Steven E. Buller Chief Financial Officer

Steven E. BullerChief Financial Officer

Managing Transformational

Growth

November 18, 2006

2

Forward-Looking StatementThis presentation, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in BlackRock's SEC reports and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRock's investment products, including its separately managed accounts and the former Merrill Lynch Investment Managers (MLIM) business; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions or divestitures; (7) the unfavorable resolution of legal proceedings; (8) the extent and timing of any share repurchases; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock, Merrill Lynch or PNC; (11) terrorist activities and international hostilities, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries, and BlackRock; (12) the ability to attract and retain highly talented professionals; (13) fluctuations in foreign currency exchange rates, which may adversely affect the value of advisory fees earned by BlackRock; (14) the impact of changes to tax legislation and, generally, the tax position of the Company; (15) BlackRock's ability to successfully integrate the MLIM business with its existing business; (16) the ability of BlackRock to effectively manage the former MLIM assets along with its historical assets under management; and (17) BlackRock's success in maintaining the distribution of its products.

BlackRock's Annual Reports on Form 10-K and BlackRock's subsequent filings with the SEC, accessible on the SEC's website at http://www.sec.gov and on BlackRock’s website at http://www.blackrock.com, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.

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Introduction: My BackgroundBA Degree from Northwestern University in 1973

Master of Management Degree from Northwestern University in 1975

Partner and Co-Director of the Global Asset Management Services practice at Ernst & Young LLP from 1975 – 2005

Currently, Managing Director & Chief Financial Officer of BlackRock, Inc. (NYSE: BLK)

4

Managing Transformational GrowthToday’s Discussion

• Introduction to BlackRock

• Globalization – The Defining Trend in Investment Management

• Managing Transformational Growth

• Questions

5

1 4 17 53 83131

273342

1,075

204

'88

'90

'92

'94

'96

'98

'00

'02

'04

'06*

BlackRock – A Historical Perspective2006: Transformational Merger w/ MLIM

Assets Under Management ($ Billions)

2005: SSR acquisition

2000: BlackRock Solutions®

1999: IPO (NYSE) 1988: Founded Blackstone Financial Management

1992: Changed name to BlackRock

1995: Merged with PNC, offered common vision

*Asset as of September 30, 2006

6

BlackRock – Transformational Change

Merger with Merrill Lynch Investment Managers • Announced agreement to acquire Merrill Lynch

Investment Managers (MLIM) on February 15, 2006

• Closed September 29, 2006

• BlackRock issued 65 million shares to Merrill Lynch in exchange for MLIM ($9.5 billion)

• Created one of the largest investment management firms in the world

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Revenue & Market Cap Growth

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2001

2002

2003

2004

2005

9/30

/06 2007

Rev

enue

s ($

in

mil)

$0$2$4$6$8$10$12$14$16$18$20

Mar

ket

Cap

($

in b

il)Revenues Market Cap

675% growth in revenue from ‘01 – ‘06 (Pro-Forma)

Market Cap increased from $2 billion to $18 billion thru 9/30/06

BlackRock has Achieved Strong Growth

2007 Revenues based on Annualized, 6/30/06, Pro-Forma Revenues as shown in Form S-4, August 2006.

8

But First, Let’s Discuss Industry Trends

9

The World is Changing

The world is big and getting bigger

The world is flat and getting flatter

• Significantly impacting markets

• Influencing investment approaches

Globalization – The Defining Trend in Investment Mgt.

Globalization is the defining trend of our times

10

$12

$136

1980 2004

Equities

Debt

BankDeposits

Global Financial Assets

$ in trillions

Globalization – The World is Getting Bigger

Explosive growth in the capital markets, particularly outside the United States

Source: McKinsey Global Institute

11

2005 Account Balances

Globalization – Flatter Means More InterdependentFundamental implications for markets and policies

• International reliance on the US consumer

• US reliance on foreign buyers of US bonds

US$805b

Oil Exporters$328b

Japan Euro$153b $24b

Rest of World*$92b

China Emg Asia$140b $68b

Source: Lawrence Summers, “Reflections on Global Account Imbalances”, * Rest of world includes statistical discrepancy

12

Globalization – We Have Benefited from Dollarization

$4.3 tril$4.2

$3.7

$3.0

$2.4$2.1$1.9$1.8$1.6$1.6$1.6

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1Q06

Total Foreign Exchange Reserves

China's Foreign Exchange Reserves

Official Foreign Exchange Reserves

But official institutions are now struggling to figure out what to do with their excess liquidity

Source: IMF

13

$0

$200

$400

$600

8/86 2/89 8/91 2/94 8/96 2/99 8/01 2/04 8/06

Globalization – Dollarization Eventually Will End

Foreign Investment in US Debt (Rolling Six Month Sum - $ in billions)

Sources: Bloomberg – National Bureau of Statistics, China.

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The time was right for change.

We had to adapt to the changing environment and the opportunities.

15

What We Did Brought together two great organizations

• Common culture of teamwork and excellence

• Singular focus on investment and risk management

• Enhanced ability to help clients solve problems

• Breadth and depth of capabilities that can set us apart

• Highly leveragable operating platform to facilitate information sharing, efficiency and integrity

• Truly global presence… key to competing in a flat world

16

What We Did

BlackRock MLIM

Fixed Income Equity

Domestic Platform International Platform

Institutional Distribution

Retail Distribution

…And it is a “Perfect Fit” of Complimentary Strengths

Great Performance

17

Why We Did ItOur industry is changing

• Institutional investors want broader relationships with fewer managers

• Deep intellectual capital and creative solutions are essential

• Globalization is an imperative, not an option

• Operating and financial scale is increasingly critical

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What We Created - BlackRock TodayGlobal provider of investment and risk management services

• Over USD 1 trillion in assets under management

• Among the 10 largest investment managers in the world

• The largest publicly traded asset manager in the United States

Assets Under Management By Product

Altern6%

Equity & Balanced

9%

Fixed Inc66%

Cash Mgt19%

Altern4%

Equity & Balanced

33%

Fixed Inc42%

Cash Mgt21%

Before: $461.1 billion

After: $1.075 trillion

6/30/06 9/30/06

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BlackRock Today

Assets Under Management by Region

A substantially Greater Global Presence

• Headquartered in New York City, offices in 18 countries and 36 cities

• 4,700 employees – Over one-third based outside the US

• 14 investment centers across the US, UK, Japan and Australia

US79%

Americas (ex-US)

6%

Asia Pac6%

EMEA9%

6/30/06

US67%

Americas (ex-US)

5%

Asia Pac6%

EMEA22%

9/30/06

Before: $461.1 billion

After: $1.075 trillion

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Employees* Investment Centers

A Truly Global Franchise

Asia Pacific•Hong Kong•Seoul•Shanghai•Singapore*•Taipei•Tokyo*

EMEA/Australia• London*• Edinburgh*• Amsterdam• Eindhoven*• Frankfurt• Geneva• Isle of Man• Jersey• Luxembourg• Madrid

•Milan•Munich•Stockholm•Zurich•Paris•Melbourne*•Sydney*•Brisbane•Perth

North & South America• New York*• Princeton*• Wilmington*• Boston*• Philadelphia*• Pittsburgh• Florham Park*• Atlanta• Chicago• San Francisco*• Los Angeles• Newport Beach• Toronto• Montreal• Montevideo

21

Our World Got a Lot More Complicated

Managing Transformational Growth

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The Process Starts Early

Take good notes at Kellogg

What you learn is central to the process - Finance always plays a central role

23


Considerations Kellogg Curriculum

Growth Opportunities

(M&A Analysis)

Strategy

Economics

Leadership Leadership in Organizations

Culture Values & Crisis Decision Making

Infrastructure Operations

Marketing

Financial Oversight Accounting

Finance

Statistical & Mathematical Methods for Management Decisions

24

Growth Opportunities (M&A Analysis)Understand market factors and business trends

Define strategy

Analyze risks

Identify candidates

Prepare pro-forma models

Consult with investment bankers and counsel

Step back - look at entire picture – make sure pieces fit together

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(M&A Analysis)

Strategy

Economics

Leadership Leadership in Organization



Marketing


Finance


26

Leadership and Culture Build strong leadership & encourage teamwork

Establish and communicate culture & values

Understand your global environment & adapt accordingly

Tailor your organizational structure

Focus on performance and clients

There are no precise formulas to follow:

• Find the right balance

• Develop tools to facilitate decentralization

• Share information and collaborate on behalf of clients

Expect and reward excellence

27




(M&A Analysis)

Strategy

Economics




Marketing


Finance


28

Infrastructure – A Single Technology PlatformGlobal Network -– 13 Data Centers. One Platform is Essential.

Global Network

The sun never sets…We manage a 24x7 operation

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Infrastructure - A Single Technology Platform Achieves…

Goal BRS SolutionInformation Transparency

- Find the information you need

One database provides consistency and transparency

Data Integrity

- Trust the information you get

Single quality-controlled set of data

Effective Risk Monitoring

- Know the risks you take

One source of risk modeling and reporting at an enterprise level

Ability to Evolve Models and Systems

- Too many systems subject to “the weakest link”

Enhancements are continuously made available to all clients

Process Scalability and Efficiency

- Systems often constrain trading

Comprehensive design

Operating Controls

- Too many systems = constant reconciliation and data challenges

One fully integrated system

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Infrastructure – A Single Platform Supports…

70+ million option adjusted calculations per week

3.5 million transactions annually

4,000 portfolios

$4 trillion in assets on platform

800,000 investment positions

90 of the world’s largest investment organizations

Technology and risk management supported by more than 1,000

professionals

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(M&A Analysis)

Strategy

Economics




Marketing


Finance


32

Pre-Merger Post-Merger

Legal Entities 26 155

Functional Currencies 3 11

Calendars 1 2

GL Sets of Books 2 17

Accounting Locations 2 6

Required Local Country Reporting

4 23

Payroll Companies 14 30

Payroll Countries 6 19

Accounts Billed 3,300 20,550

Financial Oversight – Added Complexity

33

BlackRock Operations (Luxembourg) S.a.r.l.(Merrill Lynch Administration

Services (Luxembourg) S.a r.l.)

[Luxembourg]

BlackRock Institutional Management Corp.

[DE]

BlackRock Investments, Inc.

BlackRock Capital Management, Inc.

[DE]

BlackRock US Newco, Inc.

BlackRock Financial Management, Inc.

[DE]

BlackRock Advisors Holdings, Inc.

State Street Research Investment Services,

Inc.[MA]

[51% PreferredVoting Stock]

BR Holdco 2, Inc.

BlackRock, Inc.

[DE]

BlackRock Holdco 1, LLC

Trident Merger, LLC

BlackRock Funding, Inc.

[NY]

BlackRock Advisors, LLC

BlackRock Funding, International, Ltd.

BlackRock Portfolio Holdings, Inc.

[DE]

BlackRock Portfolio Investments, LLC

[DE]

SSRM Holdings, Inc.[DE]

State Street Research & Management

Company [DE]

BlackRock Realty Advisors, Inc.

[DE]

BlackRock AV, Inc.

[DE]

Metric Property Management, Inc.

[DE]

90%

80%

Princeton Administrators, LLC

[DE]

BlackRockCayman Company

(Merrill Lynch Cayman Company)

[Cayman Islands]

BlackRock HPB Management LLC

10%

BlackRock International Holdings,

Inc.[DE]

BlackRock Investment Management, LLC(Merrill Lynch Investment

Managers, LLC)

[DE]

[DE]

[DE]

[DE]

[DE]

[DE]

BlackRock Holdco Limited

[Cayman]

BlackRock Finco, LLC

BlackRock Japan Co., Ltd

(Merrill Lynch Investment Managers Co., Ltd.)

[Japan]

BlackRock Finco UK, Ltd.

BlackRock (Hong Kong) Limited

(Merrill Lynch Investment Managers (Asia) Limited)

[Hong Kong]

BlackRock Investment Management

(Singapore) Ltd.

[Singapore]

B Shares

A Shares

BlackRock UK 1, LP

BlackRock Group Limited

(Merrill Lynch Investment Managers Group Limited)

[U.K.]

96.73% LP Interest

3.26% GP Interest BlackRock Cayco Limited

[Cayman Islands]

BlackRock Trident Holding Company

Limited[Ireland]

BlackRock Lux Finco S.a.r.l.

[Luxembourg]

BlackRock India Private Ltd.

[India]

BlackRock Investment Management B.V.(Merrill Lynch Investment

Managers B.V.)

[Netherlands]

BlackRock European Holdings S.a.r.l.

(Merrill Lynch European Holdings S.a r.l.)

[Luxembourg]

BlackRock Taiwan Limited

(Merrill Lynch Taiwan Limited)

[Taiwan]

BlackRock Cayman Newco Limited

.01% LP Interest

BlackRock Newco GK

[Japan]

BlackRock Singapore Holdco Pte. Ltd.

[Singapore]

BlackRock InsurancePCC Limited

(Merrill Lynch Insurance PCC Limited)

[Isle of Man]

BlackRock (Isle of Man)Limited

(Merrill Lynch Fund Managers (Isle of Man) Limited)

[Isle of Man]

BlackRock (Isle of Man) Holdings Limited

(Merrill Lynch Investment Managers (Isle of Man) Holdings Limited)

[Isle of Man]

BlackRock FundManagers (Isle of Man)

Limited(Merrill Lynch Fund Managers (Isle of

Man) Limited)

[Isle of Man]

BLK Isle of Man Holdings Limited

[Isle of Man]

BlackRock InvestmentManagement (Australia)

Limited(Merrill Lynch Investment

Managers Limited (Austraila))

[Australia]

BlackRock (Channel Islands) Limited

(Merrill Lynch Investment Managers (Channel Islands) Limited)

[Jersey]

St. Albans HouseNominees (Jersey) Ltd.

[Jersey]

BlackRock First Partner Limited

(Merrill Lynch Investment Managers First Partner Limited)

[Jersey]

BlackRock Jersey Holdco Limited

[Jersey]

BlackRock (Institutional)Canada Ltd.

(Merrill Lynch Investment Managers (Institutional) Canada Ltd.)

[Canada]

BlackRock Holdco 3, LLC

BlackRock HK Holdco Limited

[Hong Kong][Cayman Islands]

[U.K]

[DE]

[DE]

[U.K]

Grosvenor Ventures Limited

[U.K.]

Mercury Private EquityMUST 3 (Jersey) Limited

[Jersey]

Mercury Carry CompanyLtd (Isle of Man)

[Isle of Man]

BlackRock Investment Management(UK) Limited

(Merrill Lynch Investment Managers Limited)

[U.K.]

BlackRock Investment Management (UK) Limited-

Branches(Merrill Lynch Investment

Managers Limited – Branches)

BlackRock Investment Management (UK) Limited –

Milan Branch(Merrill Lynch Investment Managers

Limited – Italy Branch)

[Italy]

BlackRock Investment Management (UK) Limited –

Zurich Branch(Merrill Lynch Investment Managers

Limited – Swiss Branch)

[Switzerland]

BlackRock Investment Management (UK) -Taiwan Rep Office

(Merrill Lynch Investment Managers Limited – Taiwan Rep Office)

[Taiwan]

BlackRock Investment Management (UK) Limited

Amsterdam Branch(Merrill Lynch Investment Managers

Limited – Netherlands Branch)

[Netherlands]

BlackRock Investment Management (UK) Limited

Seoul Representative Office(Merrill Lynch Investment Managers

Limited – Seoul Representative Office)

[Rep. of Korea]

Wimco Nominees Ltd.

[U.K.]

Tower ManagementServices Limited

[U.K.]

The Tower Nominees No.

1 Limited

[U.K.]

The Tower Nominees No.

2 Limited

[U.K.]

BlackRock PensionsNominees Limited(Merrill Lynch Pensions

Nominees Limited)

[U.K.]

BlackRock Employee Trust Co. Limited

(Merrill Lynch Investment Managers Employee Trust Co. Limited)

[U.K.]

Munich London Investment

Management Ltd.

[U.K.]

BlackRock Societa di Gestione di Risparmio S.p.A.

(Merrill Lynch Investment Managers Societa di Gestione di Risparmio

S.p.A.)

[Italy]

BlackRock InvestmentManagement No. 2 Limited

(Merrill Lynch Investment Managers No. 2 Limited)

[U.K.]

Grosvenor AlternatePartner Limited

[U.K.]

Mercury Private EquityMUST 3 Limited (In

Liquidation)

[U.K.]

BlackRock PensionsLimited

(Merrill Lynch Pensions Limited)

[U.K.]

Tower General PartnerLimited

[U.K.]

BlackRock Investment Management International

Limited(Merrill Lynch Investment Managers

International Limited)

[U.K.]

BlackRock FundManagers Limited

(Merrill lynch Fund Managers Limited)

[U.K.]

BlackRock Executor & Trustee Co. Limited

(Merrill Lynch Investment Managers Executor & Trustee Co. Limited)

[U.K.]

BlackRock Asset Management U.K. Limited

(Merrill Lynch Asset Management U.K. Limited)

[U.K.]

BlackRock International Ltd.

[U.K.]

BlackRock (Luxembourg) S.A.

(Merrill Lynch Investment Managers (Luxembourg) S.A.)

[Luxembourg]

BlackRock Fund Management Company S.A.(Merrill Lynch Fund Management

Company S.A.)

[Luxembourg]

BlackRock (Netherlands) B.V.

(Merrill Lynch Investment Managers (Netherlands) B.V.)

[Netherlands]

BlackRock InvestmentManagement (Dublin)

Limited(Merrill Lynch Investment Managers

(Dublin) Limited)

[Ireland]

BlackRock (Deutschland) GmbH

(Merrill Lynch Investment Managers (Deutschland) GmbH)

[Germany]

90%

10%

50%

50% 50%

50% 50%

50% 50%

1% 99%

99.02% 0.98%

83.3% 16.7%

.763%

99.237%

50%

Financial Oversight – Legal Entities Increased 6x

34

Financial Oversight – Global ChallengesRevenue volatility & recognition

Regulatory & capital compliance

Staffing & headcount

Cash management

General & administrative expenses

“Unusual items” (M&A)

Daily processes (payroll, payables, etc.)

Global Sarbanes-Oxley compliance

Financial reporting

35

Financial Oversight – Financial Reporting Challenges

Purchase Price

Allocatio

n

Global, State & Local Taxes

CONTINGENCIESRevenue

Recognition

Investment Company Accounting

Variable Interest Entities

SEC

Reporting

convertible debt

Partn

ers

hip

Accou

ntin

g

Extinguishment of

Liabilities

DEFINED BENEFIT PENSION / DEFINED CONTRIBUTION PLANS

COMPENSATION (Stock based, options, incentives)

Leases

DERIVATIVES

Investm

en

ts

Related Party Transactions

EPS/Other Comprehensive

Income

Foreign Currency Translation

hybrid instruments

Servicing of

Financial

AssetsIAS

Software Costs

Hedging

Real Estate

Embedded Derivatives SPEs

36

Financial Oversight – Build Strong ControlsAssess, document and enhance controls

Automate controls and monitoring

Utilize one General Ledger and consolidation process

Leverage auditors/internal auditors

Utilize functional and geographic oversight

Hire smart, experienced leaders who know local markets

No tolerance policy

37

Financial Oversight – People & Processes Are KeyCulture sets a standard and reinforces positive behavior

Need uniform policies and procedures

Regional / functional matrix is key

Management reporting must support decentralization of day-to-day governance, together with clear accountability

Systems and communications must support unified platform and team

38

Financial Oversight – Refine Management MetricsNew revenue / at-risk revenue / opportunities

Headcount and compensation

Expenses by department and function

Budget & forecast variances

Ratios (operating margin, compensation, sales)

Cash flows

M&A: costs and synergies, settlements

39

Conclusion: Managing Transformational GrowthKey Points –

Adapt to your global environment

Build strong leadership

Establish and communicate culture & values

Develop a tailored and scaleable infrastructure

Focus on performance and clients

Build strong financial oversight

Take good notes at Kellogg

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Questions?

Steven E. Buller Chief Financial Officer

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