)
Net gain (loss) on investments		18			69			(51	)
Interest and dividend income		11			9			2
Interest expense		(102	)		(103	)		1
Total nonoperating income (expense)		(73	)		(25	)		(48	)
Income before income taxes		2,063			2,280			(217	)
Income tax expense		621			629			(8	)
Net income		1,442			1,651			(209	)
Less:
Net income (loss) attributable to noncontrolling interests		(4	)		10			(14	)
Net income attributable to BlackRock, Inc.	$	1,446		$	1,641		$	(195	)
Weighted-average common shares outstanding
Basic		165,073,371			166,851,492			(1,778,121	)
Diluted		167,023,559			169,418,964			(2,395,405	)
Earnings per share attributable to BlackRock, Inc. common stockholders (4)
Basic	$	8.76		$	9.84		$	(1.08	)
Diluted	$	8.66		$	9.69		$	(1.03	)
Cash dividends declared and paid per share	$	4.58		$	4.36		$	0.22
Supplemental information:
AUM (end of period)	$	4,890,121		$	4,721,294		$	168,827
Shares outstanding (end of period)		164,463,297			166,379,267			(1,915,970	)
GAAP:
Operating margin		39.4	%		41.0	%		(160)	bps
Effective tax rate		30.1	%		27.7	%		240	bps
As adjusted:
Operating income (1)	$	2,226		$	2,325		$	(99	)
Operating margin (1)		42.8	%		43.2	%		(40)	bps
Nonoperating income (expense), less net income (loss) attributable to noncontrolling interests (2)	$	(69	)	$	(39	)	$	(30	)
Net income attributable to BlackRock, Inc. (3)	$	1,508		$	1,668		$	(160	)
Diluted earnings attributable to BlackRock, Inc. common stockholders per share (3) (4)	$	9.03		$	9.85		$	(0.82	)
Effective tax rate		30.1	%		27.0	%		310	bps

See pages 13-15 for the reconciliation to GAAP and notes (1) through (4) for more information on as adjusted items.

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ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product

	March 31, 2016		Net inflows (outflows)			Acquisition (1)		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Retail:
Equity	$	193,436	$	(4,887	)	$	—	$	6,091		$	(2,660	)	$	191,980	$	194,197
Fixed Income		217,209		2,317			—		5,250			(1,066	)		223,710		221,062
Multi-Asset		113,291		(2,581	)		—		1,271			(525	)		111,456		112,902
Alternatives		18,730		(1,141	)		—		(162	)		(146	)		17,281		17,971
Retail subtotal		542,666		(6,292	)		—		12,450			(4,397	)		544,427		546,132
iShares:
Equity		818,104		3,431			—		7,661			(2,428	)		826,768		826,127
Fixed Income		291,132		10,026			—		5,720			(1,982	)		304,896		297,883
Multi-Asset		2,166		122			—		41			(1	)		2,328		2,255
Alternatives		16,152		2,096			—		1,915			(33	)		20,130		17,905
iShares subtotal		1,127,554		15,675			—		15,337			(4,444	)		1,154,122		1,144,170
Institutional:
Active:
Equity		118,833		482			—		2,529			(1,717	)		120,127		120,312
Fixed Income		544,244		(6,977	)		—		13,064			(645	)		549,686		545,509
Multi-Asset		262,010		(131	)		—		7,024			(3,966	)		264,937		263,270
Alternatives		75,104		(91	)		—		526			(568	)		74,971		75,404
Active subtotal		1,000,191		(6,717	)		—		23,143			(6,896	)		1,009,721		1,004,495
Index:
Equity		1,277,802		(1,241	)		—		20,404			(3,282	)		1,293,683		1,292,312
Fixed Income		472,568		128			—		30,198			(14,530	)		488,364		477,717
Multi-Asset		7,776		(509	)		—		330			202			7,799		7,570
Alternatives		6,003		493			—		487			(175	)		6,808		6,406
Index subtotal		1,764,149		(1,129	)		—		51,419			(17,785	)		1,796,654		1,784,005
Institutional subtotal		2,764,340		(7,846	)		—		74,562			(24,681	)		2,806,375		2,788,500
Long-term		4,434,560		1,537			—		102,349			(33,522	)		4,504,924		4,478,802
Cash Management		291,986		5,015			80,635		8			(2,960	)		374,684		353,432
Advisory (4)		10,619		(48	)		—		15			(73	)		10,513		10,624
Total	$	4,737,165	$	6,504		$	80,635	$	102,372		$	(36,555	)	$	4,890,121	$	4,842,858
Current Quarter Component Changes by Product (Long-term)
	March 31, 2016		Net inflows (outflows)			Acquisition		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Equity:
Active	$	276,281	$	(3,880	)	$	—	$	7,093		$	(3,146	)	$	276,348	$	278,552
iShares		818,104		3,431			—		7,661			(2,428	)		826,768		826,127
Non-ETF index		1,313,790		(1,766	)		—		21,931			(4,513	)		1,329,442		1,328,269
Equity subtotal		2,408,175		(2,215	)		—		36,685			(10,087	)		2,432,558		2,432,948
Fixed income:
Active		753,711		(4,987	)		—		17,962			(1,255	)		765,431		758,738
iShares		291,132		10,026			—		5,720			(1,982	)		304,896		297,883
Non-ETF index		480,310		455			—		30,550			(14,986	)		496,329		485,550
Fixed income subtotal		1,525,153		5,494			—		54,232			(18,223	)		1,566,656		1,542,171
Multi-asset		385,243		(3,099	)		—		8,666			(4,290	)		386,520		385,997
Alternatives:
Core		91,639		(1,153	)		—		313			(887	)		89,912		91,072
Currency and commodities (5)		24,350		2,510			—		2,453			(35	)		29,278		26,614
Alternatives subtotal		115,989		1,357			—		2,766			(922	)		119,190		117,686
Long-term	$	4,434,560	$	1,537		$	—	$	102,349		$	(33,522	)	$	4,504,924	$	4,478,802
Current Quarter Component Changes by Investment Style (Long-term)
	March 31, 2016		Net inflows (outflows)			Acquisition		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Active	$	1,499,128	$	(12,812	)	$	—	$	33,714		$	(9,606	)	$	1,510,424	$	1,506,836
Index and iShares		2,935,432		14,349			—		68,635			(23,916	)		2,994,500		2,971,966
Long-term	$	4,434,560	$	1,537		$	—	$	102,349		$	(33,522	)	$	4,504,924	$	4,478,802

⁽¹⁾  Amount represents $80.6 billion of AUM acquired in the BofA Global Capital Management transaction in April 2016.

⁽²⁾  Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

⁽⁴⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾  Amounts include commodity iShares.

-6-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-to-Date Changes by Client Type and Product

	December 31, 2015		Net inflows (outflows)			Acquisition (1)		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Retail:
Equity	$	193,755	$	(5,282	)	$	—	$	5,380		$	(1,873	)	$	191,980	$	190,233
Fixed Income		212,653		4,438			—		6,701			(82	)		223,710		217,268
Multi-Asset		115,307		(4,217	)		—		782			(416	)		111,456		112,436
Alternatives		19,410		(1,591	)		—		(613	)		75			17,281		18,472
Retail subtotal		541,125		(6,652	)		—		12,250			(2,296	)		544,427		538,409
iShares:
Equity		823,156		(1,255	)		—		2,120			2,747			826,768		805,871
Fixed Income		254,190		37,508			—		12,519			679			304,896		283,690
Multi-Asset		2,730		(464	)		—		54			8			2,328		2,289
Alternatives		12,485		4,133			—		3,480			32			20,130		16,068
iShares subtotal		1,092,561		39,922			—		18,173			3,466			1,154,122		1,107,918
Institutional:
Active:
Equity		121,442		(1,288	)		—		1,005			(1,032	)		120,127		117,890
Fixed Income		514,428		3,907			—		28,240			3,111			549,686		534,858
Multi-Asset		252,041		1,131			—		12,011			(246	)		264,937		257,134
Alternatives		74,941		331			—		(17	)		(284	)		74,971		74,909
Active subtotal		962,852		4,081			—		41,239			1,549			1,009,721		984,791
Index:
Equity		1,285,419		(12,067	)		—		15,021			5,310			1,293,683		1,266,701
Fixed Income		441,097		11,814			—		50,001			(14,548	)		488,364		463,891
Multi-Asset		6,258		(117	)		—		1,246			412			7,799		7,186
Alternatives		6,003		635			—		408			(238	)		6,808		6,237
Index subtotal		1,738,777		265			—		66,676			(9,064	)		1,796,654		1,744,015
Institutional subtotal		2,701,629		4,346			—		107,915			(7,515	)		2,806,375		2,728,806
Long-term		4,335,315		37,616			—		138,338			(6,345	)		4,504,924		4,375,133
Cash Management		299,884		(3,140	)		80,635		(13	)		(2,682	)		374,684		328,543
Advisory (4)		10,213		(145	)		—		(107	)		552			10,513		10,433
Total	$	4,645,412	$	34,331		$	80,635	$	138,218		$	(8,475	)	$	4,890,121	$	4,714,109
Year-to-Date Component Changes by Product (Long-term)
	December 31, 2015		Net inflows (outflows)			Acquisition		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Equity:
Active	$	281,319	$	(7,850	)	$	—	$	4,257		$	(1,378	)	$	276,348	$	273,821
iShares		823,156		(1,255	)		—		2,120			2,747			826,768		805,871
Non-ETF index		1,319,297		(10,787	)		—		17,149			3,783			1,329,442		1,301,003
Equity subtotal		2,423,772		(19,892	)		—		23,526			5,152			2,432,558		2,380,695
Fixed income:
Active		719,653		7,928			—		34,272			3,578			765,431		744,516
iShares		254,190		37,508			—		12,519			679			304,896		283,690
Non-ETF index		448,525		12,231			—		50,670			(15,097	)		496,329		471,501
Fixed income subtotal		1,422,368		57,667			—		97,461			(10,840	)		1,566,656		1,499,707
Multi-asset		376,336		(3,667	)		—		14,093			(242	)		386,520		379,045
Alternatives:
Core		92,085		(973	)		—		(683	)		(517	)		89,912		91,079
Currency and commodities (5)		20,754		4,481			—		3,941			102			29,278		24,607
Alternatives subtotal		112,839		3,508			—		3,258			(415	)		119,190		115,686
Long-term	$	4,335,315	$	37,616		$	—	$	138,338		$	(6,345	)	$	4,504,924	$	4,375,133
Year-to-Date Component Changes by Investment Style (Long-term)
	December 31, 2015		Net inflows (outflows)			Acquisition		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Active	$	1,462,672	$	(4,266	)	$	—	$	50,688		$	1,330		$	1,510,424	$	1,481,289
Index and iShares		2,872,643		41,882			—		87,650			(7,675	)		2,994,500		2,893,844
Long-term	$	4,335,315	$	37,616		$	—	$	138,338		$	(6,345	)	$	4,504,924	$	4,375,133

⁽¹⁾  Amount represents $80.6 billion of AUM acquired in the BofA Global Capital Management transaction in April 2016.

⁽²⁾  Foreign exchange reflects the impact of converting non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing seven months.

⁽⁴⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾  Amounts include commodity iShares.

-7-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product

	June 30, 2015		Net inflows (outflows)			Acquisition (1)		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Retail:
Equity	$	203,373	$	2,630		$	—	$	(9,364	)	$	(4,659	)	$	191,980	$	193,092
Fixed Income		209,056		12,963			—		2,736			(1,045	)		223,710		214,434
Multi-Asset		129,188		(7,639	)		366		(9,441	)		(1,018	)		111,456		117,523
Alternatives		19,445		(1,029	)		—		(1,039	)		(96	)		17,281		19,089
Retail subtotal		561,062		6,925			366		(17,108	)		(6,818	)		544,427		544,138
iShares:
Equity		828,057		51,620			—		(49,596	)		(3,313	)		826,768		804,479
Fixed Income		230,735		67,678			—		8,511			(2,028	)		304,896		265,625
Multi-Asset		1,844		527			—		(35	)		(8	)		2,328		2,098
Alternatives		14,953		3,620			—		1,601			(44	)		20,130		15,033
iShares subtotal		1,075,589		123,445			—		(39,519	)		(5,393	)		1,154,122		1,087,235
Institutional:
Active:
Equity		128,032		(158	)		—		(3,722	)		(4,025	)		120,127		120,420
Fixed Income		517,251		4,634			—		29,597			(1,796	)		549,686		529,160
Multi-Asset		256,964		3,406			—		9,684			(5,117	)		264,937		256,501
Alternatives		73,236		2,445			560		(332	)		(938	)		74,971		74,607
Active subtotal		975,483		10,327			560		35,227			(11,876	)		1,009,721		980,688
Index:
Equity		1,345,855		(14,886	)		—		(29,110	)		(8,176	)		1,293,683		1,284,269
Fixed Income		465,392		201			—		54,776			(32,005	)		488,364		465,324
Multi-Asset		7,013		(635	)		—		1,066			355			7,799		7,068
Alternatives		6,495		1,117			—		(384	)		(420	)		6,808		6,277
Index subtotal		1,824,755		(14,203	)		—		26,348			(40,246	)		1,796,654		1,762,938
Institutional subtotal		2,800,238		(3,876	)		560		61,575			(52,122	)		2,806,375		2,743,626
Long-term		4,436,889		126,494			926		4,948			(64,333	)		4,504,924		4,374,999
Cash Management		271,506		27,698			80,635		270			(5,425	)		374,684		306,240
Advisory (4)		12,899		(2,025	)		—		(36	)		(325	)		10,513		11,097
Total	$	4,721,294	$	152,167		$	81,561	$	5,182		$	(70,083	)	$	4,890,121	$	4,692,336
Year-over-Year Component Changes by Product (Long-term)
	June 30, 2015		Net inflows (outflows)			Acquisition (1)		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Equity:
Active	$	298,884	$	(2,106	)	$	—	$	(14,478	)	$	(5,952	)	$	276,348	$	280,032
iShares		828,057		51,620			—		(49,596	)		(3,313	)		826,768		804,479
Non-ETF index		1,378,376		(10,308	)		—		(27,718	)		(10,908	)		1,329,442		1,317,749
Equity subtotal		2,505,317		39,206			—		(91,792	)		(20,173	)		2,432,558		2,402,260
Fixed income:
Active		718,853		16,912			—		31,538			(1,872	)		765,431		736,047
iShares		230,735		67,678			—		8,511			(2,028	)		304,896		265,625
Non-ETF index		472,846		886			—		55,571			(32,974	)		496,329		472,871
Fixed income subtotal		1,422,434		85,476			—		95,620			(36,874	)		1,566,656		1,474,543
Multi-asset		395,009		(4,341	)		366		1,274			(5,788	)		386,520		383,190
Alternatives:
Core		89,954		2,079			560		(1,305	)		(1,376	)		89,912		91,148
Currency and commodities (5)		24,175		4,074			—		1,151			(122	)		29,278		23,858
Alternatives subtotal		114,129		6,153			560		(154	)		(1,498	)		119,190		115,006
Long-term	$	4,436,889	$	126,494		$	926	$	4,948		$	(64,333	)	$	4,504,924	$	4,374,999
Year-over-Year Component Changes by Investment Style (Long-term)
	June 30, 2015		Net inflows (outflows)			Acquisition (1)		Market Change			FX impact (2)			June 30, 2016		Average AUM (3)
Active	$	1,496,571	$	11,987		$	926	$	15,933		$	(14,993	)	$	1,510,424	$	1,483,802
Index and iShares		2,940,318		114,507			—		(10,985	)		(49,340	)		2,994,500		2,891,197
Long-term	$	4,436,889	$	126,494		$	926	$	4,948		$	(64,333	)	$	4,504,924	$	4,374,999

⁽¹⁾  Amounts represent $560 million of AUM acquired in the Infraestructura Institucional acquisition in October 2015, $366 million of AUM acquired in the FutureAdvisor acquisition in October 2015 and $80.6 billion of AUM acquired in the BofA Global Capital Management transaction in April 2016. The FutureAdvisor acquisition amount does not include AUM that was held in iShares holdings.

⁽²⁾  Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽³⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing thirteen months.

⁽⁴⁾  Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁵⁾  Amounts include commodity iShares.

-8-

SUMMARY OF REVENUE

	Three Months Ended June 30,				Change			Three Months Ended March 31, 2016		Change			Six Months Ended June 30,
(in millions), (unaudited)	2016		2015										2016		2015		Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	406	$	447	$	(41	)	$	386	$	20		$	792	$	869	$	(77	)
iShares		656		728		(72	)		623		33			1,279		1,412		(133	)
Non-ETF Index		174		190		(16	)		164		10			338		353		(15	)
Equity subtotal		1,236		1,365		(129	)		1,173		63			2,409		2,634		(225	)
Fixed income:
Active		414		387		27			396		18			810		760		50
iShares		172		138		34			152		20			324		268		56
Non-ETF Index		69		72		(3	)		70		(1	)		139		140		(1	)
Fixed income subtotal		655		597		58			618		37			1,273		1,168		105
Multi-asset		291		316		(25	)		284		7			575		620		(45	)
Alternatives:
Core		168		161		7			164		4			332		315		17
Currency and commodities		20		19		1			17		3			37		38		(1	)
Alternatives subtotal		188		180		8			181		7			369		353		16
Long-term		2,370		2,458		(88	)		2,256		114			4,626		4,775		(149	)
Cash management		119		76		43			103		16			222		149		73
Total base fees		2,489		2,534		(45	)		2,359		130			4,848		4,924		(76	)
Investment advisory performance fees:
Equity		42		61		(19	)		11		31			53		98		(45	)
Fixed income		2		3		(1	)		5		(3	)		7		7		—
Multi-asset		2		8		(6	)		3		(1	)		5		16		(11	)
Alternatives		28		64		(36	)		15		13			43		123		(80	)
Total performance fees		74		136		(62	)		34		40			108		244		(136	)
BlackRock Solutions and advisory		172		161		11			171		1			343		308		35
Distribution fees		11		13		(2	)		11		—			22		30		(8	)
Other revenue		58		61		(3	)		49		9			107		122		(15	)
Total revenue	$	2,804	$	2,905	$	(101	)	$	2,624	$	180		$	5,428	$	5,628	$	(200	)

Highlights

• Investment advisory, administration fees and securities lending revenue decreased $45 million from the second quarter of 2015 reflecting mix shift from equities to fixed income and cash products, partially offset by lower yield-related waivers on certain money market funds and the effect of AUM acquired in the BofA Global Capital Management transaction. Securities lending revenue of $151 million in the current quarter increased $4 million from the second quarter of 2015.

Investment advisory, administration fees and securities lending revenue increased $130 million from the first quarter of 2016, driven by higher average AUM.

• Performance fees decreased $62 million from the second quarter of 2015, primarily reflecting lower fees from alternative and equity products, and increased $40 million from the first quarter of 2016.

• BlackRock Solutions^® and advisory revenue increased $11 million from the second quarter of 2015. BlackRock Solutions and advisory revenue included $146 million of Aladdin^® revenue in the current quarter compared with $129 million in the second quarter of 2015 and $141 million in the first quarter of 2016.

-9-

SUMMARY OF OPERATING EXPENSE

	Three Months Ended June 30,							Three Months Ended					Six Months Ended June 30,
(in millions), (unaudited)	2016		2015		Change			March 31, 2016		Change			2016		2015		Change
Operating Expense
Employee compensation and benefits	$	977	$	1,012	$	(35	)	$	947	$	30		$	1,924	$	1,993	$	(69	)
Distribution and servicing costs		109		105		4			97		12			206		204		2
Amortization of deferred sales commissions		9		12		(3	)		10		(1	)		19		25		(6	)
Direct fund expense		195		191		4			188		7			383		380		3
General and administration		316		312		4			318		(2	)		634		651		(17	)
Restructuring charge		—		—		—			76		(76	)		76		—		76
Amortization of intangible assets		25		35		(10	)		25		—			50		70		(20	)
Total Operating Expense	$	1,631	$	1,667	$	(36	)	$	1,661	$	(30	)	$	3,292	$	3,323	$	(31	)

Highlights

• Employee compensation and benefits decreased $35 million from the second quarter of 2015, reflecting lower incentive compensation, driven primarily by lower operating income and performance fees.

Employee compensation and benefits increased $30 million from the first quarter of 2016, reflecting higher incentive compensation, driven by higher operating income and performance fees, partially offset by lower seasonal employer payroll taxes.

• A restructuring charge of $76 million, primarily comprised of severance and accelerated amortization expense of previously granted deferred compensation awards, was recorded in the first quarter of 2016 in connection with a project to streamline and simplify the organization.

INCOME TAX EXPENSE

	Three Months Ended June 30,							Three Months  Ended				Six Months Ended June 30,
(in millions), (unaudited)	2016		2015		Change			March 31, 2016		Change		2016		2015		Change
Income tax expense	$	353	$	371	$	(18	)	$	268	$	85	$	621	$	629	$	(8	)

Highlights

• The second quarter 2016 and 2015 income tax expense included a $4 million and $13 million net noncash expense, respectively, primarily related to the revaluation of certain deferred income tax liabilities as a result of domestic state and local tax changes.

• The first quarter 2016 income tax expense included a $4 million net noncash benefit, primarily related to the revaluation of certain deferred income tax liabilities, including the effect of tax legislation enacted in Japan and domestic state and local tax changes.

-10-

SUMMARY OF NONOPERATING INCOME (EXPENSE)

		Three Months Ended June 30,									Three Months Ended March 31, 2016						Six Months Ended June 30,
(in millions), (unaudited)		2016			2015			Change						Change			2016			2015			Change
Nonoperating income (expense), GAAP basis		$	(25	)	$	(41	)	$	16		$	(48	)	$	23		$	(73	)	$	(25	)	$	(48	)
Less: Net income (loss) attributable to NCI			6			7			(1	)		(10	)		16			(4	)		10			(14	)
Nonoperating income (expense)(1)		$	(31	)	$	(48	)	$	17		$	(38	)	$	7		$	(69	)	$	(35	)	$	(34	)
	Estimated economic investments at June 30, 2016(3)	Three Months Ended June 30,									Three Months Ended March 31, 2016						Six Months Ended June 30,
(in millions), (unaudited)		2016			2015			Change						Change			2016			2015			Change
Net gain (loss) on investments(1) (2)
Private equity	20-25%	$	7		$	9		$	(2	)	$	2		$	5		$	9		$	10		$	(1	)
Real assets	5-10%		1			2			(1	)		2			(1	)		3			4			(1	)
Other alternatives(4)	15-20%		4			—			4			—			4			4			4			—
Other investments(5)	50-55%		2			(12	)		14			4			(2	)		6			(4	)		10
Subtotal			14			(1	)		15			8			6			22			14			8
Other gains(6)			—			—			—			—			—			—			45			(45	)
Total net gain (loss) on investments(1)			14			(1	)		15			8			6			22			59			(37	)
Interest and dividend income			6			5			1			5			1			11			9			2
Interest expense			(51	)		(52	)		1			(51	)		—			(102	)		(103	)		1
Net interest expense			(45	)		(47	)		2			(46	)		1			(91	)		(94	)		3
Total nonoperating income (expense)(1)			(31	)		(48	)		17			(38	)		7			(69	)		(35	)		(34	)
Compensation expense related to (appreciation) depreciation on deferred compensation plans			—			(2	)		2			—			—			—			(4	)		4
Nonoperating income (expense), as adjusted(1)		$	(31	)	$	(50	)	$	19		$	(38	)	$	7		$	(69	)	$	(39	)	$	(30	)

⁽¹⁾ Net of net income (loss) attributable to noncontrolling interests (“NCI”).

⁽²⁾  Amounts include net gain (loss) on consolidated variable interest entities.

⁽³⁾ Percentages represent estimated percentages of BlackRock’s corporate economic investment portfolio at June 30, 2016. Economic investment amounts at March 31, 2016 for private equity, real assets, other alternatives and other investments were $360 million, $104 million, $227 million and $871 million, respectively.

⁽⁴⁾  Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.

⁽⁵⁾ Amounts include net gains (losses) related to equity and fixed income investments, and BlackRock’s seed capital hedging program.

⁽⁶⁾ Amount for the six months ended June 30, 2015 primarily includes a gain related to the acquisition of certain assets of BlackRock Kelso Capital Advisors LLC.

Highlights

• Net gain (loss) on investments increased from the second quarter of 2015 and first quarter of 2016 due to higher marks in the second quarter of 2016.

-11-

ECONOMIC TANGIBLE ASSETS

The Company presents economic tangible assets as additional information to enable investors to exclude certain assets that have equal and offsetting liabilities or noncontrolling interests that ultimately do not have an impact on stockholders’ equity or cash flows. In addition, goodwill and intangible assets are excluded from economic tangible assets.

Economic tangible assets include cash, receivables, seed and co-investments, regulatory investments and other assets.

(in billions), (unaudited)	June 30, 2016 (Est.)			December 31, 2015
Total balance sheet assets	$	222		$	225
Separate account assets and separate account collateral held under securities lending agreements		(179	)		(182	)
Consolidated sponsored investment funds		(1	)		(1	)
Goodwill and intangible assets, net		(31	)		(30	)
Economic tangible assets	$	11		$	12

-12-

RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED

	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
(in millions), (unaudited)	2016			2015			2016			2016			2015
Operating income, GAAP basis	$	1,173		$	1,238		$	963		$	2,136		$	2,305
Non-GAAP expense adjustments:
Restructuring charge		—			—			76			76			—
PNC LTIP funding obligation		6			8			8			14			16
Compensation expense related to appreciation (depreciation) on deferred compensation plans		—			2			—			—			4
Operating income, as adjusted		1,179			1,248			1,047			2,226			2,325
Product launch costs and commissions		—			5			—			—			5
Operating income used for operating margin measurement	$	1,179		$	1,253		$	1,047		$	2,226		$	2,330
Revenue, GAAP basis	$	2,804		$	2,905		$	2,624		$	5,428		$	5,628
Non-GAAP adjustments:
Distribution and servicing costs		(109	)		(105	)		(97	)		(206	)		(204	)
Amortization of deferred sales commissions		(9	)		(12	)		(10	)		(19	)		(25	)
Revenue used for operating margin measurement	$	2,686		$	2,788		$	2,517		$	5,203		$	5,399
Operating margin, GAAP basis		41.8	%		42.6	%		36.7	%		39.4	%		41.0	%
Operating margin, as adjusted		43.9	%		44.9	%		41.6	%		42.8	%		43.2	%
See note (1) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.
RECONCILIATION OF U.S. GAAP NONOPERATING INCOME NET OF NCI TO NONOPERATING INCOME NET OF NCI, AS ADJUSTED
	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
(in millions), (unaudited)	2016			2015			2016			2016			2015
Nonoperating income (expense), GAAP basis	$	(25	)	$	(41	)	$	(48	)	$	(73	)	$	(25	)
Less: Net income (loss) attributable to NCI		6			7			(10	)		(4	)		10
Nonoperating income (expense), net of NCI		(31	)		(48	)		(38	)		(69	)		(35	)
Compensation expense related to (appreciation) depreciation on deferred compensation plans		—			(2	)		—			—			(4	)
Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted	$	(31	)	$	(50	)	$	(38	)	$	(69	)	$	(39	)
See note (2) to the Condensed Consolidated Statements of Income and Supplemental Information on page 14 for more information on as adjusted items and the reconciliation to GAAP.
RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
	Three Months Ended									Six Months Ended
	June 30,						March 31,			June 30,
(in millions, except per share data), (unaudited)	2016			2015			2016			2016			2015
Net income attributable to BlackRock, Inc., GAAP basis	$	789		$	819		$	657		$	1,446		$	1,641
Non-GAAP adjustments:
Restructuring charge, net of tax		—			—			53			53			—
PNC LTIP funding obligation, net of tax		4			6			5			9			11
Income tax matters		4			13			(4	)		—			16
Net income attributable to BlackRock, Inc., as adjusted	$	797		$	838		$	711		$	1,508		$	1,668
Diluted weighted-average common shares outstanding(4)		166.6			169.1			167.4			167.0			169.4
Diluted earnings per common share, GAAP basis(4)	$	4.73		$	4.84		$	3.92		$	8.66		$	9.69
Diluted earnings per common share, as adjusted(4)	$	4.78		$	4.96		$	4.25		$	9.03		$	9.85

See notes (3) and (4) to the Condensed Consolidated Statements of Income and Supplemental Information on page 15 for more information on as adjusted items and the reconciliation to GAAP.

-13-

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION (unaudited)

BlackRock reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”); however, management believes evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of BlackRock’s financial performance over time. Management also uses non-GAAP financial measures as a benchmark to compare its performance with other companies and to enhance the comparability of this information for the reporting periods presented. Non-GAAP measures may pose limitations because they do not include all of BlackRock’s revenue and expense. BlackRock’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Management uses both GAAP and non-GAAP financial measures in evaluating BlackRock’s financial performance. Adjustments to GAAP financial measures (“non-GAAP adjustments”) include certain items management deems nonrecurring or that occur infrequently, transactions that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

Computations for all periods are derived from the condensed consolidated statements of income as follows:

(1) Operating income, as adjusted, and operating margin, as adjusted: Management believes operating income, as adjusted, and operating margin, as adjusted, are effective indicators of BlackRock’s financial performance over time and, therefore, provide useful disclosure to investors.

• Operating income, as adjusted, includes non-GAAP expense adjustments. A restructuring charge comprised of severance and accelerated amortization expense of previously granted deferred compensation awards has been excluded to provide more meaningful analysis of BlackRock’s ongoing operations and to ensure comparability among periods presented. The portion of compensation expense associated with certain long-term incentive plans (“LTIP”) funded, or to be funded, through share distributions to participants of BlackRock stock held by The PNC Financial Services Group, Inc. (“PNC”) has been excluded because it ultimately does not impact BlackRock’s book value. Compensation expense associated with appreciation (depreciation) on investments related to certain BlackRock deferred compensation plans has been excluded, as returns on investments set aside for these plans, which substantially offset this expense, are reported in nonoperating income (expense).

• Operating income used for measuring operating margin, as adjusted, is equal to operating income, as adjusted, excluding the impact of product launch costs (e.g. closed-end fund launch costs) and related commissions. Management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenue associated with the expenditure of these costs will not fully impact BlackRock’s results until future periods.

Revenue used for operating margin, as adjusted, excludes distribution and servicing costs paid to related parties and other third parties. Management believes the exclusion of such costs is useful because it creates consistency in the treatment for certain contracts for similar services, which due to the terms of the contracts, are accounted for under GAAP on a net basis within investment advisory, administration fees and securities lending revenue. Amortization of deferred sales commissions is excluded from revenue used for operating margin measurement, as adjusted, because such costs, over time, substantially offset distribution fee revenue the Company earns. For each of these items, BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to each of these items as a proxy for such offsetting revenue.

(2) Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted: Nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, equals nonoperating income (expense), GAAP basis, less net income (loss) attributable to NCI, adjusted for compensation expense associated with (appreciation) depreciation on investments related to certain BlackRock deferred compensation plans. The compensation expense offset is recorded in operating income. This compensation expense has been included in nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, to offset returns on investments set aside for these plans, which are reported in nonoperating income (expense), GAAP basis.

Management believes nonoperating income (expense), less net income (loss) attributable to NCI, as adjusted, provides comparability of information among reporting periods and is an effective measure for reviewing BlackRock’s nonoperating contribution to results.

-14-

(3) Net income attributable to BlackRock, Inc., as adjusted: Management believes net income attributable to BlackRock, Inc., as adjusted, and diluted earnings per common share, as adjusted, are useful measures of BlackRock’s profitability and financial performance. Net income attributable to BlackRock, Inc., as adjusted, equals net income attributable to BlackRock, Inc., GAAP basis, adjusted for significant nonrecurring items, charges that ultimately will not impact BlackRock’s book value or certain tax items that do not impact cash flow.

See aforementioned discussion regarding operating income, as adjusted, and operating margin, as adjusted, for information on the PNC LTIP funding obligation and restructuring charge.

For each period presented, the non-GAAP adjustment related to the restructuring charge and PNC LTIP funding obligation was tax effected at the respective blended rates applicable to the adjustments. The three months ended June 30, 2016 and March 31, 2016 reflected a $4 million noncash expense and $4 million noncash tax benefit, respectively, primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill. The three and six months ended June 30, 2015 included $13 million and $16 million, respectively, of net noncash tax expense primarily related to the revaluation of certain deferred tax liabilities. Amounts have been excluded from the as adjusted results as these items will not have a cash flow impact and to ensure comparability among periods presented.

Per share amounts reflect net income attributable to BlackRock, as adjusted divided by diluted weighted average common shares outstanding.

(4) Nonvoting participating preferred stock is considered to be a common stock equivalent for purposes of determining basic and diluted earnings per share calculations.

-15-

Forward-looking Statements

This earnings release, 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 earnings release, 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 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. The information contained on the Company’s website is not a part of this earnings release.

Performance Notes

Past performance is not indicative of future results. Except as specified, the performance information shown is as of June 30, 2016 and is based on preliminary data available at that time. The performance data shown reflects information for all actively and passively managed equity and fixed income accounts, including U.S. registered investment companies, European-domiciled retail funds and separate accounts for which performance data is available, including performance data for high net worth accounts available as of May 31, 2016. The performance data does not include accounts terminated prior to June 30, 2016 and accounts for which data has not yet been verified. If such accounts had been included, the performance data provided may have substantially differed from that shown.

Performance comparisons shown are gross-of-fees for institutional and high net worth separate accounts, and net-of-fees for retail funds. The performance tracking shown for index accounts is based on gross-of-fees performance and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM available as of June 30, 2016 for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund. Fund performance reflects the reinvestment of dividends and distributions.

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.

-16-

EX-99.2

Exhibit 99.2

Q2 2016 Earnings

Earnings Release Supplement:

July 14, 2016

A broadly diversified business across clients, products and geographies

Q2 2016 Long-term Base Fees of $2.370 billion

Long-term Assets Under Management of $4.505 trillion at June 30, 2016

Product Type Client Type StyleRegion

Institutional

30%Active

34%

Equity Equity Active

54% 52% Institutional54%AmericasAmericas

62%63%64%

RetailiShares

34%26%

Fixed Income

Fixed Income 28% Retail 12%iShares

34% 36%

IndexEMEAEMEA

iShares29%29%

Multi-asset 36%40%

iShares

12% 26%

Multi-asset

9% Index

Alternatives 3% Alternatives 8% 10%Asia-Pacific 8%Asia-Pacific 7%

AUM Base Fees AUMBase FeesAUMBase FeesAUMBase Fees

Note: Base Fees and AUM by region data is based on client domicile.

1

Long-term net flows ($ in billions)

LTM organic asset growth rate (%) LTM organic base fee growth rate (%)

Total Long-TermRetail

4% 4% 5%5%4%4%4%3%3%13%11%11%11%10%10%7%4%1%

8% 6% 6%7%6%6%6%4%2%

$88

$70

$54

$38 $35$36

$29

$23

$13$14$11

$2$5$7$7

$0($6)

$(7)

Q2Q3Q4Q1Q2Q3Q4Q1Q2

Q2 Q3 Q4Q1Q2Q3Q4Q1Q2201420142014201520152015201520162016

2014 2014 2014201520152015201520162016

iSharesInstitutional

10% 9% 11%14%11%12%13%11%11%0%0%1%2%1%1%(1)%(1)%0%

$60

$44

$30 $35$21$21

$23$24

$18 $16$12

$11$6$5

$(6)$(8)

$(13)

$(29)

Q2 Q3 Q4Q1Q2Q3Q4Q1Q2Q2Q3Q4Q1Q2Q3Q4Q1Q2

2014 2014 2014201520152015201520162016201420142014201520152015201520162016

Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets.

2

Profitability ($ in millions, except per share data)

Operating Income and Margin, as adjusted Net Income and EPS, as adjusted

$1,200$6.00

44.9%

44.2% 43.6%43.9%$5.21

43.9% $1,100 45.0%$4.89$4.89$4.96$5.00

42.4% 41.6%$4.82$4.75$4.78$5.00

41.2%$1,24841.6%

$1,214 $1,227

$1,154$1,179 $1,000$4.25

$1,133 $1,14340.0%

$1,077$890$4.00

$1,047$900

$837$821$830$838$844

35.0%$801$797

$800$3.00

900

$711

800 30.0% $700

$2.00

700 $600

600 25.0%$1.00

$500

500

400 20.$4000%$0.00

Q2 Q3 Q4Q1Q2Q3Q4Q1Q2Q2Q3Q4Q1Q2Q3Q4Q1Q2

2014 2014 2014201520152015201520162016201420142014201520152015201520162016

Operating Income, as adjusted Operating Margin, as adjustedNet Income, as adjustedEPS, as adjusted

For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (4) in the current earnings release as well as previously filed

Form 10-Ks, 10-Qs and 8-Ks.

3

Capital management (amounts in millions, except per share data)

Share repurchases and weighted average diluted shares 8.00 Dividends and Payout Ratios

$7.50150%

$7.00

130%

$6.50

109% (1)

$6.00110%

$5.50

171.2 170.8 170.4$5.0081%83% 90%

169.7169.1168.7168.678%76%

167.4166.6$4.5071%70%74%

63%64% (1)70%

$300$4.00

$275$275$275$275$275

$3.5047%48%

$250 $250 $25040%40%44%43%42%50%

$3.0035%

$2.50$2.29$2.2930%

$2.18$2.18$2.18$2.18

$1.93$1.93$1.93

$2.00

10%

$1.50

$1.00

-10%

$0.50

-30%

Q2 Q3 Q4Q1Q2Q3Q4Q1Q2Q2Q3Q4Q1Q2Q3Q4Q1Q2

2014 2014 2014201520152015201520162016201420142014201520152015201520162016

DividendsGAAP Dividend Payout RatioTotal GAAP Payout Ratio

Share Repurchases Weighted average diluted shares

Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. GAAP Dividend Payout Ratio = Dividends declared / GAAP net income.

Total GAAP Payout Ratio = (Dividends declared + share repurchases) / GAAP net income.

(1) GAAP Dividend Payout Ratio and Total GAAP Payout Ratio include the restructuring charge of $76 million.

4

Major market indices and exchange rates

% Change% Change

Spot6/30/2016 vs.AverageQ2 2016 vs.

6/30/2015 3/31/20166/30/20163/31/20166/30/2015Q2 2015 Q1 2016 Q2 2016Q1 2016Q2 2015

Equity Indices:

Domestic

S&P 500 2,063 2,0602,0992%2%2,1021,9522,0756%(1)%

Global

MSCI Barra World Index 1,736 1,6481,653- %(5)%1,7801,5691,6566%(7)%

MSCI Europe Index 129 114112(2)%(13)%1351131141%(16)%

MSCI AC Asia Pacific Index 146 129129- %(12)%1511231284%(15)%

MSCI Emerging Markets Index 972 837834- %(14)%1,0167578198%(19)%

S&P Global Natural Resources 3,057 2,5922,7687%(9)%3,2162,3422,72016%(15)%

Fixed Income Index:

Barclays U.S. Aggregate Bond Index 1,913 1,9842,0282%6%1,9291,9561,9972%4%

Foreign Exchange Rates:

GBP to USD 1.57 1.441.33(8)%(15)%1.531.431.441%(6)%

EUR to USD 1.11 1.141.11(3)%- %1.111.101.133%2%

Source: Bloomberg

5

Quarterly revenue

Total Revenue

Q2 2016 Percentage ChangeYear-over-YearSequential

$2,804 million Base Fees ex. Securities LendingBase Fees ex. SL(2)%6%

Securities Lending3%2%

83%Securities Lending

Performance Fees(46)%118%

Performance FeesAladdin13%4%

AladdinOther BRS(19)%(13)%

2%

1% Other BRSDistribution Fees(15)%-%

1% 5% Distribution FeesOther Revenue(5)%18%

3% 5% Other RevenueTotal(3)%7%

Q2 2016 Compared to Q2 2015 Q2 2016Compared to Q1 2016

$(101) million$180 million

$2,905 $17 $4$(2)$(3)$(6)$(49)$(62)$40$9$5$3$(4)$2,804

$2,804$127

$2,624

Q2 2015 Aladdin SecuritiesDistributionOtherOther BRSBase Fees ex PerformanceQ2 2016Q1 2016Base Fees exPerformanceOtherAladdinSecuritiesOther BRSQ2 2016

LendingfeesRevenueSec Lending FeesSec LendingFeesRevenueLending

6

Quarterly investment advisory, administration fees and securities lending revenue

Investment advisory, administration fees and securities lending revenue

Q2 2015: $2,534 million Q2 2016: $2,489 million Q1 2016: $2,359 million

3% 5%4%

7% 18%8%16%8%17%

12%

11%12%

3% 3%3%

5% 26%

7%6%26%

29%

15%

17%7%17%7%

8%

Active Equity iShares Equity Non-ETF Index EquityActive Fixed IncomeiShares Fixed IncomeNon-ETF Index Fixed IncomeMulti-AssetAlternativesCash

Q2 2016 Compared to Q2 2015 Q2 2016Compared to Q1 2016

$(45) million$130 million

$27 $8$(3) $(16)$(25)

$34 $(41)

$43 $(72)$7$7$(1)$2,489

$2,534 $10

$16

$2,489$20$18

$20

$33

$2,359

Q2 2015 Cash iShares Active AltsNon-ETF Non-ETFMulti-ActiveiSharesQ2 2016Q1 2016iSharesiSharesActiveActiveCashNon-ETFMulti-AltsNon-ETFQ2 2016

FI FI FIEQAssetEQEQEQFIEQFIEQAssetFI

7

Quarterly expense

Expense, as adjusted, by category

Employee Comp. & Benefits

Q2 2016 Percentage ChangeYear-over-YearSequential

$1,625 million Distribution & Servicing Costs Employee Comp. & Benefits(3)%3%

Distribution & Servicing Costs4%12%

7%

1% Amort. of Deferred Sales Amort. of Deferred Sales Commissions(25)%(10)%

60% Commissions

12% Direct Fund Expense Direct Fund Expense2%4%

General & Administrative1%(1)%

19% General & Administration Amortization of Intangibles(29)%- %

Total(2)%3%

1% Amortization of Intangibles

Q2 2016 Compared to Q2 2015, as adjusted Q2 2016Compared to Q1 2016, as adjusted

$(32) million$48 million

$1,657 $(31) $1,625$1,625

$(10)$(3)$4$4$4$1,577$(2)$(1)$7$12$32

Q2 2015 Comp & Amort -Amort—DefG&ADistributionDirectQ2 2016Q1 2016G&AAmort—DefDirectDistributionComp &Q2 2016

Benefits IntangSales Comm& ServicingFundSales CommFund& ServicingBenefits

Assets

Expense, as adjusted, includes non-GAAP adjustments related to PNC LTIP funding obligation of $6 million in the second quarter of 2016 and $8 million in both second quarter of 2015 and first quarter of 2016, a restructuring charge of $76 million in the first quarter of 2016, and compensation related to appreciation (depreciation) on certain deferred compensation plans of $2 million in the second quarter of 2015. For further information, see notes (1) through (4) in the current earnings release.

8

Reconciliation between GAAP and as adjusted ($ in millions)

201420152016

Q2 Q3Q4Q1Q2Q3Q4Q1Q2

Operating Income

GAAP $1,122 $1,157$1,144$1,067$1,238$1,222$1,137$963$1,173

Non-GAAP

adjustments 11 5710101056846

As Adjusted $1,133 $1,214$1,154$1,077$1,248$1,227$1,143$1,047$1,179

Nonoperating Income

(Expense)

GAAP $16 $(52)$(60)$16$(41)$(48)$11$(48)$(25)

Non-GAAP

adjustments (36) 446(5)(9)16(10)10(6)

As Adjusted $(20) $(8)$(54)$11$(50)$(32)$1$(38)$(31)

Net Income

GAAP $808 $917$813$822$819$843$861$657$789

Non-GAAP

adjustments 29 (27)88191(60)548

As Adjusted $837 $890$821$830$838$844$801$711$797

Non-GAAP adjustments include amounts related to a restructuring charge, PNC LTIP funding obligation, compensation related to appreciation (depreciation) on certain deferred compensation plans and noncash income tax matters, as applicable.

For further information and reconciliation between GAAP and as adjusted, see notes (1) through (4) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.

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Important Notes

This presentation, and other statements that BlackRock, Inc. (“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 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.; (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 BlackRock; (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.

This presentation also includes non-GAAP financial measures. You can find our presentations on the most directly comparable GAAP financial measures calculated in accordance with GAAP and our reconciliations on page 9 of this earnings release supplement, our current earnings release dated July 14, 2016, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com.

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