Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - BlackRock Inc. | d519430dex991.htm |
| 8-K - FORM 8-K - BlackRock Inc. | d519430d8k.htm |
 Q1
2013 Earnings Press Release Supplement
April 16, 2013
Exhibit 99.2 |
 1
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.
In
addition
to
risk
factors
previously
disclosed
in
BlackRock’s
Securities
and
Exchange
Commission
(“SEC”)
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.
(“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
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
in
the
appendix
to
this
earnings
release
supplement,
our
current
earnings
release
dated
April
16,
2013,
and
BlackRock’s
other
periodic
reports,
which
are
available
on
BlackRock’s
web
site
at
www.blackrock.com. |
 2
Table of Contents
Operating and Net Income/Diluted EPS, as adjusted
Page 3
Operating Margin, as adjusted
Page 4
Q1 2013 Mix by Product, Client Type, Style and Region
Page 5
Global Equity Market Indices
Page 6
Year-over-Year: Q1 2013 vs. Q1 2012
Pages 7-12
Sequential Quarters: Q1 2013 vs. Q4 2012
Pages 13-18
Non-operating and Capital Management
Pages 19-21
Appendix
Pages 22-28 |
 3
Q1 2013 EPS up 16% year-over-year reflecting strong revenues and operating
leverage Operating and Net Income, as adjusted ($ in millions)
Diluted Earnings Per Share, as adjusted
For further information and reconciliation between GAAP and as adjusted, see the
appendix, notes (a) through (f) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
Operating Income
Net Income
•
Q1 2013 includes $33 million of organizational alignment costs and $18 million of
fund launch costs •
Sequential results reflect seasonal factors primarily related to
performance fees and payroll taxes
12% increase year-over-year
16% increase year-over-year |
 4
40.7%
42.6%
39.7%
39.3%
36.8%
38.2%
38.7%
37.4%
38.6%
39.2%
40.0%
2007
2008
2009
2009
2010
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Full Year 2012 = 40.4%
Continued year-over-year margin improvement
Operating Margin, as adjusted
For further information and reconciliation between GAAP and as adjusted, see the
appendix, notes (a) through (f) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks.
BGI/BLK
Pro Forma
•
Q1 2013 includes $33 million of organizational alignment costs
•
Sequential results reflect seasonal factors primarily related to
performance fees and payroll taxes |
 5
Alternatives 3%
Alternatives 8%
Multi-asset
8%
Multi-asset
12%
Fixed Income
34%
Fixed Income
24%
Equity
55%
Equity
56%
iShares
22%
iShares
35%
Retail
11%
Retail
33%
Institutional
67%
Institutional
32%
AUM
Base Fees
AUM
Base Fees
Index
42%
Index
10%
iShares
22%
iShares
35%
Asia-Pacific
8%
Asia-Pacific 5%
EMEA
31%
EMEA
30%
Americas
61%
Americas
65%
Active
36%
Active
55%
AUM
Base Fees
AUM
Base Fees
Q1 2013 Long-term Base Fees of $2.043 billion
Long-term Assets Under Management of $3.629 trillion at March 31, 2013
Q1 2013 mix by product, client type, style and region
Product Type
Client Type
Style
Region |
 6
Major global equity markets indices
Index
Spot
March 31,
2013
Average Index Level
Average
Q1 2013 vs.
Q1 2013
Q1 2012
Q4 2012
Q1 2012
Q4 2012
Domestic
S&P 500
1,569
1,513
1,347
1,418
12.3%
6.7%
Global
MSCI Barra World Index
1,435
1,405
1,268
1,312
10.8%
7.1%
MSCI Europe Index
101
100
90
94
11.1%
6.4%
MSCI AC Asia Pacific Index
136
133
124
124
7.3%
7.3%
MSCI Emerging Markets Index
1,035
1,059
1,026
1,009
3.2%
5.0%
S&P Global Natural Resources
3,415
3,524
3,533
3,391
(0.3%)
3.9% |
 Year-over-year
Q1 2013 vs. Q1 2012
**
*
*
*
*
*
*
*
*
Exhibit 99.2 |
 8
EPS up 16% year-over-year driven by strong operating results
Q1 2013 Compared to Q1 2012, as adjusted
Total EPS:
$3.65
Total EPS:
$3.16
Non-Operating:
$0.06
Operating
EPS:
Operating
EPS:
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release.
$0.49
Increasing EPS
Decreasing EPS
Non-Operating:
$0.01
•
Q1 2013 includes $33 million of organizational alignment costs and $18 million of
fund launch costs $3.10
$3.64
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Q1 2012
Operating EPS
Non-Operating EPS
Q1 2013
($0.05)
$0.54 |
 9
Year-over-year operating income reflected revenue growth and expense
discipline Q1 2013 Compared to Q1 2012, as adjusted
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release.
Increasing Revenue
Increasing Expense |
 10
Year-over-year revenue reflected base fee growth and strong performance
fees Q1 2013 Compared to Q1 2012
Total Revenue
Q1 2012
$2.25 billion
Decreasing Revenue
Increasing Revenue |
 11
Q1 2013
$2.13 billion
Year-over-year base fees reflected growth across most asset classes
Q1 2013 Compared to Q1 2012
Base fees
Q1 2012
$1.98 billion
Decreasing Base Fees
Increasing Base Fees |
 12
Q1 2013
$1.53 billion
Year-over-year expense discipline was impacted by reorganization and fund
launch costs Expenses, as adjusted, by Category
Q1 2013 Compared to Q1 2012, as adjusted
(1) G&A and compensation & benefits expenses exclude organizational
alignment costs and fund launch costs incurred in first quarter 2013, which are presented separately above.
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release. Q1
2012 $1.42 billion |
 Sequential Quarters
Q1 2013 vs. Q4 2012
*
*
*
*
*
**
**
*
* |
 14
$4.07
$0.12
($0.43)
$3.64
($0.50)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
Q4 2012
Operating EPS
Non-Operating EPS
Q1 2013
Sequential results reflected base fee growth offset by seasonal factors
Increasing EPS
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release. Q1 2013
Compared to Q4 2012, as adjusted Operating
EPS:
Total EPS:
$3.96
Total EPS:
$3.65
Operating
EPS:
Non-Operating:
($0.11)
($0.31)
Decreasing EPS
•
Q1 2013 includes $33 million of organizational alignment costs and $18 million of
fund launch costs •
Sequential results reflect seasonal factors primarily related to
performance fees and payroll taxes
Non-Operating:
$0.01 |
 15
Q1 2013 operating income reflected base fee growth offset by seasonal factors
Q1 2013 Compared to Q4 2012, as adjusted
($69) million
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release.
Decreasing Expense
•
Q1 2013 includes $33 million of organizational alignment costs and $18 million of
fund launch costs •
Sequential results reflect seasonal factors primarily related to
performance fees and payroll taxes
$700
$800
$900
$1,000
$1,100
Q4 2012
Revenue
Expenses
Fund Launch Costs
Organizational
Alignment Costs
Q1 2013
$921
$1,041
($90)
$21
($18)
($33)
$0
Decreasing Revenue/Increasing Expense |
 16
Sequential revenue driven by base fee growth offset by seasonally lower performance
fees Q1 2013 Compared to Q4 2012
Increasing Revenue
Total Revenue
Q4 2012
$2.54 billion
Decreasing Revenue
Q1 2013
$2.45 billion |
 17
Q1 2013
$2.13 billion
Sequential base fees reflected growth in markets and long-term flows
Base Fees
Q1 2013 Compared to Q4 2012
Q4 2012
$2.08 billion
Increasing Base Fees
Decreasing Base Fees |
 18
(1)
G&A and compensation & benefits expenses exclude organizational alignment
costs and fund launch costs incurred in first quarter 2013, which are presented separately above.
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release. Q1
2013 $1.53 billion
Sequential expenses reflected reorganization and fund launch costs and lower marketing
costs Increasing Expenses
Decreasing Expenses
Expenses, as adjusted, by Category
Q1 2013 Compared to Q4 2012, as adjusted
Q4 2012
$1.50 billion
•
Sequential results reflect seasonal factors primarily related to
performance fees and payroll taxes |
 Non-operating and Capital Management
*
*
*
*
*
*
*
*
*
*
* |
 20
Q1 2013 non-operating income
$19
$19
$3
$3
$7
($48)
($60)
($50)
($40)
($30)
($20)
($10)
$0
$10
$20
$30
Private Equity
Real Estate
Distressed Credit/
Mortgage Funds
Hedge Funds/
Funds of Hedge
Funds
Other Investments
Net Interest
Expense
For further information and reconciliation between GAAP and as adjusted, see the
appendix and notes (a) through (f) in the current earnings release. Q1 2013 $3
million Non-Operating Income by Category, as adjusted Net Interest
Expense Investment Gains
$51 million Net Investment Gain |
 21
Continued commitment to sound capital management
Operating cash flow
Share repurchases
Amounts above exclude repurchases of employee tax withholdings related to employee
stock transactions. Total payout ratio
Dividends and Dividend Payout Ratio
Payout ratio = (Dividends declared + shares repurchases) / GAAP Net income.
Annual incentive
compensation
payout in Q1
For further information and reconciliation between GAAP and as adjusted, see the
previously filed Form 10-Ks Form 10-Qs and 8-Ks and the appendix
to this earnings release supplement. |
 Appendix
*
*
*
*
*
*
*
*
* |
 23
Q1 2013 long-term AUM up 9% from Q1 2012
Q1 2013 Compared to Q1 2012
Long-term AUM
Q1 2012
$3.345 trillion
Q1 2013
$3.629 trillion
(1) Net new business excludes the effect of a single low-fee non-ETP index
fixed income outflow of $74.2 billion in the third quarter 2012, which is shown separately above.
Non-ETF EQ
iShares EQ
Active EQ
Non-ETF FI
iShares FI
Active FI
Multi Asset
Alternatives |
 24
Q4 2012
$3.482 trillion
Q1 2013 long-term AUM up 4% from Q4 2012
Q1 2013 Compared to Q4 2012
Long-term AUM
Decreasing AUM
Increasing AUM
Q1 2013
$3.629 trillion
Non-ETF EQ
iShares EQ
Active EQ
Non-ETF FI
iShares FI
Active FI
Multi Asset
Alternatives |
 25
Quarterly operating income –
GAAP and as adjusted
GAAP
as adjusted
Operating Income ($ in millions)
Non-GAAP Adjustments ($ in millions)
Non-GAAP
adjustments
include
a
contribution
to
short-term
investment
funds
(“STIFs”),
PNC
LTIP
funding
obligation
and
compensation related to appreciation (depreciation) on certain deferred compensation
plans. For further information and reconciliation between GAAP and as
adjusted, see notes (a) through (f) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. |
 26
Net Income ($ in millions)
Non-GAAP Adjustments ($ in millions)
GAAP
as
adjusted
Quarterly net income –
GAAP and as adjusted
Non-GAAP
adjustments
include
a
contribution
to
STIFs,
PNC
LTIP
funding
obligation
and
income
tax
changes.
For further information and reconciliation between GAAP and as adjusted, see notes
(a) through (f) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. |
 27
Quarterly non-operating income (expense) –
GAAP and as adjusted
GAAP
as adjusted
Non-Operating Income (Expense) ($ in millions)
Non-GAAP Adjustments ($ in millions)
Non-GAAP adjustments include net income (loss) attributable to
non-controlling interests and compensation expense related to
(appreciation) depreciation on certain deferred compensation plans. For
further information and reconciliation between GAAP and as adjusted, see notes (a) through (f) in the current earnings release as well as previously filed Form 10-Ks, 10-Qs and 8-Ks. |
 28
Cash Flow GAAP and As Adjusted
(in millions)
2010
2011
2012
Q1 2012
EST
Q1 2013
Operating Cash Flows
Operating Cash flows, GAAP
basis
$2,488
$2,826
$2,240
($102)
$200
Less: Non-GAAP adjustments
(1)
(77)
178
(483)
(23)
-
Operating Cash flows, as
Adjusted
$2,565
$2,648
$2,723
($79)
$200
Investing Cash Flows
Investing Cash flows, GAAP
basis
($627)
($204)
($266)
($487)
$100
Less: Non-GAAP adjustments
(1)
(52)
24
(211)
(125)
-
Investing Cash flows, as
Adjusted
($575)
($228)
($55)
($362)
$100
Financing Cash Flows
Financing Cash flows, GAAP
basis
($3,170)
($2,485)
($944)
($393)
($800)
Less: Non-GAAP adjustments
(1)
110
(71)
631
51
-
Financing Cash flows, as
Adjusted
($3,280)
($2,414)
($1,575)
($444)
($800)
(1)
Non-GAAP adjustments include the impact on cash flows of consolidated
sponsored investment funds and consolidated VIEs. |
 *
*
*
**
*
*
*
*
*
* |