First-Quarter 2017

Earnings
Baxter International Inc.
April 26, 2017
Safe Harbor Statement
This presentation includes forward-looking statements concerning Baxters expected business prospects, long range plan, capital structure, cost savings initiatives,
R&D pipeline including regulatory actions and commercial launch events, business development plans (including Baxters proposed acquisition of Claris
Injectables Limited) and other growth strategies of Baxter. 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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Table Of Contents

Performance Summary 5

Financial Results 9

2017 Outlook 15

IV Solutions R&D
Alliance Park, Belgium
 Executing A Disciplined
Strategy To Deliver Top-
Quartile Shareholder Returns
Focused, market-leading product portfolio
Quality and patient safety

Leaner, more efficient operating model

Best place to work
Strengthened profitability and returns
Industry-leading performance
Strong capital structure
Delivering top-quartile performance
 Delivering On Our Strategy
Business Highlights
Building Momentum With Strong Capitalizing On New Product Launches
Operational Performance And Geographic Expansions
Delivered strong first-quarter sales and earnings performance; Reallocating investment to higher-margin, faster-growing
increased full-year 2017 outlook businesses
Continuing momentum with new product launches, effective Executing on robust pipeline with an accelerating launch
portfolio management and disciplined expense management cadence in 2017
Accelerating growth in core businesses with strategic Increasing R&D efficiency and enhanced capabilities enable
acquisitions and partnerships 100+ planned launches1 from 2016 - 2020

$ Executing Disciplined Focus On

Cost Management
Significantly Enhancing Balance Sheet
Flexibility To Deliver Value
Implementing optimized organizational structure Generating improved cash flows through effective working
capital management and reduced capital expenditures
Transforming cost structure and eliminating waste through
rigorous cost assessment Continued selective share buyback in Q1 2017

Simplifying portfolio and optimizing manufacturing footprint Maintaining financial optionality with current net debt to
EBITDA2 ratio of zero
1Launches include new products, geographic expansions, and line extensions; excludes potential acquisitions and partnerships including the proposed acquisition of Claris Injectables.
2Earnings before interest, tax, depreciation and amortization expense
5
Accelerating Growth Of Key Metrics
First-Quarter 2017 Financial Snapshot1
Operational Adjusted Adjusted
Sales Growth Operating Margin Diluted EPS

16.4% $0.58
+7%

+4% 10.5% $0.36

+300bps +590bps +61%

Q1 2016 2 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017

1See www.baxter.com for information regarding non-GAAP financial metrics used in this presentation, including constant currency and operational sales, adjusted gross margin, adjusted operating margin,

adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 2Q1 2016 operational sales growth excludes the impact
of foreign currency of approximately 5%; GAAP sales growth for the period declined approximately 1% compared to Q1 2015 (no impact from cyclophosphamide competition or strategic exits). 6
First-Quarter 2017 Sales And Adjusted Earnings1

Q1 2016 Q1 2017 Q1 2017

Metric
Actual2 Guidance3 Actual

Operational
+4% 5% - 6% +7%
Sales Growth

Reported
(1%) 2% - 3% +4%
Sales Growth

Adjusted Diluted EPS $0.36 $0.50 - $0.52 $0.58

Growth vs. Prior-Year Period +6% 39% - 44% +61%

Delivering Accelerated Top And Bottom-Line Performance

1See www.baxter.com for information regarding non-GAAP financial metrics used in this presentation, including constant currency and operational sales, adjusted gross margin, adjusted operating margin,

adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 2Q1 2016 operational sales growth excludes the impact of
foreign currency of approximately 5%; GAAP sales growth for the period declined approximately 1% compared to Q1 2015 (no impact from cyclophosphamide competition or strategic exits). 3Provided on 02/01/17. 7
 Advancing Our New Product Portfolio
First-Quarter 2017 R&D Milestones

Hospital Products Renal

Expanded enteral nutrition care portfolio with ENFit AMIA continues to build momentum with over 1,600
syringe and accessory line patients in the U.S.

Signed exclusive agreement with ScinoPharm for Continued adoption of SHARESOURCE technology
generic oncology injectables with over 500,000 treatments globally

Added highly complementary asset to surgical Deployed PRISMAX acute care technology in
portfolio with Wound Care Technologies acquisition select EU locations

Introduced enhancements to FLOSEAL and Received approval for KAGUYA APD system in
TISSEEL, improving safety and ease of use Japan

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 Financial Results
First-Quarter 2017 Earnings
April 26, 2017

SIGMA SPECTRUM Manufacturing

Medina, New York
First-Quarter 2017 Sales By Franchise

Q1 2017 Revenue Total Growth

$ In Millions U.S. International Total Reported Constant Operational

Fluid Systems $359 $226 $585 +12% +12% +13%

I.P.S.1 $266 $286 $552 (1%) +0% +4%

Surgical Care $202 $132 $334 +10% +10% +11%

Other $60 $48 $108 +17% +18% +18%

Hospital Products $887 $692 $1,579 +7% +7% +10%

Renal $216 $680 $896 +0% +1% +2%

Total Baxter $1,103 $1,372 $2,475 +4% +5% +7%

1Integrated Pharmacy Solutions

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First-Quarter 2017 Adjusted Financial Results1

Metric Q1 2017 Q1 2016 Change

Adjusted Gross Margin 44.3% 42.3% +200 bps

Adjusted SG&A Expense2 22.6% 26.1% (350 bps)

(% of Sales)

Adjusted R&D Expense 5.3% 5.7% (40 bps)

(% of Sales)

Adjusted Operating Margin 16.4% 10.5% +590 bps

Adjusted Diluted EPS $0.58 $0.36 +61%

1See www.baxter.com for information regarding non-GAAP financial metrics used in this presentation, including constant currency and operational sales, adjusted gross margin, adjusted operating margin,

adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 2Adjusted marketing and administrative expense 11
 Driving Operational Excellence Across The Company1

Adjusted Operating Margin Quarterly Highlights

Q1 2017 vs. Q1 2016
20% Improved adjusted gross margin of 44.3% driven
by business transformation efforts and modest
15%
price improvements in select areas
+390 bps
+200 bps SG&A improvement driven by enhanced focus
10%
16.4% on expense controls and optimized cost
structure
5% 10.5%
Reallocating R&D investment to high priority,
0% core growth businesses
Q1 2016 Adjusted Operating Q1 2017
Actual Gross Margin Expenses Actual

Increased Sales, Improved Gross Margin, And Disciplined Expense Management

Delivered 590 Basis-Point Adjusted Operating Margin Improvement
1See www.baxter.com for information regarding non-GAAP financial metrics used in this presentation, including constant currency and operational sales, adjusted gross margin,

adjusted operating margin, adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 12
Disciplined Financial Execution Drives Significant
Improvements In Cash Flow Generation1

Operating Cash Flow Capital Expenditures Free Cash Flow2

Focused cost management and Investment prioritization and Enhanced flexibility allows
working capital improvements spending control strategic capital deployment

$206M
$184M
$83M

$380M $123M $441M

($174M) $61M ($358M)

Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017
1See www.baxter.com for information regarding non-GAAP financial metrics used in this presentation, including constant currency and operational sales, adjusted gross margin,

adjusted operating margin, adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 2Operating cash flow less capital expenditures 13
Opportunistically Deploying Capital To
Fuel Growth And Create Value

Reinvestment in Current net debt to EBITDA ratio of zero;

targeting steady state of ~2.0x
Business
Targeting ~35% dividend payout ratio of adjusted
net income over the long term
Dividends
Repurchased approximately one million shares
during Q1 2017
BAX
Share Repurchases
Executing strategic additions to portfolio:
Proposed acquisition of Claris Injectables
ScinoPharm licensing agreement
M&A
Acquisition of Wound Care Technologies

Optimizing Shareholder Value With Enhanced Flexibility To Reinvest In

Business And Execute On M&A Opportunities
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 2017 Outlook
First-Quarter 2017 Earnings
April 26, 2017

Baxter Center for Spectroscopy and Imaging

Round Lake, Illinois
Updated 2017 Full-Year Financial Guidance1

FY 2017 FY 2017
Metric Current Prior 2017 Sales Headwinds:
Sales Growth
[Constant Currency]
2% - 3% ~2% Foreign exchange [~100 bps]

Sales Growth 1% - 2% ~0%

Cyclo competition [~$75M]
[Reported]
Strategic market exits [~100 bps]
Adjusted
Operating Margin ~15.5% ~15%

Adjusted Diluted EPS $2.20 - $2.28 $2.10 - $2.18 Full-Year Sales Guidance:
Growth vs. 2016 12% - 16% 7% - 11%

Operating Cash Flow ~$1.75B ~$1.75B 1% - 2% 4% - 5%

Reported Operational
Growth Growth
Free Cash Flow ~$1.0B ~$1.0B

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

adjusted operating margin, adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 16
Updated 2017 Full-Year Sales Guidance1

FY 2017 FY 2017
Sales Growth Constant Currency Operational

Total Baxter 2% - 3% 4% - 5%

Renal 3% - 4% 4% - 5%

Hospital Products 2% - 3% 4% - 5%

Fluid Systems 4% - 5% 5% - 6%

I.P.S. Decline low single-digit ~4%

Surgical Care ~3% 3% - 4%

Other High single-digit increase High single-digit increase

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

adjusted operating margin, adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 17
Second-Quarter 2017 Financial Guidance1

Metric Q2 2017 Q2 2017 Sales Headwinds:

Foreign exchange [~200 bps]
Sales Growth ~2% Cyclo competition [<50 bps]
[Constant Currency]
Strategic market exits [<100 bps]

Sales Growth ~0%

[Reported] Q2 2017 Sales Guidance:

~0% ~3%
Adjusted Reported Operational
$0.55 - $0.57
Diluted EPS Growth Growth

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

adjusted operating margin, adjusted diluted EPS, free cash flow, adjusted marketing and administrative expense and adjusted research and development expense. 18
 Continuing Strong Momentum In 2017

Increasing innovation to drive accelerated revenue growth

Maintaining strong cadence of product launches and geographic expansions

Realizing ongoing benefits of cost reduction initiatives and organization optimization

Opportunistically deploying capital to enhance value and improve profitability

Anticipate updating long-term financial outlook during Q2 earnings release

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First-Quarter 2017
Earnings
Baxter International Inc.
April 26, 2017