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BlackRock: Form, Schedule Or Registration Statement No Filing Party: Date Filed: EXCERPTS FROM THE 2015 ANNUAL REPORT TECHNOLOGY IS CHANGING DEMOGRAPHICS ARE CHANGING THE INVESTMENT LANDSCAPE IS CHAN

The following excerpt is from the company's SEC filing.

BlackRocks foundation, built on a diverse global investment platform, commitment to technology and risk management and a principled fiduciary culture, drives our ability to anticipate and adapt ahead of change to create better financial futures for our clients.

GLOBAL INVESTMENT PLATFORM BLACKROCKS FOUNDATION BUILT FOR CHANGE At BlackRock, our goal is to create better financial futures for our clients and their clients from institutions, corporations and governments to individuals planning for retirement and saving for their childrens college educations. We do this by providing investment advice and managing investment strategies across one of the deepest, broadest investment platforms in the financial services industry. BREADTH AND DEPTH OF DIVERSE INVESTMENT PLATFORM BlackRock offers clients a full range of investment solutions across styles, asset classes and regions, extensive market insights and industry-leading risk management and analytical capabilities supported by Aladdin.® BlackRocks investment management teams span Alpha and Beta Strategies, including fundamental and quantitative equity and fixed income, Multi-Asset, Alternative and Trading & Liquidity Strategies, with more than 1,800 investment professionals in more than 25 investment centers around the world. INDEX & iSHARES® iSHARES Chart above reflects mix of assets under management by style, asset class, client type and region. 2

$ 4.6 TRILLION AUM BlackRocks clients trust us to manage more money than any other investment firm in the world. Our diverse global investment platform positions us to focus on what our clients need, when they need it. Statement above based on AUM as of 12/31/15.

GLOBAL INVESTMENT PLATFORM BLACKROCKS FOUNDATION BUILT FOR CHANGE Changes in the investment landscape are prompting investors to search for new sources of return. And changes in demographics, environmental issues and government regulation are driving an increasing number of investors to portfolios that simultaneously generate positive social or environmental impact. Building on the strength of our global investment platform, BlackRock continues to make investments in our platform to provide our clients with solutions for their changing needs. SUSTAINABLE INVESTING Launched in 2015, BlackRocks sustainable investing platform provides clients with a range of sustainable investment strategies across asset classes, investment vehicles and impact profiles. With more than $200 billion in sustainable assets under management, BlackRock leverages our differentiated investment platform, proprietary technology, data analytics, deep environmental, social and governance (ESG) expertise and culture of innovation to offer our institutional and retail clients access to: Exclusionary screens that avoid specific companies or industries not aligned with investors values (e.g., alcohol, tobacco, firearms, fossil fuels) ESG factor strategies that incorporate environmental, social and governance factors to identify investment risks and opportunities Impact investments that target measurable social or environmental outcomes and financial returns FACTOR INVESTING Factors drive risk and return in portfolios. Factor investing a time-tested concept now taken to new levels by advances in technology is a framework that empowers investors by identifying and precisely targeting broad, persistent and long-recognized drivers of return. Leveraging a world-class research team and strong history of expertise in systematic strategies, BlackRock offers a range of solutions from smart beta to enhanced-factor strategies designed to help investors pursue specific objectives. BlackRock manages more than $125 billion in factor-based strategies. 4

INFRASTRUCTURE INVESTING Infrastructure investments can provide clients with long-duration income, uncorrelated returns, inflation protection, diversification and the potential for capital appreciation while providing economies with economic growth, job creation and in many cases promoting sustainability and providing other social benefits. BlackRock has grown our infrastructure platform to more than $8.7 billion in assets, including one of the industrys leading renewable power franchises, a premier infrastructure debt platform and an innovative Infrastructure Solutions business. In 2015, we developed our footprint in Latin America through the acquisition of I Cuadrada, one of Mexicos leading infrastructure investment firms. 5

INNOVATION IN TECHNOLOGY AND RISK MANAGEMENT BLACKROCKS FOUNDATION BUILT FOR CHANGE BlackRock was founded on the idea that technology can help us better understand and manage risk in our clients portfolios. The combined power of human insight, financial science and technology at the heart of our business enables us to solve our clients most complex investment challenges. ALADDIN: BLACKROCKS UNIFYING TECHNOLOGY PLATFORM Aladdin is BlackRocks investment and risk management technology platform. It unites the information, people and technology needed to manage money on a single platform, and helps facilitate better decision-making, more effective risk management and more efficient trading by investment professionals. In addition to supporting BlackRocks asset management business, Aladdin and its risk analytics are relied on by more than 160 institutions around the world to manage and monitor their own investment portfolios. ALADDIN COMBINES COMPREHENSIVE PORTFOLIO SOPHISTICATED RISK + MANAGEMENT, TRADING AND ANALYTICS OPERATIONAL TOOLS TO DELIVER BETTER RESULTS FOR ITS 20,000 USERS FOCUS ON RISK & QUANTITATIVE ANALYSIS (RQA) BlackRocks independent RQA team partners with investment, operational and technology professionals to ensure deliberate, diversified and scaled risk-taking in our clients portfolios. Our risk management philosophy is rooted in a culture of constructive challenge and is a prime example of the benefits of technology and people working together. This helps BlackRock set the standard for risk management, analytics and investment technology. 6

TECHNOLOGY WITHOUT PEPOLE NOTHING TECHNOLOGY WITH PEPOLE IS EVERYTHING CHARLIE HALLAC CO-PRESIDENT IN MEMORIAM 7

INNOVATION IN TECHNOLOGY AND RISK MANAGEMENT BLACKROCKS FOUNDATION BUILT FOR CHANGE Technology is democratizing access to information that was previously inaccessible and changing the way consumers engage with the world, including how they interact with their investment portfolios. In 2015, BlackRock continued to make investments in technology to better serve our clients most notably through investing in technology that expands our intermediary partners reach and investment management capabilities and harnessing big data to generate alpha. FUTUREADVISOR: ENHANCING DIGITAL WEALTH MANAGEMENT In 2015, BlackRock acquired FutureAdvisor, a leading digital wealth management platform whose technology-enabled advice capabilities include: Personalized advice across the breadth of clients existing investment accounts Tax-efficient portfolio management Mobile and desktop interface, online account enrollment and multi-custodian support Building on BlackRocks diverse investment platform, Aladdin risk analytics, proprietary retire- ment technology and experience as a long-standing enterprise technology partner, FutureAdvisor and BlackRocks combined solution can accelerate our intermediary partner firms abilities to deliver high-quality, technology-enabled advice to an increasing number of investors. LEVERAGING BIG DATA TO GENERATE ALPHA Every second, the world is generating massive amounts of data. BlackRocks ability to analyze data is increasing as computing power continues to grow creating new opportunities to generate consistent, differentiated alpha for our clients across quantitative and fundamental investment styles. BlackRocks sophisticated machine learning and text analysis algorithms search for investment signals by sifting through vast amounts of public data and aggregating millions of viewpoints within seconds, enabling us to respond quickly to opportunities that other investors may overlook. We leverage insights from the analysis of big data across our investment platform with the goal of enhancing alpha generation for our clients. 8

95% 92% 71% 72% Tax- Funda- Scien- Exempt Taxable mental tific Active Active Active Active Fixed Fixed Equity Equity Income Income ASSETS ABOVE BENCHMARK OR PEER MEDIAN 5-YEAR PERIOD

DEDICATED PEOPLE BLACKROCKS FOUNDATION BUILT FOR CHANGE It takes the dedication and connectivity of many people to fulfill our mission of creating better financial futures for our clients. Our people, whether they are managing portfolios, working with clients or analyzing risk, are our most important asset. BlackRock has grown our employee base from eight employees in a single office at our founding to more than 12,000 in 30 countries today. As we pursue our mission together, we are guided by our culture and principles, which have remained unchanged since the founding of the firm. 10

THE BLACKROCK PRINCIPLES WE ARE: Our principles define who we are and how we operate. We place our clients interests first, perform at the highest level on behalf of our clients, shareholders and fellow employees, stay connected, challenge each other to collectively raise our game and continuously innovate and bring the best of BlackRock to our clients. A FIDUCIARY TO OUR CLIENTSPASSIONATE ABOUT PERFORMANCE ONE BLACKROCK INNOVATORS

DEDICATED PEOPLE BLACKROCKS FOUNDATION BUILT FOR CHANGE To continue to anticipate and adapt ahead of change, BlackRocks employees must be students of the markets and connected with one another and with our clients. BlackRock fosters a culture of connectivity and collaboration, learning and innovation across all levels of the organization, so that we can create solutions for our clients future needs. ENHANCING CONNECTIVITY ACROSS OUR INVESTMENT PLATFORM The BlackRock Investment Institute plays a key role in enabling BlackRock to anticipate change in the investment landscape by keeping our investment professionals connected and well-informed, and then sharing our insights with our clients. The BlackRock Investment Institute aims to: Foster an ongoing dialogue and culture of knowledge-sharing across the investment platform Leverage the macroeconomic and policy expertise across the firm to develop investment insights Ensure we deliver value-added market and investment insights consistently to our clients PROMOTING INNOVATION ACROSS THE ORGANIZATION All employees are responsible for being students of technology. We are constantly challenging ourselves and each other as to how we can better leverage technology to invest, to service our clients and to improve the experience of BlackRock employees. BlackRocks annual hackathon, HACK:BLK, is just one example of our firm-wide innovation initiatives. This global innovation challenge is focused on improving Aladdin and using technology to solve the worlds most complex financial challenges. It provides employees with the opportunity to transform their own ideas into a working prototype and collaborate with creative minds across the firm. The 2015 Hackathon generated nearly 340 new ideas. The 2016 Hackathon categories are designed to reflect the firms strategic focus areas and include: Advancing Alpha and Investment Strategies Pioneering New Client Solutions Enhancing Employee Experience New Frontier & Emerging Technologies Sustainable Investing and Social Good 12

GLOBAL EXECUTIVE COMMITTEE Nearly every year, we take a fresh look at our organization with our Board of Directors to ensure our leaders are in roles that can broaden their experiences and maximize their potential both for BlackRock and our clients. The strength of our Global Executive Committee has been built through our intentional approach to talent development and is critical to leading an enduring company through times of significant change. Laurence D. Fink Robert S. Kapito David J. Blumer Geraldine Buckingham Robert W. Fairbairn Chairman & Chief President Head of Europe, Global Head of Global Head of Retail Executive Officer Middle East & Africa Corporate Strategy & iShares Robert L. Goldstein Bennett W. Golub, PhD Philipp Hildebrand J. Richard Kushel Matthew J. Mallow Chief Operating Officer Chief Risk Officer Vice Chairman Global Head of Chief Legal Officer & Global Head of Multi-Asset Strategies BlackRock Solutions Mark S. McCombe Barbara G. Novick Linda G. Robinson Amy L. Schioldager Gary S. Shedlin Global Head of Vice Chairman Global Head of Global Head of Beta Chief Financial Officer Institutional Client Marketing Strategies Business and Co- & Communications Head of BlackRock Alternative Investors Jeffrey A. Smith, PhD Derek N. Stein Ryan Stork Mark K. Wiedman Kendrick R. Wilson III Global Head of Human Global Head of Head of Asia Pacific Global Head of iShares Vice Chairman Resources Business Operations & Technology 13

FINANCIAL HIGHLIGHTS ($mm, except per share data) 2015 2014 2013 Revenue $ 11,401 $ 11,081 $ 10,180 Net income attributable to BLK, GAAP 3,345 3,294 2,932 Net income attributable to BLK, as adjusted 3,313 3,310 2,882 Operating income, as adjusted 4,695 4,563 4,024 Operating margin, as adjusted 42.9% 42.9% 41.4% Per Share Diluted earnings, GAAP $ 19.79 $ 19.25 $ 16.87 Diluted earnings, as adjusted 19.60 19.34 16.58 Dividends declared 8.72 7.72 6.72 Diluted weighted-average common shares 169,038,571 171,112,261 173,828,902 Total AUM (end of period) $ 4,645,412 $ 4,651,895 $ 4,324,088 Please review the Important Notes on page 25 for information on certain non-GAAP figures shown above and through page 24, as well as for source information on other data points on pages 2 through 24. 14

MY FELLOW SHAREHOLDERS: LAURENCE D. FINK Chairman and Chief Executive Officer Since BlackRocks founding 28 years ago, we have earned the trust of our clients and created value for our shareholders by helping investors navigate the global markets to build better financial futures. Investors today are facing tremendous uncertainty feel to clients stronger. We believe the trust that fueled by slowing economic growth, technological clients place in us must be earned every day, and thats disruption and social and geopolitical instability. why we remain committed to constant improvement Particularly worrying is the adoption of negative interest and reinvention. rates by central banks attempting to spark economic growth. These actions are severely punishing the worlds BlackRock has always worked to anticipate and savers and creating incentives to reach for yield, pushing embrace the changes affecting our clients, the investors into less liquid asset classes and increased global markets and the financial services industry levels of risk, with potentially dangerous financial and itself. From our earliest efforts to build our own economic consequences. technology to help clients quantify risk in their portfolios, to providing investors with access to a Markets are still digesting the dramatic shift in the cost full range of active and index investment solutions of energy as a mix of technology and geopolitics has on a single platform, to expanding the use of new transformed supply. Beyond its effect on energy prices, investment strategies like factor investing and big technology continues to disrupt many industries, and data, BlackRock has never stopped innovating even societies, as it reshapes global employment and we never will. markets. In China, growth is slowing, with global effects. In the U.S., the quality of corporate earnings Our commitment to our clients and to constantly is deteriorating, with record share repurchases in evolving our organization to meet their needs is also 2015 driving valuations an indication of companies central to our framework for creating long-term value succumbing to the pressures of short-termism in place for our shareholders. In a letter I sent earlier this year of constructive, long-term strategies. Finally, electoral to CEOs of companies in which we invest on behalf politics is contributing to market uncertainty around of our clients, I asked every CEO to lay out for their the globe. Polarizing elections in the U.S. and Germany; shareholders a strategic framework for long-term government transitions in Spain, Taiwan and Canada; value creation one that provides a perspective on political and economic crises in Brazil and the UK vote the future, articulates the impact of the ecosystem on in June on whether to leave the European Union will their strategy, explains how changes in that ecosystem all continue to drive volatility. might force the company to change course and identifies metrics that support a framework for long-In such a hostile landscape, our mission for investors term sustainability. In this letter, it is my goal to do that has never been more vital, nor the responsibility we for you, BlackRocks shareholders. 15

This years annual report explores how the foundation clients), leverage scale to increase operating margins we have constructed over the past 28 years at over time and return capital to shareholders on a BlackRock is built for change. It tells the story of how consistent basis. evolution and transformation are core to how we serve clients and the way we manage the firm; how our Our long-term shareholder value creation framework global investment platform, use of technology and One was developed in close collaboration with our Board of BlackRock culture allow us to serve our clients; how we Directors and our Board continues to play an active role help our clients invest with purpose and advocate on in overseeing our strategies to deliver on the framework their behalf and how we are developing the firms next and in measuring our progress against it. At each of generation of leaders all of which will generate value our full Board meetings, which take place a minimum for our shareholders over the long term. of six times per year and include at least one full session dedicated to firm-level strategy, BlackRocks GENERATING LONG-TERM SHAREHOLDER VALUE Board reviews our financial performance as well as the high-level and business-specific strategies directed BlackRocks Strategic Framework for Long-Term at driving our results. The Board fosters constructive Shareholder Value Creation debate with senior business leaders on their near- BlackRocks framework for long-term shareholder and long-term strategies in the context of the markets, value creation is directly...


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