David FergusonGM, Medication Delivery

May 21, 2018

MEDICATION DELIVERY

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Safe Harbor StatementThis presentation includes forward-looking statements concerning Baxter’s financial results, R&D pipeline, including planned product launches (many of which are subject to regulatory approval) and results of clinical trials, business development activities, capital structure, cost savings initiatives, Baxter’s long range plan (which includes financial outlook for 2018, 2020 and 2023) and other growth strategies. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: demand for and market acceptance of risks for new and existing products; product development risks; product quality or patient safety concerns; continuity, availability and pricing of acceptable raw materials and component supply; inability to create additional production capacity in a timely manner or the occurrence of other manufacturing or supply difficulties (including as a result of a natural disaster or otherwise); breaches or failures of Baxter’s information technology systems, including by cyberattack; future actions of regulatory bodies and other governmental authorities, including FDA, the Department of Justice, the New York Attorney General and foreign regulatory agencies; failures with respect to compliance programs; future actions of third parties, including payers; U.S. healthcare reform and other global austerity measures; pricing, reimbursement, taxation and rebate policies of government agencies and private payers; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; global, trade and tax policies; accurate identification of and execution on business development and R&D opportunities and realization of anticipated benefits (including the recent acquisitions of Claris Injectables and two surgical products from Mallinckrodt plc); the ability to enforce owned or in-licensed patents or the patents of third parties preventing or restricting manufacture, sale or use of affected products or technology; the impact of global economic conditions; fluctuations in foreign exchange and interest rates; any change in law concerning the taxation of income (including current or future tax reform), including income earned outside the United States; actions taken by tax authorities in connection with ongoing tax audits; loss of key employees or inability to identify and recruit new employees; the outcome of pending or future litigation; the adequacy of Baxter’s cash flows from operations to meet its ongoing cash obligations and fund its investment program; and other risks identified in Baxter’s most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements.

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2018 2023

2% - 3%

~3%

Medication Delivery Market Overview1

Medication Delivery Market Is Expected To Grow ~3% Through 20232

#1U.S. Baxter

Position

IV TherapiesComprehensive portfolio of essential IV solutions

#2U.S. Baxter

Position

Infusion SystemsInfusion pumps and disposables for delivery of IV therapy

IV Therapies Infusion Systems

CAGR2

Global Market Size

1Market estimates and Baxter position based on internal estimates. 22018 - 2023 Compounded Annual Growth Rate.

~$23B~$27B

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Medication Delivery Market Dynamics

1,2See slide 14 for references.

Medication Errors98,000 deaths per year related to medication errors2

Hospital Cost PressuresConsistent pressure to reduce expenditures and streamline care

Preventable Adverse Events1.2M preventable adverse events per year associated with injectable medications1

Supply Constraints IV solution supply issues continue to challenge healthcare providers

Opportunity To Reduce Cost Pressure, Increase Efficiency And Avoid Medication Errors To Enhance Care For Patients And Customers

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Medication Delivery Portfolio

66%

34%

Infusion Systems

$2.7B2017 Sales

An Established Market Leader In IV Therapies For More Than 80 Years

IV Therapies

One-Link Needle-free IV Connector

Sigma Spectrum Infusion Pump

Mini-Bag Plus

Viaflex & ViafloIV Solutions

IV Sets

6|1All references to “new products” in this presentation include new product launches, line extensions and geographic expansions, unless otherwise noted. 2All references in this presentation to future

financial expectations assume commercial execution and regulatory approvals, as applicable, consistent with Baxter’s plans. CAGRs for years 2018 -2023 assume constant foreign exchange rates.

Strategic Growth Drivers

Robust Product Pipeline Drives Above-Market Growth Of 3% - 4% Through 20232

Portfolio Innovation

~$400M 2023 New Product Revenue1

Leveraging infusion presence to enter

specialized monitoring space

Integrated solution for pain management

Enter Adjacencies

Increase IV solutions manufacturing network

flexibility

Improve mix toward balanced solutions

Launch Evo IQ Platform in key international markets

Market Development

Spectrum IQ New Pump Platform

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Medication Delivery Pipeline

Delivering ~$400 Million Of New Product Sales In 2023

2018 2019 2020 - 2023

Evo IQ Infusion Pump

Evo IQ Syringe Pump

Next Generation Global Infusion Pump

Spectrum IQ Infusion Pump Viaflo Expansion ICNet

Arisure Closed System Transfer Balanced Fluids Evo IQ Market Expansion

MiniBag+ Enhancements

IV Network Flexibility PIVA Specialized Monitoring

Next-Generation OneLink

7 additional product launches

Advanced Infusion Platforms

Monitoring Technology

Infection Prevention

New Product GEO Expansion Key Launch

MarketDevelopment

EnterAdjacencies

PortfolioInnovation

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Key Launches

New Pump Launches Enhance Market Position

New Pump Platform includes LVP & Syringe Pumps, common drug library and enterprise gateway• Comprehensive platform to meet all hospital critical

infusion pump needs• New platform easily allows integration with other

devices and patient monitoring• Addressing technology obsolescence with wireless

software updates

New Spectrum IQ LVP pump for the U.S. & Canada to accelerate market share growth • Differentiated EMR integration - auto-programming

functionality with on-screen 2D barcode

• Building on industry-leading evidence-based drug library

• The only integrated asset tracking solution

MarketDevelopment

EnterAdjacencies

PortfolioInnovation

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IV SolutionsInitiative Result

Manufacturing Flexibility

Increase ability to import essential IV solutions by >100M units to the U.S. market from plants around the world

Clinical Evidence Generation

Demonstrate improved outcomes for Plasma-Lyte compared to 0.9% NaCl in critically ill patients

Educational Program

Increase clinical usage of balanced solutions; current utilization <25%

Geographic Expansion Introduction of balanced solutions to 15 new markets

Investing In Our Core Portfolio To Maintain Market Leadership

MarketDevelopment

EnterAdjacencies

PortfolioInnovation

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Infusion Pumps

Creating A Platform For Infusion System Global Growth

Initial launches include UK, Ireland, Australia & New Zealand with further geographic expansion within EMEA, LATAM & APAC

Ability to address incremental $2-3B annual market opportunity through hardware and related disposables

Evo IQ Pump Platform includes LVP and syringe pumps, drug library and wireless gateway to compete in global markets

MarketDevelopment

EnterAdjacencies

PortfolioInnovation

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In-Hospital Pain Management

56,000+ ADVERSE EVENTS

LINKED TO PCA PUMPS FROM 2005 - 20091

A comprehensive, advanced pump platform including LVP, syringe and PCA will accelerate

Baxter share growth in the hospital pump market

Enter Adjacencies

1See slide 14 for references.

Specialized Monitoring

Clinical Need:Current methods to guide fluid therapy are limited and invasive

Solution:PIVANon-invasive real-time monitoring of patient’s fluid status

Clinical Need:Hospital-based Patient-Controlled Analgesia (PCA) involves high-risk medications

Solution:PCA Infusion PumpA pump integrated with patient monitoring can dramatically increase the safety of patients

Inadequate Ideal Excessive

Heart failureRenal failureLiver failure

HemorrhageSepsisDehydration

Com

plic

atio

n ra

te

Fluid Volume Level

MarketDevelopment

EnterAdjacencies

PortfolioInnovation

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Transformative Innovation

Personalized Therapy Infection Control

Clinical Need:• Patients in the general wards

are mostly alone and unmonitored1

• 48% of unexpected mortality across 64 hospitals were general ward patients2

Solution:Bedside BrainUse of diagnostics and informatics with an integrated system to guide therapy decisions and automate care for an individual patient

Clinical Need:• 250,000 catheter-related blood

stream infections (CRBSI) occur in the U.S. per year3

• CRBSI cost ~$56,000 per infection with a 25% mortality rate3

Solution:Infection PreventionA broad catheter care and maintenance portfolio can help reduce the rate of CRBSI

Fluid Status

12

1-3See Slide 14 for references.

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Medication Delivery Summary

12018 – 2023 CAGR

Strong foundation in IV Therapies, innovation, and greater leverage of production capacity provide a platform for above-market growth of 3% - 4%1

Grow presence in the infusion pump market with platform enhancements, expansion into new markets, and a next generation platform

Additional growth will be driven by entrance into new markets such as specialized monitoring and pain management

Transformational opportunities exist with clinical decision support technologyand through portfolio expansion into infection prevention

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ReferencesMarket Dynamics (Slide 4)1) Am Health Drug Benefits 2012 Nov;5(7):1-10

2) Zimlichman E, Henderson D, Tamir O, et al. Health Care-Associated Infections

Enter Adjacencies (Slide 11)1) CDC Data: https://www.cdc.gov/sepsis/datareports/index.html

Transformative Innovation (Slide 12)1) PMID: 21331207, 21751906

2) Institute for Healthcare Improvement.

3) Zimlichman E, Henderson D, Tamir O et al. Health Care-Associated Infections