2015 Historical Financial Review

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primarily by financial analysts to assist in a detailed financial analysis. While this document does include abbreviated
2015 Historical Financial Review

Historical Financial Review

T

he Historical Financial Review is prepared once per year and is available on line at www.investor.jnj.com. It is intended to supplement the Annual Report and other SEC filings and be used primarily by financial analysts to assist in a detailed financial analysis. While this document does include abbreviated financial statements, it is not a substitute

for the more detailed financial statements (including footnotes) found in the Annual Report and other SEC filings. We appreciate your comments and suggestions on ways to improve this document and will attempt to incorporate them into future editions.

Index Introduction Five –Year Selected Financial Data Description of Major Business Franchises Balance Sheets, Statements of Earnings, Statements of Cash Flows Segments of Business Information Geographical Areas Sales Growth Rates Quarterly Sales and Earnings Information Historical Sales and Net Earnings Stock Split and Share Repurchase Information Historical Common Stock Information Reconciliation of Non-GAAP Measures Corporate and Shareholder/Investor Information

Page 1 2 3-4 5-7 8-9 10 11 12-15 16 17 18-19 20 21

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Johnson & Johnson and Subsidiaries: Five-Year Selected Financial Data 2011-2015 (Dollars in Millions Except Per Share Figures)

2015

Operating Results Sales to customers Earnings before provision for taxes on income Net earnings attributable to J&J (2) Basic net earnings per share Diluted net earnings per share

$

(1)

2014

70,074 19,196 15,409 5.56 5.48

(1)

2013

(1)

2012 (1)

2011 (1)

74,331 20,563 16,323 5.80 5.70

71,312 15,471 13,831 4.92 4.81

67,224 13,775 10,853 3.94 3.86

65,030 12,361 9,672 3.54 3.49

27.7 22.0 20.6 22.7 12.5

21.7 19.4 10.6 19.9 10.5

20.5 16.1 23.7 17.8 8.9

19.0 14.9 21.8 17.0 8.5

Statistics Before tax margin Net profit margin (2) Effective tax rate Return on average shareholders' equity Return on total assets

27.4 22.0 19.7 21.9 11.6

%

Capital Structure Cash and Current Marketable Securities Debt Equity Total capital Net cash/(debt)

$

38,376

33,089

29,206

21,089

32,261

$

19,861 71,150 91,011 18,515

18,760 69,752 88,512 14,329

18,180 74,053 92,233 11,026

16,165 64,826 80,991 4,924

19,627 57,080 76,707 12,634

21.2

19.7

20.0

25.6

$

2.950 25.82 102.72 2,771.8 2,812.9 $ 8,173

2.760 25.06 105.06 2,815.2 2,863.9 7,768

2.590 26.25 92.35 2,809.2 2,877.0 7,286

2.400 23.33 69.48 2,753.3 2,812.6 6,614

2.250 20.95 65.58 2,736.0 2,775.3 6,156

$ 133,411 9,046 3,463 127.1

130,358 8,494 3,714 126.5

131,754 8,183 3,595 128.1

121,347 7,665 2,934 127.6

113,644 7,548 2,893 117.9

Total debt/total capital

21.8

$ %

Common Stock Information Dividends paid per share Shareholders' equity per share Market price per share (year end close) Average shares outstanding (mm) - basic - diluted Cash dividends Other Data Total assets* Research & development expense Capital expenditures Number of employees (thousands)

(1) For Adjusted earnings (before and after tax) and adjusted earnings per share, see Reconciliation of Non-GAAP Measures on Page 20. (2) After noncontrolling interests * Prior year amounts have been reclassified to conform to current year presentation

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Description of Major Business Franchises Consumer Segment The Consumer segment includes a broad range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. Baby Care includes the JOHNSON’S® line of products. Oral Care includes the LISTERINE® product line. Major brands in Skin Care include the AVEENO®; CLEAN & CLEAR®; DABAO™; JOHNSON’S® Adult; LE PETITE MARSEILLAIS®; LUBRIDERM®; NEUTROGENA®; and RoC® product lines. Over-the-counter medicines include the broad family of TYLENOL® acetaminophen products; SUDAFED® cold, flu and allergy products; BENADRYL® and ZYRTEC® allergy products; MOTRIN® IB ibuprofen products; and the PEPCID® line of heartburn products. Major brands in Women’s Health outside of North America are STAYFREE® and CAREFREE® sanitary pads and o.b.® tampon brands. Wound Care brands include the BAND-AID® Brand Adhesive Bandages and NEOSPORIN® First Aid product lines. These products are marketed to the general public and sold both to retail outlets and distributors throughout the world. Worldwide Consumer sales of $13.5 billion for the full-year 2015 represented a decrease of 6.8% versus the prior year, consisting of an operational increase of 2.7% and a negative impact from currency of 9.5%. U.S. sales increased 2.5%; international sales decreased 11.9%, which reflected an operational increase of 2.7% and a negative currency impact of 14.6%. In 2015, divestitures had a negative impact of 1.4% on the worldwide Consumer segment operational growth.

Medical Devices Segment The Medical Devices segment includes a broad range of products used in the orthopaedic, surgery, cardiovascular, diabetes care and vision care fields. These products are distributed to wholesalers, hospitals and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics. They include orthopaedic products; general surgery, biosurgical, endomechanical and energy products; electrophysiology products to treat cardiovascular disease; sterilization and disinfection products to reduce surgical infection; diabetes care products, such as blood glucose monitoring and insulin delivery products; and disposable contact lenses. The Medical Devices segment sales in 2015 were $25.1 billion, a decrease of 8.7% from 2014, which included an operational decline of 1.4% and a negative currency impact of 7.3%. U.S. sales were $12.1 billion, a decrease of 1.0% as compared to the prior year. International sales were $13.0 billion, a decrease of 14.8% as compared to the prior year, with an operational decrease of 1.7% and a negative currency

impact of 13.1%. In 2015, the divestitures of the OrthoClinical Diagnostics and the Cordis Businesses had a negative impact of 3.2% and 0.6%, respectively, on the worldwide operational growth of the Medical Devices segment as compared to 2014.

Pharmaceutical Segment The Pharmaceutical segment is focused on five therapeutic areas: immunology (e.g., rheumatoid arthritis, inflammatory bowel disease and psoriasis), infectious diseases and vaccines (e.g., HIV, hepatitis, respiratory infections and tuberculosis), neuroscience (e.g., Alzheimer's disease, mood disorders and schizophrenia), oncology (e.g., prostate cancer, hematologic malignancies and lung cancer), and cardiovascular and metabolic diseases (e.g., thrombosis and diabetes). Products in this segment are distributed directly to retailers, wholesalers, hospitals and health care professionals for prescription use. Key products in the Pharmaceutical segment include: REMICADE® (infliximab), a treatment for a number of immune-mediated inflammatory diseases; SIMPONI® (golimumab), a subcutaneous treatment for adults with moderate to severe rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis and moderately active to severely active ulcerative colitis; SIMPONI ARIA® (golimumab), an intravenous treatment for adults with moderate to severe rheumatoid arthritis; STELARA® (ustekinumab), a treatment for adults with moderate to severe plaque psoriasis and active psoriatic arthritis, and for adolescents with moderate to severe psoriasis; OLYSIO® /SOVRIAD® (simeprevir), for combination treatment of chronic hepatitis C in adult patients; PREZISTA® (darunavir), EDURANT® (rilpivirine), and PREZCOBIX® /REZOLSTA® (darunavir/cobicistat), antiretroviral medicines for the treatment of human immunodeficiency virus (HIV-1) in combination with other antiretroviral products; SIRTURO® (bedaquiline), a diarylquinoline antimycobacterial drug indicated as part of combination therapy in adults (>18 years) with pulmonary multi-drug resistant tuberculosis (MDR-TB); CONCERTA® (methylphenidate HCl) extended-release tablets CII, a treatment for attention deficit hyperactivity disorder; INVEGA® (paliperidone) extended-release tablets, for the treatment of schizophrenia and schizoaffective disorder; INVEGA SUSTENNA® /XEPLION® (paliperidone palmitate), for the treatment of schizophrenia and schizoaffective disorder in adults; INVEGA TRINZA® (paliperidone palmitate), for the treatment of schizophrenia in patients after they have been adequately treated with INVEGA SUSTENNA® for at least four months; RISPERDAL CONSTA® (risperidone long-acting injection), for the treatment of schizophrenia and the

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Pharmaceutical Segment (Cont.) maintenance treatment of Bipolar 1 Disorder in adults; VELCADE® (bortezomib), a treatment for multiple myeloma and for use in combination with rituximab, cyclophosphamide, doxorubicin and prednisone for the treatment of adult patients with previously untreated mantle cell lymphoma; ZYTIGA® (abiraterone acetate), used in combination with prednisone as a treatment for metastatic castration-resistant prostate cancer; IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, or blood cancers, and TM Waldenström's Macroglobulinemia; DARZALEX (daratumumab), for the treatment of double refractory multiple myeloma; YONDELIS® (trabectedin), for the treatment of patients with unresectable or metastatic liposarcoma or leiomyosarcoma who received a prior anthracycline-containing regimen; PROCRIT® (epoetin alfa, sold outside the U.S. as EPREX®), to stimulate red blood cell production; XARELTO® (rivaroxaban), an oral anticoagulant for the prevention of deep vein thrombosis (DVT), which may lead to pulmonary embolism (PE) in patients undergoing hip or knee replacement surgery, to reduce the risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation, for the treatment and reduction of risk of recurrence of DVT and PE; INVOKANA® (canagliflozin), for the treatment of adults with type 2 diabetes; and INVOKAMET® /VOKANAMET® (canagliflozin/metformin HCl), a combination therapy of fixed doses of canagliflozin and metformin hydrochloride for the treatment of adults with type 2 diabetes. Many of these medicines were developed in collaboration with strategic partners or are licensed from other companies and maintain active lifecycle development programs. Worldwide Pharmaceutical sales of $31.4 billion for the fullyear 2015 represented a decrease of 2.7% versus the prior year with an operational increase of 4.2% and a negative impact from currency of 6.9%. U.S. sales increased 5.2%; international sales decreased 12.0%, which reflected an operational increase of 3.0% and a negative currency impact of 15.0%. In 2015, acquisitions, divestitures and Hepatitis C sales had a negative impact of 6.8% on the Pharmaceutical segment worldwide operational sales growth. With 12 new medicines launched since 2011, our Pharmaceutical segment is one of the fastest growing of the top 10 pharmaceutical businesses in the U.S., Europe and Japan, and our medicines are making a dramatic impact.

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Johnson & Johnson and Subsidiaries: Consolidated Balance Sheets Assets Current assets Cash and cash equivalents Marketable securities Accounts receivable trade, less allowance for doubtful accounts Inventories Other current assets Total current assets

2015 $

Liabilities and Shareholders' Equity Current liabilities Loans and notes payable Accounts payable Accrued liabilities Accrued taxes on income Total current liabilities

2013*

13,732 24,644 10,734 8,053 3,047 60,210

14,523 18,566 10,985 8,184 3,486 55,744

20,927 8,279 11,713 7,878 4,003 52,800

15,905 47,393 9,903

16,126 49,054 9,434

16,710 50,745 11,499

$

133,411

130,358

131,754

$

7,004 6,668 13,325 750 27,747

3,638 7,633 13,314 446 25,031

4,852 6,266 13,787 738 25,643

12,857 21,657 62,261

15,122 20,453 60,606

13,328 18,730 57,701

3,120 (13,165) 103,879 93,834

3,120 (10,722) 97,245 89,643

3,120 (2,860) 89,493 89,753

22,684

19,891

15,700

Property, plant and equipment, net Intangible assets, net and Goodwill Other non-current assets Total assets

2014*

Long-term debt Other long-term liabilities Total liabilities Shareholders' equity Common stock Accumulated other comprehensive income Retained earnings

Less: common stock held in treasury, at cost Total shareholders' equity

$

71,150

69,752

74,053

Total liabilities and shareholders' equity

$

133,411

130,358

131,754

* Prior year amounts have been reclassified to conform to current year presentation

5

Johnson & Johnson and Subsidiaries: Consolidated Statements of Earnings 2014 (1)

2015 (1)

Sales to customers

$

70,074

$

74,331

2013 (1)

$

71,312

2012 (1)

$

67,224

2011 (1)

$

65,030

Cost of products sold Gross profit

21,536 48,538

22,746 51,585

22,342 48,970

21,658 45,566

20,360 44,670

Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized Other (income) expense, net Restructuring

21,203 9,046 224 (128) 552 (2,064) 509

21,954 8,494 178 (67) 533 (70) -

21,830 8,183 580 (74) 482 2,498 -

20,869 7,665 1,163 (64) 532 1,626 -

20,969 7,548 (91) 571 2,743 569

Earnings before provision for taxes on income Provision for taxes on income

19,196 3,787

20,563 4,240

15,471 1,640

13,775 3,261

12,361 2,689

Net earnings Add: Net loss attributable to noncontrolling interests Net earnings attributable to Johnson & Johnson

15,409 15,409

16,323 16,323

13,831 13,831

10,514 339 10,853

9,672 9,672

Basic net earnings per share attributable to J&J Diluted net earnings per share attributable to J&J

Ratios to Sales Sales to customers Cost of products sold Gross profit Selling, marketing & administrative expense Research and development expense Earnings before provision for taxes on income Provision for taxes on income Net earnings attributable to Johnson & Johnson

$ $

5.56 5.48

100.0% 30.7 69.3 30.3 12.9 27.4 5.4 22.0

$ $

5.80 5.70

100.0% 30.6 69.4 29.5 11.4 27.7 5.7 22.0

$ $

4.92 4.81

100.0% 31.3 68.7 30.6 11.5 21.7 2.3 19.4

$ $

3.94 3.86

100.0% 32.2 67.8 31.0 11.4 20.5 4.9 16.1

$ $

3.54 3.49

100.0% 31.3 68.7 32.3 11.6 19.0 4.1 14.9

(1) For adjusted earnings (before and after tax) and adjusted earnings per share, see Reconciliation of Non-GAAP Measures on Page 20.

6

Johnson & Johnson and Subsidiaries: Consolidated Statements of Cash Flows 2015

Cash flows from operations Net earnings Adjustments to reconcile net earnings to cash flows: Depreciation and amortization of property and intangibles Stock Based Compensation Venezuela adjustments Asset write-downs Net gain on sale of assets/businesses Net gain on equity investment transactions Deferred tax provision Accounts receivable allowances Changes in assets and liabilities, net of effects from acquisitions: Increase in accounts receivable Increase in inventories (Decrease)/Increase in accounts payable and accrued liabilities Decrease/(Increase) in other current and non-current assets Increase/(Decrease) in other current and non-current liabilities Net cash flows from operating activities

2013

15,409

16,323

3,746 874 122 624 (2,583) (270) 18

3,895 792 87 410 (2,383) 441 (28)

4,104 728 108 739 (113) (417) (607) (131)

(433) (449) (3) 65 2,159 19,279

(247) (1,120) 955 442 (1,096) 18,471

(632) (622) 1,821 (1,693) 298 17,414

Cash flows from investing activities Additions to property, plant and equipment Proceeds from the disposal of assets / businesses, net Acquisitions, net of cash acquired Purchases of investments Sales of investments Other Net cash used by investing activities

(3,463) 3,464 (954) (40,828) 34,149 (103) (7,735)

(3,714) 4,631 (2,129) (34,913) 24,119 (299) (12,305)

(3,595) 458 (835) (18,923) 18,058 (266) (5,103)

Cash flows from financing activities Dividends to shareholders Repurchase of common stock Proceeds from short-term debt Retirement of short-term debt Proceeds from long-term debt Retirement of long-term debt Proceeds from the exercise of stock options/excess tax benefits Other Net cash used by financing activities

(8,173) (5,290) 2,416 (1,044) 75 (68) 1,295 (57) (10,846)

(7,768) (7,124) 1,863 (1,267) 2,098 (1,844) 1,782 (12,260)

(7,286) (3,538) 1,411 (1,397) 3,607 (1,593) 2,649 56 (6,091)

Effect of exchange rate changes on cash and cash equivalents (Decrease)/Increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

(1,489) (791) 14,523 13,732

(310) (6,404) 20,927 14,523

(204) 6,016 14,911 20,927

$

617 515 2,865

603 488 3,536

596 491 3,155

$

1,196 16

1,170 17

743 22

Acquisition of businesses Fair value of assets acquired Fair value of liabilities assumed and noncontrolling interests

$

1,174 (220)

2,167 (38)

1,028 (193)

Net cash paid for acquisitions

$

954

2,129

835

Supplemental cash flow data Cash paid during the year for: Interest Interest, net of amount capitalized Income taxes Supplemental schedule of non-cash investing and financing activities Treasury stock issued for employee compensation and stock option plans, net of cash proceeds Conversion of debt

$

2014

$

13,831

7

Johnson & Johnson and Subsidiaries: Segments of Business Sales to Customers Consumer United States International Total Pharmaceutical United States International Total Medical Devices United States International Total Worldwide United States International Total Income Before Tax Consumer Pharmaceutical Medical Devices Segments Total Less: Expenses not allocated to segments (6) Worldwide Total

2015 (1) $

$

$

$

Income Before Tax as % of Segment Sales Consumer Pharmaceutical Medical Devices Segments Total Worldwide Total Identifiable Assets Consumer Pharmaceutical Medical Devices Segments Total General corporate (7) Worldwide Total

$

2013 (3)

2012 (4)

2011 (5)

5,222 8,285 13,507

5,096 9,400 14,496

5,162 9,535 14,697

5,046 9,401 14,447

5,151 9,732 14,883

18,333 13,097 31,430

17,432 14,881 32,313

13,948 14,177 28,125

12,421 12,930 25,351

12,386 11,982 24,368

12,132 13,005 25,137

12,254 15,268 27,522

12,800 15,690 28,490

12,363 15,063 27,426

11,371 14,408 25,779

35,687 34,387 70,074

34,782 39,549 74,331

31,910 39,402 71,312

29,830 37,394 67,224

28,908 36,122 65,030

1,787 11,734 6,826 20,347 1,151 19,196

1,941 11,696 7,953 21,590 1,027 20,563

1,973 9,178 5,261 16,412 941 15,471

1,693 6,075 7,187 14,955 1,180 13,775

2,096 6,406 5,263 13,765 1,404 12,361

13.2% 37.3% 27.2% 29.0% 27.4%

$

2014 (2)

20,772 26,144 40,979 87,895 45,516 133,411

13.4 36.2 28.9 29.0 27.7

21,813 25,803 41,445 89,061 41,297 130,358

13.4 32.6 18.5 23.0 21.7

23,711 23,783 44,585 92,079 39,675 131,754

11.7 24.0 26.2 22.2 20.5

24,131 23,219 42,926 90,276 31,071 121,347

14.1 26.3 20.4 21.2 19.0

24,210 23,747 23,609 71,566 42,078 113,644

(1) 2015 income before tax includes a restructuring charge of $590 million, an intangible asset write-down of $346 million related to Acclarent, Synthes integration costs of $196 million and $148 million expense for the cost associated with the DePuy ASR TM Hip program in the Medical Devices segment. Includes $224 million of in-process research and development expense, comprised of $214 million and $10 million in the Pharmaceutical and Medical Devices segments, respectively. Includes net litigation expense of $141 million comprised of $136 million in the Pharmaceutical segment and $5 million in the Medical Devices segment, which included the gain from the litigation settlement agreement with Guidant for $600 million . The Medical Devices Segment includes a gain of $1.3 billion from the divestiture of the Cordis business. The ® Pharmaceutical segment includes a gain of $981 million from the U.S. divestiture of NUCYNTA and a positive adjustment of $0.5 billion to previous reserve estimates, including Managed Medicaid rebates. The Consumer segment includes a gain of $229 million from the divestiture of SPLENDA ® brand. (2) 2014 income before tax includes net litigation expense of $1,253 million comprised of $907 million, $259 million and $87 million in the Medical Devices, Pharmaceutical and Consumer segments, respectively. Includes $178 million of in-process research and development expense, comprised of $147 million and $31 million in the Pharmaceutical and Medical Devices segments, respectively. The Medical Devices segment includes a net gain of $1,899 million from the divestiture of the Ortho-Clinical TM Hip program. Includes an additional Diagnostics business, Synthes integration costs of $754 million and $126 million expense for the cost associated with the DePuy ASR year of the Branded Prescription Drug Fee of $220 million in the Pharmaceutical segment. (3) 2013 income before tax includes $2,276 million of net litigation expense comprised of $1,975 million and $301 million in the Medical Devices and Pharmaceutical segments, respectively. Includes $683 million of Synthes integration/transaction costs in the Medical Devices segment. Includes $580 million of in-process research and development expense, comprised of $514 million and $66 million in the Pharmaceutical and Medical Devices segments, respectively. The Medical Devices segment also TM Hip program. Includes $98 million of income related to other adjustments comprised of $55 includes $251 million expense for the cost associated with the DePuy ASR million and $43 million in the Consumer and Pharmaceutical segments, respectively. (4) 2012 income before tax includes $1,218 million of net litigation expense comprised of $658 million and $560 million in the Pharmaceutical and Medical Devices segments, respectively. Includes $1,163 million of in-process research and development expense, comprised of $1,111 million and $52 million in the Pharmaceutical and Medical Devices segments, respectively. Includes $795 million of Synthes integration/transaction costs in the Medical Devices segment. Includes $909 million of asset write-downs and other adjustments, comprised of $499 million, $264 million and $146 million in the Pharmaceutical, Consumer and Medical Devices segments, respectively. The Medical Devices segment also includes $110 million expense for the cost associated with the DePuy ASR™ Hip program. (5) 2011 income before tax includes $3,310 million of net litigation expense comprised of $1,741 million and $1,569 million in the Pharmaceutical and Medical Devices segments, respectively. Includes $656 million of net restructuring expense, comprised of $676 million expense in the Medical Devices segment and a gain of $20 million in the Pharmaceutical segment. The Medical Devices segment also includes $521 million expense for the cost associated with the DePuy ASR™ Hip program. (6) Amounts not allocated to segments include interest (income) expense, noncontrolling interests and general corporate (income) expense. Includes expense of $0.2 billion and $0.5 billion of currency related expense related to the acquisition of Synthes, Inc. in 2012 and 2011, respectively. (7) General corporate includes cash, cash equivalents & marketable securities. Prior year amounts have been reclassified to conform to current year presentation.

8

Johnson & Johnson and Subsidiaries: Segments of Business Additions to Property, Plant and Equipment Consumer Pharmaceutical Medical Devices Segments Total General corporate Worldwide Total

Depreciation & Amortization Consumer Pharmaceutical Medical Devices Segments Total General corporate Worldwide Total

Research and Development Expense Consumer segment Pharmaceutical segment Medical Devices segment Worldwide total

2015 $

$

$

$

$

$

2014

2013

2012

2011

544 1,063 1,631 3,238 225 3,463

581 977 1,807 3,365 349 3,714

533 856 1,724 3,113 482 3,595

468 737 1,230 2,435 499 2,934

670 729 1,095 2,494 399 2,893

559 929 1,945 3,433 313 3,746

577 1,053 1,974 3,604 291 3,895

539 1,075 2,224 3,838 266 4,104

575 1,010 1,857 3,442 224 3,666

631 958 1,331 2,920 238 3,158

625 6,821 1,600 9,046

629 6,213 1,652 8,494

590 5,810 1,783 8,183

622 5,362 1,681 7,665

659 5,138 1,751 7,548

Research Expense as a Percent of Segment Sales Consumer segment Pharmaceutical segment Medical Devices segment Worldwide total

4.6% 21.7% 6.4% 12.9%

4.3 19.2 6.0 11.4

4.0 20.7 6.3 11.5

4.3 21.2 6.1 11.4

4.4 21.1 6.8 11.6

Pharmaceutical Research Expense as a Percent of total J&J WW Sales

9.7%

8.4

8.1

8.0

7.9

9

Johnson & Johnson and Subsidiaries: Geographical Areas Sales to Customers United States Europe Western Hemisphere excluding U.S. Asia-Pacific, Africa Total

Long-Lived Assets United States Europe Western Hemisphere excluding U.S. Asia-Pacific, Africa

2015 35,687 15,995 6,045 12,347

2014 34,782 18,947 7,160 13,442

2013 31,910 18,599 7,421 13,382

2012 29,830 16,945 7,207 13,242

2011 28,908 17,129 6,418 12,575

$

70,074

74,331

71,312

67,224

65,030

$

36,609 20,167 2,881 2,493

36,835 21,559 3,210 2,438

35,880 24,868 3,281 2,434

35,115 25,261 3,636 2,362

23,529 19,056 3,517 2,163

62,150

64,042

66,463

66,374

48,265

1,148

1,138

992

899

750

70,113

65,178

64,299

54,074

64,629

133,411

130,358

131,754

121,347

113,644

$

Segments total General corporate Other non long-lived assets* Worldwide total

$

* Prior year amounts have been reclassified to conform to current year presentation

10

Johnson & Johnson and Subsidiaries: Sales Growth Rates

United States Operations International Operations Currency Worldwide Operations Currency

2015

2014

2013

2012

2011

2.6% 2.6%

9.0% 9.0%

7.0% 7.0%

3.2% 3.2%

-1.8% -1.8%

-13.1% 1.1% -14.2%

0.4% 3.7% -3.3%

5.4% 8.2% -2.8%

3.5% 8.4% -4.9%

12.4% 7.0% 5.4%

-5.7% 1.8% -7.5%

4.2% 6.1% -1.9%

6.1% 7.7% -1.6%

3.4% 6.1% -2.7%

5.6% 2.8% 2.8%

United States 3.9% 2.3%

International 1.4% 4.5%

Worldwide 2.6% 3.3%

Compound Growth Rates 2010-2015 (5 Yr.) 2005-2015 (10 Yr.)

11

Johnson & Johnson and Subsidiaries: Quarterly Sales by Segment

Year

U.S.

Consumer Int'l

(Dollars in Millions)

WW

1Q 2011 $ 2Q 2011 3Q 2011 4Q 2011 2011

1,345 1,339 1,219 1,248 5,151

2,337 2,454 2,521 2,420 9,732

3,682 3,793 3,740 3,668 14,883

1Q 2012 2Q 2012 3Q 2012 4Q 2012 2012

1,316 1,313 1,214 1,203 5,046

2,279 2,306 2,367 2,449 9,401

1Q 2013 2Q 2013 3Q 2013 4Q 2013 2013

1,348 1,326 1,225 1,263 5,162

1Q 2014 2Q 2014 3Q 2014 4Q 2014 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 2015

U.S.

$

Pharmaceutical Int'l

WW

3,391 3,239 2,869 2,887 12,386

2,668 2,994 3,113 3,207 11,982

6,059 6,233 5,982 6,094 24,368

3,595 3,619 3,581 3,652 14,447

3,026 3,094 3,288 3,013 12,421

3,107 3,197 3,114 3,512 12,930

6,133 6,291 6,402 6,525 25,351

2,327 2,332 2,386 2,490 9,535

3,675 3,658 3,611 3,753 14,697

3,471 3,377 3,549 3,551 13,948

3,297 3,648 3,487 3,745 14,177

6,768 7,025 7,036 7,296 28,125

1,309 1,320 1,173 1,294 5,096

2,248 2,424 2,416 2,312 9,400

3,557 3,744 3,589 3,606 14,496

3,740 4,613 4,723 4,356 17,432

3,758 3,896 3,584 3,643 14,881

7,498 8,509 8,307 7,999 32,313

1,359 1,355 1,277 1,231 5,222

2,031 2,128 2,037 2,089 8,285

3,390 3,483 3,314 3,320 13,507

4,371 4,543 4,509 4,910 18,333

3,355 3,403 3,185 3,154 13,097

7,726 7,946 7,694 8,064 31,430

12

Johnson & Johnson and Subsidiaries: Quarterly Sales by Segment

Year

U.S.

Medical Devices Int'l

(Dollars in Millions)

WW

1Q 2011 $ 2Q 2011 3Q 2011 4Q 2011 2011

2,872 2,869 2,780 2,850 11,371

3,560 3,702 3,503 3,643 14,408

6,432 6,571 6,283 6,493 25,779

1Q 2012 2Q 2012 3Q 2012 4Q 2012 2012

2,877 2,953 3,289 3,244 12,363

3,534 3,612 3,780 4,137 15,063

1Q 2013 2Q 2013 3Q 2013 4Q 2013 2013

3,206 3,243 3,151 3,200 12,800

1Q 2014 2Q 2014 3Q 2014 4Q 2014 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 2015

U.S.

$

Total Int'l

WW

7,608 7,447 6,868 6,985 28,908

8,565 9,150 9,137 9,270 36,122

16,173 16,597 16,005 16,255 65,030

6,411 6,565 7,069 7,381 27,426

7,219 7,360 7,791 7,460 29,830

8,920 9,115 9,261 10,098 37,394

16,139 16,475 17,052 17,558 67,224

3,856 3,951 3,777 4,106 15,690

7,062 7,194 6,928 7,306 28,490

8,025 7,946 7,925 8,014 31,910

9,480 9,931 9,650 10,341 39,402

17,505 17,877 17,575 18,355 71,312

3,155 3,199 2,946 2,954 12,254

3,905 4,043 3,625 3,695 15,268

7,060 7,242 6,571 6,649 27,522

8,204 9,132 8,842 8,604 34,782

9,911 10,363 9,625 9,650 39,549

18,115 19,495 18,467 18,254 74,331

2,962 3,013 3,005 3,152 12,132

3,296 3,345 3,089 3,275 13,005

6,258 6,358 6,094 6,427 25,137

8,692 8,911 8,791 9,293 35,687

8,682 8,876 8,311 8,518 34,387

17,374 17,787 17,102 17,811 70,074

13

Johnson & Johnson and Subsidiaries: Quarterly Statement of Earnings (1)

Year

1Q 2015 $ 2Q 2015 3Q 2015 4Q 2015 2015 $

Sales

17,374 17,787 17,102 17,811 70,074

(Dollars in Millions except per share figures)

Cost of Products Sold

$

$

5,282 5,357 5,224 5,673 21,536

SM&A

$

$

4,847 5,384 5,081 5,891 21,203

R&D

$

$

1,899 2,129 2,154 2,864 9,046

In-process Research and Development

$

$

10 214 224

Net Interest Exp. (Inc.)

Other Exp. (Inc.)

$

$

$

119 107 91 107 424

$

Restructuring

(348) $ (931) 420 (1,205) (2,064) $

509 509

Quarterly Statement of Earnings - as a % of Sales

Year

1Q 2015 2Q 2015 3Q 2015 4Q 2015 2015

Sales

100.0% 100.0% 100.0% 100.0% 100.0%

Cost of Products Sold Gross Margin

30.4% 30.1% 30.5% 31.8% 30.7%

69.6% 69.9% 69.5% 68.2% 69.3%

SM&A

R&D

In-process Research and Development

27.9% 30.3% 29.7% 33.1% 30.3%

10.9% 12.0% 12.6% 16.1% 12.9%

0.1% 1.2% 0.3%

Net Interest Exp. (Inc.)

Restructuring

0.7% 0.6% 0.5% 0.6% 0.6%

2.9% 0.7%

(1) Net Earnings are GAAP and therefore, do not exclude special items. Refer to Page 20, Reconciliation of Non-GAAP Measures, for an analysis of 2011-2015 Full Year Adjusted Earnings

14

Johnson & Johnson and Subsidiaries: Quarterly Statement of Earnings (Continued)

Year

Total Cost & Expense

1Q 2015 $ 2Q 2015 3Q 2015 4Q 2015 2015 $

11,799 12,046 12,980 14,053 50,878

Earnings Before Taxes

$

$

5,575 5,741 4,122 3,758 19,196

(1)

Provision for Taxes on Income

$

$

1,255 1,225 764 543 3,787

(Dollars in Millions except per share figures)

Net Earnings

$

$

4,320 4,516 3,358 3,215 15,409

Basic Earnings per Share

$

$

1.55 1.63 1.21 1.16 5.56

Basic Average Shares

2,782.6 2,772.3 2,768.4 2,763.2 2,771.8

Diluted Earnings per Share

$

$

1.53 1.61 1.20 1.15 5.48

Diluted Average Shares

2,826.0 2,812.0 2,807.2 2,803.3 2,812.9

Quarterly Statement of Earnings - as a % of Sales

Year

1Q 2015 2Q 2015 3Q 2015 4Q 2015 2015

Other Exp. (Inc.)

Total Cost & Expense

Earnings Before Taxes

-2.0% -5.3% 2.5% -6.8% -2.9%

67.9% 67.7% 75.9% 78.9% 72.6%

32.1% 32.3% 24.1% 21.1% 27.4%

Provision for Income Taxes Taxes on Income (Eff. Rate) Net Earnings

7.2% 6.9% 4.5% 3.0% 5.4%

22.5% 21.3% 18.5% 14.4% 19.7%

24.9% 25.4% 19.6% 18.1% 22.0%

(1) Net Earnings are GAAP and therefore, do not exclude special items. Refer to Page 20, Reconciliation of Non-GAAP Measures, for an analysis of 2011-2015 Full Year Adjusted Earnings

15

Johnson & Johnson and Subsidiaries: Sales and Net Earnings (2) 1887 - 2015 (1)

Year

1887 1888 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930

Net Trade Sales

$

0.1 0.2 0.3 0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.7 0.9 1.1 1.3 1.4 1.6 1.8 2.0 2.4 2.7 3.0 2.9 3.2 3.9 4.4 4.6 4.8 5.0 5.1 6.2 9.6 13.7 11.2 15.2 12.5 13.7 15.5 16.0 16.2 16.5 16.8 18.4 19.9 18.7

Net Earnings

$ 0.19 0.13 0.20 0.23 0.23 0.27 0.28 0.36 0.33 0.53 0.77 0.54 0.63 0.67 0.54 1.05 0.75 0.63 0.74 1.11 1.22 1.37 0.83 0.50 1.30 1.90 1.80 1.80 2.10 2.00 1.50 0.80 1.60 1.20

Year

1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975

(Dollars in Millions)

Net Trade Sales

Net Earnings

17.4 15.2 17.1 20.7 24.7 28.9 32.3 33.4 35.1 39.1 56.6 78.2 93.1 93.6 96.0 112.6 152.3 165.6 168.3 195.5 227.6 232.2 236.1 243.5 267.5 293.6 315.6 321.2 368.4 384.4 414.5 447.6 462.4 503.3 576.0 660.6 712.3 801.3 901.9 1,002.0 1,140.5 1,317.7 1,611.8 1,937.2 2,224.7

1.3 1.1 0.9 1.0 1.3 2.1 1.7 2.7 3.7 2.4 3.2 2.8 3.1 3.1 3.1 8.3 9.9 12.1 10.0 15.7 12.3 8.8 11.2 12.2 14.0 15.6 16.9 15.1 19.7 20.2 17.7 19.9 21.5 26.8 34.4 40.1 45.9 57.6 69.4 83.7 101.8 120.7 148.4 161.6 183.8

Year

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Net Trade Sales(1)

Net Earnings

2,522.5 2,914.1 3,497.3 4,211.6 4,837.4 5,399.0 5,760.9 5,972.9 6,124.5 6,421.3 7,003.0 8,011.5 8,999.5 9,829.0 11,365.0 12,210.0 13,600.0 13,877.0 15,454.0 18,537.0 21,387.0 22,522.0 23,811.0 27,357.0 29,172.0 32,317.0 36,298.0 41,862.0 47,348.0 50,514.0 53,324.0 61,095.0 63,747.0 61,897.0 61,587.0 65,030.0 67,224.0 71,312.0 74,331.0 $ 70,074.0

205.4 247.3 299.1 352.1 400.7 467.6 473.0 489.0 514.5 613.7 330.0 833.0 974.0 1,082.0 1,080.0 1,270.0 977.0 1,786.0 1,961.0 2,416.0 2,942.0 3,070.0 3,024.0 4,133.0 4,764.0 5,405.0 6,277.0 6,848.0 8,180.0 10,060.0 11,053.0 10,576.0 12,949.0 12,266.0 13,334.0 9,672.0 10,853.0 13,831.0 16,323.0 $ 15,409.0

(1) Sales restated for EITF change for 1991-2001 only. Net Earnings restated for FAS 123R Share Based Payment for 1996-2005. (2) Net Earnings attributable to Johnson & Johnson. Note: 1887-1989 information not restated and may include estimates. Note: Net Earnings are reported according to GAAP and therefore do not exclude special items. Refer to Page 20, Reconciliation of Non-GAAP Measures, for an analysis of 2011-2015 Adjusted Earnings.

16

Johnson & Johnson and Subsidiaries: Stock Split and Share Repurchase Information

(Dollars in Millions)

Stock Splits Pay Out Date

Action

May 5, 1947

100% Stock Dividend

November 15, 1948

5% Stock Dividend

November 15, 1949

5% Stock Dividend

March 20, 1951

5% Stock Dividend

January 9, 1959

2 1/2 for 1 Split

June 19, 1967

200% Stock Dividend

May 15, 1970

3 for 1 Split

May 18, 1981

3 for 1 Split

May 10, 1989

2 for 1 Split

June 9, 1992

2 for 1 Split

June 11, 1996

2 for 1 Split

June 12, 2001

2 for 1 Split

Share Repurchase Program* Total Shares

Total Value

Avg. Price

Year

(Millions)

(Dollars in Millions)

Per Share

1984

160.0

$329

$2.0550

1986

160.0

670

4.1865

1988

97.8

500

5.1230

1992

42.4

500

11.7975

1993

49.6

500

10.0625

2002

83.6

5,000

59.7994

2006

81.8

5,000

61.1247

2007

55.8

3,600

64.5870

2008

69.1

4,500

65.1230

2009

15.5

800

51.6129

2010

17.9

1,100

61.4525

2014

(1)

33.7

3,500

103.8576

2015

(2)

24.8

2,500

100.8065

* Total value may be rounded. In addition, the Company repurchases shares annually for use in employee stock option and employee incentive plans. In 1990, the Company repurchased 12.8 million shares for a total value of $100 million in connection with the establishment of an ESOP. All shares and average price per share have been adjusted for stock split. (1)

On July 21, 2014, the Company announced that is Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $5.0 billion of the Company's Common Stock. The repurchase program was completed on April 28, 2015 (2) On October 13, 2015, the Company announced that its Board of Directors approved a share repurchase program, authorizing the Company to purchase up to $10.0 billion of the Company's Common Stock.

17

Johnson & Johnson and Subsidiaries: Common Stock Information 1944-2015 YEARLY HIGH

YEAR

(Price per share/Shares in Millions)

YEARLY LOW

YEARLY AVERAGE

9/25/44 (open)

1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

YEAR-END PRICE $

$

0.02 0.03 0.03 0.03 0.03 0.05 0.07 0.08 0.07 0.06 0.07 0.08 0.08 0.09 0.14 0.17 0.18 0.26 0.26 0.29 0.28 0.40 0.47 0.67 0.75 1.26 1.25 2.08 2.77 2.76 2.49 2.08 2.01 1.63 1.86 1.68 2.11 2.46 3.20 3.22 2.68 3.45 4.64 6.59 5.51 7.44 9.27 14.53 14.67 12.60 14.13 23.10

$

0.01 0.02 0.02 0.02 0.03 0.03 0.04 0.06 0.05 0.05 0.06 0.06 0.06 0.07 0.08 0.11 0.13 0.17 0.14 0.17 0.22 0.26 0.32 0.38 0.52 0.70 0.89 1.18 1.96 2.11 1.52 1.51 1.49 1.30 1.37 1.35 1.38 1.77 2.03 2.44 1.75 2.20 2.86 3.44 4.35 5.19 6.39 8.17 10.75 8.91 9.00 13.41

$

0.02 0.02 0.02 0.03 0.03 0.03 0.05 0.07 0.06 0.06 0.06 0.07 0.07 0.08 0.11 0.16 0.16 0.22 0.22 0.24 0.25 0.35 0.41 0.50 0.63 0.99 1.06 1.74 2.50 2.47 1.97 1.85 1.84 1.46 1.61 1.52 1.67 2.06 2.55 2.86 2.16 2.78 3.97 5.28 5.06 6.25 7.85 11.19 12.34 10.50 11.54 17.19

0.02 0.01 0.02 0.03 0.02 0.03 0.05 0.07 0.06 0.06 0.06 0.07 0.07 0.07 0.08 0.12 0.14 0.17 0.24 0.17 0.24 0.26 0.40 0.40 0.64 0.74 1.25 1.19 2.05 2.72 2.35 1.69 1.87 1.63 1.60 1.54 1.65 2.08 2.32 3.10 2.55 2.26 3.29 4.10 4.68 5.32 7.42 8.97 14.31 12.63 11.22 13.69 21.38

YEARLY DIVIDEND

$ 0.00008 0.00012 0.00012 0.00020 0.00067 0.00115 0.00176 0.00102 0.00093 0.00152 0.00152 0.00152 0.00152 0.00167 0.00157 0.00185 0.00231 0.00231 0.00231 0.00255 0.00278 0.00336 0.00382 0.00428 0.00451 0.00590 0.00708 0.00896 0.00932 0.01094 0.01510 0.01771 0.02188 0.02917 0.03542 0.04167 0.04646 0.05313 0.06625 0.06750 0.07375 0.08000 0.08625 0.10063 0.12000 0.14000 0.16375 0.19250 0.22250 0.25250 0.28250 0.32000

NET SHARES OUTSTANDING*

2,213.6 2,213.6 2,242.7 2,264.0 2,276.0 2,243.1 2,247.9 2,260.2 2,264.1 2,259.8 2,268.4 2,274.9 2,270.4 2,276.6 2,288.0 2,290.3 2,558.8 2,563.5 2,586.3 2,584.8 2,591.9 2,574.6 2,603.0 2,588.2 2,606.1 2,619.4 2,656.4 2,676.3 2,690.8 2,708.1 2,761.1 2,773.6 2,785.7 2,796.1 2,808.3 2,872.9 2,938.2 2,966.6 2,993.0 3,026.0 3,061.3 2,925.5 2,925.6 2,765.6 2,753.5 2,664.6 2,679.4 2,700.4 2,713.4 2,674.2 2,627.8 2,645.0 2,665.6

P/E RATIO

10 19 7 6 6 12 12 18 15 15 17 15 12 14 22 23 28 31 24 29 27 32 28 33 34 41 43 54 59 41 28 30 22 16 14 12 15 15 16 14 14 15 43 17 16 19 21 30 23 17 19 25

18

Johnson & Johnson and Subsidiaries: Common Stock Information 1944-2015

YEAR

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

YEARLY HIGH

27.00 33.66 44.88 53.44 52.97 60.97 65.89 59.08 64.25 64.60 69.41 68.75 72.76 65.41 66.20 68.05 72.74 95.99 109.49 106.50

YEARLY LOW

20.78 24.32 31.69 38.50 33.07 40.25 41.40 48.05 49.25 59.76 56.70 59.72 52.06 46.25 56.86 57.50 61.71 69.18 86.09 81.79

(Price per share/Shares in Millions)

YEARLY AVERAGE

24.29 29.82 37.46 46.99 44.64 51.88 57.67 52.62 55.84 64.70 62.21 63.98 64.91 56.88 62.16 63.56 66.95 85.65 100.82 99.76

YEAR-END PRICE

24.88 32.97 41.94 46.63 52.53 59.86 53.11 50.62 63.42 60.10 66.02 67.38 58.56 64.41 61.85 65.58 69.48 92.35 105.06 102.72

YEARLY DIVIDEND

NET SHARES OUTSTANDING*

0.36750 0.42500 0.48500 0.54500 0.62000 0.70000 0.79500 0.92500 1.09500 1.27500 1.45500 1.62000 1.79500 1.93000 2.11000 2.25000 2.40000 2.59000 2.76000 2.95000

2,753.4 2,971.6 2,975.3 2,979.6 3,014.6 3,047.2 2,968.3 2,967.9 2,971.0 2,971.0 2,893.2 2,840.2 2,769.2 2,754.3 2,738.1 2,724.4 2,778.5 2,820.6 2,783.2 2,755.2

P/E RATIO

25 32 41 34 33 34 25 22 23 18 18 18 13 15 13 19 18 19 18 19

* Net shares outstanding = shares issued less treasury stock at Johnson & Johnson year-end close. Note: All data adjusted for prior stock splits; shares outstanding are actual J&J year-end close; yearly average share price per Yahoo Finance for J&J 2015 fiscal year; year-end share price per Yahoo Finance at J&J year-end close; P/E ratio based on fiscal year-end closing price.

19

Johnson & Johnson and Subsidiaries: Reconciliation of Non-GAAP Measures

(Dollars in Millions except per share amounts)

Earnings before provision for taxes on income- as reported Litigation expense, net Ortho-Clinical Diagnostics divestiture net gain Additional year of Branded Prescription Drug Fee DePuy ASRTM Hip program Synthes integration costs In-process research & development Intangible asset write-downs Restructuring Intangible asset amortization expense Other Earnings before provision for taxes on income- as adjusted

2015 $ 19,196 141 (62) -

2014 20,563 1,253 (1,899) 220

2013 15,471 2,282 -

2012 13,775 1,229 -

2011 12,361 3,310 -

148 196 224 590 1,570 $ 22,003

126 754 178 1,630 22,825

251 683 580 1,522 (98) 20,691

110 1,028 1,163 939 1,175 (30) 19,389

521 491 14 656 852 18,205

Net Earnings(1) - as reported Litigation expense, net Ortho-Clinical Diagnostics divestiture net gain Additional year of Branded Prescription Drug Fee Tax benefit associated with Conor Medsystems

$ 15,409 118 (46) -

16,323 1,225 (1,062) 220 (398)

13,831 1,646 -

10,853 1,052 -

9,672 2,745 -

DePuy ASRTM Hip program Synthes integration costs In-process research & development Scios Tax Benefit Intangible asset write-downs Restructuring Intangible asset amortization expense Other Net Earnings(1) - as adjusted

130 144 162 415 1,113 $ 17,445

240 483 462 (707) 1,148 (79) 17,024

97 899 743 717 838 (16) 15,183

426 477 11 536 593 14,460

Diluted net earnings per share(1) - as reported Litigation expense, net Ortho-Clinical Diagnostics divestiture net gain Additional year of Branded Prescription Drug Fee Tax benefit associated with Conor Medsystems

$

DePuy ASRTM Hip program Synthes integration costs In-process research & development Scios Tax Benefit Intangible asset write-downs Restructuring Intangible asset amortization expense Other Diluted net earnings per share(1) - as adjusted

$

111 555 131 1,213 $ 18,318

(2)

(3)

5.48 0.04 (0.02) -

5.70 0.43 (0.37) 0.08 (0.14)

4.81 0.57 -

3.86 0.37 -

3.49 0.99 -

0.05 0.05 0.06 0.15 0.39 6.20

0.04 0.19 0.04 0.42 6.39

0.08 0.17 0.16 (0.25) 0.40 (0.02) 5.92

0.03 0.32 0.27 0.26 0.30 (0.01) 5.40

0.16 0.17 0.19 0.21 5.21

(1) Attributable to Johnson & Johnson (2) Includes adjustment to deferred tax asset related to deductibility by tax jurisdiction (3) Amount includes in-process research and development charge of $679M related to bapineuzumab IV offset by $339M reported as net loss attributable to noncontrolling interest The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes on income, net earnings and diluted net earnings per share that excludes intangible asset amortization expense and special items in order to evaluate ongoing business operations. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures.

20

Corporate and Shareholder/Investor Information

Principal Office One Johnson & Johnson Plaza New Brunswick, New Jersey 08933 (732) 524-0400 Common Stock Listed on New York Stock Exchange Stock Symbol: JNJ

Investor Relations Department One Johnson & Johnson Plaza New Brunswick, New Jersey 08933 1-800-950-5089 Fax: (732) 524-3867 Louise Mehrotra Vice President, Investor Relations

(732) 524-6492

Annual Meeting The Annual Meeting of Shareholders will take place on Thursday, April 28, 2016, at the State Theatre, 15 Livingston Avenue, New Brunswick, New Jersey. The meeting will convene at 10 a.m. All shareholders as of the record date of March 1, 2016 are cordially invited to attend. A formal Notice of Annual Meeting, Proxy Statement and Proxy have been sent to shareholders.

Jason Valmore Senior Director, Investor Relations

(732) 524-3709 Lesley Fishman Senior Director, Investor Relations

(732) 524-3922 Lisa Romanko Senior Director, Investor Relations

Transfer Agent and Registrar Questions regarding stock holdings, certificate replacement/transfer, dividends and address changes should be directed to: Computershare Trust Company, N.A. 250 Royall St. Canton, MA 02021 (800) 328-9033 or (781) 575-2718 (outside the U.S.) www.computershare.com

Dividend Reinvestment Plan The Plan allows for full or partial dividend reinvestment and additional monthly cash investments up to $50,000 per year in Johnson & Johnson Common Stock without brokerage commissions or service charges on stock purchases. If you are interested in participating in the Plan and need an authorization form and/or more information, please call Computershare Trust Company, N.A. at (800) 328-9033 or (781) 575-2718 (outside the U.S.).

Shareholder Relations Contact Elizabeth Forminard WW Vice President - Corporate Governance (732) 524-6232

(732) 524-2034 Renee McKenna Senior Analyst

(732) 524-6492

Reports Available Copies of the Company's 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K to the Securities and Exchange Commission, Proxy Statement and the Annual Report are available online at www.jnj.com or to shareholders without charge upon written request to the Secretary at the Company's principal address or by calling (800) 328-9033 or (781) 575-2718 (outside the U.S.)

Press Releases Press releases, including earnings reports, are available via web access http://www.jnj.com

Internet Access Visit the Johnson & Johnson Home Page on the Internet: http://www.jnj.com

© Johnson & Johnson 2015 Trademarks and service marks of Johnson & Johnson and its affiliated companies are designated by all capital letters in this publication

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