#1KUAL Baxter RENAL CARE Laura Angelini GM, Renal Care May 21, 2018#2Safe Harbor Statement This presentation includes forward-looking statements concerning Baxter's financial results, R&D pipeline, including planned product launches (many of which are subject to regulatory approval) and results of clinical trials, business development activities, capital structure, cost savings initiatives, Baxter's long range plan (which includes financial outlook for 2018, 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 Baxter's information technology systems, including by cyberattack; 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 recent 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; 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; 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 Baxter'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. Baxter 12#3Renal Care Market Overview¹ Global Products Market Size Baxter ~$14B 2018 CAGR² 4% - 5% HD ~4% PD ~$16B+ 2023 Peritoneal Dialysis (PD) Automated Peritoneal Dialysis (APD) and #1 Continuous Ambulatory Peritoneal Dialysis (CAPD) Hemodialysis (HD) Extracorporeal dialysis performed in-center or at home Global Renal Care Products Market Is Expected To Grow ~4% Through 2023² Baxter Position #2 Baxter Position ¹Market estimates and Baxter position based on internal estimates. 22018-2023 Compounded Annual Growth Rate. | 3#4Market Dynamics ~6% Patient Growth M Baxter MIT Aging population; hypertension; diabetes; >75% of growth from Emerging Markets¹ ~4M Untreated Patients Lack of access to care in Emerging Markets for a large patient population² p ~25 Years Of Limited Innovation Focus on incremental features³ 20% -30% One-Year HD Mortality Rate Current therapies continue to result in unacceptable patient outcomes4 Opportunity To Solve Unmet Needs, Improve Outcomes And Simplify Therapies 1-4See slide 17 for references. | 4#5Renal Care Portfolio Sharesource Baxter Améa Amia (NA)¹ Solutions Peritoneal Dialysis 66% Sharesource Kaguya (Japan) 2X Sharesource Claria (ROW)² ~$3.3B 2017 Sales³ 34% ak98 458 RE AK98 Monitor Fisvackalit Hemodialysis aram Flovackier F Fam SEET / ² Revaclear EES. Market Leading Portfolio Rooted In Innovation AL acar BiCart Concentrate Theranova ¹United States and Canada. ²Rest of world. ³FY 2017 sales excludes Renal Therapy Services revenue of <$200M. | 5#6Strategic Growth Drivers Portfolio Innovation ~$400M 2023 New Product Revenue¹ HONG A Baxter FRAM Market Development Improving Emerging Market adoption Generating evidence for Sharesource and HDx enabled by Theranova Enter Adjacencies + Expanding the Continuum of Care through Chronic Kidney Disease (CKD) Management Treatment Today CKD Renal Care Treatment Management Services Tomorrow Innovation And Market Development Drive Above-Market Growth Of ~5% Through 2023² ¹All references to "new products" in this presentation include new product launches, line extensions and geographic expansions, unless otherwise noted. 2All references in this presentation to future financial expectations assume commercial execution and regulatory approvals, as applicable, consistent with Baxter's plans. CAGRS for years 2018-2023 assume constant foreign exchange rates. | 6#7Renal Care Pipeline Baxter CAPD+ China AK98 China Polyflux Japan Revaclear 500 Kaguya Japan 2018 Artis China Theranova U.S. AK98 v3 U.S. Artis Physio Plus 2019 New Product GEO Expansion Portfolio Innovation 20 Theranova China Market Development Point of Care (POC) Generation 1 CWP 800 Mini Point of Care (POC) Generation 2 2020-2023 Key Launch Delivering ~$400M In New Product Sales In 2023 =+ Adjacencies + 17#8Key Launches: HDX Enabled By Theranova ~50% of End Stage Renal Disease (ESRD) patients die due to cardiovascular disease Effectively clears large uremic toxins with no change in existing infrastructure and workflow¹ May attenuate inflammation, atherosclerosis and calcification Baxter Classification of uremic solutes by molecular weight Urea (60) Phosphate (96) Creatinine (113) PTH (9500) Beta 2 microglobulin (11800) Cystatin C (13300) Myoglobin (17000) Kappa free light chains (22500) Complement factor D (24000) Interleukin-6 (24500) Alpha 1 microglobulin (33000) YKL-40 (40000) Lambda free light chains (45000) Albumin (67000) Portfolio Innovation T 20 Small molecules <500 Da Conventional Middle molecules 500-15000 Da Large Middle molecules > 15000 Da Essential proteins Innovation That Improves Patient Outcomes Market Development Adjacencies + =+ Evolution of dialysis therapies Kidney Low Flux High Flux HDF 1See slide 17 for reference. HDX | 8#9Key Launches: Kaguya APD System Baxter 治療の準備 戻る 2016/12/15 12:00 PM E ヘルプ 11/15 加温バッグを広げ、 加温部に チューブのねじれがないこと を確認し、加温チューブガイ ドにはめ込みます。 次へ Portfolio Innovation ¿A Auto-Connect + Auto-ID Market Development Adjacencies + =+ Japan currently ~3% home therapy adoption Sharesource enables proactive therapy management Increased patient & HCP confidence New Shared Decision-Making Policy Addressing Market Needs To Enhance PD Adoption 19#10Key Launches: Home Solution Generation System (POC) Improvements to patient Quality of Life (QoL) Delivers prescriptions by cycle First patient on therapy in 2H 2018 Cornerstone for future innovation Baxter Portfolio Innovation •Ss 20 Development Adjacencies + (Co. Innovation Delivering Simplified Therapies To Reduce Treatment Burden | 10#11Market Development Initiative HDX THERAPY Baxter Improving Emerging Market Adoption Enabled by Theranova Sharesource Investment Dedicated R&D center in India $30M+ invested in clinical, QoL and economic evidence Portfolio Innovation Enter ¿A Development Adjacencies + Result Satisfying market requirements of affordability, access and ease of use Leading to market appropriate portfolio and pipeline paired with business model innovation Global evidence generation creating a parallel path to differentiated classifications and reimbursement Shaping The Environment And Advancing The Standard Of Care | 11#12Evidence Generation: Sharesource Baxter Sharesource 9 New Claims 2MM+ Treatments 30+ Countries Launched 11k+ Patients In Database Portfolio Innovation = ¿A Market Enter Development Adjacencies + New Claim Highlights +29% proactive consults +25% prescription adjustments greater patient and HCP engagement ¹,2 21% reduction of hospitalization (ESRD- related and overall); annual cost of PD- related hospitalization in U.S. ~$2.5B³ Emerging trend in reduction of drop-outs³ 1-3See slide 17 for references. M 12#13Evidence Generation: HDX Enabled By Theranova >200k Treatments Baxter 2 New Claims Chu AMA theranova theranova 400 SOF Aara 500 NOF 1ora- >1,000 Patients In Baxter clinics 28 Countries Launched (+7 In 2018) >300 Clinics Worldwide Portfolio Innovation Market Enter ¿A Development Adjacencies + New Claim Highlights Effectively targets the removal of large middle molecules linked to inflammation and cardiovascular disease¹ Promotes stable serum albumin level over time on therapy² CENTRAL 1,2See slide 17 for reference. T 13#14Enter Adjacencies Baxter Current Treatments Paradigm Today Jesl ~70% Of Patients Crash Into Dialysis In-Center HD = -88% Home Therapies = ~12% Portfolio Innovation ¿A Enter Development Adjacencies + Pre-Treatment & Prevention Eo CKD Management Less Treatment Cost Better Outcomes Therapy Choice + 14#15Transformative Innovation + Baxter Model of Care Renal Care Services Simplified Experience Flexibility / Options Lifestyle Self-Care Future Treatments A Future Paradigm Planned Starts In-Center HD = ~50% Home / Alt-Site = ~50% | 15#16Renal Care Summary Well-positioned to deliver above-market growth of ~5% driven by innovation and market development¹ Redefining Renal Care through innovation that solves unmet needs, improves patient outcomes and simplifies therapies Continued focus on relentless execution in market development and evidence generation Expanding treatment focus across the continuum of care through CKD management and transformative care models Baxter 12018-2023 CAGR. T 16#17References Market Dynamics (Slide 4) 1) Renal MIS Baxter internal data 2) Dymedex, 2016, Market Research "Prevalent ESRD Population in Emerging Markets" 3) GAMBRO, "A tour through Gambro's history of hemodialysis" published 2014, (page 46): In 1987, Gambro introduced the first HDf dialysis system; https://www.hhs.gov/blog/2018/05/16/putting-patients-at-the-center-of-kidneyx.html Bruce M. Robinson, 2013 International Society of Nephrology, "Worldwide, mortality risk is high soon after initiation of hemodialysis", figure 1, US market 4) Key Lauches: HDx Enabled By Theranova (Slide 8) 1) Adapted from Azar AT, Canaud B. Chapter 8: Hemodialysis system. In: Azar T, ed. Modelling and Control of Dialysis Systems. SCI 404. Berlin: Springer-Verlag, 2013 Evidence Generation: Sharesource (Slide 12) 1) Bunch et. al. 2017. Disclaimer: some bias may exist due to study design; no statistical difference was demonstrated for technical failure. 2) Firanek et. al. 2017. Disclaimer: This is an observational study of 189 patients using APD devices with Sharesource. 3) Sanabria et. al. 2018; Disclaimer: The cohort of patients using APD with Sharesource was a smaller group (n=59) than the comparative cohorts (n=485) and (n=405). Evidence Generation: HDx Enabled By Theranova (Slide 13) 1) Article by Kirsch et al in NDT 2017. 2) Article by Belmouaz et al in Clin Nephrol 2018. Baxter | 17#18Baxter 2018 Investor Conference