1

Federated Hermes, Inc.

Analyst Update

Data as of September 30, 2020

20-10168

2

Forward-looking information

This presentation is provided as of the date on the cover. Certain statements in this presentation, including those related to the potential for growth and stability constitute forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that may cause the actual results, levels of activity, performance or achievements of Federated Hermes or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks and uncertainties are that market conditions and the performance of company products affect the potential for growth and stability. Other risks and uncertainties also include the risk factors discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission. For a discussion of such risk factors, see Item 1A –Risk Factors in Federated Hermes, Inc. (formerly Federated Investors, Inc.) Annual Report on Form 10-K and other reports on file with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither Federated Hermes nor any other person assumes responsibility for the accuracy and completeness of such statements in the future. Federated Hermes does not undertake any obligation to update the statements in this presentation.

Analy

st

Update

, Septe

mber

30,

2020

3

Federated HermesInvestment considerations

*Data as of 9/30/2020.

Analy

st

Update

, Septe

mber

30,

2020

Member of S&P 400 MidCap Index

Pure play asset management company; financial strength and flexibility

Active management across $615 billion* including: $182 billion in long-term managed assets: equity ($80 billion), fixed income ($80 billion), alternative/private markets ($18 billion) and multi-asset ($4 billion); and $433 billion in liquidity

Mix of asset classes provide organic growth potential across cycles complemented by selective acquisitions

Business mix offers potential for growth, stability and sustainability

Federated Hermes offers world-class active management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world

4

Overview of Federated HermesGlobal, active, responsible investment management and stewardship

Data as of 9/30/20 1Source: Strategic Insight 9/30/20 – based on AUM. Open end funds 2Assets under administration by EOS at Federated Hermes subsidiary – 9/30/20

Analy

st

Update

, Septe

mber

30,

2020

Top-tier liquidity management business with $433.0 billion in assets under management

$181.8 billion combined equity, fixed income, alternative/private markets and multi-asset

$80.4 billion in equity assets

$79.5 billion in fixed income assets

$18.1 billion in alternative/private markets

$3.7 billion in multi-asset assets

Develop high-quality actively and responsibly

managed investment strategies and offer them through an

extensive global network of financial

intermediaries and institutions

Assets under management $614.8 billion

Total revenue (Q3 ’20) $364.5 million

Founded 1955

Global headquarters Pittsburgh, Pa.

Employees 1,981

Strategy

Top 8 U.S. mutual fund managers1

~11,000 intermediary firms and institutional clients

227 sales professionalsLeading ESG advisory business

$1.2 trillion assets under advice2

Premier ESG-integrated manager with fiduciary heritage

5

Q3 2020Highlights

*Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $3.4 million available to unvested restricted Federated shareholders for the quarterly period ended Sep. 30, 2020 was excluded from the computation of earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary.**The dividend is payable on Nov 13, 2020 to shareholders of record as of Nov 6, 2020 Numbers may not be exact due to rounding Data as of 9/30/2020, Equity, Managed Assets, Money Market & Fixed Income blue box values reflect AUM

Analy

st

Update

, Septe

mber

30,

2020

Q3 2020 earnings per share*

Managed assets at Q3 period end

Quarterly dividend of $0.27 and special dividend of $1.00**

Equity assets up $3.5 billion or 5% from $76.9 billion at 6/30/20

Liquidity assets down $24.6 billion or 5% from $457.6 billion at 6/30/20

Fixed-income assets up $6.4 billion or 9% from $73.1 billion at 6/30/20

$615 B

$0.85

$1.27

$433 B

$80.4 B

$79.5 B

6

Diversified mix of revenue from managed assets

*Revenue less distribution expense is a non-GAAP measure. See slide 28 for reconciliation**Prior to Q3 2018, Equity included some assets that are now classified as Alternatives/Private Markets or Multi-asset

Analy

st

Update

, Septe

mber

30,

2020

Total revenue less distribution expense was $191M in Q3 of 2008 and $291M in Q3 2020

Money Market

Average 35%High 61%Low 23%

Fixed Income

Equity**

Alt/Private Market & Multi-asset

Average 19%High 25%Low 11%

Average 43%High 52%Low 27%

Average 8%High 11%Low 6%

Percentage of revenue less distribution expense by asset type*

7Total may not equal the sum of the parts due to rounding

Diversified multi-channel distributionTotal assets under management: $615 billion as of September 30, 2020 ($ in billions)

Analy

st

Update

, Septe

mber

30,

2020

U.S. Financial Intermediaries – Domestic Broker Dealers, Bank Trust, Private Banks, Capital Markets, RIAs & Other

U.S. Institutional – Domestic Corporations, Government Entities, Pension Plan/Defined Contribution Sponsors, & Insurance Companies

International – Non-US entities including Insurance Companies, Pension Funds, Banks, Sovereign Wealth Funds, Corporations, Broker Dealers & Local Governments

U.S. Financial Intermediaries

65%

U.S. Financial Institutional

24%

International11%

8Data as of 9/30/20All numbers are in $ Billions ($B), Sum of parts may not equal total due to rounding.

Equity strategiesTotal equity AUM: $80.4 billion

Analy

st

Update

, Septe

mber

30,

2020

Global/International $30.1

Global Emerging Markets Strategies $10.3

Asia ex-Japan Fund $2.1

Global Equities ESG – Nordics $1.7

International Equity $1.4

International Strategic Value Dividend $0.9

International Leaders $0.9

Hermes U.S. SMID $0.7

Global Small Cap $0.6

All Other $11.4

Strategic Value Dividend $23.0

Strategic Value Dividend $23.0

Value/Income & Clover $1.8

Equity Income $0.7

Clover All Cap Value $0.2

Clover Small Cap Value $0.1

All Other $0.7

Growth/Kaufmann $19.5

Kaufmann Fund $7.7

Kaufmann Small Cap $7.2

Kaufmann Large Cap $4.3

Kaufmann Fund II $0.2

All Other $0.1

Quantitative/MDT $5.4

MDT All Cap Core $1.3

MDT Large Cap Value $1.0

MDT Small Cap Core $0.7

MDT Small Cap Growth $0.7

All Other $1.7

Index Funds $0.6

Mid-Cap Index $0.4

Max-Cap Index $0.3

9Data as of 9/30/20. All numbers are in $ Billions ($B), Sum of parts may not equal total due to rounding.

Fixed-income strategiesTotal fixed-income ($79.5B) and liquidity ($433.0B) AUM: $512.5 billion

Analy

st

Update

, Septe

mber

30,

2020

Liquidity $433.0

Government $301.0

Prime $121.5

Tax-Free $10.4

Multi-Sector and Corporate $52.7

Multi-Sector Fixed Income Accounts $18.8

Total Return $9.7

Ultrashort Bond Fund $4.7

Capital Preservation $3.9

Inst. Fixed Income $2.9

Short-Term Income $1.8

Federated Bond $1.6

Sterling Cash Plus $1.3

Floating Rate Strategic Income $0.6

Multi-Strategy Credit $0.6

All Other $6.8

High Yield $15.4

Inst. High Yield Bond $9.2

Global High Yield Credit $0.8

Opportunistic High Yield Bond $0.6

High Income Bond $0.6

Global High Yield Bond $0.2

Unconstrained Bond $0.2

All Other $3.7

Municipal $5.5

Muni Ultrashort $2.8

Short Intrm. Duration Trust $0.9

Muni High Yield Advantage $0.5

Muni Bond $0.3

Premier Muni Income $0.3

All Other $0.6

Government andMortgage Backed

$4.9

Gov. Ultrashort $1.1

Total Return Gov. Bond $0.5

Gov. Income Trust $0.3

U.S. Gov. Sec. Fund: 2-5 Years $0.3

Fund for U.S. Gov. Sec. $0.2

All Other $2.5

Global/International FI $1.2

LVM Funds $0.6

All Other $0.6

10* Excludes approx. $0.6B from other funds investing in Trade Finance; Total Trade Finance managed assets $0.6BData as of 9/30/2020 All numbers are in $ Billions ($B), Sum of parts may not equal total due to rounding.

Alternative/private markets and multi-asset strategiesTotal alternative/private markets ($18.1B) and multi-asset ($3.7B) AUM: $21.8 billion

Analy

st

Update

, Septe

mber

30,

2020

Private Equity And Infrastructure $8.0

HGPE – Private Equity Advisory $4.0

HGPE – Infrastructure Advisory $4.0

Real Estate $7.6

U.K. Property $2.1

Hermes Property Unit Trust $1.8

International Property $0.9

CMK Fund $0.5

Metro Property Unit Trust $0.4

All Other $1.9

Other Alternative $2.5

Debt Funds $0.9

Unconstrained Credit $0.7

Prudent Bear $0.3

Hermes Absolute Return Credit $0.3

Trade Finance* $0.1

Direct Lend and Private or Alt. Debt $0.1

All Other $0.2

Multi-asset $3.7

Muni and Stock Advantage $1.4

Capital Income $1.0

Managed Volatility II $0.6

Global Allocation $0.4

All Other $0.4

11

15 years of ESG engagement leadership

As of 9/30/20*Includes global EOS and Responsible Investing Office personnelPast performance is no guarantee of future results.

EOS at Federated Hermes

INSTITUTIONAL Sales Material. Not for Distribution to the Public

ES

G I

nte

grati

on

12*CAGR – Compound annual growth rateAlternative/Private Markets products are not illustrated

Monthly average mutual fund & SMA gross salesEquity and multi-asset, fixed income and ultrashort ($ in millions)

Analy

st

Update

, Septe

mber

30,

2020

CAGR* ’08 – ’20

Equity & Multi-asset = 12%

Fixed Income = 10%

Ultra-Short = 11%

$1,918

$2,336

$2,504 $2,486$2,564

$2,447

$1,131

$1,865

$3,048

$2,275

$2,504

$2,863

$3,996

13*Multi-asset products are included in Equity. Alternative/Private Markets products are not illustratedIn prior reporting for 2017 and 2018, Equity included certain Alternative/Private Market strategies, they are no longer included in any numbers above.

Equity* and fixed-income salesFund and separate accounts ($ in millions)

Analy

st

Update

, Septe

mber

30,

2020

Fixed Income Equity

Fixed Inc. 2017 2018 2019 2020 YTD Total

Gross sales $27,549 $20,156 $21,424 $28,237 $97,336

Net sales $10,517 $(3,214) $(119) $8,145 $15,329

Equity 2017 2018 2019 2020 YTD Total

Gross sales $12,097 $14,448 $20,554 $15,036 $62,135

Net sales $(3,875) $(8,997) $(2,133) $(6,196) $(21,201)

For one fixed income separate account, sales, redemptions, net sales (redemptions) and market gains and (losses) were previously incorrectly reported for the quarters ended March 31, 2020 and June 30, 2020. Total assets were reported correctly and are not impacted. Corrections for the quarter ended March 31, 2020, resulted in increasing redemptions, and thereby reducing net sales, by $380 million and increasing market gains by the same amount. Corrections for the quarter ended June 30, 2020, resulted in decreasing sales, and thereby reducing net sales, by $1.1 billion and increasing market gains by the same amount.

14Numbers may not be exact due to rounding

Liquidity managementMoney market funds & separate accounts

Analy

st

Update

, Septe

mber

30,

2020

CAGR Q2 ‘03 – Q3 ‘20 = 7.2%

Total Period End AUM

Average Separate Acct AUM

Average MMF AUM

International

U.S. Institutional

U.S. Financial Intermediaries

MMF & Separate Accounts Assets ($B)

MMF & Separate Accounts Assets by Channel ($B)

Broad product line

Value-added services

Strength in large banks

Barriers to entry

Hedge in periods of volatility

$79 $87

$119

$145 $150$134

$144$164

$200

$284

$343

$269 $272 $274 $274$254 $247 $252 $245

$267

$341

$442

Total Average AUM

15

*Beginning in Q1 ‘17 – Includes money market fund subadvised accountsIndustry MMF Source: Investment Company Institute.**FHI MMF Assets, the S&P 500 Index, the Money Stock, and Industry MMF Assets were each indexed to a value of 100 on 12/31/93. Money Stock is M2 plus Institutional Money Funds, which were formerly reported in M3 (M3 was discontinued on 3/23/06). Money Stock M1 is a measure of the money supply which includes currency in circulation plus demand deposits or checking account balances; M2 is M1 plus net time deposits and retail money funds; Source: Federal ReserveS&P 500® is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Federated Securities Corp. S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Money market fund* assets

Analy

st

Update

, Septe

mber

30,

2020

Indexed Growth** vs. Money Stock, S&P 500, and Industry MMF

CAGR (12/93 – 9/20)

FHI MMF 9%

Industry MMF 8%

S&P 500 8%

Money Stock 7%

16Total may not equal the sum of the parts due to rounding

Separate accountsTotal assets under management: $178 billion as of September 30, 2020

Analy

st

Update

, Septe

mber

30,

2020

Asset TypeProduct Type

17

Acquisitions and alliancesTimeline of key historical transactions

Analy

st

Update

, Septe

mber

30,

2020

2001 2005 2006 2008 2010 2012 2015 2017 2018 2019 2020

$3.2B growth equity assets at closing, $19.5B at 9/30/20

Alliance Capital cash management business, $19.0B money market assets at closing

AllianceBernstein L.P.

$6.7B quantitative equity assets at closing, $5.5B at 9/30/20

$12.0B institutional money market fund assets transitioned to Federated from Putnam Prime Money Market Fund

Putnam Prime Money Market Fund

Prudent Bear - Alternative equity and fixed income products; $1.0B assets at closing, $270M at 9/30/20

Clover Capital Mgmt.– Value equity style; $2.1B at closing, $0.9B at 9/30/20

SunTrust Bank

Completed transition of $14.0B in money market assets from SunTrust Banks, Inc.

London based Prime Rate Capital Management – Money Market Assets – $4.3B USD at closing, $8.8B USD at 9/30/20

Completed reorganization of $929M from Trustmark Investment Advisors into Federated equity, fixed income and money market funds

Trustmark Investment Advisors

Fifth Third Bank

Reorganized $4.4B in assets from Fifth Third money market funds into Federated money market funds

Completed the transition of ~$4.0B in assets from Reich & Tang’s domestic and offshore money market funds

Reich & Tang

Huntington Asset Advisors

Completed transition of $932M in money market assets from Huntington Asset Advisors, Inc.

Horizon Advisers

Completed the transit ion of $435M in fixed income & equity assets from Horizon Advisers

Acquired 60% of Hermes Fund Managers Limited, a London-based leading ESG franchise with $46B of assets at closing, $47.8B at 9/30/20

Acquired app. $13.9B of assets from PNC Financial Services, including $1.5B (as of 9/30/20) of international equity assets

Cen

ters o

f Excellen

ce

Ro

ll-u

ps

Distribution strength attractive to sellers Equity centers of excellence Liquidity management consolidation

Transformed partial into full ownership, $7.9B assets already reportedAcquired

MEPC, a leading U.K. commercial real estate developer and asset manager, $452M in assets

18

Global footprintAssets by region ($ in billions)

Analy

st

Update

, Septe

mber

30,

2020

Client locations

Federated Hermes Offices

SINGAPORE

DENMARK

FRANKFURT

TOKYO

DUBLIN

NEW YORK

BOSTON

TORONTO

CLEVELAND

HOUSTON

PITTSBURGH LONDON

Data as of 9/30/20Dollars showing Assets Under Management (AUM)Numbers may not be exact due to rounding.

North America: $555.6 billion

Europe: $55.9 billion

• U.K. & Ireland: $36.4 billion

• Germany: $4.0 billion

• Other: $15.5 billion

Asia Pacific: $2.5 billion

Americas (non-U.S.): $2.0 billion

• Canada: $1.2 billion

• Central/South America: $817 million

19

Data as of 9/30/20Numbers may not be exact due to rounding

Value delivered to shareholdersHistorical uses of cash ($ in billions)

Analy

st

Update

, Septe

mber

30,

2020

Uses of cash Uses of cash over time

($m)

Total Share Repurchase/Acquisition/Dividend since IPO 1998: $4.8 billion

Cumulative Net Income Since 1998: $4.3 billion

Dividends50%

Share Repurchases

27%

Acquisitions23%

20

Dividend history and weighted average shares outstandingSince IPO in 1998

Analy

st

Update

, Septe

mber

30,

2020

CAGR: 13%*Total Regular Dividends: $16.23Total Special Dividends: $7.53

Data as of 9/30/20*CAGR ‘98 – ’19, special dividends not included

Annual

Special Dividend

YTD

Special dividend to be paid on Nov 13, 2020

21

Federated HermesInvestment considerations

*Data as of 9/30/2020.

Analy

st

Update

, Septe

mber

30,

2020

Member of S&P 400 MidCap Index

Pure play asset management company; financial strength and flexibility

Active management across $615 billion* including: $182 billion in long-term managed assets: equity ($80 billion), fixed income ($80 billion), alternative/private markets ($18 billion) and multi-asset ($4 billion); and $433 billion in liquidity

Mix of asset classes provide organic growth potential across cycles complemented by selective acquisitions

Business mix offers potential for growth, stability and sustainability

Federated Hermes offers world-class active management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world

Appendix

23

Appendix

Analy

st

Update

, Septe

mber

30,

2020

Managed assets by asset class

Managed assets by product type

Equity, Fixed Income Separate Account sales

Revenue & distribution expense by asset type

Financial highlights

Equity & Fixed Income fund sales

24

Managed assets by asset class$ in billions

*Compound Annual Growth Rate**In 1998 Multi-asset and certain Alternative/Private Market products were categorized as EquityTotal may not equal the sum of the parts due to rounding

Analy

st

Update

, Septe

mber

30,

2020

2019 1998**CAGR*

`98 -`19Q3 ’20 Q3 ’19 YoY % Chg.

Money market $ 395.5 $ 77.1 8% $ 433.0 $ 359.3 21%

Equity 89.0 16.4 8% 80.4 80.8 0%

Fixed income 69.0 18.1 7% 79.5 65.8 21%

Alternative/private market 18.1 NA NA 18.1 17.2 6%

Multi-asset 4.2 NA NA 3.7 4.1 -10%

Total managed assets $ 575.9 $ 111.6 8% $ 614.8 $ 527.2 17%

25

Managed assets by product type$ in billions

*Compound Annual Growth Rate**In 1998 Multi-asset and certain Alternative/Private Market products were categorized as EquityTotals may not equal sum of parts due to rounding

Analy

st

Update

, Septe

mber

30,

2020

2019 1998**CAGR*

`98 -`19Q3 ’20 Q3 ’19 % Chg.

Funds

Money market $ 286.6 $ 77.1 6% $ 325.9 $ 261.2 25%

Equity 48.1 15.5 6% 46.1 42.6 8%

Fixed income 44.2 16.4 5% 49.8 42.3 18%

Alternative/private markets 11.4 NA NA 11.4 10.8 5%

Multi-asset 4.0 NA NA 3.5 4.0 -10%

Total Fund Assets $ 394.3 $ 109.0 6% $ 436.8 $ 360.9 21%

Separate Accounts

Money market $ 108.9 NA NA $ 107.0 $ 98.1 9%

Equity 40.9 0.9 20% 34.3 38.2 -10%

Fixed income 24.8 1.7 14% 29.8 23.5 27%

Alternative/private markets 6.7 NA NA 6.8 6.3 7%

Multi-asset 0.2 NA NA 0.2 0.2 2%

Total sep. accts. $ 181.5 $ 2.6 22% $ 178.0 $ 166.3 7%

Total managed assets $ 575.9 $ 111.6 8% $ 614.8 $ 527.2 17%

26

Equity* and fixed-income fund sales$ in millions

Analy

st

Update

, Septe

mber

30,

2020

Fixed Income Equity

Fixed Inc. 2017 2018 2019 2020 YTD Total

Gross sales $14,799 $16,594 $16,730 $21,811 $69,934

Net sales $144 $(1,772) $419 $4,337 $3,128

Equity 2017 2018 2019 2020 YTD Total

Gross sales $5,648 $8,880 $12,697 $10,587 $37,812

Net sales $(3,707) $(4,325) $76 $(2,382) $(10,338)

*Multi-asset products are included in Equity. Alternative/Private Markets products are not illustratedIn prior reporting for 2017 and 2018, Equity included certain Alternative/Private Market strategies, they are no longer included in any numbers above.

27

Equity* and fixed-income separate account sales$ in millions

Analy

st

Update

, Septe

mber

30,

2020

Fixed Income Equity

Fixed Income 2017 2018 2019 2020 YTD Total

Gross sales $12,750 $3,562 $4,694 $6,426 $27,432

Net sales $10,373 $(1,442) $(538) $3,808 $12,201

Equity 2017 2018 2019 2020 YTD Total

Gross sales $6,449 $5,568 $7,857 $4,449 $24,323

Net sales $(168) $(4,672) $(2,209) $(3,814) $(10,863)

*Multi-asset products are included in Equity. Alternative/Private Markets products are not illustratedIn prior reporting for 2017 and 2018, Equity included certain Alternative/Private Market strategies, they are no longer included in any numbers above.

For one fixed income separate account, sales, redemptions, net sales (redemptions) and market gains and (losses) were previously incorrectly reported for the quarters ended March 31, 2020 and June 30, 2020. Total assets were reported correctly and are not impacted. Corrections for the quarter ended March 31, 2020, resulted in increasing redemptions, and thereby reducing net sales, by $380 million and increasing market gains by the same amount. Corrections for the quarter ended June 30, 2020, resulted in decreasing sales, and thereby reducing net sales, by $1.1 billion and increasing market gains by the same amount.

28

Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020

Revenue By Asset Type

Money Markets $182.7 $183.5 $124.1 $93.2 $111.5 $75.9 $65.0 $78.3 $131.8 $112.6 $101.3 $138.2 $143.4

Equity $91.3 $71.4 $71.0 $71.8 $73.3 $83.3 $100.1 $107.7 $115.3 $118.7 $138.6 $136.7 $138.6

Fixed Income $29.3 $36.1 $44.4 $46.2 $51.2 $49.4 $49.2 $48.1 $47.3 $46.9 $45.9 $45.0 $49.4

Alternative/Private Market $9.1 $22.2

Multi-asset $8.4 $7.5

Other $2.6 $2.6 $2.7 $2.8 $2.5 $3.3 $2.6 $0.2 $0.2 $0.1 $2.7 $2.9 $3.4

Total $305.9 $293.6 $242.2 $214.0 $238.5 $211.9 $216.9 $234.3 $294.6 $278.2 $288.5 $340.3 $364.5

Distribution Expense By Asset Type

Money Markets $90.7 $79.7 $50.6 $34.9 $44.2 $30.5 $25.8 $30.9 $67.9 $55.2 $47.7 $64.4 $51.6

Equity $16.0 $11.4 $10.2 $9.9 $9.3 $11.7 $17.2 $19.0 $21.8 $20.1 $14.9 $14.4 $13.7

Fixed Income $7.9 $9.4 $10.6 $10.4 $11.8 $10.6 $9.7 $8.7 $9.1 $9.5 $6.0 $6.5 $6.1

Alternative/Private Market $0.1 $0.1

Multi-asset $2.7 $2.2

Other $0.4 $0.5 $0.4 $0.6 $0.8 $0.6 $0.8 $0.2 $0.0 $0.0 $0.0 $0.0 $0.0

Total $115.0 $101.0 $71.8 $55.8 $66.1 $53.4 $53.5 $58.8 $98.8 $84.8 $68.6 $88.1 $73.7

Revenue Less Distribution By Asset Type

Money Markets $92.0 $103.8 $73.5 $58.3 $67.3 $45.4 $39.2 $47.4 $63.9 $57.4 $53.6 $73.8 $91.8

Equity $75.3 $60.0 $60.8 $61.9 $64.0 $71.6 $82.9 $88.7 $93.5 $98.6 $123.7 $122.3 $124.9

Fixed Income $21.4 $26.7 $33.8 $35.8 $39.4 $38.8 $39.5 $39.4 $38.2 $37.4 $39.9 $38.5 $43.3

Alternative/Private Market $0.0 $9.1 $22.1

Multi-asset $0.0 $5.7 $5.3

Other $2.2 $2.2 $2.3 $2.2 $1.7 $2.7 $1.8 $0.0 $0.2 $0.1 $2.7 $2.9 $3.4

Total $190.9 $192.6 $170.4 $158.2 $172.4 $158.5 $163.4 $175.5 $195.8 $193.4 $219.9 $252.3 $290.7

Revenue Less Distribution By Asset Type (As a % of Total)

Money Markets 48% 54% 43% 37% 39% 29% 24% 27% 33% 30% 24% 29% 32%

Equity 39% 31% 36% 39% 37% 45% 51% 51% 48% 51% 56% 48% 43%

Fixed Income 11% 14% 20% 23% 23% 24% 24% 22% 20% 19% 18% 15% 15%

Alternative/Private Market 0% 4% 8%

Multi-asset 0% 2% 2%

Other 1% 1% 1% 1% 1% 2% 1% 0% 0% 0% 1% 1% 1%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Prior to Q3 2018 Multi-asset and certain Alternative/Private Market products were categorized as Equity

Revenue and distribution expense by asset typeReconciliation of non-GAAP measure ($ in millions)

Analy

st

Update

, Septe

mber

30,

2020

29

a) The portion of cash and investments related to consolidated products and noncontrolling interest was $65m, $63m, $46m, $30m, $35m, $13m, $6m, $17m, $10m, $2m, and $3m for the periods ending 9/30/20, 12/31/19, 12/31/18, 12/31/17, 12/31/16, 12/31/15, 12/31/14, 12/31/13, 12/31/12, 12/31/11, and 12/31/10, respectively. (b)The portion of retained earnings related to consolidated products was (-$2m), (-$2m), $2m, and $1m for the periods ending 12/31/16, 12/31/15, 12/31/13, 12/31/12, respectively. (c) Since the inception of its first share repurchase program in 1999, FHI has bought 51,292,119 (open market – excluding restricted shares) for $1.3B. At September 30, 2020, FHI holds 10,070,813 shares in treasury. Shares outstanding at September 30, 2020 are 99,443,643.(d) During the fourth quarter 2014, the board of directors authorized the retirement of 20 million treasury shares which restored them to authorized but unissued status. FHI recorded a $587.3 million reduction to Treasury stock, at cost using the specific-identification method and a $49.2 million reduction to Class B Common stock, at cost using the average cost method. The difference of $538.1 million was recorded as a reduction to retained earnings. There was no impact to total equity as a result of this transaction.(e) FHI 2017 results included $70.4 million of net income resulting from the enactment of the Tax Cuts and Jobs Act of 2017, which was signed into law on December 22, 2017. The non-cash benefit to net income was a reduction in the income-tax provision related to the revaluation of Federated net deferred tax liability, due to the reduction of the Federal corporate income tax rate from 35 percent to 21 percent.*Acquisition related Uses of Cash are shown net of cash received

Financial highlights$ in millions

Analy

st

Update

, Septe

mber

30,

2020

BALANCE SHEET

HIGHLIGHTS 9/30/20 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10

Cash & Investments (a)$437 $341 $190 $370 $301 $347 $297 $292 $259 $322 $334

Long-Term Debt90 100 135 170 191 217 242 276 319 361 404

Retained Earnings (b,d)1,067 930 792 697 530 546 505 1,023 985 1,070 1,037

Treasury Stock (d)(318) (281) (287) (279) (255) (192) (165) (751) (760) (772) (779)

Permanent Equity1,152 1,041 857 761 596 649 610 566 497 543 492

USES OF CASH

YTD 9/30

2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Share Repurchase (c)$53 $16 $29 $49 $82 $54 $27 $13 $7 $29 $13

Dividends82 109 107 102 205 105 105 103 257 100 229

Total$135 $125 $136 $151 $287 $159 $132 $116 $264 $129 $242

As % of Net Income (e)58% 46% 62% 52% 137% 93% 89% 71% 140% 85% 135%

Acquisition Related* ($1) $57 $171 $5 $1 $2 $13 $9 $14 $54 $50

Diluted Weighted Avg. Shares

In M for YTD Period Ended96.7 97.3 96.9 97.4 99.1 100.5 100.7 100.7 100.3 100.6 100.0