#1ADM MAX in Baxter INTEGRATED SUPPLY CHAIN JAMES BORZI Senior VP, Chief Supply Chain Officer 2022 Investor Conference#2Forward-Looking Statements The presentations being made on May 25, 2022 include forward-looking statements concerning Baxter's financial results, R&D pipeline, including planned product launches (many of which are subject to regulatory approval and may require additional investment) and results of clinical trials, business development activities (including anticipated cost and revenue synergies), capital structure, cost savings initiatives, Baxter's long range plan (which includes financial outlook for 2022 and 2022-2025) and other growth strategies. These forward-looking 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: the impact of global economic conditions (including the ongoing war in Ukraine and the related economic sanctions being imposed globally in response to the conflict and potential trade wars) and public health crises and epidemics, such as the ongoing coronavirus (COVID-19) pandemic, on the company and its employees, customers and suppliers, including foreign governments in countries in which the company operates; demand for and market acceptance of risks for new and existing products; product development risks (including satisfactory clinical performance and obtaining required regulatory approvals); product quality or patient safety concerns; continuity, availability and pricing of acceptable raw materials and component supply (including impacts from COVID-19); 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, public health crises and epidemics/pandemics, geopolitical crises, regulatory actions or otherwise); accurate identification of and execution on business development and R&D opportunities and realization of anticipated benefits (including the acquisitions of Cheetah Medical, Seprafilm Adhesion Barrier, specified OUS rights to Caelyx/Doxil, full U.S. and specific OUS rights to Transderm Scop, PerClot, Hillrom and certain rights to Zosyn in the U.S. and Canada); breaches or failures of Baxter's information technology systems or products, including by cyberattack, unauthorized access or theft; the adequacy of Baxter's cash flows from operations and other sources of liquidity to meet its ongoing cash obligations and fund its investment program; loss of key employees or inability to identify and recruit new employees; future actions of regulatory bodies and other governmental authorities, including FDA, the Department of Justice, the SEC, the New York Attorney General and foreign regulatory agencies, including the continued delay in lifting the warning letter at Baxter's Ahmedabad facility; the outcome of pending or future litigation, including the opioid litigation and current and future ethylene oxide litigation or other claims; proposed regulatory changes of the U.S. Department of Health and Human Services in kidney health policy and reimbursement, which may substantially change the U.S. end-stage renal disease market and demand for the company's peritoneal dialysis products, necessitating significant multiyear capital expenditures, which are difficult to estimate in advance; 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; fluctuations in foreign exchange and interest rates; the ability to enforce owned or in-licensed patents or the prevention or restriction of the manufacture, sale or use of products or technology affected by patents of third parties; global, trade and tax policies; any change in laws 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 or the Build Back Better framework; actions taken by tax authorities in connection with ongoing tax audits; 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. Baxter | 2022 Investor Conference 42#3Building A World-Class Integrated Supply Chain¹ Planning & Fulfillment a Operations 800K+ 100+ Freight Lanes Countries 4 Billion 65 Units Produced Plants Annually Procurement Baxter | 2022 Investor Conference T: ~$8B ($3B Direct/ $5B Indirect) Total Spend Sustainability Goals 25% 2040 Reduction in Scope 1&2 Carbon GHG Emissions by 2030 Neutrality ~$8B Of COGS With 36,000 Employees In 27 Countries ¹Data as of February 2022. 43#4Transformation Journey: Integrated Supply Chain Enhancing Foundation End-To-End Operating Unit Ownership 2020-2021 Automation & Digitization People Baxter | 2022 Investor Conference Strategic Cost Reduction vs. Short Term Focus Network Optimization 2022- 2025 Accelerating Transformation 5) BOS BAXTER OPERATING SYSTEM Introduction of the Baxter Operating System F& Sales Inventory & Operations Planning Process ✔Compliance î Predictive Analytics Make Where You Sell; Buy Where You Make Resilience 44#5Challenging Macroenvironment Leading To Near Term Inflationary Pressures 20%+ Estimated Total Inflation 2020-2022 Price Increases H Materials Resin API/Chemical Dextrose Hardware Reduced Availability ~40% Of The Impact Molded Components 20%+ Estimated Total Inflation 2020-2022 Baxter | 2022 Investor Conference $ Labor Increased Labor Costs: Wage Rates | Overtime | Bonuses Worker Shortage 2 Rising Inflation Rates ~20% Of The Impact 30%+ Estimated Total Inflation 2020-2022 Congested Ports Freight Fuel & Driver Shortages Reduced Air Cargo Capacity ~40% Of The Impact Absorbed Over $600M In Gross Inflationary Pressures Between 2020 To 2022 45#6Driving A Robust Value Improvement Process Value Drivers: Materials Productivity Architecture Automation & Digitization Analytics Reorienting the organization back to "Lean" basics Baxter | 2022 Investor Conference Enhancing Value Improvement Processes (VIP) by: ● Implementing a shared strategic cost reduction plan Creating and maintaining a multi-year funnel of VIPs Driving improvement mindset across the organization outside of ISC Cumulative VIP Performance (% of Value Of Production) ~4% 2023E 8%+ 2024E Delivering ~$650M Of Anticipated Gross Savings By 2025 13%+ 2025E 46#7Implementing A Detailed Roadmap To Drive VIPs Value Driver Key Initiatives Materials 30% Of VIP Productivity 22% Of VIP Architecture 16% Of VIP Automation & Digitization 16% Of VIP Analytics 16% Of VIP Dual/Secondary Sources Insourcing of Molded Components Strategic Partnerships Baxter 2022 Investor Conference Direct & Indirect Labor Efficiencies Overall Equipment Effectiveness Waste Reduction In Region/For Region Manufacturing & Fulfillment Manufacturing & Distribution Network Rationalization Automated Filling, Pouching & Inspection Automated Set Assembly Integrated Vision Systems Advanced Planning Tools Control Tower Predictive Analytics Disciplined Governance In Place To Drive Savings Target By Camer BAXTERITY ރހވއރވމނތޭ IRUVON t Juthen ----- CC Breakdown 47#8● Optimizing Baxter's Global Network Regionalization of Supply Enhanced Asset Utilization Supply Chain Resilience Footprint Rationalization Baxter 2022 Investor Conference Driving In-Region Manufacturing By 2025 88% to 92% Americas 81% to 89% EMEA Make Where You Sell; Buy Where You Make 71% to 87% APAC 48#9Integrated Supply Chain Becoming A Competitive Advantage ● ● ● ● ● Accelerating the cultural and operational transformation Building an end-to-end, resilient, cost-effective Integrated Supply Chain Simplifying processes to enable speed and agility through Lean principles Driving network optimization while implementing "make where you sell; buy where you make" mindset Mitigating near term headwinds through VIPs, labor optimization, and increased governance and visibility to be well positioned to deliver margin accretion post-inflationary cycle People Baxter | 2022 Investor Conference ✔Compliance Resilience 49