First-Quarter 2022

Earnings

Baxter International Inc.

April 28, 2022

Hillrom is a part of Baxter

Forward-Looking Statements
This presentation includes forward-looking statements concerning the company’s financial results (including the outlook for second quarter and full-year 2022) and
business development and regulatory activities (including the December 2021 acquisition of Hillrom). 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, 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, the acquisition of Hillrom and certain rights to Zosyn in the U.S. and Canada); breaches or failures of the
company’s information technology systems or products, including by cyberattack, unauthorized access or theft; the adequacy of the company’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 the company’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 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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Use of Non-GAAP Financial Measures
To supplement Baxter’s consolidated financial statements presented on a U.S. GAAP basis, the Company discloses certain non-GAAP financial
measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States.

A reconciliation of the non-GAAP financial measures included in this document to the corresponding U.S. GAAP measures follows in the section
titled Non-GAAP Reconciliations. In addition, an explanation of the ways in which Baxter management uses these supplemental non-GAAP
measures to evaluate its business and the substantive reasons why Baxter management believes that these non-GAAP measures provide useful
information to investors is included in the Company’s most recent earnings release filed with the SEC on Form 8-K on April 28, 2022. This
information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP.

Baxter strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions
investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms
are used to identify such measures.

Non-GAAP financial measures used in this presentation include constant currency and operational sales growth, adjusted gross margin, adjusted
operating margin, adjusted diluted EPS, free cash flow, adjusted selling, general, and administrative (SG&A) expense, and adjusted research and
development (R&D) expense. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com.

3
 Table of Contents
Performance Summary 5

Financial Results 10

2022 Outlook 15

Non-GAAP Reconciliations 18
Performance Highlights
First-Quarter 2022

$3.7B
+26% Reported
+29% Constant Currency1
Sales +3% Operational2

Key Metrics U.S. GAAP Adjusted3

Gross Margin 36.4% 45.0%
YOY Change (250 bps) +300 bps
Operating Margin 4.4% 18.0%
YOY Change (880 bps) +100 bps
Diluted EPS $0.14 $0.93
YOY Change (76%) +22%

1Constant currency sales growth excludes the impact of foreign exchange. 2Operational sales growth excludes the impact of foreign exchange and the acquisition of Hillrom, 3Non-GAAP

financial metrics referenced in this slide include constant currency sales growth and operational sales growth, adjusted gross margin, adjusted operating margin, and adjusted diluted EPS. A 5
reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com.
Executing On Our Strategy
Recent Highlights
Demonstrating Ongoing Portfolio Resilience In Dynamic Environment1
▪ Operational sales growth of 3% and adjusted diluted EPS growth of 22% in Q1 2022 driven by improving rates of hospital admission and elective
surgeries and the contribution from Hillrom
Investing In Growth Opportunities And Executing On A Robust Pipeline Of Launches2
▪ Announced a long-term strategic partnership with Digital Diagnostics to offer its IDx-DR® autonomous AI software as a diagnostic service
combined with the Welch Allyn RetinaVue 700 Imager
▪ Received U.S. FDA clearance of ST Set used in CRRT3; it has been available to customers in the U.S. since August 2020, when it received
Emergency Use Authorization (EUA) from the FDA to provide CRRT to treat patients in an acute care environment during the COVID-19 pandemic
▪ Announced data indicating that the use of Sharesource remote patient management platform with an APD4 cycler may improve the clinical
effectiveness of home kidney patients’ care by extending their time on therapy by 3.4 months
Delivering Enhanced Value For Shareholders
▪ Unwavering commitment to successfully integrating Hillrom, which brings together two leading, global medical technology innovators
▪ Paid quarterly dividend of $0.28 per share, reflecting strong financial position and commitment to returning value to shareholders
Creating A Best Place To Work And Demonstrating Leadership In Corporate Social Responsibility
▪ Recently recognized by Forbes on its list of America’s Best Large Employers 2022, based on employee ratings of factors such as working
conditions, development opportunities and compensation
▪ Recently named to Forbes’ Best Employers for Diversity 2022, which identifies companies most dedicated to diversity, equity and inclusion

Accelerating Strategy Through Integration Of Hillrom To Advance Innovation,

Expand Connected Care And Transform Healthcare
1Non-GAAP financial metrics referenced in this slide include operational sales growth and adjusted diluted EPS growth. A reconciliation to comparable U.S. GAAP measures can be found herein and
is available at www.baxter.com. 2See www.baxter.com for original press releases with additional product information. 3Continuous Renal Replacement Therapy. 4Automated Peritoneal Dialysis. 6
Key Financial Metrics
First-Quarter 2022 Snapshot1
Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS

$3.7B
17.0% 18.0% $0.93
$2.9B
$0.76

+3% Operational
Growth 2 +100 bps +22%
Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022

1Non-GAAP financial metrics referenced in this slide include operational sales growth, adjusted operating margin, and adjusted diluted EPS. A reconciliation to comparable U.S. GAAP measures can
be found herein and is available at www.baxter.com. 2Q1 2022 operational sales growth excludes the impact of foreign exchange of approximately (3%), 7
and the acquisition of Hillrom of approximately 26%; U.S. GAAP sales growth for the period was approximately 26% compared to Q1 2021.
First-Quarter 2022 Performance1

Metric Q1 2022 Q1 2022

Guidance Actual

Sales Growth 24% - 25% +26%

Reported

Sales Growth 27% - 28% +29%

Constant Currency

Sales Growth LSD2 Growth +3%

Operational

Adjusted Diluted EPS $0.79 - $0.82 $0.93

Growth vs. Prior-Year Period 4% –8% +22%

Strong Adjusted EPS Performance Exceeds Guidance; Results Reflect Favorable

Product Mix And Disciplined Execution On Acquisition Related Cost Synergies
1Non-GAAP financial metrics referenced in this slide include constant currency sales growth, operational sales growth, and adjusted diluted EPS.
A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Low single digit. 8
Strong Performance Driven By Pandemic Recovery
First-Quarter 2022 Business Drivers1
Product Category Sales CC Growth2 Quarterly Performance Drivers
Performance driven by growth in PD business reflecting a year-over-year increase in
Renal Care $894M +1% global patient volumes; partially offset by lower In-Center HD dialyzer sales
internationally
Strong U.S. growth reflects continued recovery in the pace of hospital admissions
Medication Delivery $706M +10% as well as increased demand for IV administration sets and solutions; sales also
benefited from lower customer rebates
Performance negatively impacted by increased competition for select molecules in
Pharmaceuticals $521M (2%) U.S. generic injectables portfolio, lower sales of inhaled anesthetics and pandemic
related supply constraints

Performance driven by new product launches within broad

Clinical Nutrition $227M +1%
multichamber product offering

Growth reflects elective procedure recovery in the U.S. and Europe; partially offset
Advanced Surgery $228M +8%
by APAC region which experienced somewhat depressed levels of surgical volumes

Reflects a challenging comparison to first-quarter 2021 when demand for CRRT

Acute Therapies $188M (7%)
was elevated given the rise in COVID-19 cases

Strong performance driven by multiple collaborations to help manufacture

BioPharma Solutions $156M +21%
COVID-19 vaccines on a contract basis

Hillrom $755M N/A Hillrom contributed $755 million in sales to the quarter

1Non-GAAPfinancial metrics referenced in this slide include constant currency sales growth.
A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Represents growth at constant currency, adjusting for the impact of foreign exchange. 9
 Financial Results
First-Quarter 2022 Earnings
April 28, 2022

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 First-Quarter 2022 Sales By Product Category1
Q1 2022 Revenue Total Growth
$ In Millions U.S. International Total Reported Constant Operational
Renal Care $225 $669 $894 (3%) +1% +1%
Medication Delivery $472 $234 $706 +8% +10% +10%
Pharmaceuticals $157 $364 $521 (6%) (2%) (2%)
Clinical Nutrition $84 $143 $227 (3%) +1% +1%
Advanced Surgery $136 $92 $228 +5% +8% +8%
Acute Therapies $68 $120 $188 (9%) (7%) (7%)
BioPharma Solutions $52 $104 $156 +16% +21% +21%
Patient Support Systems $295 $88 $383 N/A N/A N/A
Front Line Care $207 $87 $294 N/A N/A N/A
Surgical Solutions $37 $41 $78 N/A N/A N/A
Other $24 $8 $32 +19% +19% +19%
Total Baxter $1,757 $1,950 $3,707 +26% +29% +3%
1Non-GAAP financial metrics referenced in this slide include constant currency sales growth and operational sales growth.
A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 11
First-Quarter 2022 Sales By Operating Segment1
Q1 2022 Revenue Total Growth
$ In Millions Reported Reported Constant Operational
Americas $1,626 +4% +5% +5%
(North and South America)

EMEA
(Europe, Middle East and $699 (5%) +2% +2%
Africa)

APAC $627 (3%) 0% 0%

(Asia Pacific)

Hillrom $755 N/A N/A N/A

Total Baxter $3,707 +26% +29% +3%

1Non-GAAP financial metrics referenced in this slide include constant currency sales growth and operational sales growth.
A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 12
First-Quarter 2022 Adjusted Financial Results1

Q1 2021 Q1 2022 Change

Adjusted Gross Margin 42.0% 45.0% +300 bps

Adjusted SG&A Expense 20.7% 23.1% +240 bps

(% of Sales)

Adjusted R&D Expense 4.3% 4.0% (30 bps)

(% of Sales)

Adjusted Operating Margin 17.0% 18.0% +100 bps

Adjusted Diluted EPS $0.76 $0.93 +22%

1Non-GAAP
financial metrics referenced in this slide include adjusted gross margin, adjusted SG&A expense, adjusted R&D expense, adjusted operating
margin, and adjusted diluted EPS. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 13
Committed To Generating Strong Cash Flows And
Executing Disciplined Capital Allocation Strategy
Cash Flow
Generated $208M of cash flow from continuing operations

Strategic Business Development

Integration of Hillrom proceeding on course; combined entity well-positioned to expand access globally to growing
portfolio as well as unite to broaden presence in connected care
Reinvestment In Business
Meeting the needs of patients and providers globally while continuing to invest in innovation and new product
launches
Dividend Issuance
Paid quarterly dividend of $0.28 per share, reflecting strong financial position and commitment to returning value
to shareholders
Share Repurchase Program
Expect to moderate repurchases in the near-term to focus on de-levering

Investing To Create Value For Shareholders Over The Long-Term While Focusing On
De-levering In The Near-Term
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 2022 Outlook
First-Quarter 2022 Earnings
April 28, 2022

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Full-Year 2022 Guidance1
FY 2022
Guidance
Sales Growth 23% - 24%
Reported
Foreign Exchange ~200 bps
Sales Growth 25% - 26%
Constant Currency
Hillrom 2200 - 2300 bps
Sales Growth ~3%
Operational
GAAP Diluted EPS $2.35 - $2.43
Growth vs. Prior-Year Period (7%) – (4%)
Adjusted Diluted EPS $4.12 - $4.20
Growth vs. Prior-Year Period 14% – 16%

1Non-GAAP financial metrics referenced in this slide include constant currency sales growth, operational sales growth and adjusted diluted EPS.
A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 16
Second-Quarter 2022 Guidance1
Q2 2022
Guidance
Sales Growth ~26%
Reported
Foreign Exchange 300 - 400 bps
Sales Growth 29% - 30%
Constant Currency
Hillrom 2500 - 2600 bps
Sales Growth ~4%
Operational
GAAP Diluted EPS $0.48 - $0.51
Growth vs. Prior-Year Period (19%) – (14%)
Adjusted Diluted EPS $0.86 - $0.89
Growth vs. Prior-Year Period 8% – 11%

1Non-GAAP financial metrics referenced in this slide include constant currency sales growth, operational sales growth and adjusted diluted EPS.
A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 17
 Non-GAAP
Reconciliations
First-Quarter 2022 Earnings
April 28, 2022

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Non-GAAP Reconciliation as of April 28, 2022

Non-GAAP Reconciliations:

As part of its Q1 2022 earnings announcement on April 28, 2022, Baxter presented its financial results for the first quarter of 2022. Baxter also
presented guidance for the second quarter and full year of 2022. In these presentations, Baxter used non-GAAP financial measures of sales
growth (on a constant currency and operational basis), adjusted gross margin, adjusted selling, general and administrative expense, adjusted
research and development expense, adjusted operating income, adjusted operating margin, adjusted diluted earnings per share, and free cash
flow. The reconciliations set forth below reconcile the non-GAAP measures set forth in this presentation for historical periods to the most directly
comparable U.S. GAAP measures.

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Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures
Three Months Ended March 31, 2022 and 2021
(unaudited)
(in millions, except per share and percentage data)
The company’s U.S. GAAP results for the three months ended March 31, 2022 included special items which impacted the U.S. GAAP measures as follows:
Selling, General and Research and Net Income Diluted
Gross Administrative Development Other Operating Operating Income Before Income Tax Attributable to Baxter Earnings Per
Margin Expenses Expenses Income, Net Income Income Taxes Expense Net Income Stockholders Share
Reported $ 1,348 $ 1,052 $ 150 $ (17) $ 163 $ 94 $ 21 $ 73 $ 71 $ 0.14
Reported percent of net sales (or percent of income 36.4 % 28.4 % 4.0 % (0.5)% 4.4 % 2.5 % 22.3 % 2.0 % 1.9 %
before income taxes for income tax expense)
Intangible asset amortization1 122 (95) — — 217 217 48 169 169 0.33
Business optimization items2 2 (78) (1) — 81 81 20 61 61 0.12
Acquisition and integration expenses3 164 (24) — 17 171 171 30 141 141 0.28
European medical devices regulation4 11 — — — 11 11 2 9 9 0.02
Product-related items5 23 — — — 23 23 3 20 20 0.04
Adjusted $ 1,670 $ 855 $ 149 $ — $ 666 $ 597 $ 124 $ 473 $ 471 $ 0.93
Adjusted percent of net sales (or adjusted percent of 45.0 % 23.1 % 4.0 % 0.0 % 18.0 % 16.1 % 20.8 % 12.8 % 12.7 %
income before income taxes for income tax expense)

The company’s U.S. GAAP results for the three months ended March 31, 2021 included special items which impacted the U.S. GAAP measures as follows:
Selling, General and Research and Net Income Diluted
Gross Administrative Development Other Operating Operating Income Before Income Tax Attributable to Baxter Earnings Per
Margin Expenses Expenses Income, Net Income Income Taxes Expense Net Income Stockholders Share
Reported $ 1,145 $ 627 $ 128 $ — $ 390 $ 351 $ 51 $ 300 $ 298 $ 0.58
Reported percent of net sales (or percent of income 38.9 % 21.3 % 4.3 % 0.0 % 13.2 % 11.9 % 14.5 % 10.2 % 10.1 %
before income taxes for income tax expense)
Intangible asset amortization1 64 — — — 64 64 12 52 52 0.10
Business optimization items2 21 (6) — — 27 27 7 20 20 0.04
Acquisition and integration expenses3 — (1) — — 1 1 — 1 1 0.00
European medical devices regulation4 8 — — — 8 8 2 6 6 0.01
Investigation and related costs6 — (11) — — 11 11 2 9 9 0.02
Adjusted $ 1,238 $ 609 $ 128 $ — $ 501 $ 462 $ 74 $ 388 $ 386 $ 0.76
Adjusted percent of net sales (or adjusted percent of 42.0 % 20.7 % 4.3 % 0.0 % 17.0 % 15.7 % 16.0 % 13.2 % 13.1 %
income before income taxes for income tax expense)

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Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures
Three Months Ended March 31, 2022 and 2021
(unaudited)

1
The company’s results in 2022 and 2021 included intangible asset amortization expense of $217 million ($169 million, or $0.33 per diluted share, on an after-tax basis) and $64 million
($52 million, or $0.10 per diluted share, on an after-tax basis), respectively.
2
The company’s results in 2022 and 2021 included charges of $81 million ($61 million, or $0.12 per diluted share, on an after-tax basis) and $27 million ($20 million, or $0.04 per diluted
share, on an after-tax basis), respectively, associated with its programs to optimize its organization and cost structure on a global basis. In 2022, restructuring charges include actions taken
in connection with our integration of Hill-Rom Holdings, Inc. (Hillrom), which we acquired in December 2021.
3
The company’s results in 2022 included $171 million ($141 million, or $0.28 per diluted share, on an after-tax basis) of acquisition and integration-related expenses. That amount includes
costs related to our acquisition of Hillrom, primarily reflecting incremental costs of sales from the fair value step-ups on acquired Hillrom inventory that was sold in the current period. The
acquisition and integration-related expenses related to Hillrom were partially offset by a benefit from a change in the estimated fair value of contingent consideration liabilities assumed in the
Hillrom acquisition. The company’s results in 2021 included $1 million ($1 million, or $0.00 per diluted share, on an after-tax basis) of integration expenses related to the acquisition of the
rights to Caelyx and Doxil for specified territories outside of the U.S.
4
The company’s results in 2022 and 2021 included costs of $11 million ($9 million, or $0.02 per diluted share, on an after-tax basis) and $8 million ($6 million, or $0.01 per diluted share, on
an after-tax basis) related to updating its quality systems and product labeling to comply with the new medical device reporting regulation and other requirements of the European Union’s
regulations for medical devices that became effective in stages beginning in 2021.
5
The company's results in 2022 included charges of $23 million ($20 million, or $0.04 per diluted shares, on an after-tax basis) related to warranty and remediation activities from two field
corrective actions on certain of our infusion pumps.
6
The company’s results in 2021 included costs of $11 million ($9 million, or $0.02 per diluted share, on an after-tax basis) for investigation and related costs from matters associated with the
company’s investigation of foreign exchange gains and losses.

For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with the Securities
and Exchange Commission on the date of this presentation.

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Reconciliation of Non-GAAP Financial Measure
Operating Cash Flow to Free Cash Flow
(unaudited)
(in millions)

Three Months Ended March 31,

2022 2021
Cash flows from operations – continuing operations $ 208 $ 377
Cash flows from investing activities (304) (538)
Cash flows from financing activities (548) (358)

Cash flows from operations - continuing operations $ 208 $ 377

Capital expenditures (140) (171)
Free cash flow - continuing operations $ 68 $ 206

Free cash flow is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures in this presentation, please see the
company's Current Report on Form 8-K filed with the Securities Exchange Commission on the date of this presentation.

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Reconciliation of Non-GAAP Financial Measure
Change in Net Sales Growth As Reported to Operational Sales Growth
From The Three Months Ended March 31, 2021 to The Three Months Ended March 31, 2022
(unaudited)
Sales By Product Category: Net Sales Growth Operational
As Reported Hillrom FX Sales Growth*
Renal Care (3)% 0% 4% 1%
Medication Delivery 8% 0% 2% 10%
Pharmaceuticals (6)% 0% 4% (2)%
Clinical Nutrition (3)% 0% 4% 1%
Advanced Surgery 5% 0% 3% 8%
Acute Therapies (9)% 0% 2% (7)%
BioPharma Solutions 16% 0% 5% 21%
Patient Support Systems N/A N/A N/A N/A
Front Line Care N/A N/A N/A N/A
Surgical Solutions N/A N/A N/A N/A
Other 19% 0% 0% 19%
Total Baxter 26% (26)% 3% 3%

U.S. 49% (46)% 0% 3%

International 10% (12)% 6% 3%
*Totals may not add across due to rounding
Sales By Operating Segment: Net Sales Growth Operational
As Reported HIllrom FX Sales Growth*
Americas 4% 0% 1% 5%
EMEA (5)% 0% 7% 2%
APAC (3)% 0% 3% 0%
Hillrom N/A N/A N/A N/A
Total Baxter 26% (26)% 3% 3%
*Totals may not add across due to rounding
Change in operational sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures in this presentation, please
see the company's Current Report on Form 8-K filed with the Securities Exchange Commission on the date of this presentation.
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Reconciliation of Non-GAAP Financial Measure
Projected Second Quarter and Full Year 2022 U.S. GAAP Sales Growth to Projected Operational Sales
Growth, and Projected Second Quarter and Full Year 2022 U.S. GAAP Operating Margin to Projected
Adjusted Operating Margin
(unaudited)

Sales Growth Guidance Q2 2022* FY 2022*

Sales Growth - U.S. GAAP 26% 23% - 24%
Hillrom (25)% - (26)% (22)% - (23)%
Foreign exchange 3% - 4% 2%
Sales Growth - Operational 4% 3%

*Totals may not foot due to rounding

Operating Margin Guidance FY 2022*

Operating Margin - U.S. GAAP 11.3%
Estimated intangible asset amortization 4.7%
Estimated business optimization charges 0.7%
Estimated acquisition and integration expenses 1.7%
Estimated product-related items 0.1%
Estimated European medical devices regulation 0.3%
Operating Margin - Adjusted 18.8%

*Totals may not foot due to rounding

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Reconciliation of Non-GAAP Financial Measure
Projected Full Year 2022 U.S. GAAP Tax Rate to Projected Adjusted Tax Rate, and Projected Second
Quarter and Full Year 2022 U.S. GAAP Earnings Per Share to Projected Adjusted Earnings Per Share
(unaudited)
The projected FY 2022 U.S. GAAP tax rate of approximately 15.5% to 16.0% has been adjusted to reflect the tax impact of projected special items, consisting of
intangible asset amortization, business optimization charges, acquisition and integration expenses, product-related items and the European medical devices
regulation expenses, to arrive at a projected adjusted tax rate of approximately 19.0% to 19.5%.

Earnings Per Share Guidance Q2 2022* FY 2022*

Earnings per Diluted Share - U.S. GAAP $0.48 - $0.51 $2.35 - $2.43
Estimated intangible asset amortization $0.29 $1.11
Estimated business optimization charges $0.02 $0.16
Estimated acquisition and integration expenses $0.05 $0.39
Estimated product-related items $0.00 $0.04
Estimated European medical devices regulation $0.02 $0.07
Earnings per Diluted Share - Adjusted $0.86 - $0.89 $4.12 - $4.20

*Totals may not foot due to rounding.

The company’s outlook for U.S. GAAP operating margin, income tax rate and earnings per share only includes the impact of special items that are known or expected as
of the date of this presentation. Accordingly, actual U.S. GAAP operating margin, income tax rate and earnings per share for the second quarter and full year of 2022
may differ significantly from those amounts. For example, the company’s outlook does not reflect the potential impact of future business or asset acquisitions or
dispositions, intangible asset impairments, restructuring actions, developments related to gain or loss contingencies, debt extinguishment gains or losses, or unusual or
infrequently occurring items that may occur during the remainder of 2022.

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 First-Quarter 2022
Earnings

Baxter International Inc.

April 28, 2022

Hillrom is a part of Baxter