jnj earnings presentation 4q2015

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4th Quarter 2015

Earnings Call Presentation

January 26, 2016

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Louise Mehrotra

Vice President

Investor Relations

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Note on Forward-Looking Statements These presentations contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and restructuring plans. The viewer is

cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying

assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and

projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to, economic factors, such as interest rate and currency exchange

rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges and uncertainties inherent

in new product development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and

existing products; impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to

successfully execute strategic plans, including on-going restructuring plans; any required consultation procedures relating to restructuring workforce

actions, the potential that the expected benefits and opportunities related to the restructuring may not be realized or may take longer to realize than

expected; market conditions and the possibility that the share repurchase program may be suspended or discontinued; significant adverse litigation or

government action, including related to product liability claims; changes to applicable laws and regulations, including global health care reforms; trends

toward health care cost containment; changes in behavior and spending patterns or financial distress of purchasers of health care products and services;

financial instability of international economies and legal systems and sovereign risk; manufacturing difficulties or delays, internally or within the supply

chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government

agencies; and the potential failure to meet obligations in compliance agreements with government bodies. A further list and description of these risks,

uncertainties and other factors can be found in Johnson & Johnsons Annual Report on Form 10-K for the fiscal year ended December 28, 2014, including Exhibit 99 thereto, and the companys subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.jnj.com, or on request from Johnson & Johnson. Any forward-looking statement made in these presentations speaks only as

of the date of these presentations. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or

future events or developments.

Note on Non-GAAP Financial Measures These presentations refer to certain non-GAAP financial measures. These non-GAAP financial measures should not be considered replacements for, and

should be read together with, the most comparable GAAP financial measures.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying

financial schedules of the earnings release and the Investor Relations section of the Companys website at www.investor.jnj.com.

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Strategic Partnerships, Collaborations and Licensing Arrangements During the course of this mornings presentations, we will discuss a number of products and compounds developed in collaboration with strategic partners or licensed from other companies. Following is an acknowledgement of those relationships.

Neuroscience: INVEGA SUSTENNA/XEPLION includes technology licensed from Alkermes, Inc.; RISPERDAL CONSTA developed in collaboration with Alkermes

Cardiovascular/Metabolism: XARELTO co-developed with Bayer HealthCare; INVOKANA/INVOKAMET licensed from Mitsubishi Tanabe Pharma Corporation

Immunology: REMICADE and SIMPONI marketing partners are Schering-Plough (Ireland) Company, a subsidiary of Merck & Co., Inc. and Mitsubishi Tanabe Pharma Corporation; sirukumab developed in collaboration with GlaxoSmithKline PLC

Infectious Diseases & Virology: OLYSIO in US, GALEXOS in Canada and SOVRIAD in Japan developed in collaboration with Medivir AB; PREZCOBIX / REZOLSTA fixed-dose combination and Rilpivirine +F/TAF FDC developed in collaboration with Gilead Sciences, Inc.

Oncology: VELCADE developed in collaboration with Millennium: The Takeda Oncology Company; IMBRUVICA developed in collaboration with Pharmacyclics, Inc.; DARZALEX licensed from Genmab A/S; ZYTIGA licensed from BTG International Ltd.; YONDELIS developed in collaboration with Pharma Mar S.A.

Orthopaedics: MONOVISC/ORTHOVISC licensed from Anika Therapeutics, Inc.

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4th Quarter 2015 Sales by Geographic Area

% Change

TOTAL COMPANY 4Q 2015 4Q 2014 Reported Operational*

U.S. $9.3 $8.6 8.0 8.0

Europe 4.0 4.6 (12.2) 0.8

Western Hemisphere

(ex U.S.) 1.4 1.8 (19.1) 2.8

Asia-Pacific, Africa 3.1 3.3 (7.1) 0.9

International 8.5 9.7 (11.7) 1.2

Worldwide (WW) $17.8 $18.3 (2.4) 4.4

* Excludes impact of translational currency

$ U.S. Billions, except EPS

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4th Quarter 2015 Financial Highlights


** Non-GAAP measure; excludes intangible amortization expense and special items; see reconciliation

$ U.S. Billions, except EPS

4Q 2015 4Q 2014 % Change

Sales $17.8 $18.3 (2.4) Total

4.4 Ops*

GAAP Earnings 3.2 2.5 27.5

GAAP EPS 1.15 0.89 29.2

Adjusted Earnings** 4.0 3.9 4.0

Adjusted EPS** 1.44 1.37 5.1 Total

12.4 Ops*

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2015 2014 % Change

Sales $70.1 $74.3 (5.7) Total

1.8 Ops*

GAAP Earnings 15.4 16.3 (5.6)

GAAP EPS 5.48 5.70 (3.9)

Adjusted Earnings** 17.4 18.3 (4.8)

Adjusted EPS** 6.20 6.39 (3.0) Total

5.8 Ops*

Free Cash Flow*** 15.9 14.8 7.4

Full Year 2015 Financial Highlights


** Non-GAAP measure; excludes special items; see reconciliation

*** Non-GAAP measure; defined as operating cash flow less capital spending; estimated as of 1/26/16

$ US Billions, except EPS

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Consumer Highlights 4th Quarter 2015

Key Drivers of Operational Performance*

Skin Care

U.S. negatively impacted by timing of shipments and

inventory builds

OUS new products partially offset by soft sales in China

Women's Health

OUS new products & sales momentum

Wound Care/Other

Excluding divestitures +~6.5%

Total Consumer

Excl. net impact of Acq./Div.**, WW growth +4.7%, U.S.

+1.7%, OUS +6.3%

Additional shipping days contributed ~4% to J&J WW

growth

Baby Care

New product launches partially offset by soft sales in China

Oral Care

LISTERINE successful marketing campaigns &

geographic expansion

OTC

U.S. ZYRTEC strong consumption & re-launched

digestive health products

U.S. analgesics +3% share growth partially offset by slow

start to flu season U.S. adult $ share ~13.5%

U.S. pediatric $ share ~45.5%

OUS growth driven by upper respiratory including inventory

build & anti-smoking product

re-launches

Sales: $3.3B Ops Change*: WW 1.8%, U.S. (4.9%), Intl 5.5%

CONSUMER

SEGMENT

TOTAL WW

SALES $MM

REPORTED

% GROWTH

OPERATIONAL

% GROWTH*

Baby Care $484 (7.6%) 3.7%

Oral Care 408 (1.4) 8.2

OTC 1,045 (2.6) 8.2

Skin Care 871 (8.9) (1.1)

Womens Health

283 (8.1) 7.4

Wound

Care/Other 229 (30.8) (26.7)

Total

Consumer $3,320 (7.9%) 1.8%

* Excludes impact of translational currency ** Non-GAAP measure; see reconciliation

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Pharmaceutical Highlights 4th Quarter 2015


Oncology (cont.)

Strong launch of DARZALEX

ZYTIGA strong U.S. market growth

partially offset by share decline

OUS - strong sales in Asia

Pac/Africa; Canada and LA partially

offset by lower sales in Europe due to

increased competition

Cardiovascular / Metabolism /

Other**

INVOKANA/INVOKAMET achieved

6.5% TRx share in defined U.S. T2D

market and ~13%TRx share with

endocrinologists

XARELTO continued novel oral

anticoagulant U.S. market leadership;

16.1% TRx share of broader oral

anticoagulant market

Total Pharmaceutical

Excl. net impact of Acq/Div and Hep C

sales***, WW growth +11.1%, U.S.

+21.0% and OUS -0.2%

Additional shipping days contributed

~4% to J&J WW growth

Immunology

Strong U.S. immunology market

growth and increased penetration

of SIMPONI ARIA

OUS - Strong results for STELARA

due to increased penetration of PsA

indication partially offset by lower

sales to distribution partner for

REMICADE and SIMPONI

Infectious Diseases

Lower sales of hepatitis C products

due to competitive launches

Increased sales of HIV products with

introduction of PREZCOBIX

Neuroscience

Long-acting injectable products

growth of +13% WW ;+30% U.S.;

uptake of INVEGA TRINZA

CONCERTA positive impact of

reclassification of generic competitor

products in U.S.

Oncology

Sales of IMBRUVICA due to

strong patient uptake, additional

country launches; US share leader

2nd line CLL & MCL

Sales: $8.1B Ops Change*: WW 6.5%, U.S. 12.7%, Intl (0.9%)

PHARMACEUTICAL

SEGMENT

TOTAL WW

SALES $MM

REPORTED

% GROWTH

OPERATIONAL

% GROWTH*

Immunology $2,771 7.5% 11.7%

Infectious Diseases 801 (25.6) (20.4)

Neuroscience 1,601 (3.0) 3.9

Oncology 1,273 5.0 14.8

Cardiovascular/

Metabolism/ Other ** 1,618 9.2 13.0

Total Pharma $8,064 0.8% 6.5%


** Previously referred to as Other *** Non-GAAP measure; see reconciliation

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Medical Devices Highlights 4th Quarter 2015


Orthopaedics (cont.)

Results OUS were negatively impacted by softer demand and a reduction in

inventory levels primarily in China

Pricing pressure across major categories partially offset by mix for Trauma & Spine

Surgery

Advanced endocutters +15%, biosurgicals +9%, energy +5%

General Lower sales of womens health & urology partially offset by growth in

sutures & topical adhesives

Specialty growth driven by ASP & Mentor products

Vision Care

Strong growth in U.S. due to new product introductions & trade inventory build

Total Medical Devices

Excl. net impact of Acq./Div.**, WW growth +5.8%, U.S. +8.0%, OUS +3.9%

Additional shipping days contributed ~4% to J&J WW growth

Cardiovascular

WW electrophysiology +19%; driven by strong growth of THERMOCOOL

SMARTTOUCH Contact Force

Sensing Catheter

Impacted by divestiture of Cordis business in 4Q 2015

Diabetes

ANIMAS VIBE strong double digit growth & SMBG volume growth

partially offset by lower price

Diagnostics

Divestiture of Ortho-Clinical Diagnostics in June 2014

Orthopaedics

Hips - driven by primary stem platform

Knees - strong sales of ATTUNE Knee System

Trauma global launch of TFNA nail

Spine & Other - ORTHOVISC

/MONOVISC strong contributor to

growth; WW Spine (2%), U.S. +3%,

OUS (9%),

Sales: $6.4B Ops Change*: WW 3.4%, U.S. 6.7%, Intl 0.6%

MEDICAL DEVICES

SEGMENT

TOTAL WW

SALES $MM

REPORTED

% GROWTH

OPERATIONAL

% GROWTH*

Cardiovascular $439 (21.3%) (16.4%)

Diabetes 480 (6.6) 2.2

Diagnostics 24 71.4 N/M

Orthopaedics 2,423 (0.7) 4.5

Hips 354 1.1 6.4

Knees 405 1.0 5.5

Trauma 644 0.8 6.3

Spine & Other 1,020 (2.9) 2.4

Surgery 2,413 (2.5) 4.7

Advanced 870 2.5 9.7

General 1,147 (8.5) (1.0)

Specialty 396 5.9 12.4

Vision Care 648 0.3 8.4

Total Med Dev $6,427 (3.3%) 3.4%

* Excludes impact of translational currency ** Non-GAAP measure; see reconciliation

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Important Developments in 4th Quarter 2015 Pharmaceutical:

U.S. Food and Drug Administration (FDA) approval of DARZALEX (daratumumab) for the treatment of double refractory multiple myeloma

U.S. FDA approval of YONDELIS (trabectedin) for the treatment of patients with unresectable or metastatic liposarcoma or leiomyosarcoma

European Commission approval of EDURANT (rilpiravine) in combination with other anti-retroviral agents, for treatment-nave adolescent patients aged 12 to 18 years with human immunodeficiency virus-1 (HIV-1) infection

U.S. FDA New Drug Application (NDA) submitted for INVOKAMET XR, a once-daily therapy combining fixed doses of canagliflozin and metformin hydrochloride extended release for the treatment of adults with type 2 diabetes

U.S. FDA and European Medicines Agency (EMA) submissions for STELARA (ustekinumab) for the treatment of adult patients with moderately to severely active Crohn's disease

U.S. FDA and EMA submissions for IMBRUVICA (ibrutinib) for patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma in combination with bendamustine and rituximab; EMA submission for patients with relapsed/refractory mantle cell lymphoma

European Extension Marketing Authorization Application submitted for IMBRUVICA (ibrutinib) for treatment-nave chronic lymphocytic leukemia

Completion of the acquisition of Novira Therapeutics, Inc.

Medical Devices:

U.S. FDA approved the pediatric indication for the Animas Vibe insulin pump

Completion of the acquisition of Coherex Medical, Inc.

The company announced the restructuring of certain Medical Devices businesses

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Alex Gorsky

Chairman of the Board

&

Chief Executive Officer

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Our Responsibility to Help Lead

the Way to A Better Future

Growing Global Challenge:

Aging population

Rising costs in health care

Growing middle classes in emerging economies

Access to quality health care

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BROAD GLOBAL

FOOTPRINT

PARTNER OF

CHOICE

ENTERPRISE

CAPABILITIES &

EFFICIENCIES

BREAKTHROUGH

INNOVATION

STRONG

FINANCIAL

PERFORMANCE

Our Broad-Base Advantage

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Creating Value Through Global Reach

& Local Focus

New operating models

Strong relationships with local governments/health systems;

medical communities

Robust investments in market appropriate portfolios

and R&D centers

Strategic acquisitions and partnerships with local players

to further accelerate growth

to reach more consumers and patients

Building on a strong position

2015 Sales: $70.1B

80% Developed

20% Emerging

51% US

49% OUS

BROAD GLOBAL

FOOTPRINT

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Johnson & Johnson as the Partner of Choice

Johnson & Johnson

Differentiators:

Scale and depth

Financial flexibility

Breadth of business and health care expertise

Hospital Systems

Early-Stage Innovators

Information Technology Companies

CUSTOMER

SOLUTIONS

Public Health

Organizations

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Insulin Glucagon

Somatostatin DAPI

Cell Therapy

for Diabetes

Developing a

combination biologic-

device product with

insulin producing cells

encapsulated in an

immune-isolation device

Obesity / Diabetes

Leveraging innovative

device, pharma and

consumer capabilities

to treat and / or

prevent obesity and

diabetes

Eye Health

Bringing together novel

pharma / surgical / cell

based therapies and

vision care insights

and technologies for

a comprehensive

approach

Cell Therapy for AMD

Bringing together

novel pharma / vision

technologies for an

innovative therapy

treatment for age-

related macular

degeneration

Driving Innovation with Cross-Segment Collaborations

PHARMACEUTICAL MEDICAL DEVICES CONSUMER

China Lung

Cancer Center

Developing a holistic

approach to treat lung

cancer in China

BREAKTHROUGH

INNOVATION

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Enterprise Capabilities to Enable

Our Business ENTERPRISE

CAPABILITIES &

EFFICIENCIES

Our Strategy

Enable business growth through supply chain

innovation

Make quality a competitive advantage, focused on

prevention

Set new benchmarks for medical safety

Leverage Enterprise Standards

and Productivity to drive

business growth

Our Actions and Results

One Johnson & Johnson Supply Chain

Implemented the Johnson & Johnson Quality Policy and

quality standards across our

Family of Companies

Clinical research transparency: Johnson & Johnson / Yale Open

Data Access agreement

Achieving operational savings to support our growth: Targeting $1B

by 2018

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A Strong, Consistent, Sustainable Business STRONG FINANCIAL

PERFORMANCE

* Non-GAAP measure; excludes intangible amortization expense, special items and the impact of translational currency

** Inclusive of the April 2015 dividend declaration

*** Non-GAAP measure; defined as operating cash flow less capital spending; estimated as of 1/22/16

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Performance Driven Strategy

GROW SALES

FASTER

THAN THE

MARKET

GROW EARNINGS

FASTER THAN

SALES

CREATE VALUE

THROUGH

STRATEGIC

ACQUISITIONS &

PARTNERSHIPS

COMPELLING

LONG-TERM

TOTAL

SHAREHOLDER

RETURNS

GENERATE

STRONG

DIVIDEND YIELD

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Our Near-Term Priorities

ENTERPRISE Delivering on our financial and quality commitments

PHARMACEUTICAL Continuing to build on our launch excellence

and robust pipeline

MEDICAL DEVICES Accelerating growth through innovation and transforming

our go-to-market models

CONSUMER Expanding market leadership in key segments within OTCs,

Oral Care, Baby and Beauty

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A Market Leader Across All Segments

Market Leadership

One of the largest and fastest growing Pharmaceutical companies in

the world

Most comprehensive Medical Devices business in the world

Market-leading Consumer Health Care company, with trusted brands

endorsed by professionals globally

2015 Sales: $70.1B*

Pharma

Medical

Devices

$28.5B

$28.1B

$14.7B

Consumer

$25.1B

$31.4B

$13.5B

* The sum of the segments do not equal the total due to rounding

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Our Strategy

Focus innovation on

five therapeutic areas

Deliver continued growth with

our current core billion-dollar-

plus products

Maximize our existing

in-market portfolio, which

includes seven products

launched since 2009 that have

multi-billion dollar potential

Invest in our future with 10

new products we plan to file by

2019, each with billion-dollar-

plus potential


16 new product launches

since 2009, driving cumulative

sales of ~$41B

6 new products1 achieved

>$1B in sales in last 12 months

U.S. approval for DARZALEX,

the first human monoclonal

antibody, 4 months ahead

of schedule

More than 70 novel compounds

in early development and

approximately 150 ongoing

discovery projects

Pharmaceutical

Industry-Leading Pipeline and Commercial Excellence

1 Products launched since 2009

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Pharmaceutical

Key Pipeline Events for 2016 Potential Approvals*

DARZALEXTM Double Refractory Multiple Myeloma (EU)

IMBRUVICA CLL Frontline (US/ EU)

MCL Relapsed (EU)

CLL 2nd Line No prior Bendamustine (US/ EU)

INVOKAMET Initial Therapy Fixed Dose with Metformin (US)

INVOKAMET XR Fixed Dose Combo with Metformin XR (US)

3-Month Paliperidone

Palmitate Schizophrenia (EU)

STELARA Crohns Disease (US)

EDURANT STR Single tablet regimen for HIV (US/ EU) (Rilpivirine + F/TAF FDC)

Planned Submissions

Sirukumab Rheumatoid Arthritis (US/ EU)

Guselkumab Psoriasis (US/ EU)

DARZALEXTM Relapsed/Refractory Multiple

Myeloma (US/EU)

Potential Clinical Data Presentations

Phase 3

DARZALEXTM Relapsed/Refractory Multiple Myeloma

Guselkumab Psoriasis

SIMPONI /

SIMPONI ARIA AS, PsA and UC

Sirukumab Rheumatoid Arthritis

STELARA Crohns Disease

INVEGA TRINZA Schizophrenia

ZYTIGA Prostate cancer

Phase 2

3DAA FDC (AL-335 + odalasvir + simeprevir) Hepatitis C

IMBRUVICA Refractory Follicular Lymphoma

* Based on submissions in 2015

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Our Strategy

Focus on key consumer need states

and 12 megabrands

Leverage new marketing models and brand-building

competitive advantage

Develop insight-led innovation grounded in

science, endorsed by

professionals

Improve margins by reducing costs and

complexity


Delivered double-digit growth in key emerging

markets like Russia, India and

Brazil*

Exceeded market share in Oral Care, Feminine Care

and US OTC

Nearly all OTC products returned to shelves with

additional sizes and flavors

to be introduced during 2016

FDA notification that all of our US OTC manufacturing

facilities are in conformity

Consumer

Iconic Brands and Unparalleled Consumer Insights

* Operational growth vs. full year 2014

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Our Strategy

Drive growth in priority platforms through innovation

and launch excellence

Sustain our leadership in foundation platforms

Leverage our breadth and scale through novel

commercial models

Invest in areas of significant unmet need


Strong sales performance in endocutters, biosurgicals and

electrophysiology*

Shifting more resources to priority platforms and key markets

Ethicon and DePuy Synthes Joint Reconstruction and Spine, now

co-selling in over 1200 accounts

Acquisition of Coherex Medical in the area of atrial fibrillation and

surgical robotics collaboration

with Verily

Medical Devices

Comprehensive Portfolio and Accelerated Growth Strategy

* Operational growth vs. full year 2014

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Key Takeaways

Focusing on near-term priorities

Delivering on our financial and quality commitments

Building on pharmaceutical launch excellence

& robust pipeline

Accelerating our growth in Medical Devices

through innovation and by transforming our

go-to-market models

Expanding our market leadership in key consumer

segments: OTC, Oral Care, Baby and Beauty

Positioned well for the future

Broad base in health care a competitive advantage

Optimistic about opportunities in

health care

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Dominic Caruso

Vice President, Finance

&

Chief Financial Officer

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Full Year 2015 Condensed Consolidated Statement of Earnings (Unaudited; Dollars and Shares in Millions Except Per Share Figures)

31

4th Quarter 2015 Condensed Consolidated Statement of Earnings (Unaudited; Dollars and Shares in Millions Except Per Share Figures)

32

2015** 2014

Adjusted Income Before Tax by Segment*

* Non-GAAP measure; excludes amortization expense and special items; see reconciliation at www.investor.jnj.com

** Estimated as of 1/26/16.

$22.0B $22.8B

Pharmaceutical

Medical Devices

Consumer

Expenses Not Allocated

to Segments

2015 2014

Pharmaceutical 39.1% 39.6%

Medical Devices 35.6% 32.0%

Consumer 14.3% 15.4%

Total 31.4% 30.7%

% to Sales

$12.8

$8.8

$2.2 $1.9

$8.9

$12.3

($1.1) ($1.0)

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Save the Date

Consumer and Medical Device Business Review

Wednesday, May 18, 2016

Hyatt Regency, New Brunswick

jnj earnings presentation 4q2015

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