Business Highlights

2011 RESULTS

CONTINUED GROWTH IN EARNINGS AND MOMENTUM

Grew revenue 5% to $9.1 billion despite market disruption, demonstrating the strength of our diversified platform.

Achieved a 7% increase in adjusted operating income to $3.4 billion, reflecting twin focus on new business efforts and strong expense management discipline.

Improved the adjusted operating margin by 40 bps to 39.7% – 306 bps above the peer average.

Increased diluted EPS, as adjusted by 8% to $11.85.

Generated $2.6 billion in adjusted operating cash flow, enabling us to increase our dividend by 38% and repurchase 14.2 million shares while continuing to reinvest in our business.

STRONG FOCUS ON SERVING CLIENTS

Maintained an unwavering focus on investment performance – 72% of active AUM outperformed benchmarks/peer medians and 95% of index AUM at or above tracking error tolerances over the 5-year period.

Launched "Investing for a New World" initiative in early 2012 to build the BlackRock brand and provide clients practical advice for building more dynamic, diverse portfolios to meet their needs.

Awarded $67.3 billion in net new business in long-term investments by clients, ending 2011 with $3.138 trillion in equity, fixed income, multi-asset and alternatives AUM.

Managed $2.516 trillion in AUM for institutional clients at year end, bringing the full range of our capabilities to bear for investors in more than 100 countries on six continents.

Added net new business of $31.2 billion in defined contribution to bring total AUM to $330.1 billion and solidify our position as the leading investment-only provider in the United States.

Managed $403.7 billion of AUM for retail and high net worth investors with continued growth in the United States, as we more than doubled our market share of long-term mutual fund flows.

DELIVERING AN UNPARALLELED RANGE OF PRODUCTS FOR THE NEW WORLD

Added $70.1 billion of net inflows in passive strategies benefiting from the growing demand for index strategies and exchange traded products ("ETPs") across our uniquely diversified investment platform.

Remained the world's top ETP manager as iShares gained $53.0 billion of net inflows, with year-end AUM of $593.4 billion and the most comprehensive and most liquid product offering.

Generated record revenues of $510 million in BlackRock Solutions as more institutions across the globe sought our world-class risk management and advisory services.

Produced 23% organic growth in multi-asset, ending the year with $225.2 billion of AUM in asset allocation portfolios, target-date/target-risk funds and fiduciary management assignments.

Continued growth in alternatives capabilities, ending the year with $104.9 billion in AUM and a robust platform of hedge funds, funds of funds, real estate, private equity and renewable power.

Please review the Important Notes below for information regarding adjustments to certain figures shown above and on the Financial Highlights page, as well as for source information.

© Copyright 2012 BlackRock, Inc. All rights reserved.

This is an interactive electronic version of the BlackRock 2011 Annual Report to Shareholders. The contents of this version are qualified in their entirety by reference to the printed version. A reproduction of the printed version is available in PDF here.

*IMPORTANT NOTES
Opinions

Opinions expressed throughout this annual report are those of BlackRock, Inc. as of March 2012 and are subject to change.

BGI Transaction

On December 1, 2009, BlackRock acquired from Barclays Bank PLC all of the outstanding equity interests of subsidiaries of Barclays conducting the business of Barclays Global Investors ("BGI") (the "BGI Transaction").

Adjusted and As Adjusted Results

Diluted earnings per share, operating income, operating margin, operating cash flow and net income are presented on an "as adjusted" basis. See pages 28-30 of the PDF for Explanation of Use of Non-GAAP Financial Measures.

Other Revenue

On the Financial Highlights page Other Revenue includes BlackRock Solutions and advisory, Cash management base fees, Investment advisory performance fees, Distribution fees and Other revenue.

Operating Margin Peer Average

Source: SNL, as of December 31, 2011; Market-cap weighted peer average includes: BEN, IVZ, TROW, LM, AMG, FII, EV, WDR, JNS, CLMS, CNS, GBL and PZN.

Performance Data

Past performance is not indicative of future results. The performance information shown is based on preliminarily available data. The performance information for actively managed accounts reflects U.S. open-end and closed-end mutual funds and similar EMEA-based products with respect to peer median comparisons, and actively managed institutional and high net worth separate accounts and funds located globally with respect to benchmark comparisons, as determined using objectively based internal parameters, using the most current verified information available as of December 31, 2011.

Accounts terminated prior to December 31, 2011 are not included. In addition, accounts that have not been verified as of January 30, 2012 have not been included. If such terminated and other accounts had been included, the performance information may have differed substantially from that shown. The performance information does not include funds or accounts that are not measured against a benchmark, any benchmark-based alternatives product, private equity products, CDOs, or liquidation accounts managed by BlackRock's FMA group.

Comparisons are based on gross-of-fee performance for U.S. retail, institutional and high net worth separate accounts and EMEA institutional separate accounts and net-of-fee performance for EMEA based retail products. The performance tracking information for institutional index accounts is based on gross-of-fee performance as of December 31, 2011, and includes all institutional accounts and all iShares funds globally using an index strategy. AUM information is based on AUM for each account or fund in the asset class shown without adjustment for overlapping management of the same account or fund as of December 31, 2011. The information reported may differ slightly from that reported previously due to the increased number of accounts that have been verified since the last performance disclosure. BlackRock does not consider these differences to be material.

The source of performance information and peer medians is BlackRock and is based in part on data from Lipper Inc. for U.S. funds and Morningstar, Inc. for non-U.S. funds. Fund performance reflects the reinvestment of dividends and distributions, but does not reflect sales charges. S&P 500® Index is a widely recognized, unmanaged index of common stock prices of industrial, utility, transportation and financial companies in U.S. markets.

Barclays Capital U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed rate bond market.

Net New Business and Net Inflows

Unless stated otherwise, 2011 net new business and net inflows figures are before giving effect to a total of $28.3 billion in BGI merger-related outflows. These outflows reflect manager concentration considerations prior to third quarter 2011 and outflows from scientific active equity performance prior to second quarter 2011. BGI merger-related outflows totaled $121.0 billion in 2010 and $2.9 billion in 2009. Total merger-related outflows since the December 2009 BGI transaction represent less than 9% of acquired assets under management.

Market Share of U.S. Long-Term Mutual Fund Flows

Source: SimFund, as of December 31, 2011; Data is for U.S. long-term open-end mutual funds and excludes ETFs and funds of funds.

BlackRock Data Points

Debt ratings, AUM, ETPs offered, number of countries and employee data as of December 31, 2011. All other data reflect full-year 2011 results unless otherwise noted. BLK Total Return Performance vs. Peers - Source: SNL. Reflects full year 2011 results and assumes reinvestment of all dividends. Market-cap weighted peer average includes: BEN, IVZ, TROW, LM, AMG, FII, EV, WDR, JNS, CL MS, CN S, GBL and PZN.