Baxter International Inc.February 1, 2018

Fourth-Quarter And Full-Year 2017 Earnings

Safe Harbor Statement

This presentation includes forward-looking statements concerning Baxter’s financial results, business development activities, capital structure, cost savingsinitiatives, R&D pipeline, including results of clinical trials and planned product launches, and financial outlook for 2018. The statements are based on assumptionsabout many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: demand forand market acceptance of risks for new and existing products; product development risks; product quality or patient safety concerns; continuity, availability andpricing of acceptable raw materials and component supply; inability to create additional production capacity in a timely manner or the occurrence of othermanufacturing or supply difficulties (including as a result of a natural disaster or otherwise); breaches or failures of the company’s information technology systems,including by cyber attack; future actions of regulatory bodies and other governmental authorities, including FDA, the Department of Justice, the New York AttorneyGeneral and foreign regulatory agencies; failures with respect to compliance programs; future actions of third parties, including payers; U.S. healthcare reform andother global austerity measures; pricing, reimbursement, taxation and rebate policies of government agencies and private payers; the impact of competitiveproducts and pricing, including generic competition, drug reimportation and disruptive technologies; global, trade and tax policies; accurate identification of andexecution on business development and R&D opportunities and realization of anticipated benefits (including the proposed acquisition of two surgical products fromMallinckrodt plc); the ability to achieve the intended results associated with the separation of the biopharmaceutical and medical products businesses; the ability toenforce owned or in-licensed patents or the patents of third parties preventing or restricting manufacture, sale or use of affected products or technology; the impactof global economic conditions; fluctuations in foreign exchange and interest rates; any change in law concerning the taxation of income (including current or futuretax reform), including income earned outside the United States; actions taken by tax authorities in connection with ongoing tax audits; loss of key employees orinability 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 itsongoing 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 ExchangeCommission filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements.

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Table Of Contents

IV Solutions R&DAlliance Park, Belgium

Performance Summary 5

2018 Outlook 19

Financial Results 9

Focused, market-leading product portfolio

Leaner, more efficient operating model

Strengthened profitability and returns

Strong capital structure

Quality and patient safety

Best place to work

Industry-leading performance

Delivering top-quartile performance

Executing A Disciplined Strategy To Deliver Top-Quartile Shareholder Returns

Delivering On Our StrategyBusiness Highlights

1Long-term debt and lease obligations and current maturities of long-term debt and lease obligations less cash and equivalents. 2Earnings before interest, tax, depreciation and amortization expense. 5

Capitalizing On New Product Launches And Geographic Expansions

Building Momentum With Strong Operational Performance

Significantly Enhancing Balance Sheet Flexibility To Deliver Value

Executing Disciplined Focus On Cost Management$

► Delivered solid fourth-quarter and full-year 2017 sales and adjusted earnings performance

► Continuing momentum with new product launches, effective portfolio management and disciplined expense management

► Accelerating growth in core businesses with strategic acquisitions and partnerships

► 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

► Implementing optimized organizational structure, transforming cost structure and eliminating waste

► Establishing global centers of excellence to drive efficiencies in functional areas

► Simplifying portfolio and optimizing manufacturing footprint

► Generating improved cash flows through effective working capital management and reduced capital expenditures

► Continued share buyback and increased dividend

► Maintaining financial optionality with current net debt1 to EBITDA2 ratio near zero

13.6%

16.0%

FY 2016 FY 2017

Continuing Momentum Of Key MetricsFull-Year 2017 Financial Snapshot1

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, adjusted research and development expense and adjusted tax rate. 2FY 2017 operational sales growth excludes the impact of foreign currency

of approximately 0%, Claris of approximately 1%, Cyclo competition of approximately 0%, and strategic product exits of approximately 1%; GAAP sales growth for the period was approximately 4% compared to FY 2016. 6

FY 2016 FY 2017

Global ReportedRevenues

Adjusted Operating Margin

+240bps

$1.96

$2.48

FY 2016 FY 2017

AdjustedDiluted EPS

+27%

$10,163M

$10,561M

+5%OperationalGrowth2

Fourth-Quarter & Full-Year 2017 Sales And Adjusted Earnings1

7

Metric Q4 2017 Q4 2016 ReportedGrowth

OperationalGrowth

Sales(Millions) $2,774 $2,645 +5% +2%

AdjustedDiluted EPS $0.64 $0.57 +12% --

Metric FY 2017 FY 2016 ReportedGrowth

OperationalGrowth

Sales(Millions) $10,561 $10,163 +4% +5%

AdjustedDiluted EPS $2.48 $1.96 +27% --

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, adjusted research and development expense and adjusted tax rate.

► Launched oXiris, the first 3-In-1 set for use in CRRT and sepsis management protocols2

► Enrolled first patients in two new clinical trials for HDx therapy enabled by Theranova

► Building momentum with approximately 2,800 patients on AMIA in the U.S.

► Launched new AK 98 hemodialysis system with two-way IT connectivity in select markets

RenalHospital Products

► Completed the acquisition of Claris Injectables, broadening generic injectables product platform

► Expanding surgical portfolio with proposed acquisition of RECOTHROM and PREVELEAK1

► Received FDA approval of Bivalirudin in a premixed, ready-to-use format1

► Launched clindamycin injection in saline and dextrose presentations

Advancing Our New Product PortfolioFull-Year 2017 R&D Milestones

81Announced prior to Q4 2017 earnings release. 2Launched in select markets in Europe, the Middle East and Africa.

Financial Results

SIGMA SPECTRUM ManufacturingMedina, New York

Fourth-Quarter AndFull-Year 2017 EarningsFebruary 1, 2018

Fourth-Quarter 2017 Sales1

Historic Commercial Franchise Structure

Q4 2017 Revenue Total Growth$ In Millions U.S. International Total Reported Constant Operational

Fluid Systems $379 $253 $632 +3% +1% +2%

I.P.S.2 $250 $352 $602 +7% +4% +0%

Surgical Care $209 $154 $363 +4% +3% +3%

Other $58 $50 $108 +4% +1% +1%

Hospital Products $896 $809 $1,705 +5% +3% +1%

Renal $232 $837 $1,069 +5% +3% +4%

Total Baxter $1,128 $1,646 $2,774 +5% +3% +2%

101See 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, adjusted research and development expense and adjusted tax rate. 2Integrated Pharmacy Solutions.

Full-Year 2017 Sales1

Historic Commercial Franchise Structure

FY 2017 Revenue Total Growth$ In Millions U.S. International Total Reported Constant Operational

Fluid Systems $1,472 $962 $2,434 +6% +6% +7%

I.P.S.2 $1,074 $1,275 $2,349 +5% +4% +4%

Surgical Care $806 $581 $1,387 +5% +5% +5%

Other $256 $192 $448 +1% +1% +1%

Hospital Products $3,608 $3,010 $6,618 +5% +5% +5%

Renal $902 $3,041 $3,943 +2% +2% +4%

Total Baxter $4,510 $6,051 $10,561 +4% +4% +5%

111See 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, adjusted research and development expense and adjusted tax rate. 2Integrated Pharmacy Solutions.

Fourth-Quarter 2017 Sales1

Updated Global Business Unit (GBU) Structure

Q4 2017 Revenue Total Growth$ In Millions U.S. International Total Reported Constant Operational

Renal Care $193 $748 $941 +4% +2% +3%

Medication Delivery $408 $264 $672 (2%) (4%) (3%)

Pharmaceuticals $240 $268 $508 +15% +13% +8%

Nutrition $84 $147 $231 +5% +2% +2%

Advanced Surgery $106 $80 $186 +6% +3% +3%

Acute Therapies $39 $87 $126 +12% +8% +8%

Other $58 $52 $110 +6% +2% +2%

Total Baxter $1,128 $1,646 $2,774 +5% +3% +2%

121See 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, adjusted research and development expense and adjusted tax rate.

Full-Year 2017 Sales1

Updated Global Business Unit (GBU) Structure

FY 2017 Revenue Total Growth$ In Millions U.S. International Total Reported Constant Operational

Renal Care $754 $2,726 $3,480 +2% +2% +3%

Medication Delivery $1,698 $1,000 $2,698 +4% +4% +5%

Pharmaceuticals $892 $991 $1,883 +9% +9% +9%

Nutrition $359 $523 $882 +3% +2% +2%

Advanced Surgery $403 $304 $707 +2% +2% +2%

Acute Therapies $147 $309 $456 +6% +6% +6%

Other $257 $198 $455 +2% +1% +1%

Total Baxter $4,510 $6,051 $10,561 +4% +4% +5%

131See 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, adjusted research and development expense and adjusted tax rate.

Fourth-Quarter And Full-Year 2017 Adjusted Financial Results1

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, adjusted research and development expense and adjusted tax rate. 2Adjusted marketing and administrative expense. 14

Metric Q4 2017 Q4 2016 Change FY 2017 FY 2016 Change

AdjustedGross Margin 44.3% 44.5% (20 bps) 44.8% 43.9% +90 bps

AdjustedSG&A Expense2

(% of Sales)22.6% 23.4% (80 bps) 23.0% 24.7% (170 bps)

AdjustedR&D Expense

(% of Sales)6.6% 5.7% +90 bps 5.8% 5.6% +20 bps

AdjustedOperating Margin 15.1% 15.4% (30 bps) 16.0% 13.6% +240 bps

AdjustedDiluted EPS $0.64 $0.57 +12% $2.48 $1.96 +27%

Full-Year and Quarterly 2017 Adjusted Financial Results1

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, adjusted research and development expense and adjusted tax rate. 15

Metric Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017

Sales (Millions)Reported Growth

Operational Growth

$2,475+4%+7%

$2,605+1%+3%

$2,707+6%+6%

$2,774+5%+2%

$10,561+4%+5%

AdjustedGross Margin 44.3% 45.2% 45.2% 44.3% 44.8%

AdjustedOperating Margin 16.4% 16.1% 16.3% 15.1% 16.0%

AdjustedTax Rate 18.5% 16.9% 18.9% 17.7% 18.0%

AdjustedDiluted EPS $0.58 $0.63 $0.64 $0.64 $2.48

Driving Operational Excellence Across The Company1

Increased Sales, Improved Gross Margin And Disciplined Expense Management Delivered 240 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, adjusted research and development expense and adjusted tax rate.

Improved adjusted gross margin of 44.8% driven by enhanced manufacturing performance, portfolio mix and modest price improvements in select areas

Business transformation initiatives and focus on optimized cost structure drive SG&A leverage

Reallocating and accelerating R&D investment in high priority, core growth businesses

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13.6%16.0%

FY 2016 AdjustedGross Margin

OperatingExpenses

FY 2017

Adjusted Operating MarginFY 2017 vs. FY 2016

Full-Year 2017 Highlights

+150 bps

+90 bps

FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017

Disciplined Financial Execution Drives Significant Improvements In Cash Flow Generation1

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, adjusted research and development expense and adjusted tax rate. 2Operating cash flow less capital expenditures.

$905M

$1,219M

$634M

$719M$1,853M

$1,624M

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Operating Cash Flow

Improved working capital and operational performance

$229M

Capital Expenditures

Investment prioritization and disciplined spending control

$85M

Free Cash Flow2

Enhanced flexibility allows strategic capital deployment

$314M

Strategically Deploying Capital To Fuel Growth And Create Value

Optimizing Shareholder Value With Enhanced Flexibility To Reinvest In Business And Execute On M&A Opportunities

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Reinvestment in Business

M&A

Dividends

Share RepurchasesBAX

Net debt to EBITDA ratio near zero1; targeting steady state of ~2.0x

Increased dividend by 23% in 2017; targeting ~35% dividend payout ratio

Repurchased approximately $564 million of shares in 2017

Executing strategic acquisitions and collaborations

1As of December 31, 2017.

2018 Outlook

Baxter Center for Spectroscopy and ImagingRound Lake, Illinois

Fourth-Quarter AndFull-Year 2017 EarningsFebruary 1, 2018

Full-Year 2018 Financial Guidance1

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, adjusted research and development expense and adjusted tax rate. 2Acquisition of Claris Injectables completed on July 27, 2017. 20

Metric FY 2018

Sales Growth[Constant Currency]

~4%

Sales Growth[Reported]

6% - 7%

AdjustedOperating Margin 16.8% - 17.0%

Adjusted Diluted EPSGrowth vs. 2017

$2.72 - $2.8010% - 13%

Operating Cash Flow ~$2.1B

Free Cash Flow ~$1.4B

FY 2018 Sales Impacts:• Foreign exchange [~250 bps]

• Cyclo competition [~100 bps]

• Claris acquisition2 [~100 bps]

Full-Year Sales Guidance:

6% - 7%ReportedGrowth

~4%Operational

Growth

Full-Year 2018 Sales Guidance1

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, adjusted research and development expense and adjusted tax rate. 2Low-single-digit. 21

Sales GrowthFY 2018

Constant CurrencyFY 2018

Operational

Renal Care 3% - 4% 3% - 4%

Medication Delivery 6% - 7% 6% - 7%

Pharmaceuticals Flat Flat

Nutrition 4% - 5% 4% - 5%

Advanced Surgery 3% - 4% 3% - 4%

Acute Therapies 8% - 9% 8% - 9%

Other LSD2 Decline LSD2 Decline

Total Baxter ~4% ~4%

First-Quarter 2018 Financial Guidance1

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Metric Q1 2018

Sales Growth[Constant Currency] 1% - 2%

Sales Growth[Reported] 5% - 6%

AdjustedDiluted EPS $0.60 - $0.62

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, adjusted research and development expense and adjusted tax rate. 2Acquisition of Claris Injectables completed on July 27, 2017.

Q1 2018 Sales Impacts:• Foreign exchange [~400 bps]

• Cyclo competition [<50 bps]

• Claris acquisition2 [~100 bps]

Q1 2018 Sales Guidance:

5% - 6%ReportedGrowth

0% - 1%Operational

Growth

Continuing Strong Momentum In 2018

► 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

► Strategically deploying capital to enhance value and improve profitability

► Updating long term strategy and goals during May 21, 2018 investor conference

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Baxter International Inc.February 1, 2018

Fourth-Quarter And Full-Year 2017 Earnings