Slides
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44th Annual J.P. Morgan Healthcare Conference 1 Andrew Hider President & Chief Executive Officer January 12, 2026
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2 Safe Harbor Statement This presentation includes forward-looking statements concerning the company's financial results (including the company’s net leverage target and estimated timing considerations) and operational, business development and regulatory activities. 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 company's ability to achieve the intended benefits of its recent strategic actions, including the sale of the Kidney Care business, business strategy and development activities (including the acquisition Hill-Rom Holdings, Inc. and completion of related integration activities) and cost saving init iatives, or of future long-term financial improvement goals; the impact of global economic conditions (including, am ong other things, changes in tariffs, taxation, trade policies and treaties, sanctions, embargos, export control restrictions , the potential for a recession, supply chain disruptions, inflat ion levels and interest rates, financial market volatility, banking crises, the war in Ukraine, the conflict in the Middle East and other geopolitical events, and the potential for escala tion of these and other conflicts, the related economic sanctions being imposed globally in response to the conflicts and potential trade wars, global public health crises, pandemics and epidemics, or the anticipation of any of the foregoing, on the company's operations and on the company's employee s, customers, suppliers, and foreign governments in countries in which the company operates and the company’s ability to identify actions to mitigate the impact of those conditions (or to realize the anticipated benefits of any such mitigating actions); demand and market acceptance risks for, and competitive pressures (including pricing) related to, new and existing products and services (including customer response to Novum IQ Large Volume Pump (Novum LVP) field actions and the related voluntary ship and installation hold, which may include additional returns or exchanges), challenges and reputational risks associated with converting customers to new or alternative products and challenges with accurately predicting changing customer preferences and future expenditures and inventory levels (including with respect to the impact of the Novum LVP ship and installation hold and continuing fluid conservation practices) and with being able to monetize new and existing products and services, the impact of those products and services on quality and patient safety concerns, and the need for ongoing training and support for the company’s products and services; product development risks, including satisfactory clinical performance and obtaining and maintaining required regulatory approvals (including as a result of evolving regulatory requirements or the withdrawal or resubmission of any pending applications), the ability to manufacture at appropriate scale, and the general unpredictability associated with the product development cycle (which may result in monetary penalties owed to the company’s suppliers in the event the company does not place orders at levels contemplated in its contractual arrangements); future actions of, or failures to act or delays in acting by the U.S. Food and Drug Administration, the European Medicines Agency, or any other regulatory body or government authority (including the U.S. Securities and Exchange Commission, Department of Justice, Health Canada or the Attorney General of any state), or any product quality or patient safety issues (including those related to the company’s infusion pump category) that could delay, limit or suspend product development, manufacturing, or sale or otherwise lead to product recalls (either voluntary or required by governmental authorities), adverse regulatory site inspection reports, voluntary or official action indicated classifications, labeling changes, launch delays, warning letters, import bans, refusal of a government to grant or the government withdrawal of approvals, clearances, licenses or other marketing authorizations , denial of import certifications, sanctions, seizures, injunctions (including to halt manufacture or distribution), monetary sanctions, criminal or civil liabilities or litigation; th e continuity, availability, and pricing of acceptable raw materials and component parts, the company's ability to pass some or all of any increased costs to its customers through pric e increases or otherwise, and the related continuity of the company's manufacturing, sterilization, supply and distribution and those of the company’s suppliers; failure to accurately forecast or achieve the company’s short- and long-term financial performance and goals, market and category growth rates, growth rates for the company's segments, customer demand and related impacts on the company’s liquidity (including with respect to increased inventory levels); the company's ability to execute on its capital allocation pl ans, including the company's debt repayment plans, the timing and amount of any dividends, share repurchases and divestiture proceeds; additional future downgrades to the company's credit ratings or ratings outlooks, or withdrawals by rating agencies from rating the company and its indebtedness, and the related impact on the company’s funding costs and liquidity; the company’s ability to finance and develop new products or services, or enhancements thereto, on commercially acceptable terms or at all; actions by tax auth orities in connection with ongoing tax audits (including with respect to transfer pricing matters and the potential issuance of one or more Notice of Proposed Adjustments), the outcome of pending or future litigation (including as a result of customer or supplier disputes) and the sufficiency of any related reserves; fluctuations in foreign exchange and interest rates; the impact of any accounting estimates and assumptions, including with respect to goodwill, intangible a ssets, or other long-lived asset impairments on the company's operating results; failures with respect to the company's quality, compliance or ethics programs; our ability to attr act, develop, retain and engage key employees, including as a result of organizational or other corporate changes and strategic initiatives, and the occurrence of labor disruptions resulting from labor disagreements under bargaining agreemen ts or national trade union agreements, disputes with works councils or otherwise); inability to create additional production capacity in a timely manner or the occu rrence of other manufacturing, sterilization, or supply difficulti es, including as a result of natural disaster or severe weather event (such as Hurricane Helene), war, geopolitical conflicts (including in South America), terrorism, global public he alth crises and epidemics/pandemics, regulatory actions, or otherwise; future actions of third parties, including third-party payors and the company’s customers and distributors (including group purchasing organizations and integrated delivery networks); breaches and breakdowns affecting the company's information technology systems or protected information, including by cyber-attack, data leakage, unauthorized access or theft, or failures of or vulnerabilities in the company's information technology systems or products; the company’s ability to effectively develop, integrate or deploy artificial intelligence, machine learning and other emerging technologies into the company’s products, services and operations in a manner that is compliant with existing and emerging regulations and consistent with evolving customer preferences; the impact of physical effects of climate change, severe storms (including Hurricane Helene) and storm-related events; changes to legislation and regulation and other governmental pressures in the United States and globally, including the cost of compliance and potential penalties for purported noncompliance thereof, inclu ding new or amended laws, rules and regulations as well as the impact of healthcare reform and its implementation, suspension, repeal, replacement, amendment, modification and other similar actions undertaken by the United States or foreign governments, including with respect to pricing, reimbursement, taxation (including taxation of income, whether with respect to current or future tax reform) and rebate policies; the company's ability to meet evolving and varied corporate responsibility expectations of the company's st akeholders, including compliance with emerging and potentially contradictory global sustainability regulations; the ability to protect or enforce the company's patents or other proprietary rights (including trademarks, copyrights, trade secrets, and know-how) or where the patents of third parties prevent or restrict the company's manufacture, sale, or use of affected products or technology; and other factors discussed in Baxter's most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws.
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An Essential Global Partner Serving Critical Healthcare Needs Trusted global brand with market share leadership across core categories 3 350M+ patients treated with products and solutions annually 100+ countries supporting care delivery 38,000 40+ employees manufacturing sites worldwide Note: Facts and figures as of December 31, 2025
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Baxter at a Glance 4 1Sales and related figures represent last twelve months (LTM) sales from continuing operations as of September 30, 2025. LTM Q3 2025 also includes Other Revenue of $302M. 2Continuing operations excludes the results of the Kidney Care business, which are reported as discontinued operations. $11.0B LTM Q3 2025 Global Revenue (Continuing Operations)2 55%United States 45%International LTM Q3 2025 Sales by Segment1 Medical Products & Therapies Healthcare Systems & Technologies Pharmaceuticals $2.5B $3.0B $5.2B
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51Selected products, not exhaustive. 2Dual and Triple Chamber Bags. Pharmaceuticals Medical Products & Therapies Healthcare Systems & Technologies Specialty Injectables Inhaled Anesthesia Current Portfolio1 Microsurgery Hemostats & Sealants Adhesion Prevention Advanced Surgery Tissue & Bone Repair Respiratory Health Exam Diagnostics Patient Monitoring Front Line Care Injectables & Anesthesia Drug Compounding Infusion Therapies & Technologies Infusion Systems IV Therapies Hemodynamic Monitoring Drug Compounding Care & Connectivity Solutions Robotic Tables Connected Care Solutions Surgical Lighting Positioning Devices & AncillariesSmart Beds & Accessories ExactaMix Pro 2CB & 3CB2 Clinical Nutrition Baxter’s Diversified Portfolio of Essential Therapies & Solutions Cardiology
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Well-Positioned Portfolio for an Evolving Global Healthcare Market 6 Advancing Technology Acceleration of digital, AI- enabled and connected- care ecosystems across all patient settings Chronic Illness & Age Rising burden of chronic and age-related conditions across rapidly aging patient populations Care Across Settings Shift toward care decentralization and alternative sites of care
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7 Baxter’s Next Chapter: Pillars for Enterprise Evolution DRIVE Continuous Improvement STRENGTHEN The Balance Sheet STABILIZE The Business Deploying Baxter GPS to embed operational excellence and accountability Data-driven approach designed to build sustainable long-term habits and discipline Reducing leverage and improving cash generation to drive reinvestment and shareholder value Applying a consistent, disciplined capital allocation framework Focused on addressing areas impacting growth and execution Emphasis on People, Process and Performance, with clear value-creator metrics
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8 GROWTH & PERFORMANCE SYSTEM
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9 GROWTH & PERFORMANCE SYSTEM
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Advancing Innovation Across Our Portfolio 101Targeted product release date. Welch Allyn Connex 360 IQX Infusion Platform Q3/Q4 2025 Q1/Q2 20261Q4 2025+ Smart & Expansible Acute Care Stretcher
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• Near-term priority to strengthen balance sheet to enhance financial flexibility • Targeting to achieve net leverage of ~3.0x by the end of 2026 • Committed to maintaining an investment grade credit rating Debt Repayment Disciplined Capital Allocation Driving Long-Term Shareholder Value 11 • Continued organic investment in core platforms and innovation • Capex: Increasing mix toward growth-generating and productivity-enhancing investments • R&D: Targeted funding across divisions to maximize returns over the long-range plan Invest For Growth CURRENT FUTURE M&A • Strategic tuck-in opportunities that enhance growth capabilities Dividend: Expect to maintain current quarterly dividend 1Anticipated actions once targeted leverage ratio has been achieved. Share Repurchases • Will evaluate opportunistically – 1 1 1
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Baxter Investment Thesis 12 Attractive valuation relative to long-term fundamentals Attractive valuation relative to long-term fundamentals Essential products in market leading positions Essential products in market leading positions Focused on improving growth, margins and cash generation Focused on improving growth, margins and cash generation Advancing innovation across portfolio Advancing innovation across portfolio Enhanced capital allocation discipline; near-term focus on deleveraging to enhance financial flexibility Enhanced capital allocation discipline; near-term focus on deleveraging to enhance financial flexibility
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44th Annual J.P. Morgan Healthcare Conference 13 Andrew Hider President & Chief Executive Officer January 12, 2026