Better portfolios. Better futures. 2018 Annual Report

BlackRock Annual Report 2018 Investing today. Unlocking tomorrow. Training for a marathon. And because we have purposefully Learning to play an instrument. invested in developing our platform, And investing for the future. our technology and our people for more than 30 years, we have In order to succeed tomorrow, the capabilities to create better you have to take action today —  portfolios that help more and more and keep at it. people achieve better financial futures and, ultimately, experience Investing on behalf of clients financial well-being. is BlackRock’s business.

BlackRock Annual Report 2018 Global needs. Growth opportunities. Around the world, the need for effective, proven investment management is growing rapidly. People are living longer. In fact, more individuals with the the number of centenarians responsibility of planning for around the world is expected and funding their retirements to more than double in the on their own and with little next decade. And while people guidance. And in Europe, are also working longer, many persistent low rates and uneven have not saved enough for an economic growth have made additional decade or two of financial security more difficult retirement. In order to support to achieve. ourselves financially over our lifetimes, we need to invest early BlackRock has built the and consistently. globally diverse investment and technology platform we In many emerging markets across have today so we can help people Asia and Latin America, wealth bridge those gaps and meet In the US, 10,000 baby creation and rising income levels their goals. We have 14,900 boomers will retire each are bringing billions of people into employees in 69 cities and more day for the next decade. the middle class for the first time, than 30 countries around the fueling more demand for financial world. In each region, we have services than ever before. taken the time to listen to clients and understand their needs, while also developing local In the United States, the market expertise. traditional pension system has largely disappeared, leaving The increasing need for asset management around the world presents significant growth opportunities for BlackRock. Over the next 4 years, global industry US assets under management are expected +$12 trillion to grow by $30 trillion to $125 trillion. +6% CAGR Please refer to the Important notes section on page 25 for source. 2

BlackRock Annual Report 2018 In Asia-Pacific, the middle In Latin America, class is expected to grow 81 million more to over 3 billion people people could obtain by 2030. access to financial services through digital tools over the next decade. In Europe, nearly 50% of the $26 trillion wealth market is sitting in cash, uninvested. Asia-Pacific Europe Latin America +$10 trillion +$7 trillion +$1 trillion +12% CAGR +7% CAGR +9% CAGR

BlackRock Annual Report 2018 Diverse platform. Comprehensive solutions. Better choices. Expanding client options. P.6 Better technology. Leading the digitization of asset management. P.8 Better portfolios. Building better futures. P.10 For many years, the asset the most diverse investment management industry focused platform in the industry to provide on beating the market, or choice for clients: strategies outperforming an index. Today, across investment styles — from many investors realize that the replicating an index to generating most important investment alpha — across asset classes, decisions they make aren’t about factor styles and regions. which stocks to choose or whether to buy an active or index fund. We have built better technology Investing for the future is about that helps portfolio managers constructing a portfolio that and financial advisors see and meets an objective. manage risk, construct portfolios and operate more efficiently. We It doesn’t matter whether that use this technology at BlackRock objective is income for retirement, and we offer this technology to buying a home, or fulfilling clients and partners, so they can obligations to thousands of do the same. pension beneficiaries. Achieving financial objectives requires The true differentiation of building better portfolios. BlackRock’s investment and technology platform is that As the investment landscape it helps us understand the whole continues to evolve, a traditional picture: what clients have, what 60% / 40% portfolio allocation clients want and how to get there. of equity to bond exposures does not have the same expected The diversity of BlackRock’s return as it did in the past. platform drove $1 trillion of net inflows over the last 5 years, In today’s world, clients need representing an average of 4% portfolios that meet their specific organic asset and organic base objectives. In anticipation of this fee growth. shift, BlackRock has developed 4

BlackRock Annual Report 2018 Investors are choosing BlackRock for Cash iShares® Aladdin® Illiquid Target Date Factors Management Alternatives Strategies 9% base fee $168 billion 26 new clients Raised $20 billion of 11% organic growth in cash of iShares net went live on a record LifePath® net asset growth strategies inflows Aladdin and $16 billion inflows in factor Aladdin Wealth in illiquid strategies alternatives 2018 highlights Outcomes BlackRock generated $1 trillion of net inflows over the last 5 years. Data as of 12/31/18 and net inflows represent full year 2018.

BlackRock Annual Report 2018 Better choices. Expanding client options. Whether we are offering and persistent drivers of return; $6.0 trillion high-quality portfolio building systematic and fundamental blocks or customizing whole equity, fixed income and multi-of AUM portfolio solutions based on asset strategies that target alpha clients’ investment objectives generation; higher conviction and risk tolerances, the breadth alpha strategies with higher and diversity of BlackRock’s risk and return profiles and investment platform provides finally illiquid alternatives, like clients with better choices. infrastructure, private credit and real estate strategies, that deliver uncorrelated sources We offer the broadest range of return. of investment strategies across the risk spectrum: money market funds for cash investments; index BlackRock offers investors exposures to markets globally better choices. And better choices through separate accounts and drive better outcomes for both ETFs; factor strategies designed clients and shareholders. to harness the power of broad 36% non-ETF index 29% iShares ETFs 27% active 8% cash 50% equity 32% fixed income 8% multi-asset 8% cash 2% alternatives 6

Q: How does iShares Q: What are the benefits Q: How is BlackRock differentiate BlackRock with to alternatives being integrated addressing the growing demand clients? as part of BlackRock’s broader for strategies that target platform? financial returns alongside sustainable outcomes? A: ETFs are open-end index A: As a comprehensive A: At BlackRock, we define funds that can be traded with solutions provider, BlackRock’s sustainable investing as the real-time pricing and combine alternatives franchise benefits combination of traditional the flexibility of on-exchange from having the context of a investment approaches with trading with the simplicity client’s entire portfolio when environmental, social and and efficiency of index-based managing alternatives strategies governance (ESG) insights investing. on their behalf. to mitigate risk and enhance long-term returns. We believe BlackRock’s iShares platform Alternatives are a strategically companies that effectively manage consists of nearly 1,000 ETFs, important asset class for ESG risks and opportunities representing $1.7 trillion in assets BlackRock and are becoming perform better over time. under management for clients an increasingly important part around the world. The breadth of of our clients’ portfolios, with Demand for sustainable investing our platform enables us to serve 84% of investors saying they is accelerating rapidly. Clients want every type of investor’s needs. plan to increase their allocation more investing options, enhanced to alternatives over the next data and reporting, and increased We offer iShares Core ETFs, 5 years. commitment from asset managers designed to help build a strong to integrate sustainability into foundation for a long-term We have built a comprehensive investment processes. BlackRock portfolio in a low-cost way. We and differentiated alternatives has increased our focus on offer the largest selection of factor platform, supported by robust sustainability across the board —  ETFs, which capture enduring sourcing capabilities, investment from our investment processes to sources of returns across asset expertise and scaled distribution. the investment solutions we offer. classes. We are leading innovation BlackRock manages over of fixed income ETFs, which $135 billion of core alternatives BlackRock’s Sustainable Investing increase transparency, simplicity assets, including over $80 billion platform consists of more than and liquidity for managing bond in illiquid strategies. Clients $50 billion in dedicated ESG allocations. And we support value not only the strong track strategies. We also manage more investors using iShares as record of our alternatives offerings, than $440 billion in solutions financial instruments, as they but also our ability to provide that eliminate exposure to certain look for precise market exposures solutions integrating alternatives sectors or activities. And we and robust secondary market with strategies across the broader offer our strategies in index and liquidity. BlackRock platform. alpha-seeking, with varying levels of customization, from iShares iShares empowers investors Sustainable Core ETFs to bespoke, to build toward the outcomes they institutional client solutions. want by providing cost-efficient, transparent and convenient access BlackRock’s goal is to expand to almost any market imaginable. choice and offer the broadest and most innovative solutions available, to give all clients an opportunity to invest sustainably. 7

BlackRock Annual Report 2018 Better technology. Leading the digitization of asset management. Asset management is a people business. Each day, people are generating investment insights, empathizing with clients to understand their needs and coming up with innovative solutions that meet those needs. However, when we combine the power of people with the power of technology, we amplify our ability to create better outcomes for clients and shareholders alike. BlackRock has used technology to Aladdin fosters deeper BlackRock provides Aladdin manage assets from the very first conversations with clients Wealth, which brings Aladdin’s days of our business. We use it about their assets and objectives institutional-quality capabilities to power more sophisticated risk and has helped both drive and to wealth management firms and management, asset allocation support the growth of BlackRock’s their financial advisors, enabling and portfolio construction. We asset management practice better portfolio construction use it to interact with clients, over time. We also sell Aladdin to decisions and risk management partners and vendors more institutional investment managers at scale. Beyond Aladdin Wealth, efficiently. And we are driving the to provide them with the same we continue to develop digital digitization of our industry by comprehensive portfolio risk capabilities for financial advisors, developing new technology. awareness and operational scale. like Advisor Center and iRetire®, For institutional clients looking in support of building better for an easier way to manage their portfolios for individual investors. Aladdin is BlackRock’s cash, we offer Cachematrix, which homegrown operating system, is also driving broader distribution connecting the information, opportunities for BlackRock’s By providing better technology people and technology needed cash strategies. for the wealth management to manage money in real time. industry, BlackRock is forging The platform combines risk deeper relationships with more analytics with comprehensive As the wealth management financial advisors than ever portfolio management, trading landscape evolves, wealth before, which will drive future and operations tools on a single managers and financial advisors asset management flows. platform to power informed increasingly need technology to decision-making, effective risk manage risk, allocate assets and management, efficient trading construct portfolios for a broad and operational scale. range of individual investors. BlackRock generated $785 million in technology services revenue in 2018, representing an 11% CAGR over the last 5 years.

BlackRock Annual Report 2018 Our employees are using better technology to better serve our clients. “I work with my clients “The digital capabilities “Aladdin is the to understand their we are using on the foundation of BlackRock. strategic priorities and US Wealth Advisory As an engineer, I work unique investment, team at BlackRock are to ensure Aladdin is operational and regulatory enabling us to have richer constantly evolving needs so I can be more dialogues and build deeper with the technology than their technology connections with more landscape and fulfilling provider; I can be their financial advisors than its mission of making technology partner. we’ve ever been able to investment information reach before. more transparent and actionable. As clients’ investment books become more diversified, they are We use Advisor Center to help searching for more efficient ways advisors build sophisticated Many clients are looking to do to manage risks and exposures at portfolios that they can easily more with Aladdin, including both the portfolio and enterprise explain to their individual clients. building their own applications levels. I help clients make asset Our tools are powered by Aladdin and trading strategies on top allocation decisions by providing analytics, enabling financial of our platform using APIs. I’m them with better transparency advisors to make better informed building tools to help us better into risk and reward tradeoffs. investment decisions and understand how clients are Aladdin’s portfolio construction providing individuals with more using APIs and to inform our tools and multi-asset risk access to institutional-quality API product roadmap, so we can models map every security in a risk managed portfolios. enable our clients to do more. client’s portfolio to a risk factor, allowing clients to stress test their portfolios using historical and And we’re creating a digital Because BlackRock is also a user hypothetical market conditions. ecosystem that makes it easy of Aladdin, our priorities are always My work in Aladdin enables for advisors to engage with aligned with those of our clients. clients to make the most informed whom they want at BlackRock, We are bringing together the investment decisions. from specialists on model best ideas and ensuring that in portfolios to factors, when they the face of a rapidly changing want. BlackRock is invested in landscape, Aladdin stays best-in-Just as it does for BlackRock, the success of financial advisors class and satisfies the needs of Aladdin helps my clients simplify because by helping more advisors investors for years to come.” and scale their own business.” build better portfolios, we are helping more end-investors build better futures.” - Abigail, Aladdin - Alisha, Aladdin Product Engineer Relationship Manager - Brett, US Wealth Advisory Sales Manager 9

BlackRock Annual Report 2018 Better portfolios. Building better futures. BlackRock’s purpose is to help more and more people achieve financial well-being and our employees work each day in pursuit of that goal. “The fact that BlackRock offers the most complete set of investment strategies alongside leading portfolio construction technologies means that I can truly be a fiduciary and focus on what my wealth clients need. This lets me become my clients’ such as the iShares minimum The work I’m doing in iShares is partner, rather than just a product volatility suite, and portfolio about democratizing access so provider, and makes it easier construction tools, such as those that everyone can be invested to focus on providing portfolio embedded in our Advisor Center in the markets in an affordable solutions that best address their like the Factor Box, to address our way. When people use iShares concerns. clients’ biggest worries and help in their portfolios, less of their them stay invested and focused money goes toward fees, which on long-term outcomes. gives them better returns and Within wealth management, the makes their long-term goals more biggest challenge I see is keeping achievable.” people invested, particularly when markets are volatile. That’s why we’ve designed products, - Holly, iShares Product Strategist 10

BlackRock Annual Report 2018 “Every conversation I have with my clients starts with the goal of understanding what they are looking to achieve and how much risk they are comfortable taking. Because the assets we’re entrusted with represent people’s livelihoods. I have confidence, going into use Aladdin to show clients the every client conversation, that risk in their portfolios, and what we at BlackRock can provide the upside or downside is under a solution. We aren’t pigeon- different stress scenarios. With holed to a specific asset class, this understanding, we can come investment style or region when to clients with suitable solutions constructing portfolios. And and help them make more as clients’ needs and priorities informed decisions. change, we’re able to pivot with them. We can move across the Everyone at BlackRock is working risk/return spectrum — from toward the same goal every day: index strategies to customized to help clients achieve their goals. alternative solutions — add Because we’re all committed to sustainability considerations, one mission, I’m able to harness or act as the outsourced chief all the resources across BlackRock investment officer, managing the to build better portfolios with full scope of investment needs. my clients.” Aladdin is what enables me - Nikhil, Institutional to tailor each client’s portfolio Client Relationship Manager to their unique needs and circumstances — because there is no one-size-fits-all approach to portfolio construction. I can 11

BlackRock Annual Report 2018 To our shareholders, As I reflected on the last year, something felt different about 2018. I was struck throughout the year by the number of people who approached me asking what they should do with their money. These were individuals I met in grocery stores, at the gym and during meetings, in places like Mexico City, Zurich, Tokyo and right at home in my neighborhood in New York City. Some were investing for themselves, others on behalf of thousands upon thousands of beneficiaries for public and private pension funds. There was anxiety and uncertainty in the voices of the people that I spoke with. Laurence D. Fink Chairman and Chief Executive Officer

BlackRock Annual Report 2018 What was it about last year? In the brokers make money on the markets, there was a heightened velocity of trading and financial sense of uncertainty. The year news makes money talking about began with equity markets at that velocity. Everything centers record highs, which persistently on the present moment — what moved downward throughout to do today, only to do something the year, and investors’ fears of else tomorrow. a recession intensified. Markets But there is far too little have experienced bouts of conversation about long-term volatility several times over the goals and outcomes. last decade. But last year — for only the second time in the past How to plan for a future measured three decades — global stock in decades, not hours. How to and bond markets both delivered build a resilient portfolio. How to negative returns. While US tune out the noise and prepare for short-term rates surpassed 2%, the long term. making cash a more profitable I feel the pressure to react to placeholder investment, that the short term in my own daily return is not enough to sustain routine: I wake up in the morning the long-term objectives of most with dozens of news notifications savers. Simply put, people are on my phone. During the day, increasingly unsure where they I glance over at the market data can find returns to support their on my monitors more times than future needs. I care to admit. And — despite It was also a year of political my better judgment — I keep the turbulence. As a long-term television on in my office. optimist, I believe that some But in the conversations I have of the political and economic with clients and in the work debates we are seeing, although I undertake with the leadership certainly not all, can help play of BlackRock, my focus is a role in establishing a fairer resolutely on the long term. That global economy. But the year approach has been embedded in itself saw many unsettling events. BlackRock’s culture since 1988. Brexit has been a deeply chaotic It is lived and breathed every day, process, causing uncertainty not just by the founders and early and unnecessary costs for employees, but by the firm’s next nearly every global business. generation of leadership. Rising populism, the source of protests in France and new Every day, we discuss the long-governments in Mexico, Italy and term needs of our clients and Brazil, continues to transform the people they serve. We don’t the geopolitical landscape and start with products, but rather how investors think about the by asking what our clients need world. Trade disputes alternately in order to achieve their most simmered and flared in 2018, important financial goals. How driving further fear about the can we help pension funds global economy. Almost fittingly —  manage their growing liabilities and sadly — the year was capped in the face of low rates and off by the longest government underfunding? How can we use shutdown in US history. technology to make it easier for individuals to invest for Against this backdrop of financial retirement? How can we build and geopolitical uncertainty, resilient model portfolios for I believe that people are financial advisors to use with increasingly frustrated with their clients? the culture of investing and the structure of financial markets. For far too long, asset managers There is a focus on speed and have focused on selling products a lack of substance. Banks and without placing them in a broader 13

BlackRock Annual Report 2018 context. The goal of managers This work takes many forms, Linking purpose to has been to deliver returns including: managing a full either in excess of or in line with spectrum of index, factor, active profit: BlackRock’s a particular market benchmark and alternative building blocks 2018 results over a 1-year, 3-year or 5-year that provide investors with choice. period. And while these metrics Delivering risk management and Since BlackRock was founded are an important component of portfolio construction technology in 1988, the assets we manage portfolio return, alpha doesn’t pay to build risk-aware and outcome- for clients have grown from zero pensions. Sustainable return on oriented portfolios. Innovating to more than $6 trillion. We have investments in actual dollars is technology and solutions to grown from eight people in a what is ultimately required. Our help workers better prepare for single room to more than 14,000 purpose as a firm — and as an retirement. Providing sustainable employees in 69 cities around industry — has to be broader than investing offerings to generate the world. We went from serving tracking error or alpha generation. positive environmental or social a handful of clients in one country outcomes. Advancing financing to millions of investors in more Our responsibility as a fiduciary for society’s key infrastructure than 100 countries. And over is profound. Our clients are needs through our real assets the 20 years that we have been a teachers, nurses, firefighters, platform. Advocating for more publicly traded company, we have CIOs of foundations and clarity in markets and strong delivered a 19% compounded pensions, scientists, business protections for investors through annual growth rate in our stock professionals and so many others. our Global Public Policy Group. price, compared to 4% for the They are mothers, fathers and Helping clients make sense of S&P 500. This growth and grandparents. And their financial what’s happening in the markets performance has come from goals are investing for retirement, through our BlackRock Investment one thing above all else: our buying a house, paying for Institute. Providing equity and unwavering commitment to college. People want help and debt capital to companies, our purpose. guidance in reaching those enabling them to invest and grow. goals. And we, as a firm and as BlackRock’s purpose helps Engaging with companies to an industry, have to provide it. deepen our relationship with our protect and enhance the value of clients. It means truly taking the The need for asset management investors’ money. And, ultimately, time to understand our clients’ is greater than ever. Asset helping investors achieve their needs, in every region of the world managers have an obligation to goals with less volatility, more where we operate and across educate, empower and prepare clarity and greater certainty. every client type we ultimately people with the investment By fulfilling these responsibilities serve. In today’s fragmented solutions, technology and to investors and to society, we world, investors increasingly want mindset required to invest for achieve our goals as a company to to work with a manager whose the long term. our shareholders. As I’ve written purpose they connect with. That’s We have to be better at in my letter to CEOs, I believe one of the things that makes our connecting to individuals, that profit and purpose are purpose so important. explaining how their investments inextricably linked. A commitment to purpose is today will deliver the financial BlackRock’s long-term equally important for inspiring outcomes they need in the future. employees and attracting the This needs to be a global dialogue success depends on best talent. Our clear sense of between the financial industry, our ability to fulfill our purpose and One BlackRock governments, companies and mission of helping people culture drives the passion and the individuals more broadly. But innovation that has differentiated it begins with asset managers, build better financial us throughout our history and who have the most immediate futures and to pursue continues to do so. And this and largest responsibility to our ultimate purpose culture comes not just from the make investing easier for people top, but is embedded at every to understand and access. We of helping more and level of the organization. In this need to focus on helping people more people experience year’s Annual Report, you can reach their goals, rather than financial well-being. read stories from our employees simply beat a benchmark. We about how they are motivated by need to be the standard-bearers In this environment, I see a creating better financial futures for long-termism. tremendous opportunity for for our clients. BlackRock has the resources to BlackRock to differentiate Purpose is what drives our long-do just that. And every day, we ourselves, serve clients, inspire term strategy and the evolution work to make a positive impact employees and deliver for of our business. The tougher and create a better landscape for shareholders. the challenges are for clients, all investors. the harder BlackRock works to 14

BlackRock Annual Report 2018 differentiate ourselves in pursuit of our purpose. Over time, we’ve built the most diverse and 2018 Highlights resilient investment platform in the asset management industry, We had $124 billion We had a record and the most impactful risk of net inflows despite fundraising year for management and portfolio over $90 billion of low- our illiquid alternatives construction technology, so that fee institutional index business, with $16 billion, we can build better portfolios for equity outflows as clients and now manage over our clients — portfolios that are linked to their real needs. de-risked or took gains $80 billion of invested in the face of a difficult and committed capital And purpose is what ultimately market backdrop. for clients. delivers our results. This past year, in what was an undoubtedly difficult environment for asset We generated more We generated record managers, BlackRock achieved growth across our platform than $1 billion of net technology services and in multiple markets around inflows in 59 different revenue of $785 million. the world. investment strategies and We have a simple framework in 7 different countries. We invested in high-growth for creating shareholder value: areas while expanding generating differentiated organic growth, through net flows and We generated $168 billion our full year operating technology revenue from our of net inflows into iShares margin by 20 basis points clients, leveraging the benefits ETFs, including record to 44.3%. of scale to expand our operating fourth quarter inflows of margin and returning capital $81 billion. We maintained to shareholders, all of which our #1 market share of We returned $3.6 billion help drive earnings growth for to shareholders, a 30% shareholders. ETF inflows globally, in the increase from 2017. We US and in Europe, as well In 2018, BlackRock delivered on as within equities, fixed paid $1.9 billion in cash each leg of that framework: we dividends and repurchased generated organic asset and base income, core exposures $1.7 billion worth of shares. fee growth, increased revenue, and factors. expanded our operating margin and returned $3.6 billion to shareholders, all while investing in our business to stay ahead of clients’ future needs. This focus away from products and Since the financial crisis, the The diversity of BlackRock’s global toward building better portfolios industry has enjoyed a sustained investment platform enabled us set us even further apart from the period of expansion on the back to generate $124 billion of net asset management industry in of a highly favorable market inflows in 2018, including more 2018. By building better portfolios environment. Assets have grown than $1 billion of net inflows in through an integrated investment and asset pricing has expanded 59 different investment strategies and technology business, we are as a result of persistent low rates. and in 7 different countries. We creating better futures for our Now, the acceleration of long-maintained our #1 market share clients and positioning the firm for term structural trends, combined of ETF inflows globally, generating the future of asset management. with a slowdown in market growth, is challenging that success. $168 billion of net inflows into Structural iShares ETFs in 2018, including Operational complexities are record fourth quarter net inflows change in asset increasing as a result of an of $81 billion. And we generated management evolving regulatory environment record technology services and more global business revenue of $785 million in 2018, 2018 was a difficult year for the models. Investors are realizing with Aladdin and BlackRock’s asset management industry that they have been paying digital wealth technologies now and a marker of things to come: high fees for underperforming accessible to clients in more than greater focus on value, tougher traditional active investment 50 countries, including thousands competition, more operating strategies, where many managers of wealth advisors who serve complexity and disruption of haven’t invested in innovation. millions of end-investors. legacy business models. And there is a major movement in the wealth management 15

BlackRock Annual Report 2018 Source: FactSet. The performance graph is not necessarily indicative of future investment performance. landscape from a historical commission-based business model to a fee-based advisory business model. Many asset managers have not adequately prepared for these changes. Throughout the year, asset manager valuations reflected the market’s more pessimistic view toward the industry. Industry P/E multiples declined by a third to a generational low of approximately 10x, compared to 15x for the S&P 500, marking the largest negative spread in decades. This broad re-rating is a telling indicator: investors lack confidence that asset managers going forward will be able to grow, as they have in the past, in line with broader equity markets. This environment creates headwinds but also opportunity for BlackRock. As of the end of March, BlackRock stock is trading near its all-time highest premium relative to industry peers because we are well positioned for the future of asset management. We can deliver stronger organic growth and more consistent value for shareholders given our scale, the strength of our client relationships, the breadth of our investment platform and the depth of our capabilities in technology and portfolio construction. Over the last five years, we delivered 40% in total return for shareholders. And we delivered over 3,800% in total return since we went public in 1999. 2018 was a challenge, but we’ve faced challenging years before, and we’ve always managed to come out better and more prepared on the other side. This is because we are constantly listening to what our clients need and looking at the world from their perspectives. What drives each and every decision at BlackRock as we build and evolve is our mission to not just meet, but to stay ahead of clients’ needs. This relentless focus is what has and will continue to enable BlackRock to generate sustainable long-term growth for our shareholders. Our strategy has always been to adapt and innovate ahead of change in our industry and the broader investment landscape, so that when opportunities arise, we are ready to seize them. The Global Financial Crisis, for example, was a defining period in BlackRock’s history. We established our advisory business to address the unique challenges that arose around the world because of the crisis, and our work for governments and central banks positioned BlackRock to the world as a solutions provider and partner. In early 2009, in the aftermath of the crisis, we started conversations to acquire BGI and combine active and index investment styles on one platform, despite critics who said it couldn’t or shouldn’t be done. The acquisition brought iShares onto our platform, which today is one of our fastest-growing businesses. In 2019, we celebrate the ten-year anniversary of this transaction, which transformed BlackRock’s ability to deliver for clients and shareholders. More recently, in a persistent low-rate environment, we invested ahead of our clients’ needs for alternative sources of income and return and built our illiquid alternatives platform. We made the decision to emphasize technology and invested early and often in Aladdin, with the belief that it would transform the asset management industry. And more recent investments to expand our technology capabilities beyond institutions, to wealth managers and asset servicers, are delivering to meet the changing needs of our diverse client base. Where do we find ourselves today? We are relentlessly pushing ourselves to keep evolving, because our clients need us more than ever. We haven’t always gotten everything right, but I am proud that our focus on our purpose has driven us to anticipate change and invest in future growth. In turn, this has delivered a growing and increasingly unique value proposition to clients and helped insulate our shareholders during a difficult period for our industry.

BlackRock Annual Report 2018 Investing as sustainable investing. And 1. Capturing innovating in areas, including today, unlocking retirement, to provide new the shift from solutions that can better meet tomorrow: product selection current unfulfilled needs, which I BlackRock’s long- to portfolio will talk about in more detail later. term strategy construction By focusing our strategy and As I look ahead, the pace and resources on the areas of highest client requirement and demand, Historically, investors followed magnitude of change in our we will capture share in the very general rules of thumb in ecosystem creates a new sense fastest-growing areas of our how they thought about portfolio of urgency to pivot quickly. We industry, enabling BlackRock construction. For example, in remain confident in our purpose- to grow faster than the industry the US, investors would allocate driven, strategic direction. But average organic asset growth 60% of a global portfolio to broad we have to execute differently rate of 3%. equities and 40% to investment going forward, by taking a more grade bonds. That approach ambitious, but also long-term and worked for many investors, considered, approach. 2. Leading for many years. But that same Each year, our Global Executive portfolio allocation is no longer in technology Committee carefully reviews our expected to deliver nearly the across the asset long-term corporate strategy with same return as it did in the past. BlackRock’s Board of Directors. Today, the traditional investing management In 2019, we have focused on a frameworks are insufficient to value chain number of pressing questions: meet the needs of most investors, How can we better align resources whether individuals saving for BlackRock recognizes that the with future growth areas? Given retirement or pension funds most impactful results come from our scale and changes in our seeking to close their asset- combining human insight with industry, how can we sharpen the liability gaps. Clients today are the power of technology. way we manage the firm across increasingly uncertain about distribution, investment and where their returns are going to Rapid advances in technology operations platforms? Which come from. are changing how asset managers client challenges need completely approach investment decisions, As a result, clients want asset how they interact with clients new, innovative solutions? The managers who have a better and how they operate their own answers to these questions understanding of their goals and businesses. A key component of will enable us to unlock further unique constraints. They want BlackRock’s long-term strategy growth and positively shape our a partner to help them create is to provide technology across ecosystem. tailored portfolios that target their the asset management value Together with our Board specific desired outcome. This chain. We seek to enable more of Directors, we have has always been our approach informed decision-making in the at BlackRock: to focus first and critical areas of risk management developed a long-term foremost on what our clients need and portfolio construction, to strategy that is focused and to construct portfolios — both reach clients in a more effective on capturing the shift at scale and with high levels of way and to help scale business customization — that align with operations for participants across from product selection their long-term goals. the investment landscape. to portfolio construction; We are building the most BlackRock’s portfolio managers leading in technology comprehensive investment are integrating alternative and the digitization of the platform, so that we can truly take data sources and data science a product-agnostic approach techniques into their investment asset management value to portfolio construction. processes in order to generate chain; and successfully This includes expanding our more alpha. For instance, we entering and gaining capabilities in portfolio building brought our fundamental and blocks, such as ETFs and factors. systematic active equity teams scale in high-future- Expanding in illiquid alternatives, closer together in anticipation of growth markets around including infrastructure the future of active management, the world. investments, which provide so investors can share best investors with higher returns and insights from their unique BlackRock’s growth will ultimately over longer durations. Continuing research techniques. be driven by making investing to offer active strategies that more accessible to more people. deliver value. Leading the More than 200 clients in over industry in emerging areas such 50 countries use Aladdin every 17

BlackRock Annual Report 2018 day to see risk more clearly and which will integrate us more For example, in Latin America we manage investments more closely into the broader financial are building out our investment efficiently. To prepare Aladdin technology ecosystem and capabilities and distribution for the next 30 years of growth, clients’ financial lives. footprint to support the region’s we launched a multiyear long-term growth potential. By leading the digitization of transformation to scale the the asset management value In Brazil, in particular, favorable platform. Last year, I wrote about chain through BlackRock’s demographics, the ongoing opening the Aladdin platform to technology, we are generating expansion of the middle class, drive further development and direct technology revenue for historically low local interest rates engagement. We now have over a the firm and deepening our and a structural shift in investor dozen operational APIs for clients value proposition to clients demand toward higher risk and to access their Aladdin data, and partners, resulting in more global exposures all create and we continue to work toward stronger organic growth over significant opportunities for creating an integrated ecosystem market cycles. BlackRock. To accelerate growth that will empower users to more and drive innovation for clients in seamlessly interact with their this critical market, we recently data on demand. 3. Becoming hired our first Head of Brazil to I firmly believe one of the biggest increasingly local oversee our long-term business opportunities for Aladdin is to strategy in the country. make it the language of portfolio and investing We also reaffirmed our conviction construction for wealth managers, in high-growth in the Mexican market through financial advisors and individual our acquisition of Citibanamex’s investors. Bringing institutional markets around asset management business risk transparency and portfolio the world last year. The transaction construction capabilities into broadens BlackRock’s access the wealth market will enable We also continue to invest in to Mexico’s wealth market, financial advisors to have richer increasing our presence and provides local clients access conversations with their own penetration in high-growth to BlackRock’s international clients and will ultimately allow markets around the world. products and builds a partnership them to achieve better results. More than ten years ago, we to create innovative solutions. Aladdin Wealth provides advisors made the decision to become with the tools they need to build In China, which is one of more local to better understand more dynamic portfolios, deliver the largest future growth our clients’ needs. As a result, better outcomes and ultimately opportunities for BlackRock, we have offices in 69 cities in provide more secure financial we are focused on building more than 30 countries around futures for more individuals. an onshore presence. Asia is the world and our employees expected to drive 50% of the We are complementing organic speak more than 100 languages. organic AUM growth in the investments in technology Today, demographic, economic asset management industry with inorganic investments like and regulatory shifts — including over the next five years, largely Cachematrix, to expand our high savings rates and rapid driven by China, where there technology capabilities and growth in household financial is increasing demand for more scale our distribution of cash assets — are creating significant diversified and long-term investment strategies. More growth opportunities for BlackRock investment solutions. Our goal recently, we announced we in international markets. It is not is to become one of the country’s have entered into an agreement just about BlackRock, however, leading global asset managers. to acquire eFront, the world’s it’s also about the opportunity leading end-to-end alternative BlackRock’s strategy to help more people around investment management the world build better financial is focused on targeting software and solutions provider. futures and experience a greater This acquisition significantly areas of our industry sense of financial well-being. enhances Aladdin’s alternatives with the highest future capabilities and our alternatives To do that requires not only platform. eFront, which is understanding the needs of growth potential. based in Paris and has a global clients in different countries, but By furthering or establishing our presence, will help us continue also the geopolitical, regulatory leadership in areas of high growth, to deepen our relationships with and cultural backdrop in which leveraging our investment and clients in France, Europe and those clients live and work. That technology platform to construct around the world. We are also is why we prioritize operating in better portfolios for more people making minority investments the countries and cities in which and leaning into our scale as a and entering partnerships, our clients are based — so we can key competitive advantage, we including iCapital, Scalable understand those nuances. will differentiate BlackRock with Capital, Envestnet and Acorns, clients and shareholders alike. 18

BlackRock Annual Report 2018 Driving better integral role in our strategy, our money. Our firm is built to protect growth and our success, and and grow the value of our clients’ futures for the diverse experiences and assets. We often get approached all BlackRock backgrounds of our Directors by special interest groups who enable us to have rich discussions advocate for BlackRock to vote stakeholders and debates. At each meeting, with them on a cause. In many our Directors review components cases, I or other senior managers I’ve written to CEOs, as an investor of our long-term strategy and might agree with that same in their companies on behalf of foster constructive dialogue with cause — or we might strongly our clients, about the importance our leadership team on strategic disagree — but our personal views of publicly articulating how they opportunities, priorities and risks on environmental or social issues will execute their strategies and facing BlackRock’s business, don’t matter here. Our decisions sustain financial performance which ultimately pushes us to are driven solely by our fiduciary over the long term. BlackRock has make the sometimes-difficult duty to our clients. a responsibility to do the same: decisions required to build a to articulate how we invest in, One way that BlackRock better BlackRock. operate and evolve our business executes this duty is through to deliver sustainable, long- As the environment in which our Investment Stewardship term financial performance that we operate grows increasingly team, which advocates for benefits all of our stakeholders —  complex, our Board plays a sound corporate governance our clients, shareholders, key role in overseeing the firm’s and business practices that employees and the communities risk management policies we believe are consistent with where we operate. and procedures. This includes sustainable long-term financial overseeing BlackRock’s returns. Increasingly, the team Only by meeting the needs cybersecurity and information engages with companies on of our various stakeholders security programs, as well environmental and social issues can BlackRock achieve as financial disclosures, that we believe are material to sustainable profitability, and compensation practices and that company. This team’s work only by achieving sustainable succession planning. You can over the past several years has profitability can we continue to read in detail about our corporate played a role in improving the meet our stakeholders’ needs governance framework and quality of engagement and over the long term. about the role, composition dialogue between companies That is what I mean when I say and evolution of our Board of and investors. The team has companies need sustainable Directors in our 2019 Proxy also helped raise standards for business models. It’s not about Statement. corporate practices, indirectly imposing anyone’s personal benefiting investors across the This year, a longtime director environmental or social values equity markets. and friend, Sir Deryck Maughan, on the companies we’re invested will be retiring from our Board. In addition, in line with our in on behalf of clients, nor is Sir Deryck has given BlackRock fiduciary duty to enhance the it BlackRock taking political invaluable wisdom and guidance, value of our clients’ assets, we positions. It’s about providing a including a global outlook are integrating environmental, strategic and risk management drawn from a distinguished social and governance risk framework that supports and international career, as we have factors across our investment enhances a business’s ability to grown our alternatives platform processes: from alternatives, to operate and deliver value to its key and as a firm globally. He has active equity and fixed income, stakeholders over the long term. been instrumental in guiding to cash management. We believe Delivering the Board’s oversight and I business-relevant sustainability want to sincerely thank him for data is useful to portfolio sustainable his passion and dedication to managers and the incorporation financial BlackRock during his tenure. of this data into investment processes results in better long-performance to Delivering long- term returns for clients. Ensuring shareholders term financial our clients are getting the value they expect drives results for I believe that one of the most returns to clients BlackRock’s shareholders. important components of For clients who want specific BlackRock delivers long-term running a sustainable business is sustainable investing solutions, value to our shareholders by effective corporate governance, we offer more than $50 billion fulfilling our fiduciary duty to our including a comprehensive in dedicated sustainable clients and ensuring our purpose governance framework and a investment solutions, ranging resonates with them. Board of Directors that is diverse from green bonds and renewable and accountable to shareholders. The money that BlackRock infrastructure to thematic BlackRock’s Board plays an manages is not BlackRock’s 19

BlackRock Annual Report 2018 Global Executive strategies that allow clients to aging population with fewer Committee align their capital with the UN workers to support them. The Sustainable Development Goals. need for solutions addressing BlackRock manages one of the the entire journey — from saving largest renewable power funds for retirement to spending Laurence D. Mark S. globally and is the largest provider during it — is more pressing Fink McCombe of sustainable ETFs, including than ever. Solving this challenge Chairman and Head of the Chief Executive Americas the industry’s largest low- not only requires high levels of Officer carbon ETF. Our goal is to make investment acumen, but also Christopher J. sustainable investing accessible technology and risk management Robert S. Meade Kapito General Counsel to more and more people. capabilities. As a globally President and Chief Legal integrated investment and Officer As a leading asset manager, technology firm, BlackRock is in David J. Blumer we also embrace a broader set Global Head Barbara G. a position to make a difference. of responsibilities to improve of BlackRock Novick Alternative Vice Chairman markets and the investment At the end of last year, we Investors landscape for all investors. announced an exciting new Richard Prager Our Global Public Policy Group collaboration with Microsoft. Geraldine Head of Trading, Buckingham Liquidity and engages directly with academics Taking advantage of Microsoft’s Head of Investments and policymakers around the cutting-edge technologies Asia-Pacific Platform world, in order to bring a “voice and innovative investment Edwin N. Salim Ramji of investors” to the table. As products from BlackRock, we Conway Global Head a key market participant, our aim to make it easier for people Global Head of iShares Trading and Liquidity Strategies to both save for retirement and of Institutional and Index Client Business Investments team also works in partnership achieve the lifetime income they with our Global Public Policy need through their employers’ Frank Cooper III Gary S. Shedlin Group to advocate for practices workplace savings plan. We will Chief Marketing Chief Financial Officer Officer that reduce market friction and give plan participants a clear, improve outcomes for investors, compelling picture of the ways Robert Jeffrey A. encompassing equity, fixed that their actions today could Fairbairn Smith, PhD Senior Global Head of income and derivative market translate into income tomorrow. Managing Human structures. We will educate individuals and Director Resources help bridge the gap between the Robert L. Derek N. Stein Making a positive instant culture we live in today and Goldstein Global Head of impact in our the long-term mindset it takes to Chief Operating Technology and save for retirement decades down Officer and Operations Global Head communities the road. Our goal is to simplify of BlackRock Mark K. at large the savings process and enable Solutions Wiedman people to make better investment Head of Ben Golub, PhD International As a global asset manager, decisions that lead to more secure Chief Risk and of Corporate BlackRock is increasingly financial futures. Officer Strategy focused on understanding the We speak a lot about investing for Philipp Mark D. unique needs of clients in each the future. But the reality is that Hildebrand Wiseman community where we operate. Vice Chairman Global Head of many people are living paycheck We are deepening our roots within Active Equities to paycheck, vulnerable to shocks J. Richard and Chairman each region so that we can have a and unable to establish a secure Kushel of BlackRock more meaningful impact for our Head of Multi- Alternative financial footing, let alone plan for clients in those regions. As part Asset Strategies Investors the future. and Global Fixed of this engagement, I believe that Income BlackRock has a responsibility More than half of US households to provide leadership on issues regularly worry about their Rachel Lord Head of Europe, where our expertise can make finances. A staggering 41% Middle East and a significant impact, including of adults cannot cover an Africa retirement. unexpected $400 expense without borrowing money or And as I’ve said before, I believe selling a personal item. I believe one of the greatest societal this issue needs BlackRock’s challenges of our generation leadership, now more than ever. is helping workers navigate This February, we launched a retirement. Globally, people Flagship Savings Initiative to are living longer, and in some help low- and moderate-income countries, there is an additional families build an emergency demographic challenge of an savings buffer. Our initiative will 20

BlackRock Annual Report 2018 fund and retain the expertise just the loudest or the most I’m incredibly proud of our of three leading nonprofits who familiar — can contribute the senior management, and I believe will work with corporate partners ideas that will help our clients that we now have the strongest that directly reach financially achieve their goals. We are leadership team we’ve ever had. stressed households in order to building not just great leaders, scale high-quality, proven savings but great leadership teams: The opportunity strategies. Just as we have a diverse, cohesive, complementary ahead fiduciary duty to build better leadership teams that will guide financial futures for our clients, BlackRock into the future. Each year, I have the privilege of we have a social responsibility writing to you about BlackRock’s And just as we do with clients, we to help millions of people create outlook and plans for the future. listen to our employees’ changing a more secure financial future And each year, I am more excited needs. Each year, through our for themselves and their families. about the pace of change and annual Employee Opinion Survey, size of the opportunities that we While this initiative will begin in we survey employees on what’s are seeing. the US, we are working to broaden working — and, equally, what’s not it to other countries, in line with working for them. I am proud that We have the opportunity to our conviction that BlackRock 91% of our employees responded leverage our scale, globally must be a vibrant and engaged that they are proud to work at diverse investment platform member of every country and BlackRock and have conviction and capabilities in technology community where we operate. in our purpose. In 2018, we and portfolio construction We take care to understand and also invited all 14,000-plus to differentiate ourselves and deliver on the unique needs and employees to a three-day global generate sustainable, long-preferences of investors in dozens online conversation to help shape term financial performance that of countries around the world. the future of our firm and push benefits our clients, shareholders, And we are constantly working our own boundaries. 75% of our employees and the communities to be closer to our clients and employees joined discussions, where we operate. evolving our business to achieve led by senior leaders including But more importantly, we have those goals. myself, discussing the type of firm the opportunity to shape the we want to be. future of our industry. To shift Creating a A key component of preparing the dialogue toward goals and culture that works the firm for the future is preparing outcomes. To make investing for employees the next generation of leaders. easier for people to understand Over the past few months, and access. To be standard-Five of BlackRock’s original we announced a number of bearers for long-termism. To fulfill eight founders are still with enhancements to our leadership our mission of building better, the company today, and we team, as we do every few years. more secure financial futures for hold ourselves accountable for I recognize that we are one more people. And to pursue our ensuring that the culture that has of the only firms that makes purpose of helping more people propelled BlackRock since our leadership changes of this type achieve financial well-being. founding thrives long after the last as widely and as frequently as Sincerely, founders have moved on. We have we do. That is because we firmly worked to ingrain BlackRock’s believe these organizational culture in the organization, rather changes bring great benefit to than in any specific individuals, our clients, our shareholders so that it will always guide our and to our leaders themselves. Laurence D. Fink decisions and our behavior. These changes help maintain Chairman and BlackRock’s entrepreneurial spirit. Culture can’t thrive unless Chief Executive Officer By providing our people with the employees are inspired and experience of having a range of invested in it. That is why we are diverse roles across the firm —  deliberate in making sure we from client-facing, to technology, are developing, recruiting and to investments, to operational retaining the best people who roles — we are positioning our have a strong sense of emotional leaders to truly deliver the entire ownership for the work we do firm to our clients. Developing and are motivated by creating the next generation of talent is financial well-being for more and crucial for ensuring BlackRock more people. We seek people with can continue to deliver to clients, an incredibly broad variety of employees and shareholders for backgrounds and perspectives; decades to come. that is why we are building a culture where all voices — not 21

BlackRock Annual Report 2018 Laurence D. Fink Mathis Cabiallavetta Pamela Daley Chairman and Chief Executive Former Vice Chairman of the Former Senior Vice President of Officer, BlackRock, Inc. Board of Directors, Swiss Re Corporate Business Development, General Electric Company William S. Demchak Jessica Einhorn William E. Ford President and Chief Executive Former Dean, Paul H. Nitze Chief Executive Officer, Officer, The PNC Financial School of Advanced International General Atlantic Services Group, Inc. Studies (SAIS) at The Johns Hopkins University Fabrizio Freda Murry S. Gerber Margaret L. Johnson President and Chief Executive Former Chairman and Chief Executive Vice President Officer, The Estée Lauder Executive Officer, EQT of Business Development, Companies Inc. Corporation Microsoft Corporation Robert S. Kapito Sir Deryck Maughan Cheryl Mills President, BlackRock, Inc. Former Senior Advisor, Chief Executive Officer, Kohlberg Kravis Roberts BlackIvy Group 22

BlackRock Annual Report 2018 Board of Directors. Our Board of Directors plays an integral role in BlackRock’s growth and success. Our Board members constantly challenge management to be more innovative, even when that means asking tough questions and having difficult conversations. Gordon M. Nixon Charles H. Robbins Former President and Chairman and Chief Executive Chief Executive Officer, Officer, Cisco Systems, Inc. Our Board is actively involved Royal Bank of Canada in talent development and succession planning, ensuring we have the right people in place to execute on our strategies now and in the future, as well as ensuring BlackRock has strong corporate governance and standards of excellence. Ivan G. Seidenberg Marco Antonio Slim Domit Former Chairman and Chairman of the Board of Chief Executive Officer, Directors, Grupo Financiero Verizon Communications Inc. Inbursa Susan L. Wagner Mark Wilson Former Vice Chairman, Former Chief Executive Officer, BlackRock, Inc. Aviva plc; Former Chief Executive Officer and President, AIA 23

BlackRock Annual Report 2018 (in millions) 2018 2017 2016 Total AUM (end of period) $  5,975,818 $  6,288,195 $  5,147,852 Revenue 14,198 13,600 12,261 Net income attributable to BLK, GAAP 4,305 4,952 3,168 Net income attributable to BLK, as adjusted 4,361 3,698 3,210 Operating income, as adjusted 5,531 5,269 4,669 Operating margin, as adjusted 44.3% 44.1% 43.8% Diluted weighted-average common shares 162 164 167 Per share Diluted earnings, GAAP $        26.58 $        30.12 $        19.02 Diluted earnings, as adjusted 26.93 22.49 19.27 Dividends declared 12.02 10.00 9.16 Please review the Important notes on page 25 for information on certain non-GAAP figures Financial shown above and through page 23, as well as for source information on other data highlights. points on pages 2 through 23. Certain financial information reflects previously reported amounts and does not reflect the recast related to the adoption of the new revenue recognition standard. For further information, refer to Note 2, Significant Accounting Policies, in the consolidated financial statements in our 2018 Form 10-K.

BlackRock Annual Report 2018 Important notes. Opinions December 31, 2018 and is based on preliminary data available Opinions expressed through at that time. The performance page 24 are those of BlackRock, data shown reflects information Inc. as of March 2019 and are for all actively and passively subject to change. managed equity and fixed income accounts, including US BlackRock data points registered investment companies, All data through page 24 reflects European-domiciled retail funds as-adjusted full-year 2018 results and separate accounts for which or as of December 31, 2018, performance data is available, unless otherwise noted. 2018 including performance data for organic growth is defined as full- high net worth accounts available year 2018 net flows divided by as of November 30, 2018. The assets under management (AUM) performance data does not for the entire firm, a particular include accounts terminated segment or particular product as prior to December 31, 2018 and of December 31, 2017. Long-term accounts for which data has product offerings include active not yet been verified. If such and passive strategies across accounts had been included, the equity, fixed income, multi-asset performance data provided may and alternatives, and exclude have substantially differed from AUM and flows from the cash that shown. management and advisory businesses. Performance comparisons shown are gross-of-fees for institutional and high net worth Industry data points separate accounts, and net-Global industry assets under of-fees for retail funds. The management projections sourced performance tracking shown for from McKinsey. US demographic index accounts is based on gross-projections sourced from Pew of-fees performance and includes Research Center. Europe wealth all institutional accounts and all breakdown sourced from Cerulli, iShares funds globally using an OECD and Lipper. Asia-Pacific index strategy. AUM information demographic projections sourced is based on AUM available as from OECD. Latin America digital of December 31, 2018 for each financial services projection account or fund in the asset sourced from McKinsey. class shown without adjustment for overlapping management of the same account or fund. GAAP and Fund performance reflects the as-adjusted results reinvestment of dividends and See pages 39–41 of the distributions. Financial Section of the 10-K for explanation of the use of Performance shown is derived Non-GAAP Financial Measures. from applicable benchmarks or peer median information, as selected by BlackRock, Inc. Performance notes Peer medians are based in part Past performance is not indicative on data either from Lipper, Inc. of future results. Except or Morningstar, Inc. for each as specified, the performance included product. information shown is as of 25

BlackRock Annual Report 2018 BLACKROCK, INC. FORM 10-K TABLE OF CONTENTS PART I 1 Item 1 Business 19 Item 1A Risk Factors 31 Item 1B Unresolved Staff Comments 31 Item 2 Properties 31 Item 3 Legal Proceedings 32 Item 4 Mine Safety Disclosures PART II 33 Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6 Selected Financial Data 36 Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations 62 Item 7A Quantitative and Qualitative Disclosures About Market Risk 63 Item 8 Financial Statements and Supplemental Data 63 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 63 Item 9A Controls and Procedures 66 Item 9B Other Information PART III 66 Item 10 Directors, Executive Officers and Corporate Governance 66 Item 11 Executive Compensation 66 Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 66 Item 13 Certain Relationships and Related Transactions, and Director Independence 66 Item 14 Principal Accountant Fees and Services PART IV 66 Item 15 Exhibits and Financial Statement Schedules 70 Signatures

Corporate information. Corporate Headquarters Exhibit 31 to its Annual Report Form 10-K, Quarterly Reports BlackRock, Inc. on Form 10-K for fiscal year on Form 10-Q, Current Reports 55 East 52nd Street ended December 31, 2018, with on Form 8-K, Proxy Statement New York, NY 10055 the Securities and Exchange and Form of Proxy and all (212) 810-5300 Commission, certificates of the amendments to those reports. Chief Executive Officer and Chief Requests for copies should be Stock Listing Financial Officer of the Company addressed to Investor Relations, BlackRock, Inc.’s common stock certifying the quality of the BlackRock, Inc., 55 East 52nd is traded on the New York Stock Company’s public disclosure, and Street, New York NY 10055. Exchange under the symbol the Company has submitted to Requests may also be directed to BLK. At the close of business on the New York Stock Exchange a (212) 810-5300 or via email to March 31, 2019, there were 233 certificate of the Chief Executive invrel@blackrock.com. Copies may common stockholders of record. Officer of the Company certifying also be accessed electronically by that he is not aware of any violation means of the SEC’s home page Internet Information by the Company of New York Stock on the Internet at www.sec.gov. Information on BlackRock’s Exchange corporate governance Stockholders and analysts should financial results and its products listing standards. Deloitte & contact Investor Relations at and services is available on the Touche LLP has provided its (212) 810-5300 or via email at Internet at www.blackrock.com. consent to the inclusion of its invrel@blackrock.com. reports dated February 28, 2019, Financial Information relating to the consolidated Dividend Policy BlackRock makes available, free financial statements of BlackRock, The declaration of and payment of charge, through its website at Inc., and the effectiveness of of dividends by BlackRock are www.blackrock.com, under the BlackRock, Inc.’s internal control subject to the discretion of our heading “Investor Relations,” its over financial reporting, in the Board of Directors. On January 15, Annual Report to Stockholders, Company’s Annual Report on 2019, the Board of Directors Annual Report on Form 10-K, Form 10-K for the fiscal year approved BlackRock’s quarterly Quarterly Reports on Form 10-Q, ended December 31, 2018, which dividend of $3.30 to be paid on Current Reports on Form 8-K, has been filed as Exhibit 23.1 to March 21, 2019, to stockholders its Proxy Statement and Form such report. of record at the close of business of Proxy and all amendments on March 6, 2019. to those reports as soon as Inquiries reasonably practicable after such BlackRock will provide, free Registrar and Transfer Agent material is electronically filed of charge to each stockholder Computershare with or furnished to the Securities upon written request, a copy of 480 Washington Boulevard and Exchange Commission. BlackRock’s Annual Report to Jersey City, NJ 07310-1900 The Company has included as Stockholders, Annual Report on (800) 903-8567 BlackRock Offices Worldwide BlackRock has offices in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. Americas Mexico City Santiago Dublin Asia-Pacific Atlanta Miami São Paulo Edinburgh Bengaluru Bloomfield Hills Montreal Seattle Frankfurt Beijing Boca Raton New York Toronto Geneva Brisbane Bogotá Newport Beach Washington D.C. London Gurgaon Boston Palo Alto Wilmington Luxembourg Melbourne Buenos Aires Philadelphia Madrid Mumbai Charlotte Pittsburgh EMEA Milan Seoul com Chicago Ponte Vedra Beach Amsterdam Munich Shanghai Dallas Princeton Athens Paris Singapore addison. Denver Rancho Cordova Brussels Riyadh Sydney Greenwich Reston Budapest Stockholm Taipei City www. Houston San Francisco Cape Town Tel Aviv Tokyo Lima Santa Barbara Vienna Copenhagen Addison Los Angeles Santa Monica Dubai Zürich by ©2019 BlackRock, Inc. All Rights Reserved. BlackRock, iShares, BlackRock Solutions, Aladdin and LifePath are registered trademarks of Design BlackRock, Inc. or its subsidiaries in the United States and elsewhere.

2018 Annual Report