Sales & Trading FIXED INCOME Municipal Underwriting CAPITAL MARKETS Public Finance A MESSAGE FROM BAIRD PRESIDENT & CEO STRENGTH OF BAIRD STEVE BOOTH

Challenges in the fi xed income market have caused many fi rms to downsize, minimize their positions or redefi ne their core products.

INDEPENDENT 100 BEST BALANCED Yet while other fi rms were playing defense, Baird had a diff erent One of our greatest Independent, privately One of the Fortune 10 0 Five complementary vision. We made strategic investments, hiring top talent and strengths is being held and associate- Best Companies to Work businesses balance our expanding our products and capabilities. We opened offi ces and independent and owned owned, with a steadfast For®, 16 years in a row. sources of revenue and added specialized trading and banking expertise. And as the by our associates, who client focus. broaden our capabilities industry reported substantial decreases in revenue, we increased set very high standards for clients, enabling us to in market share and recognition as a regional leader in all fi xed for how we do business continue to invest across income products and banking services. and are continually our businesses. raising the bar. Approaching our 100th year in business, Baird’s success and growth are attributed to how we work, providing honest insights, reliable CLIENTS-FIRST CULTURE service and a long-term perspective that keeps our clients’ best Baird has remained strong by keeping our clients’ While many fi nancial interests in mind. We are financially strong and employee-owned. interests fi rst and maintaining a long-term view. services fi rms are Each associate is motivated to serve our clients and each other restructuring and with energy, expertise and an entrepreneurial spirit. With our downsizing, we strong foundation, we feel we are exceptionally well-positioned continue to build to capture opportunities that will allow Baird to continue to grow wisely for the future. in a thoughtful way for our clients. FINANCIAL STABILITY Baird has operated profi tably for 156 consecutive quarters, a remarkable achievement in a cyclical industry. BAIRD’S CULTURAL PRINCIPLES BAIRD’S MISSION Clients come first. To provide the best fi nancial advice and Integrity is irreplaceable. service to our clients and be the best place to work for our associates. Quality is our measure of success. The best financial advice is the result of expertise and teamwork. How we succeed is as important as if we succeed. We seek personal balance in home, work and community involvement.

1 A STRONG AND GROWING LEADER IN Because Baird is privately held and independent, we’re able to manage our fi rm for the long term, investing in our capabilities, services and talent while ABOUT BAIRD other fi rms are cutting back.

BAIRD NET REVENUES OUR EMPLOYMENT HAS GROWN 23.9% 29.2% (millions) OVER THE PAST FIVE YEARS. Baird’s fi ve complementary businesses help diversify and balance HISTORY revenue through all types of market conditions. Founded in 1919, 22.5% 22.5% headquartered in 18 $1,784 18.8% , Wisconsin. 17 $1,533 13.8% MEMBER NYSE 16 $1,390 Baird has been a member 15 $1,286 FIXED INCOME of the New York Stock 14 $1,202 5.3% CAPITAL MARKETS Exchange since 1948. Financial results do not refl ect the consolidation of certain partnerships. PRIVATE WEALTH OWNERSHIP MANAGEMENT 2013 2014 2015 2016 2017 2018 PRIVATE Baird is employee- Baird’s clients-fi rst culture stands out in the fi nancial owned, privately held EQUITY services industry – and has helped generate record Employee ownership and a conservative investment and independent. revenues for the fi rm. philosophy have allowed us to invest in our businesses Approximately two-thirds and add the industry’s top talent. EQUITY of our employees own Baird stock. CAPITAL MARKETS REVENUES BAIRD’S STOCK VALUE HAS GROWN 171% BAIRD’S CAPITAL PERFORMANCE ASSET OVER THE PAST 10 YEARS. 2018 revenues were Baird stock performance / 171% Regulatory capital / $939M MANAGEMENT $1.784 billion, a fi rm record. S&P 500 / 178% 2018 Total shareholders’ equity / $794M S&P 500 Financials Sector Index / 135% 2017 Net capital / $245M 2016 2015 2018 2014 2017 2012 2013 2016 2010 2011 2015 2008 2009 2014 2013 2012

Baird stock performance is based on the change in book The Standard & Poor’s 500 Stock Index and Standard & value per share for Baird Financial Group common stock Poor’s 500 Financials Sector Index are unmanaged and includes cumulative cash dividends per share of common stock indices used to measure and report value $208 BILLION 100 BEST x16 NO. 1 3,700 EMPLOYEES $7.50, $1.60, $1.65, $1.85, $2.00, $7.50 and $2.10 paid changes in the stocks comprising these indices. Indices in December of 2011, 2012, 2013, 2014, 2015, 2016 and performance information is obtained from Capital IQ and Baird had $208 billion For 16 consecutive Ranked No. 1 for Baird has more than 2017, respectively. Baird is privately held and no public excludes dividends paid during the periods shown. Baird in client assets as of years, Baird has overall quality in sales, 3,700 employees and market exists for its shares. Baird can repurchase shares stock is not included in these indices. of Baird stock at book value when associates leave the December 31, 2018. been recognized as corporate access and over 100 locations fi rm. Past performance does not guarantee future results. one of the Fortune research among in the United States, 100 Best Companies small-/mid-cap research Europe and Asia. Our conservative approach and focus on providing exceptional Baird’s strong performance surpassed most of our competitors to Work For®. advisory fi rms by advice and service have let us continually grow our balance and was attained without the signifi cant leverage used by Greenwich Associates.1 sheet and increase our stock performance. many fi nancial services fi rms to lift returns. 2 3 ABOUT BAIRD FIXED INCOME FIXED INCOME SALES & TRADING CAPITAL MARKETS

Baird has strategically grown our fixed income business to 34 offices across 21 states, expanding our product expertise and services and broadening our reach both in the United States and abroad. SPECIALIZED FIXED INCOME SALES & TRADING Top professionals in the industry joined Baird due to the benefits other HIGHLIGHTS PRODUCTS AND SERVICES firms can’t match, which include: • Flexibility 102% – In how and where you work Increased trading volume GOVERNMENT since 2014 BAIRD’S FIXED INCOME PRESENCE Scottsdale, Arizona AND AGENCIES San Francisco, California Denver, Colorado Stamford, Connecticut $276 BILLION Destin, Florida Total trading volume in 2018 North Palm Beach, Florida SECURITIZED HIGH-YIELD/ Tampa, Florida PRODUCTS DISTRESSED Chicago, Illinois + Naperville, Illinois 150 Indianapolis, Indiana DEDICATED Fixed income traders, Boston, Massachusetts ANALYTIC salespersons and analysts Lansing, Michigan SUPPORT across the country Traverse City, Michigan Edina, Minnesota Minneapolis/St. Paul, Minnesota St. Louis, Missouri Whitefish, Montana Red , New Jersey Roseland, New Jersey Garden City, New York MUNICIPALS INVESTMENT- • Ability to commit capital New York, New York Chapel Hill, North Carolina GRADE – Offering liquidity to our traders to better serve our clients Charlotte, North Carolina Winston-Salem, North Carolina • In-house fixed income resource professionals offering support Columbus, Ohio in the areas of: Pittsburgh, Pennsylvania Nashville, Tennessee – Operations – Technology Austin, Texas – Legal and risk management – Finance Dallas, Texas Houston, Texas – Compliance and regulatory affairs – Human resources San Antonio, Texas – Marketing Seattle, Washington Milwaukee, Wisconsin

Active in all fixed income products. 4 5 GOVERNMENT AND AGENCIES $2.4 BILLION • Dedicated traders with decades of experience working with Baird sales coverage Average monthly trading • Authorized to underwrite all major agencies volume in 2018, with 50% of new issues exceeding • A strategy and analysis team providing customized portfolio review and regular commentary FIXED INCOME $50 million SALES & TRADING HIGH-YIELD/DISTRESSED • Dedicated team of 30+ sales, trading and analytical professionals that joined in 2013, making Baird a market maker in high-yield corporate bonds $1.8 BILLION Average monthly trading • Operating a unique, “riskless principal execution” model that executes agent-only buy and sell orders rather than taking on positions – letting us prioritize our clients over our volume in 2018 inventory levels • 25 high-yield salespeople averaging 20 years in the business • Four desk analysts focused on delivering quality, unbiased ideas and analysis to our clients

INVESTMENT-GRADE $5.2 BILLION • Dedicated team of 25 sales, trading and analytical specialists – 19 joined in 2015 alone Average monthly trading • Six dedicated traders covering all investment-grade sectors volume in 2018, a 466% • Active in multiple trading platforms, including MarketAxess increase since 2014 “With how much the market has • Ability to commit firm capital, providing liquidity to facilitate client transactions changed since the financial crisis, having continuity, faith and trust with the people you work with is paramount right now. Our team MUNICIPALS No. 1 found that at Baird. Consistency, • 17 primary and secondary retail and institutional traders Baird has been ranked the transparency and teamwork all go • Three trading desks with dedicated competitive and negotiated underwriting teams country’s No. 1 municipal into how we can do better for our • Bookrunner for competitive syndicate of approximately 50 broker-dealers underwriter for ten clients – Baird hears that and is • Dedicated municipal analysts providing customized portfolio review and consecutive years2 continually finding ways to make regular commentary it happen for us and our clients.”

– JACK McNEILL MANAGER OF INVESTMENT-GRADE SALES AND TRADING SECURITIZED PRODUCTS • Dedicated team of 30+ sales, trading and analytical professionals, with 16 industry- $4.0 BILLION recognized specialists added since 2016 Average monthly trading • 13 dedicated traders covering agency/non-agency, residential/commercial mortgage- volume in 2018, a 108% backed securities, asset-backed securities and collateralized loan obligations increase since 2014 • A strategy and analysis team providing customized portfolio review and regular market commentary • Filling the liquidity void, efficiently deploying capital in the securitized products sector 6 7 PUBLIC FINANCE MUNICIPAL UNDERWRITING

Our success can be attributed to maintaining our client focus, leveraging BAIRD’S MARKET SHARE AND RANKINGS our top-ranked municipal underwriting desk, and offering flexibility and marketing, compliance and back-office support to our bankers and their teams. “Leadership, trust and teamwork have been the NATIONAL LEAD MANAGING UNDERWRITER2 Number of issues / Market share key components for our municipal underwriting business’ success at Baird. Since I started in 2008, Baird 718 / 9.13% our team has grown from six to 16, earning Nicolaus 543 / 6.90% rankings in the top 10 every year while developing Raymond James 441 / 5.61% young talent to maintain and grow our leadership RBC Capital Mkts. 392 / 4.98% in the industry.” Piper Jaffray 353 / 4.49% BA Lynch 331 / 4.21% – CHARLIE MASSARO LEAD COMPETITIVE MUNICIPAL UNDERWRITER PUBLIC FINANCE 320 / 4.07% HIGHLIGHTS K-12 EDUCATION, STATES, SPECIAL DISTRICTS COLLEGES AND MUNICIPALITIES AND AUTHORITIES D.A. Davidson 276 / 3.51% 257 / 3.27% UNIVERSITIES, AND COUNTIES 1,000+ JPMorgan 248 / 3.15% Baird has served more than CHARTER SCHOOLS 1,000 public entities over the past five years

57 TRANSPORTATION ECONOMIC HEALTHCARE AND BAIRD’S LEADERSHIP AS SENIOR MANAGING UNDERWRITER3 Public finance professionals DEVELOPMENT SENIOR LIVING Based on Par Amount 2018 2017 2016 2015 2014 No.1 Baird has been ranked the Overall 12 13 12 12 12 country’s No. 1 municipal Competitive Only 5 6 5 6 5 underwriter for ten consecutive years.2 Bank Qualified 1 1 1 1 1 $100 Million or Less 2 6 6 7 6 50 STATES “Baird valued my expertise and understanding of my $50 Million or Less 2 2 2 4 1 During the past 10 years, business, giving me the reins to build a new sector for Baird has served municipal $20 Million or Less 1 1 2 2 1 issuers in all 50 states as the firm with the team I needed and providing all the well as Washington, D.C. resources and support to make it happen.” $10 Million or Less 1 1 1 1 1

– JAN BARTHOLOMEW HEAD OF TEXAS SPECIAL DISTRICT PUBLIC FINANCE 8 9 STRUCTURED FOR SUCCESS

Baird’s four other businesses help diversify and balance revenue through all types of market conditions.

PRIVATE EQUITY CAPITAL MARKETS ASSET MANAGEMENT PRIVATE EQUITY

Baird’s Private Wealth Management professionals INSTITUTIONAL EQUITIES & RESEARCH BAIRD ADVISORS GLOBAL PRIVATE EQUITY (U.S., U.K., ASIA) GLOBAL BAIRD EQUITY ASSET MANAGEMENT U.S. provide comprehensive wealth management strategies and solutions for high-net-worth individuals Baird’s Institutional Equities & Research team provides Baird’s fixed income and equity portfolio managers Baird Capital makes venture capital, growth equity and their families across the United States. research, sales and trading expertise to institutional offer disciplined investing and outstanding service and buyout investments in lower middle-market investors across the globe. Our Global Investment to institutional investors and individuals through companies in the Industrial Solutions, Technology & • More than 900 Financial Advisors Banking group provides equity financing, mergers and customized portfolios and mutual funds. Services and Healthcare sectors. acquisitions advisory, and debt advisory services to • Approximately 85 in-house specialists provide middle-market companies. • Fixed income asset management business has • Investments made in 310 portfolio companies advice for all aspects of wealth management, • Approximately 700 companies under research nearly doubled client assets since 20154 since inception retirement planning, charitable giving and coverage wealth transfer • $4.3 billion in equity investments managed by • 56 investment, operating and support professionals • More than 350 banking professionals serving Baird Equity Asset Management4 in the United States, Europe and Asia • Serves clients coast-to-coast from 100 offices clients globally in 31 states • Achieved a record level of advisory deals in 2018, • Baird Funds’ $4.3 billion of annual net inflows • Dedicated global resources to help portfolio announcing in excess of 150 globally, with overall in 2018 was the tenth largest in the industry, companies accelerate growth • Barron’s Top Wealth Managers list, 2007–2018 M&A volume up 30% over 2017 levels including both active and passive managers • Active portfolio companies have combined • Increased Global Investment Banking revenues by • Recognized as a Best Place to Work in Money revenues of $2.4 billion and more than more than 40%, achieving the sixth consecutive year Management among managers of our size, 14,700 employees of record revenues according to Pensions & Investments for seven • More than 21,000 company-investor connections consecutive years made annually through Baird’s highly ranked industry conferences, non-deal roadshows, company visits, field trips, virtual meetings and conference calls $137 billion4 No. 1 $71.2 billion $3.5 billion in client assets for “overall quality in sales, in , including raised and managed since inception corporate access and research”1 $45.2 billion in its bond funds

PRIVATE WEALTH MANAGEMENT REVENUE EQUITY CAPITAL MARKETS REVENUE ASSET MANAGEMENT REVENUE BAIRD CAPITAL REVENUE5 (millions) (millions) (millions) (millions)

18 $821 18 $573 18 $183 18 $52 17 $747 17 $409 17 $154 17 $22 16 $652 16 $402 16 $122 16 $28 15 $627 15 $364 15 $96 15 $37 14 $578 14 $360 14 $65 14 $34

10 11 BAIRD’S COMMITMENT TO FIXED INCOME CAPITAL MARKETS OUR COMMUNITIES LEADERSHIP

From our founding roots in 1919 to the incorporation of Baird Foundation WHY BAIRD? in 1967 to the present day, Baird has nurtured a long-standing tradition of There isn’t one reason why the giving back to the communities where we live and work and supporting our most talented professionals in associates’ efforts to do the same. fixed income choose to partner At Baird, we recognize not only the impact we can have on the communities with Baird – there are several: around us but the impact they can have on us, both as individuals and Pat Lawton Director of Fixed Income Capital Markets •  A firmwide culture of keeping as a business. Many of our associates hold leadership positions in civic 414-298-7764 clients’ interests first and charitable organizations. Others devote their time to causes they [email protected] believe in, both on their own and through firm initiatives such as the Baird •  The stability of a firm that Cares program and Baird Gives Back Week, an annual event that creates has navigated bond market collaborative volunteering opportunities. During our 2018 Baird Gives Back volatility for more than 95 years Week, more than 1,700 associates and their families donated more than •  Employee-ownership, 7,100 hours of their time to nearly 150 nonprofit organizations globally. giving all of our associates a vested interest in supporting Brian Brewer Bob Debastiani your business Director of Public Finance Institutional Trading Manager 414-298-7030 615-341-6030 [email protected] [email protected] •  Strong leadership, focused on the long term 2018 BAIRD FOUNDATION GIVING BY AREA OF FOCUS •  Benefits such as flexibility, support and resources

35% 30% Health and BAIRD FOUNDATION Drew Kanyer Jay Sangervasi Education Human Services GAVE MORE THAN $4.1 Municipal Institutional Institutional Sales Manager MILLION TO NONPROFIT Sales & Trading Manager 615-341-6010 414-765-7331 [email protected] ORGANIZATIONS IN 2018. [email protected] 9% 26% Arts Other*

*Includes ethnic, religious, environmental, professional and youth organizations.

Stephanie Warren Chief Operating Officer 414-298-2330 12 [email protected] 13 1Greenwich Associates North American Equity Investors – U.S. Small-/Mid-Cap Funds and U.S. Equities Sales, Corporate Access & Research, May 2018. Surveys conducted with 110 small-cap and mid-cap fund managers and 194 fund managers and 275 traders, respectively. Rankings for qualitative metrics based on leading research firms in surveys. 2Based on the number of issues from 2009 to 2018 as lead manager, according to Ipreo MuniAnalytics. 3Ipreo MuniAnalytics as of December 31, 2018. 4Assets as of December 31, 2018. 5Includes Baird Principal Group revenues. ©2019 Robert W. Baird & Co. Incorporated. Member SIPC. MC-291251.