Raymond James Institutional Investors

Conference

Jay Saccaro, EVP & CFO

March 5, 2019

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Safe Harbor Statement

This presentation includes forward-looking statements concerning Baxter’s financial results, business development activities, capital structure,

cost savings initiatives, R&D pipeline, including results of clinical trials and planned product launches, Baxter’s long range plan (which includes

financial outlook for 2019, 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

the company’s information technology systems or products, including by cyberattack, unauthorized use or theft; 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

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 (including potential trade wars); 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 and potential taxes associated with the Base

Erosion and Anti-Abuse Tax; 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 the company’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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Baxter Profile: A Diversified And Global Portfolio1

Acute Therapies

~$0.5B

Advanced Surgery

~$0.8B

Clinical Nutrition

~$0.9B ~$2.7B

Medication Delivery

~$2.1B ~$3.7B

Renal CarePharmaceuticals

$11.1B

2018 Global Revenue

1Sales and related figures represent FY 2018; Other sales represent ~$0.5B. Totals may not foot due to rounding.

Americas 54%

EMEA 27%

APAC 20%

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Strengthen our portfolio

and extend our impact through transformative

innovation that spans prevention to recovery

Our Strategy

Industry leading performance

Best place to workProduct safety and Quality

Growth through innovation

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Delivering On Our Strategy2018 Business Highlights

Executing Disciplined Focus On

Business Transformation

Building Momentum With Strong Focus on

Operational Performance

► Implementing optimized organizational structure, transforming cost

structure, and simplifying processes

► Establishing global centers of excellence to drive efficiencies in

functional areas

► Simplifying portfolio and optimizing manufacturing footprint

► Delivered solid fourth-quarter 2018 earnings growth, largely driven

by operational performance and business transformation initiatives

► Continuing momentum with new product launches, geographic

expansion, and evidence generation

► Focused on meeting long-term financial goals through strategic

execution and rigorous financial management

Capitalizing On New Product Launches

And Geographic Expansion

Significantly Enhancing Balance Sheet

Flexibility To Deliver Value

► Focusing on operational improvement and effective working capital

management to improve cash flow

► Returned value directly to shareholders via 19% dividend increase

and over $2.4 billion of share repurchases in 2018

► Maintaining financial optionality while thoroughly assessing

capital investment opportunities

► Reallocating investment to higher-margin, faster-growing

businesses

► Executing on a robust pipeline to provide meaningful innovations

for patients and providers

► Enhanced capabilities along with increasing R&D efficiency enable

accelerating launch cadence

$

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Market Development

EnterAdjacencies

PortfolioInnovation

Executing on pipeline

opportunities and geographic

expansion

Driving growth through evidence

generation, physician education,

and targeted market investments

Expanding beyond the core to

unlock new therapies and

markets

Strategic Execution Allows Long-Term Acceleration

Strengthening And Extending Our Impact

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Executing On Near-Term Launches To Fuel Growth1

New Product Highlights

20192018

Prismax

Spectrum IQ

Infusion SystemPoint of Care

New Pump Platform

Floseal

Fast Prep

2020

Olimel N12

1All references to “new products” and “launches” in this presentation include new product launches, line extensions and geographic

expansions, unless otherwise noted.

2016 2018 2020 2023

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Driving Operational Excellence Through Business Transformation

Zero-Based OrganizationRightsizing organization with reduced spans and layers

Zero-Based SpendingEmploying disciplined cost assessment to eliminate waste

Portfolio ManagementOptimizing manufacturing footprint, R&D operations and supply chain network

Global Business ServicesCentralizing and streamlining support functions

Cumulative Savings vs. 2015

~$0.4B

~$1.0B~$1.1B

~$1.2B

Focused on

sustainability

of business

transformation

initiatives1

2024+

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Creating Incremental Value Through Capital Deployment

Strategic M&A

BAX ShareRepurchases

Reinvestmentin Business

DividendsIncreased annual dividend rate by 19% in 2018;

currently targeting ~35% dividend payout ratio

over time

Repurchased ~36 million Baxter shares in

2018

Continuing rigorous assessment of business

development and licensing opportunities

Strategically investing in higher-margin

opportunities to drive innovation

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Thoroughly Assessing Business Development Opportunities

Drive

Category Leadership

Rigorous

Financial Criteria

Preserve Investment

Grade Credit Rating

Capitalize On

Core CapabilitiesM&A

Objectives

Disciplined Assessment Of Opportunities Considering Both Strategic Fit

And Financial Criteria

2018

Actual

2019

Guidance

2020

Outlook

Adjusted Operating

Margin

~300bps

18.0% -

18.4%

20% -

21%

17.4%

2018

Actual

2019

Guidance

2020

Outlook

Adjusted Diluted

EPS

~20%

$3.22 –

$3.30

$3.60 –

$3.75

$3.05

2018

Actual

2019

Guidance

2020

Outlook

Free Cash

Flow3

~$1.6B

~$2.1B

$1.4B

~1.5x

Constant Revenue

Growth

2% - 3%2019 Guidance

4% - 5%2018 – 2020

CAGR Outlook

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Delivering A Solid Financial Outlook1,2

1See www.baxter.com for information regarding non-GAAP financial metrics used in this presentation, including constant currency sales,

adjusted operating margin, adjusted diluted EPS, and free cash flow. 22019 figures reflect guidance provided in Q4 2018 Earnings Call

(1/31/19); 2020 figures reflect guidance provided in 2018 Investor Conference (5/21/18). 3Operating cash flow less capital expenditures.

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• Increasing innovation to drive accelerated

revenue growth

• Maintaining strong cadence of product launches

and geographic expansions

• Realizing ongoing benefits of business

transformation initiatives

• Strategically deploying capital to enhance value

and improve profitability

Continuing Momentum In 2019 And Beyond

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Unique opportunity to create

shareholder value

85+ year heritage of

saving and sustaining lives

Strong

global businesswith great people

One of the most

trusted brands in medical products

Established

market leadership across portfolio