2017 Annual Meeting of Stockholders

May 2, 2017

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2017 Annual Meeting of Stockholders

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Introductions 2017 Annual Baxter Voting Questions Adjournment
and Meeting Meeting Overview Results and
Procedures Proposals Answers

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2017 Annual Meeting of Stockholders
May 2, 2017

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 Baxters Board of Directors

Jos (Joe) E. Almeida* Thomas T. Stallkamp* Thomas F. Chen* John D. Forsyth* James R. Gavin III, Peter S. Hellman
M.D., Ph.D.

Munib Islam* Michael F. Mahoney* Stephen N. Oesterle, Carole J. Shapazian* K.J. Storm Albert P.L. Stroucken*
M.D.

*Up for reelection at the 2017 Annual Meeting 4

 Baxters Senior Leadership Team

Giuseppe Accogli Laura Angelini Scott Bohaboy Wil Boren Stacey Eisen Brik Eyre Robert Felicelli
President, GM, Chronic Renal Treasurer & VP, GM, Advanced Surgery VP, Communications President, Americas GM, Pharmaceuticals
Global Businesses Global Planning

David Ferguson Caroline Karp Andrew Kidd Jacqueline Kunzler Scott Luce Paul Martin Sean Martin
GM, Medication Controller VP, Strategy VP, Global Quality GM, U.S. Hospital Chief Information Officer General Counsel
Delivery Products

Jeanne Mason, Ph.D. Scott Pleau Reaz Rasul James Saccaro Marcus Schabacker, Clare Trachtman Paul Vibert
VP, Human Resources VP, Operations GM, Acute Renal Chief Financial Officer M.D., Ph.D. VP, Investor Relations President, International
Chief Scientific Officer
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Safe Harbor Statement
This presentation includes forward-looking statements concerning the companys financial results, business development activities, capital
structure, cost savings initiatives, R&D pipeline including results of clinical trials and planned product launches, and outlook for 2017. 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, and the impact of those
products on quality or patient safety concerns; product development risks; product quality or patient safety concerns; future actions of
regulatory bodies and other governmental authorities, including the FDA, the Department of Justice, the New York Attorney General and foreign
counterparts; 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
proposed acquisition of Claris Injectables); fluctuations in supply and demand; the availability of acceptable raw materials and component
supply; the inability to create timely production capacity or other manufacturing supply difficulties; the ability to achieve the intended results
associated with the separation of the biopharmaceutical and medical products businesses; 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 income earned
outside the United States; actions taken by tax authorities in connection with ongoing tax audits; breaches or failures of the companys
information technology systems; loss of key employees or inability to identify and recruit new employees; the outcome of pending or future
litigation; the adequacy of the companys cash flows from operations to meet its ongoing cash obligations and fund its investment program; and
other risks identified in Baxters most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available
on Baxters website. Baxter does not undertake to update its forward-looking statements.

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2017 Annual Meeting of Stockholders
May 2, 2017

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 2017 Annual Meeting Proposals

PROPOSAL PROPOSAL PROPOSAL PROPOSAL PROPOSAL

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Election of Advisory Vote Advisory Vote Ratification of Proxy Access
Directors to Approve on the Independent Bylaw
Named Frequency of Registered Amendment to
Executive Executive Public Increase
Officer Compensation Accounting Aggregation
Compensation Advisory Firm Cap
Votes

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2017 Annual Meeting of Stockholders
May 2, 2017

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Delivering on our Mission

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 Baxter Overview

2016
Industry-Leading Portfolio
Revenue $10.2B Diverse portfolio of medically necessary products and therapies
Driving penetration through channel strength and therapy
leadership

By 62% 38%
Business Hospital Products Renal
Global Presence
Strong brand equity with majority of sales in market-leading
positions
Global footprint with sales in 100+ countries and manufacturing
operations in 20+ countries

By 58% 42% Continuous Innovation

Market International U.S.
Robust pipeline with several near/mid-term launches
Reallocating investments to higher-margin, faster-growing
businesses

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Focused on Achieving Sustained Top-Quartile Performance

Quality and Best place Industry-leading

patient safety to work performance

Drive improved performance to deliver optimal results for

patients, customers, stockholders and employees

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 Quality and Patient Safety

Continuing to invest in quality

systems and processes to
help ensure the highest
standards
Demonstrating strong
progress on key quality
metrics
Declines in Complaints,
Recalls, CAPAs, MDRs
Round Lake warning letter
closed

PD patient, Singapore 13
 Best Place to Work

Baxters inclusive culture and

diverse workforce help
advance our mission and fuel
innovation

Recognized by

SIGMA SPECTRUM Testing, Medina, New York 14

 Best Place to Work: Commitment to the Community

Baxter is committed to
improving access to care,
fostering STEM education,
and making a difference in
our communities
We drive sustainability
throughout our operations
Recognized by

Driving Your Health Initiative, Mexico City,

funded by The Baxter International Foundation 15
Industry-Leading Performance

Portfolio and
Operational Capital
Innovation
Excellence Allocation
Management

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 Industry-Leading Performance

Portfolio and Innovation Management

Reallocated R&D investment

to better serve patients and
the business
Executed on robust pipeline
with 20+ launches1 in 2016
Accelerating portfolio and
pipeline through planned
acquisition of Claris Injectables

1 Launches include new products, geographic

expansions and line extensions

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 Industry-Leading Performance

Operational Excellence

Implementing optimized
organizational structure
Transforming cost structure
and eliminating waste through
rigorous cost assessment
Simplifying portfolio and
optimizing manufacturing
footprint

Nutrition and Metabolic Support Nurse,

University Hospital of San Jorge, Colombia 18
 Industry-Leading Performance

Capital Allocation

Increased dividend 13% in 2016;

Announced incremental 23% increase for
dividend payable July 2017
Completed utilization of Baxalta retained
stake
Significantly reduced outstanding debt
Contributed to U.S. pension plan
Executed selective share repurchases
Restructured debt complex; repatriated
~$1 billion in cash to the U.S.
Initiated Claris Injectables acquisition

Baxter R&D, Alliance Park, Belgium 19

 Full-Year 2016 Financial Snapshot1

Sales Growth Adjusted Adjusted Free Cash Flow2

(Constant Currency) Operating Margin Diluted EPS

13.6%
+4% $1.96
~$0.9B

+300bps +460bps +42% >2.5x

9.0%
$1.38 ~$0.3B
+1%

2015 2016 2015 2016 2015 2016 2015 2016

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

currency sales, adjusted operating margin, adjusted EPS, and free cash flow 2Operating cash flow less capital expenditures 20
Delivering Significant Value for Investors

Total Shareholder Return

(12/31/15 04/28/17)

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Continuing Strong Momentum in 2017 and Beyond

Increasing innovation to drive accelerated revenue growth

Maintaining strong cadence of product launches and geographic expansions

Preparing to integrate Claris Injectables to accelerate top-line growth and build out
generic injectables platform1

Realizing ongoing benefits of cost reduction and optimization

Opportunistically deploying capital to enhance value and improve profitability

1Transaction subject to the satisfaction of related closing conditions

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2017 Annual Meeting of Stockholders
May 2, 2017

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