EC @ Baxter Healthcare

1. EC @ Baxter Healthcare Presented by: Jerry White

2. Agenda • Electronic Commerce @ Baxter Healthcare: • Company Overview • Electronic Commerce: Past, Present, Future • EC Strategy & Objectives • EC Operating Model

3. Company Overview Our VisionTo be the global leader in providing critical therapies for people with life-threatening conditions Everyday, Baxter products and services help treat thousands of people around the world with cancer, kidney failure, hemophilia, immune deficiencies, infectious diseases, and other serious health conditions

4. $8 Billion Global market leader Over 50% of sales from outside the United States Present in more than 100 countries More than 250 facilities More than 43,000 employees 80 percent of sales from products with leading market positions $1 million invested in R&D every day Our customers Hospitals Plasma/Blood Centers Pharmacies Ambulatory Care Centers Dialysis Centers Long Term Care Facilities Home Care Facilities Company Overview

5. EC History – American Hospital Supply • 1957 IBM 632 tab-card machines • 1963 TeleAmerican, IBM 1001 Data phones • 1976 ASAP 1, touch tone telephone • 1978 ASAP 2, Tekpro, plastic punch cards • 1980 ASAP 3, Integration applications • 1985 ASAP 4, computer to computer integration ASAP Interchange Translator • ASAP 5, order entry/reports on PC • 1986 Baxter Acquires American Hospital Supply

6. EC History • 1987 ASAP Express, multi-vendor using X12 TDCC Translator • 1991 TSI Translator • 1994 On Call*EDI and other X12 software vendors • 1996 Baxter Spins-off Allegiance Healthcare • 1998 Harbinger Translator • 2000 Global Healthcare Exchange • 2002 Internet EDI & Customer Self Service

7. EDI History VAN’s IBM Direct MCI SNA Baxter EDI GEIS Async Inovis Bisync AT&T Sterling

8. Present - EDI Baxter EDI Van Van

9. Present Baxter EDI/B2B GHX HTTP/S EDIINT Van Self Service Van

10. Objectives • Make it easier for our customers, trading partners, and suppliers to do business with Baxter and provide fast, responsive customer service • Improve Baxter financial performance through operational excellence and top line revenue growth: • Reduce costs • Grow Sales/Margin • Improve Customer Loyalty and Retention • Help our customers, trading partners and suppliers drive operational excellence to improve financial performance

11. EDI: • For customers that have a MMIS/ERP System with an EDI module • Baxter continues to push because of large operational efficiencies • Rapid time to market potential and ubiquity in the market place • GHX: • Offers customers economies of scope (connectivity with multiple suppliers through one “pipe”) • Primary solution: MMIS/ERP integrated solution • Secondary solution: Internet browser solution • Exchanges “May” replace point to point EDI solution in the future • Self Service • Primarily for customers who do not have an EDI capability and are willing to manually key in orders • Provides an electronic solution for ordering products that no other eCommerce platform currently addresses (product potency and visibility to product allocation) • Offers existing EDI customers a web-based customer service tool (e.g., Order Inquiry, Invoice Reprint) • Offers personalization, branding, and cross-sell/upsell capability that will be difficult to implement in a neutral exchange model (GHX) and is not possible via EDI • B2B • Primarily for customers that have a MMIS/ERP System with no EDI capability and/or do not want to re-key orders via an Internet browser solution (i.e., CSS or GHX Internet browser solution)

12. U.S. EDI • 75,000 Transactions Per Day • 5,500 Trading Partners • 170 EDI Maps

13. EDI Transactions Inbound Transactions 110 – Air Freight Invoice 810 – Invoice 812 – Credit/Debit Adjustment 820 – EFT Payment / Remittance Advice 821 – Financial Information Reporting 823 – Lockbox (cash) 824 – Application Advice 844 – Product Transfer / Account Adjustment 850 – Purchase Order 856 – Ship Notice / Manifest 858 – Shipment Information 861 – Receiving Advice 867 – Product Transfer & Resale Report 945 – Warehouse Shipping Advice 947 – Inventory Adjustment ORDERS – Export orders from Europe, Canada, Australia, New Zealand Outbound Transactions 101 – Customer Master 810 – Invoice INVOIC – Export Invoice for Canada, Europe, Australia, New Zealand 820 – EFT Payment Order 828 – Debit Authorization 830 – Planning Schedule 831 – Payment Control Totals 832 – Price / Sales History 843 – Order Status 845 – Price Authorization 849 – Response to Product Transfer Adj. 852 – Product Activity 855 – Order Acknowledgment 856 – Shipment Notice / Manifest 867 – Product Transfer & Resale Report 940 – Warehouse sales order download

14. B2B – EDIINT & XML • 1,700 Transactions Per Day • 16 Transactions Supported

15. Current EC Footprint B2B Self Service EDI

16. Future EC Footprint B2B Self Service EDI

17. EC Operations – U.S. Project Prioritization Supply Chain Finance Division(s) CheckbookOwners Dir. EC, Business EC Development Project Requests (Approved by Checkbook owner) Dir. IBS Business Applications IBS = Integrated Business Systems This team is primary support for the business applications and they are facilitators/coordinators between IT and the Business teams

18. EC Operations – U.S. Project Development Supply Chain Finance Division(s) Dir. EC, Business EC Development Dir. IBS Business Applications

19. EC Operations – U.S. EC Support EC, Business Support Level 3 Level 1 EC Development Level 2 Dir. IBS Business Applications

20. EC Technical Competency Center

21. EC Business Team

22. Jerry White Manager, EC Development Baxter Healthcare Corporation Tel: 847-948-2432 Email: Jerry_White@Baxter.com