Solventum : Shareholder Letter (SOLV Q1 2025 Shareholder Letter)

May 14, 2025

Fellow Solventum shareholders,

One year ago, Solventum began its journey as a standalone public company. I am pleased to share that our flrst quarter 2025 results reflect positive momentum across all segments.

Based on positive business momentum, favorable foreign exchange and our proactive approach to mitigating anticipated tariff impacts, we've raised our annual revenue guidance while reaffirming our earnings per share outlook for 2025.

Our flrst quarter represents more than just flnancial performance - it marks the steady execution of our vision. It's a testament to our mission, disciplined approach to transformation and unwavering focus on creating long-term value for our shareholders and other stakeholders. I encourage you to explore our journey and the signiflcant value creation story we are building together.

Q1 Financial Highlights*

Four consecutive quarters of positive growth and sequential improvement

Sales

$2.1B

+2.6% total sales growth

Diluted GAAP EPS

$0.78

Diluted adjusted EPS

$1.34

Operating cash flow

$29M

+4.3% organic sales growth

*See non-GAAP flnancial measures and reconciliation schedules included in our Earnings Release dated May 8, 2025, which can be found on our Investor Relations website

Building momentum across all segments

Our flrst quarter results demonstrate that our transformation is gaining traction. We have delivered four consecutive quarters of positive volume growth across every segment, and sequential improvement highlights our accelerating momentum. Our flve strategic growth drivers are performing well, and we remain committed to investing in these key areas to drive continued and sustainable improvement in our growth.

MedSurg, our largest segment, reported strong results fueled by positive underlying business performance and favorable order patterns. Notably, in I.V. Site Management and Negative Pressure Wound Therapy, our team has successfully increased capacity to meet surging demand, while our newly dedicated commercial team continues to build on this positive momentum.

Dental Solutions is gaining traction with steady progress in Core Restoratives and the strategic bet area of custom smiles. Our recent product launches have been well received across the portfolio, reflecting our brand strength and deep customer trust, even as overall market volumes present challenges.

Phased approach to transformation

At the heart of Solventum is a shared passion for improving lives. In March, we introduced our long-term strategic plan at our Investor Day. We are executing this plan with urgency and precision across all three phases of our transformation - enhancing our mission, strengthening our talent and culture and expanding our innovation engine. This strategic clarity empowers us to deliver exceptional value to our customers worldwide and drive sustainable growth and value creation for you, our shareholders, even as we navigate evolving macroeconomic trends and other near-term pressures.

Phase 1 Capture hearts and minds and stabilize the business

Phase 2

Enhance strategic focus

Phase 3 Portfolio optimization

Health Information Systems, particularly within Revenue Cycle Management, delivered a measurable impact for our customers - streamlining workflows, improving operational efficiency and enhancing flnancial performance. Our advanced computer-assisted coding and emerging AI-driven autonomous coding technologies transform healthcare operations, driving precision and scalability in an increasingly digital environment. With deep market penetration and a high volume of recurring revenue, we are well positioned to accelerate innovation and expand our leadership in this critical space.

Updated 2025 Guidance

Reflects strong momentum1

Organic sales growth

increased 50 bps

+1.5% to+2.5%

Adjusted EPS

$5.45 to$5.65

No change2

Free cash flow

$450M to$550M

No change

1. Note: Guidance is for the whole company, including the Puriflcation & Filtration business.

2. Note: Strong performance in Q1 and expected business momentum, combined with the reduced expected impact of foreign exchange and other mitigating items, are expected to enable Solventum to absorb any evolving trade policy impact within our prior EPS guidance range.

Navigating challenges with strategic focus

While pleased with our underlying performance, we recognize the challenges ahead. Tariffs remain a signiflcant headwind for our business this year. Without this impact, our underlying momentum would have supported an earnings per share guidance increase. Our CFO, Wayde McMillan, has detailed our focused mitigation strategies, including proactive sourcing and operational adjustments. We are actively developing, analyzing, and implementing additional strategies to complement our strong operational performance.

A detailed discussion is available in the earnings replay on our Investor Relations page.

Looking ahead

As we continue executing our transformation, I am energized by the momentum we have built and the opportunities ahead. The dedication of our global team has been instrumental in driving this progress, and their commitment to innovation and operational excellence in shaping the future of healthcare in meaningful ways.

This is just the beginning of Solventum's value creation journey - rooted in sustainable growth, operational discipline and an unwavering focus on delivering returns for our shareholders while making a lasting impact on patients and healthcare providers worldwide.

We are committed to maintaining this momentum, and I look forward to sharing our continued progress with you in the months ahead. Sincerely,

Bryan Hanson

Chief Executive Officer Forward looking statements

This communication and other materials Solventum has flled or will flle with the U.S. Securities & Exchange Commission (and oral communications that Solventum may make) contain or incorporate by reference statements that relate to future events and expectations and, as such, constitute forward-looking statements

that involve risk and uncertainties. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Solventum's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts relating to discussions of future operations and flnancial performance (including volume growth, pricing, sales and earnings

per share growth and cash flows) and statements regarding Solventum's strategy for growth, future product development, regulatory clearances and approvals, competitive position and expenditures. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Solventum assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law. A further description of these factors is located under "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in Solventum's Annual Report on Form 10-K for the year ended December 31, 2024. Solventum assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments.

Non-GAAP financial measures

In addition to reporting flnancial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP flnancial measures are supplemental measures of our performance and our liquidity that we believe help investors understand our underlying business performance and Solventum uses these measures as an indication of the strength of Solventum and its ability to generate cash.

Solventum calculates forward-looking non-GAAP flnancial measures, including organic sales growth, adjusted operating income, adjusted operating income margin, adjusted effective tax rate, adjusted earnings per share, and free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP flnancial measures. Solventum does not provide reconciliations of these forward-looking non-GAAP flnancial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or divestitures, and the timing and magnitude of restructuring activities, among other items. The timing and amounts of these items are uncertain and could have a material impact on Solventum's results in accordance with GAAP.

The Q1 2025 flnancial statements and flnancial information, including reconciliations of non-GAAP flnancial measures, are available on Solventum's website: investors.solventum.com in its most recent quarterly report on Form 10-Q and earnings release.