TAILIEUCHUNG - ManaGeMent’S diScuSSiOn and analYSiS OF Financial cOnditiOn and ReSultS OF OpeRatiOnS

There is no general consensus on how to define various risk-related terms, including the term “risk” itself, and people may have different views on how those terms apply to their particular organization. Both fund boards and advisers would benefit from establishing a common understanding of the terms and concepts they use in risk-related discussions, as well as how they apply to their funds. Some advisers include definitions or descriptions of how they view risk and risk management in their board presentations. They also may explain how they categorize and prioritize types of risks. . | FINANCIAL INFORMATION 27 Selected Financial Data 28 Management s Discussion and Analysis of Financial Condition and Results of Operations 71 Reports on Consolidated Financial Statements 74 Consolidated Statements of Financial Condition 75 Consolidated Statements of Income 76 Consolidated Statements of Comprehensive Income 76 Consolidated Statements of Changes in Equity 79 Consolidated Statements of Cash Flows 81 Notes to the Consolidated Financial Statements 26 SELECTED FINANCIAL DATA The selected financial data presented below has been derived in part from and should be read in conjunction with the consolidated financial statements of BlackRock and Management s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Annual Report. Prior year data reflects certain reclassifications to conform to the currentyearpresentation. Year ended December 31 Dollar amounts in millions except per share data 2011 2010 1 2009 2008 2007 Income statement data Related parties 5 431 5 025 2 716 3 006 2 663 Other third parties 3 650 3 587 1 984 2 058 2 182 Total revenue 9 081 8 612 4 700 5 064 4 845 Expenses Restructuring charges 32 22 38 Termination of closed-end fund administration and servicing arrangements 128 Other operating expenses 5 800 5 614 3 400 3 433 3 423 Total expenses 5 832 5 614 3 422 3 471 3 551 Operating income 3 249 2 998 1 278 1 593 1 294 Total non-operating income expense 114 23 6 577 526 Income before income taxes 3 135 3 021 1 272 1 016 1 820 Income tax expense 796 971 375 387 463 Net income 2 339 2 050 897 629 1 357 Less Net income loss attributable to non-controlling interests 2 13 22 155 364 Net income attributable to BlackRock Inc. 2 337 2 063 875 784 993 Per share data 3 Basic earnings Diluted earnings Book value 4 Common and preferred cash dividends December 31 Dollar amounts in millions 2011 2010 2009

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