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): April 12, 2018

BLACKROCK, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State or other jurisdiction of incorporation) 001-33099 (Commission File Number) 32-0174431 (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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On April 12, 2018, BlackRock, Inc. (the “Company”) reported results of operations for the three months ended March 31, 2018. 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 March 31, 2018 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 April 12, 2018 issued by the Company
99.2	First Quarter 2018 Earnings – Earnings Release Supplement

EXHIBIT INDEX

99.1	Earnings release dated April 12, 2018 issued by the Company
99.2	First Quarter 2018 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)
	By: /s/ Gary S. Shedlin
Date: April 12, 2018	Senior Managing Director and
	Chief Financial Officer
	Gary S. Shedlin

EX-99.1

Exhibit 99.1

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

BlackRock Reports First Quarter 2018 Diluted EPS of $6.68, or $6.70 as adjusted

▪ $55 billion of quarterly long-term net inflows, positive across active and index, reflect strength of diversified business model

▪ 16% growth in revenue year-over-year driven by base fees and technology and risk management revenue

▪ 20% increase in operating income year-over-year reflects operating margin expansion

▪ 28% growth in diluted EPS year-over-year, driven in part by lower tax rate

▪ 15% increase in quarterly cash dividend to $2.88 per share and $335 million of share repurchases

FINANCIAL RESULTS REFLECT NEW REVENUE RECOGNITION STANDARD (PRIOR PERIODS HAVE BEEN RECAST)

	Q1			Q1						Q4
(in millions, except per share data)	2018			2017(a)			Change			2017(a)			Change
AUM	$	6,316,984		$	5,420,477			17	%	$	6,288,195			-	%
Total net flows	$	56,946		$	64,599					$	102,929
GAAP basis:
Revenue	$	3,583		$	3,092			16	%	$	3,764			(5	)%
Operating income	$	1,375		$	1,143			20	%	$	1,485			(7	)%
Operating margin		38.4	%		37.0	%		140	bps		39.5	%		(110	) bps
Net income(1) (2)	$	1,089		$	859			27	%	$	2,295			(53	)%
Diluted EPS	$	6.68		$	5.21			28	%	$	14.01			(52	)%
Weighted average diluted shares		162.9			164.9			(1	)%		163.8			(1	)%
As Adjusted:
Operating income(3)	$	1,378		$	1,147			20	%	$	1,488			(7	)%
Operating margin(3)		44.1	%		42.6	%		150	bps		44.7	%		(60	) bps
Net income(1) (3)	$	1,092		$	862			27	%	$	1,013			8	%
Diluted EPS(3)	$	6.70		$	5.23			28	%	$	6.19			8	%

^(a) Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

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

⁽²⁾ GAAP net income for fourth quarter 2017 reflects $1.2 billion of net tax benefit related to the Tax Cuts and Jobs Act.

⁽³⁾ See notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 10 and 11 for more information on as adjusted items and the reconciliation to GAAP.

New York, April 12, 2018 — BlackRock, Inc. (NYSE: BLK) today reported financial results for the three months ended March 31, 2018.

“Paced by a strong January, long-term net inflows of $55 billion, representing 5% annualized organic base fee growth, were positive across active and index strategies. Momentum continued in technology and risk management, with 19% year-over-year revenue growth, further highlighting the strength and diversity of our global platform.

“Investors experienced a spike in market volatility during the quarter, driven by concerns over global trade policies, a heightened focus on rates and inflation, and headlines in the technology sector. Institutional investors, in particular, reacted to these factors, by de-risking and re-balancing. At the same time, we also saw many corporate clients adapting to U.S. tax reform by seeking liquidity to fund future capital investment or more aggressive share repurchases. As a result of these various crosscurrents, BlackRock experienced a significant number of both large inflows and large outflows from institutional clients in the first quarter. Total institutional net inflows were $3 billion, but reflected active net outflows from multi-asset strategies, primarily related to the loss of a single client from M&A activity, and from active fixed income strategies, linked to profit-taking and cash repatriation planning.

-1-

“Driven by strong flows in our retail channels, BlackRock saw continued demand for a diverse range of fixed income strategies, including unconstrained, total return, short duration and emerging market debt, as well as alpha-seeking equity strategies. Our top performing fixed income platform saw $27 billion of net inflows across active and index. Active equities generated $1 billion of net inflows as performance improved, with 78% of fundamental equities and 90% of systematic active equity assets above benchmark or peer median for the five-year period.

“iShares^®saw quarterly net inflows of $35 billion, as clients continued to use iShares at the core of their portfolios to drive active returns and as simple, efficient tools to manage risk exposure amid market volatility.

“Growth in technology and risk management revenue was powered by demand for institutional Aladdin^®and expansion of our digital wealth and distribution technologies, including Aladdin Risk for Wealth Management and Cachematrix. We continue to invest in technology to enhance our distribution capabilities and help partners efficiently scale their businesses and construct better portfolios.

“In a challenging environment, BlackRock continued to perform well. Building on a strong start to 2018, we remain committed to investing for growth and delivering the benefits of our scale to both clients and shareholders.”

RESULTS BY CLIENT TYPE
								March 31, 2018			Q1 2018
	Q1 2018			March 31, 2018		Q1 2018		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
Retail	$	16,686		$	638,363	$	855		10	%		29	%
iShares ETFs		34,649			1,767,925		1,158		28	%		39	%
Institutional:
Active		(7,088	)		1,130,446		527		18	%		18	%
Index		10,378			2,324,327		256		37	%		9	%
Total institutional		3,290			3,454,773		783		55	%		27	%
Long-term		54,625			5,861,061		2,796		93	%		95	%
Cash management		2,674			454,784		151		7	%		5	%
Advisory		(353	)		1,139		-		-			-
Total	$	56,946		$	6,316,984	$	2,947		100	%		100	%
RESULTS BY INVESTMENT STYLE
								March 31, 2018			Q1 2018
	Q1 2018			March 31, 2018		Q1 2018		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
Active	$	5,513		$	1,693,883	$	1,365		27	%		46	%
Index and iShares ETFs		49,112			4,167,178		1,431		66	%		49	%
Long-term		54,625			5,861,061		2,796		93	%		95	%
Cash management		2,674			454,784		151		7	%		5	%
Advisory		(353	)		1,139		-		-			-
Total	$	56,946		$	6,316,984	$	2,947		100	%		100	%
RESULTS BY PRODUCT TYPE
								March 31, 2018			Q1 2018
	Q1 2018			March 31, 2018		Q1 2018		AUM			Base fees(1)
(in millions), (unaudited)	Net flows			AUM		Base fees(1)		% of Total			% of Total
Equity	$	26,514		$	3,363,237	$	1,540		53	%		52	%
Fixed income		26,683			1,886,523		757		30	%		26	%
Multi-asset		(1,987	)		476,697		296		8	%		10	%
Alternatives		3,415			134,604		203		2	%		7	%
Long-term		54,625			5,861,061		2,796		93	%		95	%
Cash management		2,674			454,784		151		7	%		5	%
Advisory		(353	)		1,139		-		-			-
Total	$	56,946		$	6,316,984	$	2,947		100	%		100	%

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

-2-

BUSINESS HIGHLIGHTS

Long-term net inflows of $57.3 billion and $3.2 billion from clients in the Americas and Asia-Pacific regions, respectively, were partially offset by net outflows of $5.9 billion from clients in EMEA. At March 31, 2018, BlackRock managed 63% of its long-term AUM for clients in the Americas, 29% for clients in EMEA and 8% for clients in Asia-Pacific.

The Company’s net flows by client type for the first quarter of 2018 are presented below.

▪ Retail long-term net inflows of $16.7 billion reflected net inflows of $8.7 billion in the United States and $8.0 billion internationally. Fixed income net inflows of $10.0 billion were diversified across the Company’s top-performing active platform, led by net inflows into unconstrained, emerging market and municipals categories. Equity net inflows of $4.2 billion reflected inflows into index mutual funds and international active equities. Multi-asset net inflows of $2.0 billion were largely due to inflows into the Multi-asset Income fund family.

▪ iShares ETFs long-term net inflows of $34.6 billion reflected strength in iShares Core ETFs. Equity net inflows of $29.7 billion were driven by both U.S. and international equity market exposures. Fixed income and commodity iShares generated $3.2 billion and $1.7 billion of net inflows, respectively.

▪ Institutional active long-term net outflows of $7.1 billion were driven by fixed income outflows of $4.1 billion linked to profit-taking and cash repatriation planning, and multi-asset net outflows of $4.1 billion resulting from a single redemption associated with client M&A activity. Alternatives net inflows of $1.4 billion were led by inflows into hedge funds, private equity solutions and infrastructure offerings.

▪ Institutional index long-term net inflows of $10.4 billion included fixed income net inflows of $17.5 billion, led by demand for liability-driven solutions, partially offset by equity net outflows of $7.2 billion.

Cash management AUM increased 1% from the prior quarter to $454.8 billion.

INVESTMENT PERFORMANCE AT MARCH 31, 2018⁽¹⁾  

	One-year period	Three-year period	Five-year period
Fixed income:
Actively managed AUM above benchmark or peer median
Taxable	83%	72%	90%
Tax-exempt	63%	58%	74%
Index AUM within or above applicable tolerance	96%	99%	100%
Equity:
Actively managed AUM above benchmark or peer median
Fundamental	66%	77%	78%
Systematic	84%	89%	90%
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 12 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, April 12, 2018 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 9486699). 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, April 12, 2018 and ending at midnight on Thursday, April 26, 2018. 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 9486699. To access the webcast, please visit the investor relations section of www.blackrock.com.

About BlackRock

BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. As of March 31, 2018, the firm managed approximately $6.317 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock.

-3-

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SUPPLEMENTAL INFORMATION

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

										Three Months
	Three Months Ended									Ended
	March 31,									December 31,
	2018			2017(a)			Change			2017(a)			Change
Revenue
Investment advisory, administration fees and   securities lending revenue	$	2,947		$	2,523		$	424		$	2,897		$	50
Investment advisory performance fees		70			70			-			285			(215	)
Technology and risk management revenue		184			154			30			176			8
Distribution fees		311			287			24			306			5
Advisory and other revenue		71			58			13			100			(29	)
Total revenue		3,583			3,092			491			3,764			(181	)
Expense
Employee compensation and benefits		1,121			1,021			100			1,147			(26	)
Distribution and servicing costs		432			401			31			433			(1	)
Direct fund expense		261			206			55			237			24
General and administration		383			296			87			450			(67	)
Amortization of intangible assets		11			25			(14	)		12			(1	)
Total expense		2,208			1,949			259			2,279			(71	)
Operating income		1,375			1,143			232			1,485			(110	)
Nonoperating income (expense)
Net gain (loss) on investments		15			51			(36	)		33			(18	)
Interest and dividend income		15			7			8			14			1
Interest expense		(46	)		(65	)		19			(46	)		-
Total nonoperating income (expense)		(16	)		(7	)		(9	)		1			(17	)
Income before income taxes		1,359			1,136			223			1,486			(127	)
Income tax expense (benefit)		265			268			(3	)		(815	)		1,080
Net income		1,094			868			226			2,301			(1,207	)
Less:
Net income (loss) attributable to noncontrolling interests		5			9			(4	)		6			(1	)
Net income attributable to BlackRock, Inc.	$	1,089		$	859		$	230		$	2,295		$	(1,206	)
Weighted-average common shares outstanding
Basic		161,250,018			163,016,599			(1,766,581	)		161,272,950			(22,932	)
Diluted		162,918,961			164,856,183			(1,937,222	)		163,777,534			(858,573	)
Earnings per share attributable to BlackRock, Inc.    common stockholders (3)
Basic	$	6.75		$	5.27		$	1.48		$	14.23		$	(7.48	)
Diluted	$	6.68		$	5.21		$	1.47		$	14.01		$	(7.33	)
Cash dividends declared and paid per share	$	2.88		$	2.50		$	0.38		$	2.50		$	0.38
Supplemental information:
AUM (end of period)	$	6,316,984		$	5,420,477		$	896,507		$	6,288,195		$	28,789
Shares outstanding (end of period)		161,275,008			162,868,647			(1,593,639	)		161,046,825			228,183
GAAP:
Operating margin		38.4	%		37.0	%		140	bps		39.5	%		(110	) bps
Effective tax rate		19.6	%		23.8	%		(420	) bps		(55.1	)%		7,470	bps
As adjusted:
Operating income (1)	$	1,378		$	1,147		$	231		$	1,488		$	(110	)
Operating margin (1)		44.1	%		42.6	%		150	bps		44.7	%		(60	) bps
Nonoperating income (expense), less net income      (loss) attributable to noncontrolling interests	$	(21	)	$	(16	)	$	(5	)	$	(5	)	$	(16	)
Net income attributable to BlackRock, Inc. (2)	$	1,092		$	862		$	230		$	1,013		$	79
Diluted earnings attributable to BlackRock, Inc.      common stockholders per share (2) (3)	$	6.70		$	5.23		$	1.47		$	6.19		$	0.51
Effective tax rate		19.6	%		23.8	%		(420	) bps		31.7	%		(1,210	) bps
See pages 10-11 for the reconciliation to GAAP and notes (1) through (3) for more information on as adjusted items.

^(a) Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

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ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Current Quarter Component Changes by Client Type and Product Type
			Net
	December 31,		inflows			Market						March 31,
	2017		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Retail:
Equity	$	233,218	$	4,248		$	(6,711	)	$	2,200		$	232,955	$	237,553
Fixed income		257,571		10,065			(2,188	)		1,123			266,571		262,506
Multi-asset		120,855		2,035			(1,556	)		267			121,601		122,671
Alternatives		16,733		338			63			102			17,236		17,131
Retail subtotal		628,377		16,686			(10,392	)		3,692			638,363		639,861
iShares ETFs:
Equity		1,329,610		29,714			(17,345	)		2,585			1,344,564		1,366,390
Fixed income		395,252		3,210			(5,754	)		1,483			394,191		394,856
Multi-asset		3,761		48			(40	)		(3	)		3,766		3,792
Alternatives		23,616		1,677			91			20			25,404		24,852
iShares ETFs subtotal		1,752,239		34,649			(23,048	)		4,085			1,767,925		1,789,890
Institutional:
Active:
Equity		137,185		(296	)		(1,739	)		1,320			136,470		139,478
Fixed income		570,050		(4,069	)		(7,134	)		4,725			563,572		567,142
Multi-asset		347,825		(4,110	)		(3,161	)		2,790			343,344		346,649
Alternatives		84,248		1,387			673			752			87,060		85,908
Active subtotal		1,139,308		(7,088	)		(11,361	)		9,587			1,130,446		1,139,177
Index:
Equity		1,671,628		(7,152	)		(29,307	)		14,079			1,649,248		1,687,392
Fixed income		632,592		17,477			(2,987	)		15,107			662,189		643,857
Multi-asset		7,837		40			(112	)		221			7,986		8,456
Alternatives		4,750		13			43			98			4,904		4,910
Index subtotal		2,316,807		10,378			(32,363	)		29,505			2,324,327		2,344,615
Institutional subtotal		3,456,115		3,290			(43,724	)		39,092			3,454,773		3,483,792
Long-term		5,836,731		54,625			(77,164	)		46,869			5,861,061		5,913,543
Cash management		449,949		2,674			85			2,076			454,784		453,629
Advisory (3)		1,515		(353	)		(14	)		(9	)		1,139		1,323
Total	$	6,288,195	$	56,946		$	(77,093	)	$	48,936		$	6,316,984	$	6,368,495
Current Quarter Component Changes by Investment Style and Product Type (Long-term)
			Net
	December 31,		inflows			Market						March 31,
	2017		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Active:
Equity	$	311,209	$	1,005		$	(6,458	)	$	2,611		$	308,367	$	316,310
Fixed income		815,135		4,858			(9,222	)		5,503			816,274		816,757
Multi-asset		468,679		(2,075	)		(4,716	)		3,057			464,945		469,320
Alternatives		100,982		1,725			736			854			104,297		103,039
Active subtotal		1,696,005		5,513			(19,660	)		12,025			1,693,883		1,705,426
Index and iShares ETFs:
iShares ETFs:
Equity		1,329,610		29,714			(17,345	)		2,585			1,344,564		1,366,390
Fixed income		395,252		3,210			(5,754	)		1,483			394,191		394,856
Multi-asset		3,761		48			(40	)		(3	)		3,766		3,792
Alternatives		23,616		1,677			91			20			25,404		24,852
iShares ETFs subtotal		1,752,239		34,649			(23,048	)		4,085			1,767,925		1,789,890
Non-ETF Index:
Equity		1,730,822		(4,205	)		(31,299	)		14,988			1,710,306		1,748,113
Fixed income		645,078		18,615			(3,087	)		15,452			676,058		656,748
Multi-asset		7,838		40			(113	)		221			7,986		8,456
Alternatives		4,749		13			43			98			4,903		4,910
Non-ETF Index subtotal		2,388,487		14,463			(34,456	)		30,759			2,399,253		2,418,227
Index & iShares ETFs subtotal		4,140,726		49,112			(57,504	)		34,844			4,167,178		4,208,117
Long-term	$	5,836,731	$	54,625		$	(77,164	)	$	46,869		$	5,861,061	$	5,913,543
Current Quarter Component Changes by Product Type (Long-term)
			Net
	December 31,		inflows			Market						March 31,
	2017		(outflows)			change			FX impact (1)			2018		Average AUM (2)
Equity	$	3,371,641	$	26,514		$	(55,102	)	$	20,184		$	3,363,237	$	3,430,813
Fixed income		1,855,465		26,683			(18,063	)		22,438			1,886,523		1,868,361
Multi-asset		480,278		(1,987	)		(4,869	)		3,275			476,697		481,568
Alternatives:
Core		98,533		1,533			750			747			101,563		100,438
Currency and commodities(4)		30,814		1,882			120			225			33,041		32,363
Alternatives subtotal		129,347		3,415			870			972			134,604		132,801
Long-term	$	5,836,731	$	54,625		$	(77,164	)	$	46,869		$	5,861,061	$	5,913,543

⁽¹⁾ Foreign exchange reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

⁽²⁾ Average AUM is calculated as the average of the month-end spot AUM amounts for the trailing four months.

⁽³⁾ Advisory AUM represents long-term portfolio liquidation assignments.

⁽⁴⁾ Amounts include commodity iShares ETFs.

-5-

ASSETS UNDER MANAGEMENT

(in millions), (unaudited)

Year-over-Year Component Changes by Client Type and Product Type
			Net
	March 31,		inflows					Market					March 31,
	2017		(outflows)			Acquisition(1)		change			FX impact (2)		2018		Average AUM (3)
Retail:
Equity	$	208,181	$	6,564		$	-	$	10,628		$	7,582	$	232,955	$	225,294
Fixed income		230,003		29,775			-		1,974			4,819		266,571		249,258
Multi-asset		110,702		4,921			-		4,874			1,104		121,601		117,752
Alternatives		15,447		693			-		609			487		17,236		16,964
Retail subtotal		564,333		41,953			-		18,085			13,992		638,363		609,268
iShares ETFs:
Equity		1,052,409		159,538			-		117,376			15,241		1,344,564		1,233,739
Fixed income		337,904		50,358			-		(3,217	)		9,146		394,191		377,467
Multi-asset		2,890		747			-		123			6		3,766		3,466
Alternatives		20,132		4,866			-		236			170		25,404		22,397
iShares ETFs subtotal		1,413,335		215,509			-		114,518			24,563		1,767,925		1,637,069
Institutional:
Active:
Equity		124,817		(9,214	)		-		16,067			4,800		136,470		132,135
Fixed income		543,782		(3,477	)		-		10,299			12,968		563,572		559,731
Multi-asset		290,729		11,736			-		25,551			15,328		343,344		325,522
Alternatives		77,905		799			3,264		2,806			2,286		87,060		83,120
Active subtotal		1,037,233		(156	)		3,264		54,723			35,382		1,130,446		1,100,508
Index:
Equity		1,480,108		(44,286	)		-		174,294			39,132		1,649,248		1,600,091
Fixed income		518,880		95,441			-		5,605			42,263		662,189		590,625
Multi-asset		7,244		(611	)		-		1,062			291		7,986		7,952
Alternatives		7,673		(3,328	)		-		243			316		4,904		6,374
Index subtotal		2,013,905		47,216			-		181,204			82,002		2,324,327		2,205,042
Institutional subtotal		3,051,138		47,060			3,264		235,927			117,384		3,454,773		3,305,550
Long-term		5,028,806		304,522			3,264		368,530			155,939		5,861,061		5,551,887
Cash management		388,935		56,639			-		1,104			8,106		454,784		427,375
Advisory (4)		2,736		(1,561	)		-		(190	)		154		1,139		2,159
Total	$	5,420,477	$	359,600		$	3,264	$	369,444		$	164,199	$	6,316,984	$	5,981,421
Year-over-Year Component Changes by Investment Style and Product Type (Long-term)
			Net
	March 31,		inflows					Market					March 31,
	2017		(outflows)			Acquisition(1)		change			FX impact (2)		2018		Average AUM (3)
Active:
Equity	$	285,716	$	(10,682	)	$	-	$	23,688		$	9,645	$	308,367	$	301,969
Fixed income		763,020		24,338			-		12,173			16,743		816,274		796,760
Multi-asset		401,431		16,657			-		30,425			16,432		464,945		443,274
Alternatives		93,352		1,491			3,264		3,415			2,775		104,297		100,084
Active subtotal		1,543,519		31,804			3,264		69,701			45,595		1,693,883		1,642,087
Index and iShares ETFs:
iShares ETFs
Equity		1,052,409		159,538			-		117,376			15,241		1,344,564		1,233,739
Fixed income		337,904		50,358			-		(3,217	)		9,146		394,191		377,467
Multi-asset		2,890		747			-		123			6		3,766		3,466
Alternatives		20,132		4,866			-		236			170		25,404		22,397
iShares ETFs subtotal		1,413,335		215,509			-		114,518			24,563		1,767,925		1,637,069
Non-ETF Index
Equity		1,527,390		(36,254	)		-		177,301			41,869		1,710,306		1,655,551
Fixed income		529,645		97,401			-		5,705			43,307		676,058		602,854
Multi-asset		7,244		(611	)		-		1,062			291		7,986		7,952
Alternatives		7,673		(3,327	)		-		243			314		4,903		6,374
Non-ETF Index subtotal		2,071,952		57,209			-		184,311			85,781		2,399,253		2,272,731
Index & iShares ETFs subtotal		3,485,287		272,718			-		298,829			110,344		4,167,178		3,909,800
Long-term	$	5,028,806	$	304,522		$	3,264	$	368,530		$	155,939	$	5,861,061	$	5,551,887
Year-over-Year Component Changes by Product Type (Long-term)
			Net
	March 31,		inflows					Market					March 31,
	2017		(outflows)			Acquisition(1)		change			FX impact (2)		2018		Average AUM (3)
Equity	$	2,865,515	$	112,602		$	-	$	318,365		$	66,755	$	3,363,237	$	3,191,259
Fixed income		1,630,569		172,097			-		14,661			69,196		1,886,523		1,777,081
Multi-asset		411,565		16,793			-		31,610			16,729		476,697		454,692
Alternatives:
Core		90,914		1,309			3,264		3,379			2,697		101,563		97,643
Currency and commodities(5)		30,243		1,721			-		515			562		33,041		31,212
Alternatives subtotal		121,157		3,030			3,264		3,894			3,259		134,604		128,855
Long-term	$	5,028,806	$	304,522		$	3,264	$	368,530		$	155,939	$	5,861,061	$	5,551,887

⁽¹⁾ Amount represents AUM acquired in the First Reserve Infrastructure business transaction in June 2017.

⁽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 ETFs.

-6-

SUMMARY OF REVENUE

								Three Months
	Three Months Ended							Ended
	March 31,							December 31,
(in millions), (unaudited)	2018		2017(a)		Change			2017(a)		Change
Investment advisory, administration fees and securities lending revenue:
Equity:
Active	$	438	$	400	$	38		$	425	$	13
iShares ETFs		926		721		205			888		38
Non-ETF Index		176		160		16			177		(1	)
Equity subtotal		1,540		1,281		259			1,490		50
Fixed income:
Active		456		407		49			449		7
iShares ETFs		208		185		23			213		(5	)
Non-ETF Index		93		85		8			87		6
Fixed income subtotal		757		677		80			749		8
Multi-asset		296		272		24			314		(18	)
Alternatives:
Core		178		144		34			170		8
Currency and commodities		25		22		3			24		1
Alternatives subtotal		203		166		37			194		9
Long-term		2,796		2,396		400			2,747		49
Cash management		151		127		24			150		1
Total base fees		2,947		2,523		424			2,897		50
Investment advisory performance fees:
Equity		18		15		3			95		(77	)
Fixed income		3		10		(7	)		14		(11	)
Multi-asset		5		5		-			19		(14	)
Alternatives		44		40		4			157		(113	)
Total performance fees		70		70		-			285		(215	)
Technology and risk management revenue		184		154		30			176		8
Distribution fees:
Retrocessions		192		155		37			185		7
12b-1 fees (U.S. mutual funds distribution fees)		108		122		(14	)		110		(2	)
Other		11		10		1			11		-
Total distribution fees		311		287		24			306		5
Advisory and other revenue:
Advisory		21		24		(3	)		54		(33	)
Other		50		34		16			46		4
Advisory and other revenue		71		58		13			100		(29	)
Total revenue	$	3,583	$	3,092	$	491		$	3,764	$	(181	)

^(a) Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Highlights

▪ Investment advisory, administration fees and securities lending revenue increased $424 million from the first quarter of 2017, reflecting the impact of higher markets and organic growth on average AUM and the impact of foreign exchange movements, partially offset by previously announced pricing changes to select investment products. Securities lending revenue of $155 million in the current quarter compared with $141 million in the first quarter of 2017.

Investment advisory, administration fees and securities lending revenue increased $50 million from the fourth quarter of 2017, driven by higher average AUM and foreign exchange movements, partially offset by the effect of two less days in the current quarter. Securities lending revenue of $155 million in the current quarter compared with $150 million in the fourth quarter of 2017. 

▪ Performance fees decreased $215 million from the fourth quarter of 2017, primarily due to seasonally higher fees from funds with a performance measurement period that ended in the fourth quarter of 2017.

▪ Technology and risk management revenue increased $30 million from the first quarter of 2017 and $8 million from the fourth quarter of 2017, reflecting ongoing demand for institutional Aladdin and expansion of digital wealth and distribution technologies, including Aladdin Risk for Wealth Management and Cachematrix.

▪ Advisory and other revenue increased $13 million from the first quarter of 2017, primarily reflecting higher earnings from strategic minority investments and decreased $29 million from the fourth quarter of 2017, primarily reflecting lower fees from advisory assignments.

-7-

SUMMARY OF OPERATING EXPENSE

	Three								Three
	Months Ended								Months Ended
	March 31,								December 31,
(in millions), (unaudited)	2018		2017(a)			Change			2017(a)		Change
Operating expense
Employee compensation and benefits	$	1,121	$	1,021		$	100		$	1,147	$	(26	)
Distribution and servicing costs:
Retrocessions		192		155			37			185		7
12b-1 costs		106		119			(13	)		106		-
Other		134		127			7			142		(8	)
Total distribution and servicing costs		432		401			31			433		(1	)
Direct fund expense		261		206			55			237		24
General and administration:
Marketing and promotional		85		69			16			102		(17	)
Occupancy and office related		74		65			9			73		1
Portfolio services		70		57			13			76		(6	)
Technology		53		43			10			58		(5	)
Professional services		32		25			7			50		(18	)
Communications		10		8			2			10		-
Foreign exchange remeasurement		1		(11	)		12			8		(7	)
Contingent consideration fair value adjustments		6		(4	)		10			9		(3	)
Product launch costs		11		4			7			-		11
Other general and administration		41		40			1			64		(23	)
Total general and administration expense		383		296			87			450		(67	)
Amortization of intangible assets		11		25			(14	)		12		(1	)
Total operating expense	$	2,208	$	1,949		$	259		$	2,279	$	(71	)

^(a) Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

Highlights

▪ Employee compensation and benefits expense increased $100 million from the first quarter of 2017, primarily reflecting higher incentive compensation, driven primarily by higher operating income and headcount, partially offset by approximately $20 million of severance and accelerated compensation expense associated with the repositioning of the active equity platform during the first quarter of 2017.

Employee compensation and benefits expense decreased $26 million from the fourth quarter of 2017, primarily reflecting lower incentive compensation, driven primarily by lower performance fees and operating income, partially offset by higher seasonal payroll taxes, and an increase in stock-based compensation expense related to the effect of additional grants at the end of January 2018.

▪ Direct fund expense increased $55 million from the first quarter of 2017 and $24 million from the fourth quarter of 2017, reflecting higher average AUM.  

-8-

INCOME TAX EXPENSE (BENEFIT)

	Three									Three
	Months Ended									Months Ended
	March 31,									December 31,
(in millions), (unaudited)	2018			2017(a)			Change			2017(a)				Change
Income tax expense (benefit)	$	265		$	268		$	(3	)		$	(815	)	$	1,080
Effective tax rate		19.6	%		23.8	%		(420	) bps			(55.1	)%		7,470	bps

^(a) Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.  

Highlights

▪ First quarter 2018 income tax expense reflected a reduced tax rate associated with the Tax Cuts and Jobs Act (the “2017 Act”) enacted in the United States and included a $56 million discrete tax benefit related to stock-based compensation awards that vested in the first quarter of 2018.

▪ First quarter 2017 income tax expense included an $81 million discrete tax benefit related to stock-based compensation awards that vested in the first quarter of 2017.

▪ Fourth quarter 2017 income tax benefit included $1.2 billion of net tax benefit related to the 2017 Act and included an $84 million discrete tax benefit, primarily related to stock-based compensation awards.

SUMMARY AND RECONCILIATION OF U.S. GAAP NONOPERATING INCOME (EXPENSE) TO NONOPERATING INCOME (EXPENSE), AS ADJUSTED

	Three Months									Three Months
	Ended									Ended
	March 31,									December 31,
(in millions), (unaudited)	2018			2017			Change			2017			Change
Nonoperating income (expense), GAAP basis	$	(16	)	$	(7	)	$	(9	)	$	1		$	(17	)
Less: Net income (loss) attributable to      noncontrolling interests ("NCI")		5			9			(4	)		6			(1	)
Nonoperating income (expense), as adjusted(1)(2)	$	(21	)	$	(16	)	$	(5	)	$	(5	)	$	(16	)
	Three Months									Three Months
	Ended									Ended
	March 31,									December 31,
(in millions), (unaudited)	2018			2017			Change			2017			Change
Net gain (loss) on investments(1)(2)
Private equity	$	1		$	6		$	(5	)	$	-		$	1
Real assets		5			1			4			15			(10	)
Other alternatives(3)		3			14			(11	)		4			(1	)
Other investments(4)		1			21			(20	)		8			(7	)
Total net gain (loss) on investments(1)(2)		10			42			(32	)		27			(17	)
Interest and dividend income		15			7			8			14			1
Interest expense		(46	)		(65	)		19			(46	)		-
Net interest expense		(31	)		(58	)		27			(32	)		1
Nonoperating income (expense), as adjusted(1)(2)	$	(21	)	$	(16	)	$	(5	)	$	(5	)	$	(16	)

⁽¹⁾ Net of net income (loss) attributable to NCI.  

⁽²⁾ Management believes nonoperating income (expense), as adjusted, is an effective measure for reviewing BlackRock’s nonoperating contribution to results. For more information on other as adjusted items and the reconciliation to GAAP see notes (1) through (3) to the condensed consolidated statements of income and supplemental information on pages 10 and 11.

⁽³⁾ Amounts primarily include net gains (losses) related to direct hedge fund strategies and hedge fund solutions.

⁽⁴⁾ Amounts primarily include net gains (losses) related to equity and fixed income investments.

Highlights

▪ First quarter 2017 interest expense included a make-whole redemption premium of $14 million related to the refinancing of $700 million of 6.25% notes, which were called prior to their September 2017 maturity.

-9-

RECONCILIATION OF U.S. GAAP OPERATING INCOME AND OPERATING MARGIN TO OPERATING INCOME AND OPERATING MARGIN, AS ADJUSTED
	Three Months Ended
	March 31,						December 31,
(in millions), (unaudited)	2018			2017(a)			2017(a)
Operating income, GAAP basis	$	1,375		$	1,143		$	1,485
Non-GAAP expense adjustment:
PNC LTIP funding obligation		3			4			3
Operating income, as adjusted		1,378			1,147			1,488
Product launch costs and commissions		12			-			-
Operating income used for operating margin measurement	$	1,390		$	1,147		$	1,488
Revenue, GAAP basis	$	3,583		$	3,092		$	3,764
Non-GAAP adjustment:
Distribution and servicing costs		(432	)		(401	)		(433	)
Revenue used for operating margin measurement	$	3,151		$	2,691		$	3,331
Operating margin, GAAP basis		38.4	%		37.0	%		39.5	%
Operating margin, as adjusted		44.1	%		42.6	%		44.7	%
See note (1) to the condensed consolidated statements of income and supplemental information on page 11 for more information on as adjusted items and the reconciliation to GAAP.
(a)      Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.
RECONCILIATION OF U.S. GAAP NET INCOME ATTRIBUTABLE TO BLACKROCK TO NET INCOME ATTRIBUTABLE TO BLACKROCK, AS ADJUSTED
	Three Months Ended
	March 31,						December 31,
(in millions, except per share data), (unaudited)	2018			2017(a)			2017(a)
Net income attributable to BlackRock, Inc., GAAP basis	$	1,089		$	859		$	2,295
Non-GAAP adjustments:
PNC LTIP funding obligation, net of tax		3			3			2
The 2017 Act:
Deferred tax revaluation (noncash)		-			-			(1,758	)
Deemed repatriation tax		-			-			477
Other income tax matters		-			-			(3	)
Net income attributable to BlackRock, Inc., as adjusted	$	1,092		$	862		$	1,013
Diluted weighted-average common shares outstanding(3)		162.9			164.9			163.8
Diluted earnings per common share, GAAP basis(3)	$	6.68		$	5.21		$	14.01
Diluted earnings per common share, as adjusted(3)	$	6.70		$	5.23		$	6.19
See notes (2) and (3) to the condensed consolidated statements of income and supplemental information on page 11 for more information on as adjusted items and the reconciliation to GAAP.
(a)      Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

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 considers them to be helpful, for both management and investors, in evaluating 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. Non-GAAP measures may not be comparable to other similarly titled measures of other companies.

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.

-10-

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. 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.

▪ 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 third parties. Management believes such costs represent a benchmark for the amount of revenue passed through to external parties who distribute the Company’s products. BlackRock excludes from revenue used for operating margin, as adjusted, the costs related to distribution and servicing costs as a proxy for such offsetting revenue.

(2) 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.

For each period presented, the non-GAAP adjustment related to the PNC LTIP funding obligation was tax effected at the respective blended rates applicable to the adjustments. The fourth quarter of 2017 noncash deferred tax revaluation benefit of $1,758 million and the other income tax matters were primarily associated with the revaluation of certain deferred tax liabilities related to intangible assets and goodwill. 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. A deemed repatriation tax expense of $477 million has been excluded from the fourth quarter of 2017 as adjusted results due to the one-time nature and to ensure comparability among periods presented.

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

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

-11-

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.

BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (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 potential for human error in connection with BlackRock’s operational systems; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy and uncertainty pending any such changes; (12) 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; (13) the ability to attract and retain highly talented professionals; (14) fluctuations in the carrying value of BlackRock’s economic investments; (15) 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; (16) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (17) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (18) any disruption to the operations of third parties whose functions are integral to BlackRock’s ETF platform; (19) 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 (20) 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 March 31, 2018 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 February 28, 2018. The performance data does not include accounts terminated prior to March 31, 2018 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 March 31, 2018 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.

Performance shown is derived from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Peer medians are based in part on data either from Lipper, Inc. or Morningstar, Inc. for each included product.

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EX-99.2

Q1 2018 Earnings Earnings Release Supplement April 12, 2018 7/13/2017 10:27 AM BlackRock Exhibit 99.2

A broadly diversified business across clients, products and geographies Q1 2018 Total Base Fees of $2.947 billion Assets Under Management of $6.317 trillion at March 31, 2018 Note: Base Fees and AUM by region data is based on client domicile. Equity 53% 51% 62% 32% 28% 48% 64% 65% Institutional Active Americas Fixed income Retail Index EMEA Multi-asset iShares ETFs Alternatives Cash Asia-Pacific 30% 27% 11% 31% 38% 10% 29% 28% 27% 37% 7% 5% 2% 6% 8% Aum Base fees 1

7% 7% 6% 3% 3% 3% 4% 7% Long-term net flows ($ in billions) Total Long-Term Retail iShares ETFs Institutional LTM organic asset growth rate (%) LTM organic base fee growth rate (%) 7% 4% 1% 0% (2)% (1)% 1% 3% 6% 11% 11% 15% 13% 16% 21% 19% 19% (1)% 0% 0% 2% 2% 3% 3% 2% Note: LTM organic asset growth rate measures rolling last twelve months net flows over beginning of period assets. 5% 4% 2% 3% 1% 2% 5% 5% 7% 7% 15% 2% 2 Q2 Q3 Q4 Q1 2015 2016 2017 $(7) $35 $54 $36 $2 $55 $88 $80 $94 $11 $7 $7 $0 ($6) $(2) $(2) $5 $7 $11 $23 $60 $24 $16 $51 $49 $64 $74 $(29) $5 $(13) $12 $(8) $6 $41 $11 $13

Profitability ($ in millions, except per share data) Net Income and EPS, as adjusted Operating Income and Margin, as adjusted For further information and reconciliations between GAAP and as adjusted, see page 9 of this earnings release supplement, notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. Operating Income, as adjusted Operating Margin, as adjusted Net Income, as adjusted EPS, as adjusted 3 Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Capital management (amounts in millions, except per share data) Amounts above exclude repurchases of employee tax withholdings related to employee stock transactions. Share repurchases and weighted average diluted shares Dividends per share 4

Major market indices and exchange rates 5 Source: Bloomberg (1) Revenue weighted composite index calculated by BlackRock to approximate the impact of market fluctuations on BlackRock’s equity base fees. The index is derived from publicly available market indices that represent applicable AUM benchmarks for each equity portfolio, as selected by BlackRock. The market impact information for each equity portfolio used to calculate the index may be substantially different from that shown. Index does not include portfolios that do not have an applicable market index. Index does not reflect BlackRock’s investment performance, and is not indicative of past or future results. Spot % Change Average % Change 3/31/2018 vs. Q1 2018 vs. 42825 43100 43190 43100 42825 Q1 2017 Q4 2017 Q1 2018 Q4 2017 Q1 2017 Equity Indices: Domestic S&P 500 2,363 2,674 2,641 -1.2341062079281975E-2 0.11764705882352941 2324 2,604 2,732 4.9155145929339478E-2 0.17555938037865748 Global MSCI Barra World Index 1,854 2,103 2,067 -1.7118402282453638E-2 0.11488673139158576 1819 2,052 2,137 4.1423001949317736E-2 0.17482133040131942 MSCI Europe Index 129 131 125 -4.5801526717557252E-2 -3.1007751937984496E-2 125 132 129 -2.2727272727272728E-2 3.2000000000000001E-2 MSCI AC Asia Pacific Index 147 174 173 -5.7471264367816091E-3 0.17687074829931973 143 169 178 5.3254437869822487E-2 0.24475524475524477 MSCI Emerging Markets Index 958 1,158 1,171 1.1226252158894647E-2 0.22233820459290188 927 1,125 1,204 7.0222222222222228E-2 0.29881337648327938 S&P Global Natural Resources 3,210 3,810 3,742 -1.7847769028871391E-2 0.16573208722741434 3233 3,613 3,865 6.974813174647107E-2 0.19548407052273431 BLK Equity Index (1) -0.01 0.13 0.05 0.19 Fixed Income Index: Barclays U.S. Aggregate Bond Index 1,993 2,046 2,016 -1.466275659824047E-2 1.1540391369794281E-2 1982 2,040 2,015 -1.2254901960784314E-2 1.6649848637739658E-2 Foreign Exchange Rates: GBP to USD 1.26 1.35 1.4 3.7037037037036903E-2 0.11111111111111104 1.24 1.33 1.39 4.5112781954887091E-2 0.12096774193548381 EUR to USD 1.07 1.2 1.23 2.5000000000000022E-2 0.14953271028037374 1.07 1.18 1.23 4.2372881355932243E-2 0.14953271028037374

Quarterly revenue Q1 2018 Compared to Q1 2017 $491 million Total Revenue Q1 2018 Compared to Q4 2017 $(181) million Percentage Change Year-over-Year Sequential Base Fees ex. SL 17% 2% Securities lending 10% 3% Performance fees - % (75)% Technology and risk management revenue 19% 5% Distribution fees 8% 2% Advisory and other revenue 22% (29)% Total 16% (5)% Q1 2018 $3,583 million 6 Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Quarterly investment advisory, administration fees and securities lending revenue Q1 2018 Compared to Q1 2017 Investment advisory, administration fees and securities lending revenue $424 million Q1 2018 Compared to Q4 2017 $50 million Q1 2018: $2,947 million Q1 2017 $2,523 million Q4 2017: $2,897 million 7 Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Quarterly expense Expense, as adjusted, by category Q1 2018 Compared to Q1 2017, as adjusted Expense, as adjusted, includes non-GAAP adjustments related to PNC LTIP funding obligation of $3 million in the first quarter of 2018, $4 million in the first quarter of 2017 and $3 million in the fourth quarter of 2017. For further information, see notes (1) through (3) in the current earnings release. $260 million Q1 2018 Compared to Q4 2017, as adjusted $(71) million Percentage Change Year-over-Year Sequential Employee comp. & benefits 10% (2)% Distribution & servicing costs 8% - % Direct fund expense 27% 10% General & administration 29% (15)% Amortization of intangibles (56)% (8)% Total 13% (3)% Q1 2018 $2,205 million 8 Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018.

Reconciliation between GAAP and as adjusted ($ in millions) Non-GAAP adjustments include amounts related to a restructuring charge, PNC LTIP funding obligation and noncash income tax matters, as applicable. The fourth quarter of 2017 also includes a non-GAAP adjustment of $1.3 billion related to the Tax Cuts and Jobs Act. For further information and reconciliation between GAAP and as adjusted, see notes (1) through (3) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. 9 Financial results for 2017 were recast to reflect the adoption of the new revenue recognition standard. For further information, refer to the Current Report on Form 8-K furnished on March 22, 2018. 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Operating Income GAAP $961 $1,175 $1,207 $1,222 $1,143 $1,237 $1,389 $1,485 $1,375 Non-GAAP adjustments 84 6 7 7 4 4 4 3 3 As Adjusted $1,045 $1,181 $1,214 $1,229 $1,147 $1,241 $1,393 $1,488 $1,378 Nonoperating Income (Expense) GAAP $-48 $-25 $1 $-38 $-7 $1 $10 $1 $-16 Non-GAAP adjustments 10 -6 -2 - -9 -10 -12 -6 -5 As Adjusted $-38 $-31 $-1 $-38 $-16 $-9 $-2 $-5 $-21 Net Income GAAP $656 $790 $873 $849 $859 $854 $944 $2,295 $1,089 Non-GAAP adjustments 54 8 -21 1 3 3 22 -1,282 3 As Adjusted $710 $798 $852 $850 $862 $857 $966 $1,013 $1,092

Important Notes 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. BlackRock has previously disclosed risk factors in its Securities and Exchange Commission (“SEC”) reports. These risk factors and those identified elsewhere in this earnings release, among others, could cause actual results to differ materially from forward-looking statements or historical performance and include: (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 potential for human error in connection with BlackRock’s operational systems; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock or PNC; (11) changes in law and policy and uncertainty pending any such changes; (12) 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; (13) the ability to attract and retain highly talented professionals; (14) fluctuations in the carrying value of BlackRock’s economic investments; (15) 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; (16) BlackRock’s success in negotiating distribution arrangements and maintaining distribution channels for its products; (17) the failure by a key vendor of BlackRock to fulfill its obligations to the Company; (18) any disruption to the operations of third parties whose functions are integral to BlackRock’s ETF platform; (19) 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 (20) 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 April 12, 2018, and BlackRock’s other periodic reports, which are available on BlackRock’s website at www.blackrock.com. 10