Alex Gorsky - Seeking Alpha

Alex GorskyChairman & Chief Executive Officer

Cautions Concerning Forward-looking StatementsThese presentations and exhibits 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 and business strategy. 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 inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws, regulations and government policies, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; 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 descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in the company’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.comor on request from Johnson & Johnson. Any forward-looking statement made in these presentations and exhibits speak only as of the date of these presentations and exhibits. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Cautionary Note on Non-GAAP Financial MeasuresThese 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 Company’s website at www.investor.jnj.com.

During the course of today’s presentations, we will discuss a number of products developed in collaboration with strategic partners or licensed from other companies. Following is an acknowledgement of those relationships:

Strategic Partnerships, Collaborations & Licensing Arrangements

Consumer RHINOCORT licensed from AstraZeneca; Dr. Ci:Labo brand skincare products in collaboration with Ci:z Holdings Co., Ltd.

Orthopaedics MONOVISC/ORTHOVISC licensed from Anika Therapeutics, Inc.; Digital Ortho Tools developed in collaboration with Brainlab; FIBERGRAFT Family of Products exclusive U.S. promotional agreement with Prosidyan, ViviGen Bone Regeneration in collaboration with LifeNet Health; ME1000 Surgical Impactor co-marketed with Medical Enterprises Distribution, LLC; SERF Dual Mobility System licensed from Société d’Etude, de Recherche et de Fabrication; PROTI 360 developed in collaboration with Tyber Medical; Joint Point co-marketed with JointPoint, Inc.

Surgery Verb Surgical robotics platform in development with Verily Life Sciences

Vision LipiView II licensed from Orb Royalty; ACUVUE OASYS with Transitions Light Intelligent Technology developed in collaboration with Transition Optical, Inc.; Xlens in collaboration with IBM

Drive Superior Performance

Innovation Execution Customer Focus

— Smart

— Fast

— Agile

— Strategic

— Execute

Platforms / Products over $1B as of YE ’17

Pharmaceuticals Medical Devices Consumer12

Diabetes Spine Electrophysiology

Knees Hips Endocutters

Energy Biosurgicals Vision Surgical(Eye Surgery)

VisionContact Lens

Trauma Sutures

12 3


Innovation

Financial Performance

Execution

Portfolio ManagementLong-term Sustainability

Customer Satisfaction

Credo Values and Leadership

Our Broad-Base Advantages

Strategic Partner of Choice

Broader Offerings Of Products & Solutions

Achieve Enterprise Efficiencies and Capabilities

Partner with Governments & Public Health Organizations

Create and Access Growth Opportunities

AS OF 12/31/2017

1 YEAR 3 YEAR 5 YEAR 10 YEAR 20 YEAR

Johnson & Johnson 24.4% 13.2% 18.0% 11.0% 10.1%

Competitor Composite* 21.2% 7.9% 14.2% 8.5% 8.1%

S&P 500 21.8% 11.4% 15.8% 8.5% 7.2%

S&P Pharm 12.6% 5.4% 14.1% 9.8% 6.7%

S&P HC Equipment 30.9% 13.9% 18.9% 9.6% 9.8%

Dow Jones Industrial Average 28.1% 14.3% 16.4% 9.3% 8.4%

Data Source: Bloomberg*For the list of companies included in the Competitor Composite, see page 55 of the company’s 2017 Proxy Statement, which can be found at www.investor.jnj.com

Delivering Strong Total Shareholder Returns

Capital Allocation Framework

1 Non-GAAP measure; defined as operating cash flow less capital spending

Investments to Accelerate Growth

Consumer

Medical Devices

Pharmaceutical

LEGEND ONCOLOGY

SURGICAL VISION

Select deals

Capital Allocation Framework

1 Non-GAAP measure; defined as operating cash flow less capital spending

Pharmaceuticals Medical DevicesConsumer

Pharmaceuticals

Consumer

Medical Devices



Near- and Long-termPerformance

Jorge Mesquita

Competing in aChanging World

Executive Vice President, WorldwideChairman, Johnson & Johnson Consumer

Proud Tradition of InnovationPurpose, History & ProgressDid you know the Johnson & Johnson Family of Companies created the first…

First commercialFirst Aid Kits

BAND-AID® Brand ofFirst Aid Products: First

commercial dressingsfor small wounds

AVEENO First patented triple

oat formula

First Toothpastein a tube

HELIOPLEX broad spectrum sunscreen

First company to introduce sunscreen

in Brazil

First mass-produced sanitary protection

products for women

Optimizing LED technology for home use with the Light Therapy

Acne Mask

First mild and soap-free

Baby Shampoo

First company to introduce a product

with Retinol

First mass-produced silk Dental Floss in 1890s

Revolutionary skincare technology

NEUTROGENA Hydro Boost

Well Positioned for AboveMarket Growth

Strong plans in place for sustainable above market growth in 2018 and beyond

Solid omnichannel approach enables winning in traditional channels and accelerating success in e-commerce

Iconic scientifically differentiated brands revitalized; innovative relaunches of Baby Care and Oral Care

Continue to improve operating margins whileinvesting for growth

Johnson & Johnson Consumer

6 Broad Categories With >50% of SalesOutside of North America

45%North

America

10%Latin

America

18%Asia

Pacific

27%EMEA

2017 Net Trade Sales

More Than Half of Revenuesin Beauty and OTC

2017 Net Trade Sales

Beauty

Baby Care

Oral Care

OTC

Wound Care

Women’s Health

Wound Care

Oral Care

BeautyOTC

~31%

14%Baby Care8%~6%

~30%

11%

Women’s Health

2017 Market Sizes ($B)

Playing in Large Attractive Categories…

$16Baby Care

$135OTC

$270Beauty

$31Women’s Health

$44Oral Care

$3Wound Care

Our Total Consumer Categories Represent ~$500B Globally

Source: Euromonitor, Nicholas Hall

…That Are Growing Faster Than Consumer Packaged Goods Average

Our categories are growing with a CAGR of ~5% versus CPG2 market growth 3-4%

4%Baby Care

3%OTC

7%Beauty

3%Women’s Health

2%Oral Care

2%Wound Care

5 Year Sales CAGR1

1. Internal Estimates 2017-2022 CAGR based on the addressable market where J&J Competes

2. Consumer Packaged Goods Five Year Sales CAGR

Favorable Consumer Trends

Healthy Beauty OTC Self-Care SolutionsNaturals / OrganicsAging Population

Emerging Middle ClassLifestyle Health IssuesMillennials are Digital / Social Natives

135 Million New Births / Year

Strong Run Between 2014–2016

3.4%CAGR

Grew SalesOrganically1

20%CAGR

Grew Operating Profit2

+450BPS

Improved Adjusted Income Before Tax Margin2

1. Non-GAAP measure, excludes acquisitions and divestitures2. Non-GAAP measure, excludes intangible amortization expense and special items

2017 Sales Slowdown; Delivered Further Margin Expansion

Growth in our categories decelerated

We heldmarket share

Delivered +40 BPS Adjusted IBT growth1

As a result, we delivered flat organic sales and modest operational sales growth

Around the world, customers reduced

inventory

1. Non-GAAP measure, excludes intangible amortization expense and special items

Our Recent Deals are Delivering on Expectations

...The pace of change in our industry is

accelerating...

Our industry is being

disrupted...

The Competitive Advantages on Which the Consumer Industry Have Been Built are Increasingly Less UniqueThey used to be unique… … but now it has never been so easy to…

1 Attract best talent

2 Build and nurture brands Start building a brand online for free; AI powered community

3 Manufacturing assets Find high-quality contract manufacturers

4 Retailer relationshipsSell and deliver directly to consumer

5 Innovation potentialCrowd-source innovation

6 Financial firepowerRaise finance (VCs, crowd-financing)

Source talent on demand

This is lowering barriers for entry and paving the way for a new breed of start-up competitors

At the heart of this digital disruption is a new consumer centric paradigm that is challenging the traditional value of “scale” and forcing an evolution of the retail and media landscape

A new How-to-Win playbook is emerging, characterized by an “asset light” infrastructure, and the creation of highly personalized, on-demand consumer experiences

Ownership of consumer relationship and related ecosystem is the ultimate source of competitive advantage

Digital Disruption is Changing the Face of the Consumer Industry

Unique Strengths of Start-Up Entrants

Move FAST….5

1 Breakthrough innovation by staying close to consumers and trends

2 Build digital-first, purpose-led brands

3 Capitalize on the rise of emerging channels

4 Are hyper-efficient

As a Result, We are Competing in Two Worlds

Large Multi-National Companies Start-Ups

How do we compete in these

two worlds?

We Have a Strong Strategy

12 Mega-Brands In 6 Broad Categories

Where to Play

How to Win

Modern Marketing

Commercial Strategy

Transformational Innovation

P&LProductivity

World Class Organization

Beauty

Baby Care

Oral Care

OTC

Wound Care

Women’s Health

We are Implementing 5 Principles to Guide the Execution of Our Strategy

Broaden the scope of our innovation model1

2 Build our brands to compete in two worlds

3 Win in traditional, legacy channels and new emerging channels

4 Beyond productivity…flexibility and responsiveness

5 Evolve our work processes and culture so we can win in both worlds

Josh Ghaim, PhDGlobal Chief Technology OfficerJohnson & Johnson Consumer

Alison LewisGlobal Chief Marketing OfficerJohnson & Johnson Consumer

Broaden the Scope of Our Innovation Model

Breakthrough Global Platforms Fast Cycle, Locally Relevant Innovation

Superior Product and Packaging Digital Ecosystem

BreakthroughGlobal Platforms

Fast Cycle, Locally Relevant Innovation

Robust Global Innovation PlatformsMore Than 150 New Products in 2018

Breakthrough Global Platforms: LISTERINE is a Proven Global Platform


Driving Category GrowthLeveraging our Global Platform

100 Long-Term Clinical Studies

4 Essential Oils for Unique Formula

100years of safe and effective use in consumer daily lives

5x Less Plaque

2x Less Gum Disease

VS.BRUSHING

Attracting New Users

Increasing #of Swishes

$25B+ Incremental Market Potential1

+

Thymol Eucalyptol Methyl Salicylate Menthol

1. Kantar data, global penetration equal to U.S. penetration

Breakthrough Global Platforms: Accelerating Growth in 2018 Behind a Global Program


Base +1 Benefit Multi-Benefit

Modernize Brand Clarify Line-Up Amplify Support


Addresses a major global consumerneed for gentle gum care

Engaging launch content under BRING OUT THE BOLD global campaign

Fast Cycle, Locally Relevant Innovation: LISTERINE GINGER GUM CARE

Broaden the Scope of Our Innovation ModelBreakthrough Global Platforms: JOHNSON’S Reinvention


Ingredients moms want

Natural & sustainable

Superior experience

Professional endorsement

Unique platform claims & usage

Broaden the Scope of Our Innovation ModelBreakthrough Global Platforms: JOHNSON’S Reinvention = Simplification

Portfolio simplification provides speed and scale


AG

ES

& S

TAG

ES

Breakthrough Global Platforms: JOHNSON’S Reinvention


of its kind innovation

1st

Breakthrough Global Platforms: JOHNSON’S Reinvention


Connected Ecosystem


Shopper Activation

Fast Cycle, Locally Relevant Innovation


Products were designed to appeal to digitally-engaged moms

China E-commerce first launch

Superior Productand Packaging

Digital Ecosystem


1IN3 Cancers diagnosed globally is skin cancer

1Person dies fromMelanoma every 57 Minutes

(in the U.S.)

Superior Product and Packaging: NEUTROGENA Sun

https://www.skincancer.org/skin-cancer-information/skin-cancer-facts

55.3%

39.7%

5.0%

More SunburnedOn SPF 50+ Side

No Difference More SunburnedOn SPF 100+ Side

Bilateral comparison after 1 day skiing, N = 199

125

100

75

50

25

0

Nu

mb

er o

f S

ub

ject

s

Research published in Journal of American Academy of Dermatology

1. https://jamanetwork.com/journals/jamadermatology/fullarticle/2597893


NEUTROGENA is the#1 dermatologistrecommended sunscreen

NEUTROGENA SPF 100 is clinically proven to provide more protection than a beach umbrella1

Our Helioplex goes beyond standard FDA requirementsfor photostability

Superior Product and Packaging: NEUTROGENA Sun

NEUTROGENA Reveals theFirst Dermatologist-Grade At-Home Skin Analysis Tool

Broaden the Scope of Our Innovation ModelDigital Ecosystem: NEUTROGENA

Neutrogena Skin360™ Overview

Moisture Sensing Lines and Wrinkles

Pores

Broaden the Scope of Our Innovation ModelDigital Ecosystem: NEUTROGENA

Build Our Brands to Compete in Two Worlds

Global Campaigns Intensely Local Execution

Superior Science-Based Benefits Purpose Driven

Global Campaigns

Intensely Local Execution

Build Our Brands

Global Insights

Allergies create a persistent wedge between me and other people

The symptoms are an itchy interference to the wonderful “give and take” of truly connecting

Global Campaigns: ZYRTEC Muddle No More

Build Our BrandsIntensely Local Execution: ZYRTEC Weather-Triggered Activation

Science-based Benefits

Purpose Driven

Excellence in Science and Clinical Efficacy Drives Professional Endorsement

Build Our Brands

Scientific Publications1

90%of baby skin publications

300+skin research publications

over

100oral health

publications

Intellectual Property

1,000+patents granted / pending

U.S. only data

Regulatory & Clinical Excellence

Strong Professional Endorsement

Enterprise capabilities enable us to drive new product innovations

classified as medical devices or new drugs by regulatory bodies

#1DentistRecommended

LISTERINE

DermatologistRecommendedNEUTROGENA

AllergistRecommended

ZYRTEC

HospitalRecommendedJOHNSON’S

PediatricianRecommended

MOTRIN

1. http://www.safetyandcarecommitment.com/safety-promise/research

Rapid Release Gels launch drove share growth for adult TYLENOL

Iconic pill and laser-drilled holes delivered functional benefit across touchpoints

Build Our BrandsSuperior Science-Based Benefits:TYLENOL Rapid Release Gels

Build Our Brands

TYLENOL U.S. delivered stories that mirrored diverse family perspectives to celebrate all families

TYLENOL Cold in China taps into insight that sometimes the caregiver of the family gets sick and needscare in return

Purpose Driven: TYLENOL

Build Our Brands

Love + Medicineis better than medicine alone

Jorge Mesquita

Competing in aChanging World

Executive Vice President, WorldwideChairman, Johnson & Johnson Consumer

Win in Existing and New, Emerging Channels

Established Channels

Emerging Channels

Omnichannel Approach

Consumers are shopping everywhere


E-commerce

2016 2017 2018 (estimate)** 2019 (estimate)**

6x* in3 years

Net Sales


*6X growth anticipated **Estimated J&J Consumer Net Sales into E-commerce Channel

Win in Existing and New, Emerging ChannelsE-commerce

How to Win-Focus on Fundamentals

SCANR

Search

Rating & Reviews

Navigation

Available Assortment at the Right Place

Content

Win in Existing and New, Emerging ChannelsEmerging Channels: E-commerceAVEENO Baby is the #1 Selling Baby Brand on China’s Leading E-commerce Channels

Beyond Productivity – Flexibility and Responsiveness

Drive Efficiency

Create Flexibility & Responsiveness

Beyond Productivity – Flexibility and Responsiveness

Achieved more than $1.7B in

productivity over past 4 years

Efficiency isn’t enough. The world

is changing.

$13.6B2017Revenue

20.3%2017 Profitability1

With a Solid Strategy, Consumer is a Significant Contributor to J&J

1. Non-GAAP measure, excludes acquisitions and divestitures

We’re Confident We Will Winin This Marketplace

Strong plans in place for sustainable above market growth in 2018 and beyond

Solid omnichannel approach enables winning in traditional channels and accelerating success in e-commerce

Iconic scientifically-differentiated brands revitalized; innovative relaunches of Baby Care and Oral Care

Continue to improve operating margins whileinvesting for growth

Appendix

Oral Care

Strategic Initiatives

• Increase market penetration: Deliver category, share & usage growth

• Emerging Markets Expansion: Drive accelerated growth through locally relevant solutions

• Category Innovation: Disrupt the category with breakthrough innovation

2017 SALES CHANGE1

2017 WW MARKET POSITION2

WW Market2017-2022 CAGR3

TOTAL WW MARKETREVENUE 20223

(3.2%) #1 ~2% ~$5B

1 Operational

2 Based on Euromonitor 2017

3 Internal Estimates

Note: Market data refers only to the addressable market where J&J competes

Baby Care


• Re-launch JOHNSON’s Baby with excellence

• Continue steady growth on AVEENO Baby

• Rapidly expand Ecommerce and scaling Perfect Store

• Broaden the scope of our innovation model

2017 SALES CHANGE1




(4.7%) #1 ~4% ~$7B

1 Operational




Beauty


• NEUTROGENA: Strengthen leadership with disruptive innovation including high tech beauty and first-to-market beauty trends

• AVEENO: Capitalize on AVEENO’s unique health and wellness position driving new naturals in premium mass. Expand globally

• OGx: Accelerate and expand growth into new segments

• Dr. Ci Labo: Continue growth by driving premium and scaling the D2C Ecommerce channel

2017 SALES CHANGE1




7.2% #5 ~7% ~$90B

1 Operational




OTC


• Grow base business via new claims & purpose driven and science-backed campaigns on Pain, Smoking Cessation, Cough & Cold & Allergy

• Advance Next Generation Treatments by entering devices and non-medicated solutions such as TYLENOL Light + Heat Therapy in the US and MOTRIN Baby Patch in China

• Advance geographic expansion of need states such as Smoking Cessation in China, Pain in Russia & Asia Pacific, and Cough in Asia Pacific

2017 SALES CHANGE1




2.6% #4 ~3% ~$36B

1 Operational

2 Based on Nicolas Hall 2017



Women’s Health


• Establish Carefree as a grooming brand: strengthen liners leadership, while redefining Intimate Care for expansion

• From menstrual lead to Intimate Health & Wellness: lead in top 5 countries, simplify portfolio and address women at all lifestages

• Accelerate through partnerships: invest externally to speed up future pipeline

• Attract and lock-in younger generations: strong focus on recruiting, educating, engaging and retaining young consumers

2017 SALES CHANGE1




(3.7%) #4 ~3% ~$7B

1 Operational




Sandra Peterson

Competing in a Changing Environment

Executive Vice President, Group Worldwide ChairJohnson & Johnson

Facing Many Similar Challenges

Consumer and Medical Devices Share Opportunity to Improve People’s Lives

Nontraditional Competitors and New Influencers

Markets Disrupted by Technology

Changing Consumer and Patient Expectations and Behaviors

Customers’ and Industry Consolidation(~7K Retail Closings, U.S. Hospital Mergers & Acquisitions Increased 13% in 20171)

Shifting Customer Dynamics, Increased Need for Efficiency and Value

Global Cost Pressures

Transformative Innovation and Disciplined Portfolio Optimization

Consumer Experience/Business Model Evolution

Leveraging Science, Technology, Scale & Expertise

Consistent Excellence in Execution

Responding with Robust Strategies to Restore Sustainable, Above-Market Growth

1. Kaufman Hall & Associates: 2017 Year in Review: This Year M&A Shook the Healthcare Landscape, 2018

Powerful Forces Reshaping Medical Devices

Information UbiquityEmpowered consumers are

demanding personalized, friction-free experiences

Changing care deliveryNew types of care and sites of care

Growing at an unprecedented pace

Increasing pressure from customers for increased

efficiency and new sources of value

Global shortageof physicians and

healthcare workers

Technology Explosion

Science, Technology and Big Data

Middle Class Expansion

in Emerging Markets

Aging, Urbanized

Populations

Crisis of Access

Unsustainable Cost Trajectory

Driving increased prevalence of chronic and lifestyle driven conditions

Technology Explosion

Science, Technology and Big Data

Aging, Urbanized

Populations

Challenge of Access

Cost Trajectory

Middle Class Expansion

in Emerging Markets

Johnson & Johnson Medical Devices

Global market leader in general surgery, orthopaedicsand contact lenses

#1

Platformswith12 >$1B in sales

2017 sales~$27B

of salesgeneratedOUS~50%

of sales inemergingmarkets~20%

of sales from#1 or #2 global market shareposition80%

Benchmark levelsof profitability

Sources include internal data and public filings

Medical Devices Market Growing ~4%

$86 $97 $122 $-

$100

$200

$300

$400

$500

$600

2014 2017 2022J&J Markets Rest of Medical Device

~$370~$400

~$490

WW Medical Device Market Size ($U.S. Billions)1 Key Drivers of Growth

Rise of aging population1

Population over 60 will be more than double by 2050 (962M in 2017, 2.1B in 2050)2

Growth of people entering middle class

2 5 people enter middle class every second3

Urbanization3 2.5B more people projected to live in urban centers by 20504

Increasing access to care in emerging markets

4 Emerging market healthcare spend 2017-2022: ~7% CAGR5

J&J Medical Devices Markets Growing at ~5%

1. Source: HRI & J&J internal estimates2. United Nations, World Population Prospects: the 2017 Revision3. Brookings Institute, Future Development, July 20174. United Nations Department of Economic and Social Affairs, 20145. BMI, 2018

We Have a Legacy of Addressing Unmet Needs and Creating New Markets Through Innovation

Femtosecond Laser

1st femtosecond laser for LASIK in the U.S., ushering in modern era of refractive eye surgery

1987ACUVUE

The worlds’ first mass-market disposable contact lens

1995CARTO System

Real-time 3D electroanatomical mapping system for cardiac ablation

2013ATTUNE Primary Knee System

Pathbreaking technology, design, kinematics, engineering and materials to deliver stability and motion

2001SUMMIT Hip System

A comprehensive set of implants to treat a wide range of patients with differing needs

CORAIL Hip System

The world’s most widely used cementless femoral system enabling bone conversation

1985

2000

2017

A holistic approach to help healthcare systems realize better care and reduced costs

Standardized and digitized procedure of surgical workflows to reduce variability

Minimally Invasive Surgery

First MIS gall bladder surgery paves the way for laparoscopic solutions

1988

Multifocal IOL

First multifocal IOL, allowing patients to

recover from cataract surgery with less

dependence on glasses

1998

THERMOCOOL SMARTTOUCH Catheter

A therapeutic catheter to enable the direct and real-time measurement of contact force during catheter ablation procedures for AFib

2011

TFN-ADVANCED

Advance in hip fracture treatment, including outcome-based design, reduced procedural complexity and comprehensive surgical options

2015

PINNACLE Hip Solutions

Versatile acetabular cup system which replaces the natural hip socket and has since been provided for more than 2.5 million patients

1984PFC Total Knee Replacement System

Improved range of motion and implant stability by retaining the primary cruciate ligament

Foldable IOL

First small-incision foldable IOL, changing how cataract procedures are done

1989

1887Sterile Sutures and Dressings

Ushered in modern antiseptic surgery

Surgical Bleeding SURGICEL

Major advance in surgical bleeding control

1960

http://www.google.com/url?url=http://www.sanhigia.com/producto/surgicel-malla-hemostatica-de-celulosa-oxidada.html&rct=j&frm=1&q=&esrc=s&sa=U&ei=Xm0tVJGbAcjtoATQroKADg&ved=0CCoQ9QEwCg&sig2=bSP0O2MgEelpVPzBE55FEQ&usg=AFQjCNE_-UraJpacT_Xq1qSMoYlevaxlCQ

While recent performance has been mixed, we are refreshing our growth strategy, reshaping our portfolio and improving execution.

9

Robust, Holistic Innovation and Portfolio Shaping Strategy

• Exiting slower growth categories– Cordis, OCD, Codman Neurosurgery, Diabetes

• 30+ transactions in 2017; 12+ in 2018 YTD

• $5B Invested in 2017; ~$500MM in 2018 YTD– Surgical Vision, Neurovascular, Robotics,

Surgical and Ortho tuck-ins

• $8B Invested in R&D over the past 5 Years

• 15-20 major product launches planned in 2018

Strengthening Our Foundation to Improve Performance and Accelerate Growth

Disciplined PortfolioManagement

Accelerated Deal Pace

Doubled New Product Launches in 2017

Relentlessly Focused on Execution

• Completed quality remediation andSynthes integration

• Transformation announced YE 2015 is on track to deliver commitment of $800MM-1B in savings and operational improvements

• Next phase of supply chain optimization is increasing flexibility, improving GP andcustomer responsiveness

• Evolving go-to-market models and channels in response to customer needs: Managed Services,CareAdvantage, ASCs, MyACUVUE.com

• Increasing investment in sales force coverage and training


Improving Quality

Simplifying Operations

Innovating Business Models

Strengthening Our Foundation to Improve Performance and Accelerate GrowthUniquely Leveraging Science, Technology, Scale and Expertise

Providing Value Beyond the Product or Traditional Point of Care

Reimagining Professional Education

• Actively co-creating with health systems to improve outcomes, increase patient satisfaction and reduce costs

• Introducing digitally enabled services and tools to optimize surgeries and OR efficiency with standardized procedures, strengthen surgeons’ skills to help patients better prepare for surgery and recovery

• Regaining leadership in professional education with the global launch of the Johnson & Johnson Institute and differentiating technology with proven links to outcomes. 26 locations around the world, C-SATS acquisition

Expect to Return to Sustainable Above Market Growth in 2020

Relentlessly Focused on Execution

Improving Quality

Simplifying Operations

Innovating Business Models

Uniquely Leveraging Science, Technology, Scale and Expertise

Providing ValueBeyond the Product or

Traditional Point of Care

Reimagining Professional

Education

Robust, Holistic Innovation and Portfolio Shaping Strategy

AcceleratedDeal Pace

Doubled New Product

Launches in 2017

Disciplined Portfolio

Management


• Exiting slower growth categories

– Cordis, OCD, Codman Neurosurgery, Diabetes

• 30+ transactions in 2017; 12+ in 2018 YTD

• $5B Invested in 2017; ~$500MM in 2018 YTD

– Surgical Vision, Neurovascular, Robotics, Surgical and Ortho tuck-ins

• $8B Invested in R&D over the past 5 Years

• 15-20 major product launches planned in 2018

• Completed quality remediation andSynthes integration

• Transformation announced YE 2015 is on track to deliver commitment of $800MM-1B in savings and operational improvements

• Next phase of supply chain optimization is increasing flexibility, improving GP and customer responsiveness

• Evolving go-to-market models and channels in response to customer needs: Managed Services,CareAdvantage, ASCs, MyACUVUE.com

• Increasing investment in sales force coverage, training and compensation

• Actively co-creating with health systems to improve outcomes, increase patient satisfaction and reduce costs

• Introducing digitally-enabled services and tools to optimize surgeries and OR efficiency with standardized procedures, strengthen surgeons’ skills to help patients better prepare for surgery and recovery

• Regaining leadership in professional education with the global launch of the Johnson & Johnson Institute and differentiating technology with proven links to outcomes. 26 locations around the world, C-SATS acquisition

Johnson & Johnson is Focused on Attractiveand Growing Markets

Orthopaedics

2017 Market Size

~$45B

2017-2022 CAGR

+3%

Surgery

2017 Market Size

~$23B

2017-2022 CAGR

+6%

Interventional Solutions

2017 Market Size

~$6B

2017-2022 CAGR

+11%

Eye Health

2017 Market Size

~$18B

2017-2022CAGR

+5%

...And Investing in Categories Slated for Solid Double-Digit Growth

Surgical Robotics

Oncology & Ablation NeurovascularOrthopaedic

Robotics

Source: Internal estimates

Building on Areas of Strength and Addressing Performance that Needs Improvement

Building from Strength Focusing on Improvement

Orthopaedics

Interventional

Surgery

Eye Health

Orthopaedics

Surgery

Energy #2

#1ElectrophysiologyContact Lens #1

EndomechanicalSports #3 #1

BiosurgeryHips #2 #3Knees#1

Wound ClosureTrauma #1 Spine #2#1

Surgical Vision #2

Beginning to Win with Customers in a Changing Landscape

J&J uniquely positioned to address diverse customer needs and pain points by bringing full range

of capabilities through innovation and services.

Products Clinical

Industry consolidation

Globalization

Physicians increasingly employed by health systems

Increasing burden of administrative cost andlow margins

Solutions

Winning Through Customer-Specific Commercial Models

50+ Wins To Date In 2018

Reimagining Professional Education to Increase Access, Improve Outcomes and Reduce Costs

Digitally Enabled, Holistic and Linked to Outcomes

Training

Classroom Based

EventDriven

HCP Focused

Always Available

FROM TO

Coaching

Omni-ChannelEducational

ecosystem in action

Training Dashboard

Coaching

Hands-On Training

Patient Outcomes

Deliberate Practice

Intra-op Performance

With a Refreshed Strategy, Competing in Segments ofHigh Growth and Unmet Need, We are Committed to Transforming Healthcare

Applying Disciplined Execution and Groundbreaking Innovation to Return to Above Market Growth

Developing Connected Products and Solutions Across

the Entire Patient Journey

Leveraging Data and Insights to Lower Costs, Increase Access

and Improve Outcomes

Innovating at the Forefront of Science AND Technology

Expect to Achieve AboveMarket Growth in 2020

Accelerating growth sequentially in 2018

Building on strengths and addressing areas that need improvement

Increasing innovation cadence

Optimizing portfolio targeting high growth areas and unmet needs

Executing with excellence

Johnson & Johnson Medical Device Leadership

Euan Thomson, PhDGlobal Head, R&D

Johnson & Johnson Medical Devices Companies

Xiao-Yu Song,MD, PhD

Worldwide R&D LeaderJohnson & Johnson Vision

Peter Shen, PhDGlobal Head, R&D

Johnson & Johnson Medical Devices Companies

Ashley McEvoyCompany Group Chairman,Johnson & Johnson Vision

Michael del PradoCompany Group

Chairman Ethicon

Shlomi NachmanCompany Group Chairman,

Interventional Solutions & Specialty Surgery

Ciro RömerCompany Group Chairman,

DePuy Synthes; Johnson & Johnson Medical Devices, North America

Shlomi Nachman

Changing the Trajectory of Atrial Fibrillation and Stroke

Company Group Chairman, Interventional Solutions & Specialty Surgery

Interventional Solutions:A Significant Growth Portfolio

Interventional Solutions is a $2.3B portfolio, delivered 12% ops growth*in 2017

WW EP market at $4.4B with strong growth: 11% CAGR (2017-2022)

WW Neurovascular Market at ~$2B is vibrant: ~10% CAGR (2017-2022)

Biosense Webster is the market leader in all regions with >$2B in sales and ~46% share WW

CERENOVUS is our new stroke intervention business with ~$200M revenue in 2017 and ~11% share

Source: Internal estimates* Excludes impact of translational currency

AFib is a Growing Global Health Concern Affecting Millions of Lives and Burdening Healthcare Systems

33 MillionEstimated number of individuals

with AFib globally1

5,000,000

>50% of AFib patients do not respond to or cannot tolerate drug therapy4

5XRisk of stroke is fivefold in

patients with AFib2

$16 BillionAnnual estimated cost to Medicare, with

inpatient expenses contributing the majority3

<10%Drug-resistant paroxysmal AFib remains significantly undertreated with less than

10% undergoing ablation5

The annual new cases of AFib globally in 20101

50%

4. Calkins et al. Arrhythmia and Electrophysiology. 2009; 2:349-361 5. Chugh et al. Circulation 2014;129:837-847

1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4151302/2. https://www.cdc.gov/dhdsp/data_statistics/fact_sheets/fs_atrial_fibrillation.htm3. Health Services Utilization and Medical Costs Among Medicare Atrial Fibrillation Patients / September 2010

Unmet Needs Shape Our Innovation Strategy Designed to Improve Efficiency and Simplicity

Locate Where to Ablate

Advanced Mapping and Persistent AF Solution

Deliver Better Lesion Treatments

Contact Force Sensing and Lesion Assessment

Simplify the Procedure

Multi-Electrode Ablation and Single Shot Device

High Density Mapping Catheters

Signal Processing

High Power Short Duration Ablation

Radiofrequency Balloon Catheter

Workflow Optimization

These products are under development, are not approved or cleared by FDA and are not available for sale or commercial use in any market

Focusing on Critical Areas to Fuel Our Strong Growth Momentum

AFib Adjacencies

• Left Atrial Appendage Device – WAVECREST

– Commercially available in EMEA

Indication Expansion

• Persistent AF Indication (PRECEPT Study)

• CABANA study – Ablation as first-line therapy

• Evidence generation – continued investment in clinical studies

Commercial Expansion

• Differentiated commercial field model deployed around the world with Clinical Account Specialists supporting cases

• Worldwide acceleration in commercial and clinical hiring

Stroke is One of the Most Feared and Devastating Diseases

1 in 6 People worldwide will have a

stroke in their lifetime1

$320 BillionEstimated economic costs of heart disease and stroke, after taking into account health

expenses and lost productivity2

6 SecondsWorldwide, a stroke claims

a life every 6 seconds1

Stroke remains the second leading cause of death in the world and a

leading cause of long-term disability1

1. http://www.strokecenter.org/patients/about-stroke/stroke-statistics/2. https://www.cardiosmart.org/News-and-Events/2015/01/New-Report-Conveys-Global-Impact-of-Heart-Disease-and-Stroke

A Stroke Is a “Brain Attack” and it Can Happen to Anyone, at Any Time, at Any Age

Ischemic Stroke

Hemorrhagic Stroke

Prevalence Causes Treatment Market/CAGR (‘17-‘22)

90%of stroke cases

(4,557,629 cases worldwide in 2017)1

10%of stroke cases(471,291 cases

worldwide in 2017)1

Obstruction within a blood vessel

supplying blood to the brain

(caused by clot)

Weakened vessel ruptures and

bleeds into the surrounding brain; Blood accumulates and compresses the surrounding

brain tissue

Acute Treatment

(Thrombectomy Devices)

Preventative Treatment

(stents, coils, etc.)

~$700MM~15%

~$1.3B6%

2

2

1. GlobalData 2018 Neurovascular Thrombectomy and Embolization Market Model2. Internal estimates

Every Second Matters in Stroke Treatment and Our Innovation Strategy is Shaped by Unmet Needs

Key Unmet Need

1. Improve aneurysm neck coverage to improve aneurysm occlusion

2. Reduce or eliminate the need for dual anti-platelet regimens

HemorrhagicIschemic

Key Unmet Need

1. Time is brain – extract clot quickly and safely

2. Distal emboli protection

PulseRider Humanitarian Device (USA ONLY). Authorized by Federal law for use with embolic coils for the treatment of unruptured wide-necked intracranial aneurysms originating on or near a vessel bifurcation of the basilar tip or carotid terminus with inflow vessel diameters from 2.7 mm to 4.5 mm. The effectiveness of this device for this use has not been demonstrated.

Focusing on Critical Areas to Position Ourselves for Rapid Growth

Commercial Expansion

• Implementing differentiated commercial model including clinical expertise around the world

Evidence Generation

• Generating robust evidence to support product adoption and market expansion

– Registration studies

– Reimbursement studies

– Registries

Entering New Segments

• Ischemic Stroke Market

– Continue EmboTrap commercialization in EMEA

– Expect to enter U.S. market in June

• Flow Diverter Market

Our Sense of Urgency to Change the Trajectory of AFib and Stroke is Stronger Than Ever Before

We are confident we will continue delivering strong double-digit growth

Millions of patients waiting

13

Appendix

Electrophysiology

2017SALES CHANGE1

2017 WWMARKET POSITION2

WW MARKET2017-2022 CAGR2


16.6% #1 ~11% ~$7.4B


• Continue CARTO 3 System penetration around the world with innovative software enhancements including VISITAG, CONFIDENSE and Multi-Electrode Mapping Modules

• Launch next generation ablation solutions to address efficiency, efficacy and ease of use needs for AF and VT

• Expand AF leadership beyond Paroxysmal AF to include persistent AF indication in the U.S.

• Advance AF Care continuum solutions and capitalize on AF adjacent categories (Left Atrial Appendage Device Coherex acquisition)

1 Operational2 Internal estimates

14

Aesthetics


• Heavy customer engagement fueling R&D pipeline with recent launch of ARTOURA Smooth Breast Tissue Expander driving clear leadership in Expander Category

• Leveraging consumer preference and implant softness to drive customer loyalty with new MemoryGel Xtra Breast Implants

• Strategic external partnerships meeting a wide range of customer needs (Dermis, Suture, Facial Injectable Program)

2017SALES CHANGE1




(8.7)% #2 ~4% ~$1.5B

ARTOURASmooth Breast Tissue

Expander


15

Neurovascular


• Divested Codman Neurosurgery business and are focused on the neurovascular / stroke market; re-branded the organization as Cerenovus

• Accelerate growth in Neurovascular through acquisitions of Pulsar Vascular, Inc. and Neuravi Limited

• New market entry into Ischemic stroke (87% of all stroke cases) with EmboTrap Revascularization Platform in the U.S this year

2017SALES CHANGE1




(1.0)% #4 ~10% ~$3.2B

1 Operational2 Internal estimates, excludes Neuro Modulation 16

Ear, Nose, and Throat (ENT)


• Continue Leadership in Balloon Sinuplasty by focusing on cadence of innovation and new product introduction

• Expand Acclarent presence in broader ENT market through entry into:

– Eustachian Tube Dysfunction (ETD) market: Strong momentum in adoption of Acclarent AERA technology with more than 1,500 surgeons trained and 10,000 patients treated in 2017

– Navigation market: Entry into navigation category with differentiated platform leveraging Biosense Webster navigation expertise

2017SALES CHANGE1




(1.5)% #2 ~4% ~$1.1B


17

Infection Prevention


• Sustain strong Terminal Sterilization market leadership with solid innovation cadence across ASP portfolio

• 2017 launch of next generation STERRAD Sterilization System with ALL CLEAR technology, and rapid 30min Biological Indicator form a compelling ecosystem, fueling momentum and growth in business for 2018 and beyond

• Expecting continued cadence of innovation in high level disinfection (HLD) category with launch of AEROFLEX in U.S later this year

2017SALES CHANGE1




(3.2)% #1 ~4% ~$5.5B


18

Ciro Römer

Building Our OrthopaedicsBusiness for the Future

Company Group Chairman, DePuy SynthesJohnson & Johnson Medical Devices, North America

110MM 250MMPeople suffer from symptomatic hip and knee osteoarthritis1

People suffer from osteoporosis worldwide2

Hip replacements occur worldwide every year3

Knee replacements are performed annually4

Of certain spine surgeries are successful using the technologies available today5

1.6MM

Only 40%

2.2MM

Operatively treated fractures occur per year globally6

6.4MM

Movement: A Fundamental Aspect of Life

1: Global Burden of Disease Study 2010 2: Statistics gathered from the WHO and International Osteoporosis Foundation3: ©2018 GlobalData – 39 Country Hip Reconstruction Market Forecast Model Dataset4: ©2018 GlobalData – 39 Country Knee Reconstruction Market Forecast Model Dataset5: Thomson S. Failed back surgery syndrome – definition, epidemiology and demographics. Br J Pain. 2013; 7 (1):56–596: Internal estimates

Hips: #2Market ~$6.5B

1.0%-1.5% CAGR ‘17-22

Knees: #3Market ~$8.0B

2.0%-2.5% CAGR ‘17-22

Spine: #2Market ~$9.5B

1.0%-1.5% CAGR ‘17-22

Sports & Shoulders: #3Market ~$7.5B

4.5%-5.0% CAGR ‘17-22

~3.0% CAGR ‘17-22

Positioned broadly across

orthopaedics

#1 in a $45B global market

#1 or #2 in 3 out of 5 platforms

World’s Largest and Most Comprehensive Orthopaedics Business


Trauma: #1Market ~$7.5B

3.5%-4.0% CAGR ‘17-22

Hips: #2

Spine: #2

Sports: #3

Performance Has Been Mixed

Building from Strength Focusing on Improvement

Industry differentiated portfolio and pipeline expected to lead to above market growth in

these platforms in 2018 and beyond.

Completing portfolio and addressing Spine’s sales force attrition anticipated to stabilize

performance in 2018 and contribute to above market growth in 2020 and beyond.

Trauma: #1Knees: #3

Key Accomplishments in the Past 24 Months Position Us for Growth

Reinvested in innovation and createdproduct launch momentum

Increased presence in digitally enabled solutions

Completed critical quality andregulatory inspections

Stabilized commercial organizationand evolved go-to-market modelacross the world

Closed critical portfolio gaps through external innovation

Strengthen core portfolio to address surgeons and patients unmet needs

Address cost to serve to support the sustainability of the healthcare system

Drive better clinical outcomesfor increased patient satisfaction through digital solutions

PERSONALIZATION, AUTOMATIONAND CONTINUUM OF CARE

Building Our OrthopaedicsBusiness for the Future

ATTUNE Knee Implant Survivorship Consistent with TKA Class Based on Four Independent Registries

UK Australia

New Zealand Michigan

ATTUNE Patient-Reported Outcomes Improved Compared to Other Leading Knees

One year results from two worldwide studies showed improved patient reported outcomes with the ATTUNE Knee compared to other leading knee systems examined in those studies1

Confidence in knee performance1

Patellofemoraloutcomes2-5

Activities of daily living1 Quality of life1

1. Hamilton W.G., Brenkel, I., Clatworthy, M., Dwyer, K., Himden, S., Lesko, J., Kantor, S.: Early Outcomes with a New Primary TKA System vs. Contemporary TKA: Interim Results of Two Worldwide, Multi-Center Prospective Studies. AAOS San Diego, California, March14-18, 2017. Poster #106. Other implants tested: SIGMA Knee (DePuy), NexGen® (Zimmer), Triathlon® (Stryker)

2. Toomey SD, Daccach JA, Shah JC, Himden SE, Lesko JP, Hamilton WG. Comparative Incidence of Patellofemoral Complications Between 2 Total Knee Arthroplasty Systems in a Multi-Center, Prospective Clinical Study. J Arthroplasty 2017;32(9S); S187-S1923. Indelli PF, Pipino G, Johnson P, Graceffa A Marcucci M, Posterior-stabilized total knee arthroplasty: a matched pair analysis of a classic and its evolutional design. Arthroplaasty Today 2016;2:193-84. Martin JR, Jennings JM, Watters TS, Levy DL, McNabb DC, Dennis DA, Femoral Implant Design Modification Decreases the Incidence of Patellar Crepitus in Total Knee Arthroplasty. J Arthroplasty 2017; 32(4): 1310-13135. Ranawat CS, White PB, West S, Ranawat AS. Clinical and Radiograph Results of Attune and PFC Sigma Knee Designs at 2-Year Follow-up: A Prospective Matched-Pair Analysis. J Arthroplasty 2017; 32(2): 431-436

Comprehensive knee system developed to provide better range of motion and prevent the unstable feeling some patients experience during everyday activities

Knee: Improving Outcomes and Patient Satisfaction, While Addressing Cost to Serve

~600,000Implants Worldwide

ComprehensiveEvidence Generation

Program

43Countries


ATTUNE PrimaryThe original knee system

developed as part of the largest research effort in the history of

DePuy Synthes

ATTUNE Revision KneeAddresses broad range of complex primary and

revision procedures

ATTUNE CementlessEnables biologic fixation

of the implant to the bone for enhanced fixation

Spine: Turnaround Focused on Faster-Growing Segments and Multiple Product Launches

Large and attractive global market with high unmet needs

60%of the population experiences low

back pain1

Only 40%of certain spine surgeries

are successful using the technologies on

the market today3

2%of the population is

disabled because of back pain2

1. Thomson S. Failed Back Surgery Syndrome – Definition, Epidemiology and Demographics. Br J Pain. 2013; 7(1):56–592. World Health Organization, Priority Medicines for Europe and the World Update Report, 2013. http://www.who.int/medicines/areas/priority_medicines/Ch6_24LBP.pdf3. Friedly, J, et al. Epidemiology of Spine Care: The Back Pain Dilemma. Phys Med Rehabil Clin N Am. 2010 Nov; 21(4): 659–677. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3404131/


Our focus is on faster-growing segments with the most potential of helping surgeons and patients

Deformity

Aging Spine

Complex Cervical

Minimally Invasive Surgery


Disruptive technologies to return to above market growth

VIPER PRIME System for Minimally

Invasive spinal fusion surgery

UNLEASH MIS TLIF Solution featuring CONCORDE LIFT Expandable Cage

PROTI 360 Family of Titanium-

Integrated PEEK Implants

Sentio Nerve Monitoring Technology for Minimally Invasive

Surgery

Hips: Complete Anterior Approach Solution Driving Growth

~$7BGlobal Market Size

5 YEARS#2Global Market Position Above Global

Market Growth

Well positioned to win


Patients desire earlier return to function after surgery1

Hips: Complete Anterior Approach Solution Driving Growth

Anterior Approach

Instruments

hana table2

Implants

ACTIS Total Hip System

SERFDual Mobility

System

ME Impactor

Our Complete Solution

Joint Point

Automation Digital Solution Instruments & Enablers

1. Dr. William G. Hamilton, Anderson Orthopaedic Clinic, The rise of outpatient THA combined with changing patient expectations have put a demand on THA prostheses to promote a quick return to activities of daily living 2. Anderson Dr. Matta receives royalties as the designer of the hana table which is manufactured by Mizuho OSI

~$8 BillionGlobal Market

Sports & Shoulders: Gaining Momentum in Fast Growing Orthopaedics Segments

Growth Rate Sports & Shoulders market

>1.5 pts higher than the overall orthopaedics market


2

7

8

9

10

11

4

5

6

1

3

Sports & Shoulders: Gaining Momentum in Fast Growing Orthopaedics Segments

Innovation in shoulder reconstruction with the GLOBAL ICON Stemless Shoulder in Europe and Canada, the GLOBAL UNITE Reverse Fracture System and TRUMATCH Personalized Solution

Shoulder soft tissue repair:Launch of DYNACORD to address the unmet need for rotator cuff repair sutures that have high fixation strength, minimize any gap between the bone and tendon, and minimize suture slippage or laxity

#1 MONOVISC & ORTHOVISC in the hyaluronic acid market2

ACL reconstruction and meniscus repair platform that drove faster-than-market growth

Refreshing our capital equipment offering, starting with PUREVUE, a state-of-the-art imaging platform for the more than 18 millionendoscopic procedures performed annually1

1. Perry, Anne F., et al. “Burden of Gastrointestinal Disease in the United States: 2012 Update” Gastroenterology. 2012 November; 143(5): 1179-11872. Based on internal estimates

Comprehensive Portfolio inHip and Femur Fracture Repair

Digital Solutionsto Surgery

Portfolio Enhancements

Meaningful innovation that improves patient outcomes,reduces procedure complexity and enhances surgeon experience

TFNA Augmentation

FemoralNeck System MAXFRAMEFemoral

Recon Nail

Trauma: Most Comprehensive Portfolio ofBest-in-Class Products

Strengthening Our Go-to-Market Model

Strong cadence ofproduct launches

Digitally enabled solutions to disrupt the market

New go-to-market models drive market

share and growth

Delivering commercial and supply chain

execution

Robust Plan: Return to Above Market Growth in Orthopaedics

Attractive growing markets

Increased NPI cadence

Disruptive digital technologies

Strong focus on execution

Strong-differentiated portfolio

24

Appendix

Hips


• Drive growth in CORAIL and PINNACLE brands worldwide via evidence generation

• Global expansion of the Anterior Approach bundle technologies launched in 2017: Digital Surgery (Joint Point), ME impactor

• Global expansion of the ACTIS Total Hip System

• Deliver Enabling Technologies to improve outcomes and reduce costs

• Expand presence in dual mobility market

2017SALES CHANGE1




2.1% #2 ~2% ~$7.1B

ACTIS Hip StemJoint Point

ME Impactor


25

Knees


• Continue global expansion of ATTUNE Primary Knee System with availability of ATTUNE five year evidence data and investment in Tune In campaign

• ATTUNE Platform growth driven from global market availability of NPIs: S+ (FB & RP), ATTUNE Revision, Stemmable Tibia and Cementless RP

• Transform knee procedures for outcomes and cost to serve via INTUITION SOLO

2017SALES CHANGE1




(0.3%) #3 ~3% ~$8.8B

ATTUNE Knee

Revision Systems

INTUITION SOLO Instruments


Note: Knees includes TKA, excludes HA and Sports Emerging Technologies

ATTUNE Cementless for biologic fixation

26

Shoulders

2017SALES CHANGE1




(1.2%) #3 ~7% ~$1.9B


• Enhance key growth drivers ‒ DELTA XTEND Reverse Shoulder System‒ GLOBAL UNITE Platform Shoulder System

• Increase surgeon adoption rates of GLOBAL ICON Stemless Shoulder OUS

• Establish technology leadership in personalized solutions – TRUMATCH

DELTA XTEND Reverse Shoulder System


Note: also includes sales related to ankles, fingers, wrists and elbows

GLOBAL ICONStemless Shoulder

27

Trauma


• Strong performance in core platforms with TFN-ADVANCED Proximal Femoral Nail and introduction of anatomic VA Locking Hand System

• Expanding our competitive and more complete portfolio in the elective foot market with expanded indications for Continuous Compression Implants (BME acquisition)

• Transform knee procedures for outcomes and cost to serve via Distal Radius Sterile Kits

2017SALES CHANGE1




1.5% #1 ~4% ~$9.1B

Variable Angle (VA) Locking Hand System

TFN-ADVANCED™ Augmentation

Distal Radius

Sterile Kits


28

Spine


• Strengthen Our Core Close key portfolio gaps and update key

spine platforms with CONCORDE Lift, PROTI 360, and SYMPHONY OCT Platform

Continued simplification of current portfolio improved focus on commercial execution,

investment in professional education and enhanced access to instrument sets

2017SALES CHANGE1




(6.0%) #2 ~1% ~$10.1B

• Less Invasive Surgery Reduce the impact of surgery on

patients Improve clinical and cost outcomes Normalize surgeon variation Move to outpatient

• Address the Aging Spine Better diagnostics Slow / halt / reverse DDD

Spine MIS* and navigation solutions

Concorde Lift G3+ spine cages

Expedium Verse


* Minimally Invasive Surgery 29

Sports Medicine


• Drive market leading growth in MONOVISC and ORTHOVISC to become the #1 U.S. Hyaluronic Acid market leader in 2018

• Continue global launch of visualization tower

• Deliver pipeline of innovation in minimally invasive mobility therapies

2017SALES CHANGE1




3.4% #3 ~5% ~$7.9B


30

Michael del Prado

Shaping theFuture of Surgery

Company Group Chairman Ethicon, Advanced & General Surgery

Pressing Unmet Needs in Surgery

32%of the global burden of

disease can be attributed to surgically treatable conditions1

5Bpeople are unable to access surgical care2

new cases of surgically relevant cancers diagnosed annually worldwide2

10MM

1. Lancet Apr 20152. World Health Organization, Globocan 2012; Cancer incidence for Colorectal, Lung, Liver, Pancreas, Esophagus, Gastric, GYN, Breast and Urology

Addressing the World’s Most Critical Healthcare Issues

Core Specialties:

High ComplicationRates and Mortality

Colorectal surgery has 11% & 23% (30 & 90 day)

readmission rates.7

Colorectal

211 million obese adults are surgically eligible;

fewer than 1% get surgery.6

Bariatric and Metabolic

Limited Access to Treatment

Lung Cancer is the leading cause of cancer death worldwide:

1.7MM deaths in 2015

>60% of the patients with primary Lung Cancer

have one-or-more comorbid conditions8

Lung

High Co-morbidities

Complications due to bleeding, leaks and surgical

site infections contribute more than $5B in healthcare cost.1-5

General Surgery

Increasing Healthcare Costs

Cancer Specialties:(Surgery and Ablation)

1. CDC (Centers for Disease Control and Prevention). Direct Medical costs of Healthcare-Associated Infections in US Hospitals and Benefits of Prevention. 2009.2. AHRQ (Agency for Healthcare Research & Quality). Healthcare Cost and Utilization Project. 2018. 3. Yoo, et al. Burden of Air Leak Complications in Thoracic Surgery Using a National Hospital Billing Database. ClinicoEconomics and Outcomes Research. 2017. 4. Hammond, et al. Burden of Gastrointestinal Anastomotic Leaks: Evaluation of Clinical and Economic Outcomes. Journal of Gastrointestinal Surgery. 2014.

5. Corral, et al. Health and Economic Outcomes Associated with Uncontrolled Surgical Bleeding. ClinicoEconomics and Outcomes Research. 2015. 6. Bhogal et al. Inequity to the Utilization of Bariatric Surgery: a Systematic Review and Meta-Analysis. 20157. Source: Wick EC1, Shore AD, Hirose K, Ibrahim AM, Gearhart SL, Efron J, Weiner JP, Makary MA. Dis Colon Rectum. Readmission rates and cost following colorectal surgery. 2011 Dec;54(12):1475-9. doi: 10.1097/DCR.0b013e31822ff8f08. World Health Organization ; Yang et al. Clinical Features of 5,628 Primary Lung Cancer Patients. 2005

Leading the Global Surgery Market

#

Leading the Global Surgery Market

#1

6-7%

#1

3-4%

#2

6-7%

#1

5-6% Market CAGR ‘17-22

Market Position

Energy BiosurgeryWound ClosureEndocutters

$3.7B $4.6B $5.9B $3.6B Market Size 2022

Ethicon $8.2B* Portfolioin ~$23B Global Market (2017)**

2017-2022 Market Growth

6% CAGR**

Emerging Markets Market Growth 11%**

#1 in 3 out of 4 Key Platforms

* 8.2B represents advanced and general surgery ** Internal estimates

Accelerating Our Growth Trajectory

$8.2B* Sales in 2017, Operational Growth** of +4.1%

Consistent Cadence of New

Product Launches

7.4% Endocutter Biosurgery

5.7% Energy

5.7% Wound Closure

4.5%

Strategic Acquisitions:

~1 Point of 2017 Growth

Disciplined Portfolio Optimization

• Invest in high growth • Revitalize selected areas• Rationalize products/SKUs

for profitability and growth

2017 Ops Sales Growth by Platform**

* 8.2B represents advanced and general surgery ** Excludes impact of translational currency

Shaping the Future of Surgery – Driving Our Growth

Creating the Next Frontier of Surgery

• Products that augment surgeon technical and sensory capability intra-operatively

• Digital ecosystem and robotics solution that combines technical, sensory and cognitive products to enable the intelligent OR

• Broad based access to surgery – growth in emerging markets

• Market leading portfolio and strong evidence in cancer and obesity

• Procedural efficiency and reduction in variability

• Biosurgery portfolio and Wound Closure systems to address key unmet needs

• Minimally invasive microwave ablation (MIMA) to become standard of care

• New less-invasive modalities that deliver better outcomes

• Surgical tools, services, and education targeted at reaching the ~5 billion people without access to essential surgery1

Delivering Value Maximizing Solutions

• Business models and services that deliver quality benchmarks at low cost for routine procedures

• Products and services to standardize processes

• Products and solutions that enable data-based insight and decision making

Winning in Open and Lap Surgery Entering High Growth Digital Surgery

1. Lancet Apr 2015

Shaping the Future of Surgery –Driving Our Growth

• Broad based access to surgery – growth in emerging markets

• Market leading portfolio and strong evidence in cancer and obesity

• Procedural efficiency and reduction in variability

• Biosurgery portfolio and Wound Closure systems to address key unmet needs

Winning in Open and Lap Surgery


• Products that augment surgeon technical and sensory capability intra-operatively

• Digital ecosystem and robotics solution that combines technical, sensory, and cognitive products to enable the intelligent OR

Entering High Growth Digital Surgery


• Drive minimally invasive microwave ablation (MIMA) to become standard of care

• New less-invasive modalities that deliver better outcomes

• Surgical tools, services, and education targeted at reaching the ~5 billion people without access to essential surgery1


1. Lancet Apr 2015


• Business models and services that deliver quality benchmarks at low cost for routine procedures

• Products and services to standardize processes

• Products and solutions that enable data-based insight and decision making


Maintaining Lead in Open Surgery

Setting the Standard of Care in Wound Closure

Our Ethicon Plus antibacterial sutures are the only sutures coated with triclosan available worldwide

WHO and CDC recommend the use of triclosan-coated sutures to

prevent surgical site infection2

STRATAFIX Spiral Uni and Bidirectional

DERMABONDPRINEO 22/42

Refresh Open Portfolio

Continued innovation in open portfolio to provide superior

technology

First Systematic Approach to Bleeding Management

Optimal hemostat utilization, enabling clinicians and healthcare systems to

maximize healthcare spend

Open Procedures Remain 60% of Complex Surgeries1

1. Premier Perspective Hospital Database for Complex Surgeries in Thoracic, Colorectal and Solid Organ 2. The CDC and WHO guidelines on reducing the risk of surgical site infections are general to triclosan-coated sutures and are not specific to any one brand

Addressing Unmet Needs in Minimally Invasive Surgery

Advanced Stapling with Real World Evidence

Associated with quantifiably better outcomes – reducing hemostasis

complications by more than 40% in bariatric and thoracic cases1,2

Delivering Growth ThroughNew Technologies

Superior control of moderate-severe regurgitation

at 6 months, compared to proton pump inhibitors3

1. Use of Ethicon powered staplers was associated with fewer bleeding/transfusion complications (1.61%) compared to Medtronic nonpowered staplers (3.05%), p=0.010, in laparoscopic Sleeve Gastrectomy and Roux-en-Y Gastric Bypass procedures. Based on retrospective analysis of 21,466 cases from the Premier Perspective® Hospital Database.

2. Ethicon retrospective analysis of clinical outcomes between Echelon Powered vs. Medtronic nonpowered endoscopic surgical staplers among patients undergoing video-assisted thoracoscopic surgery lobectomy. Review of 1,501 cases between 2012 and 2015 from the Premier Healthcare Database (4.8% vs 14.2%; p=0.0098)

3. This data was presented at Digestive Disease Week 2017 (DDW) in Chicago, IL, by Dr. Reginald Bell, SurgOne Foregut Institute, Englewood, CO.

Total Energy Solutions

The most comprehensive portfolio of intelligent energy solutions designed to deliver greater

innovation and value

Open Surgery

Laparoscopic Surgery

Digital Surgery

Robotic SurgeryA Bridge Between Lap and Digital Surgery

Improvement

Time

Transforming Robotics to Digital Surgery

– Access and reach– Footprint and cost– Workflow– Advanced instrumentation

Poised to Disrupt the Fast-Growing Robotics Market

• On track to be in market by 2020

• Differentiated system at launch– Access and reach– Footprint and cost– Workflow– Advanced instrumentation

• Many customers engaged with positive feedback

• Architected to deliver on the promise of the digital ecosystem


Thermal Ablation

NeuWave: Ablation confirmation, for the first time, allows real-time confirmation of probe placement and technical success

The only FDA cleared flexible microwave ablation probe


Thermal Ablation

NeuWave: Ablation confirmation, for the first time, allows real-time confirmation

of probe placement and technical success

The only FDA cleared flexible ablation probe

Enhance surgeon’s ability to visualize anatomical

structures and the extent of the disease

Advanced ImagingBiologically TargetedRadiotherapy

Endoluminal Procedures

Integrating the latest advancements in robotics, software, data science and

endoscope innovation

Combines the power of biologic imaging and

radiotherapy ablation to treat cancer

Delivering Solutions toMaximize Customer Value

Omnichannel Training

Evidence

Comprehensive Solutions

Shaping the Future of Surgery



Entering High Growth Digital Surgery

Winning in Open and Laparoscopic

Surgery

Continuing Legacy of Shaping Surgery

Accelerating Sequential Revenue Growth

Increasing Global Reach

26

Appendix

Biosurgicals

Strategic Initiatives• Expand hemostasis portfolio through internal innovation and strategic

partnerships to address unmet needs in bleeding management and leaks prevention

• Drive Hemostasis Optimization Program to simplify the category by demonstrating that cost savings and operating room & supply chain efficiencies can be achieved without sacrificing patient outcomes

• Drive product penetration of adjunctive hemostats globally with strong growth in Emerging Markets

• Expand growth in new areas including Total Joint Replacements (Hips and Knees) and leverage partnerships across J&J Medical Devices

2017SALES CHANGE1




5.7% #1 ~5% ~$3.6B

1 Operational and includes BCS, TAH, AP, Biopatch2 Internal estimates

27

Energy


• Strengthen competitiveness with total energy portfolio across open, lap and robotic procedures, through continued innovation in HARMONIC ultrasonic, filling portfolio gaps in ENSEAL advanced bipolar, and globalizing MEGADYNE core energy portfolio

• Penetrate mid-value markets through a segmented portfolio including reprocessing and re-usability

• Expand into new specialties such as hepatobiliary and orthopedics

2017SALES CHANGE1




5.7% #2 ~7% ~$5.9B


28

Endocutters


• Deliver tissue-specific innovation across laparoscopic and robotics stapling instrumentation that reduces patient complications in the most challenging oncologic and bariatric cases that is supported by clinical, economic and real world evidence

• Globalize the successful launches of powered GST and vascular platforms that have demonstrated significant reduction in complications and cost

2017SALES CHANGE1




7.4% #1 ~6% ~$3.7B


29

Wound Closure


• Establish our differentiated wound closure system (Plus Antibacterial Suture Portfolio, STRATAFIX Knotless Tissue Control Devices, and PRINEO Skin Closure System) as the standard of care for reducing risk of Surgical Site Infections

• Ensure portfolio competitiveness across open, lap and robotic procedures

• Simplify the global sutures portfolio to improve efficiency and customer experience

• Accelerate growth in orthopedics through collaboration across J&J Medical Devices and strategic partnerships

2017SALES CHANGE1




4.5% #1 ~3% ~$4.6B


30

Peter Shen, PhDEuan Thomson, PhD

Innovation

Global Heads, R&DJohnson & Johnson Medical Devices Companies

Interventional Solutions

Surgery

Orthopaedics

Eye Health

Robust Pipelineof MeaningfulInnovation

2018

New Products

15-20


2019

New Products

20-25


2020+

New Products

40-50


7B$

in new productsales in 2022*

*Excluding external innovation

Accessing the Best Technologies to Improve Outcomes

$5 BIn Acquisitions and Strategic Partnerships

Filling Portfolio

Gaps

Building Capabilityto Accelerate and

Onboard Early Stage Technologies

Early Entry into Cutting Edge Technology

30+ Transactions in 2017

Our Digital Surgery Insights

Greater global access with smaller footprintand flexible design

New approaches to learning

Better user experience with unique consoleand connection

Optimized patient access and workflow

Enable a broad range of procedures

Advanced instruments and enhanced visualization

Our Digital Surgery Insights

Greater global access with smaller footprintand flexible design

New approaches to learning

Better user experience with unique consoleand connection

Optimized patient access and workflow

Enable a broad range of procedures

Advanced instruments and enhanced visualization

Verb Surgical Platform

Achieving Key Milestones for the Verb Platform

COMMERCIALIZATION EXPECTED IN 2020

Conducting pre-submissionmeetings with global regulatory agencies

Completing procedure development in

pre-clinical setting

Scaling our capabilities in commercial, service, supply

chain and education

Multiple working prototypes

Digital Surgery Solutions to Address Unmet Needs

Improving the Standard of Care Through Orthopaedic Robotics

Increased operating room efficiency

Reduced burden on surgeons and staff

Minimized variability

Improved reproducibility

Optimized footprint

Innovation to Automate and Improve Procedure Efficiency

Surgical Process Institute

Guide and standardize the surgical steps in the procedure and improve

overall operational efficiency

ME Impactor

More precisely seat uncemented femurs and tibias in a more

ergonomic fashion

Orthotaxy

Create and follow a surgical plan while performing more accurate

femoral and tibial cuts

Expect to Reduce Procedure Time By 30%

Hospital Information/Electronic Records Integration

PRE-OP

Apps

Wearables

PlanningSoftware

INTRA-OP

VisualizationNeuromonitoring

Imaging

POST-OP

Sensors

Wearables

Apps

Robotics

Data/Analytics

Digital Surgery: Beyond Robotics

We Have Built Digital Technologies Across the Continuum of Care

Patient view provides behavior

change

Web-based surgical planning

and tracking software guide

Portable, highly accurate next

generation robotics assisted platform

Innovative solution to improve

operating room efficiency and

patient outcomes

Performance management to assessand improve surgical

procedures

Provider view providesa platform to engagepatients and support

and monitor progress and outcomes

INTRA-OP POST-OPPRE-OP

Strong cadence of meaningful innovation fueling long-term above market growth

Focus on driving meaningful clinical and economic value

Digital surgery goes beyond robotics to the entire continuum of care

Delivering Innovation That Matters

Ashley McEvoy

Leading in Eye Health

Company Group Chairman,Johnson & Johnson Vision

Sight is Our Most Precious Sense

Our MissionBringing science and the

sense of sight to life through world-class innovation and

customer experience.

of what we learn is through

our eyes2

80%

of people fear losing their sight more than

any other sense3

of visual impairments

are treatable if discovered early4

50% of World Needs Vision Correction; 10% are Treated1

1. The challenge of providing spectacles in the developing world: Holden Brien, et. al.2. J Zaba. Journal of Behavioral Optometry. Volume 22, 20113. Lighthouse international 2010 Harris Survey4. The World Health Organization Visual impairment and blindness Fact Sheet N°282 August 2014

Eye Health is a Large and Growing Category With Significant Unmet Patient Need$80B Market Globally; Growing at 5% CAGR1 2017- 2022

Dry Eye is a $3.7B category; growing at 6% CAGR5

• >340MM globally suffer from Dry Eye5

• ~86% of people with Dry Eye suffer from Meibomian Gland Dysfunction (MGD)6

Cataract Surgery is a $5B category; growing at 4% CAGR2

• Most common surgery performed globally and #1 cause of preventable blindness3

• Premium IOL penetration is fastest growing segment, yet under-indexed at 12% in the U.S. and < 3% in India & China3

J&J Vision has breadth and depth to grow these markets and become a world leader in Eye Health

Contact Lenses are a $8B category; growing at 5% CAGR4

• Penetration remains low, <10% globally4

The Laser Vision Correction market is $0.7B; growing at 3% CAGR1

• Penetration rates are low (<5%)1

1. Internal Estimates2. 2017 Market Scope Global Cataract Surgery Equipment Report + Internal Estimates, Data on File3. 2017 Market Scope Global IOL Report

4. Euromonitor + Internal Estimates 5. 2017 Market Scope Dry Eye Report6. Michael A. Lemp, MD, et. al., Cornea 2012

Starting From a Leadership Position in Contact Lenses, We are Transforming into an Eye Health Company

3

Dry Eye1st FDA-cleared treatment for MGD, the leading cause of Dry Eye5

Contact Lenses1

#1 Contact lens brand#1 Daily disposable#1 Reusable contact lens#1 Daily disposable Beauty contact lens

Ophthalmic Surgery#1 LASIK2

#1 Premium IOL3

#2 Cataract surgery equipment4

Connected CommerceBest-in-class omnichannelexperience meeting consumers where they are, including new subscription model

Backed by Johnson & Johnson Enterprise Capabilities

1. Euromonitor2. 2017 Market Scope Refractive Surgery Report3. 2017 Market Scope Global IOL Report + Internal Estimates

4. 2017 Market Scope Global Cataract Surgery Equipment Report + Internal Estimates5. TFOS DEWS II Definition and Classification Report

Total JJV sales for 2017$4.3B, grew +6.5%2

Contact Lens grew sales at or above the market for

Sales of $3B andgrew 6% in 20173

Surgical grew salesat +10% in 20172

Cataract business surpassed$1B in sales in 2017, +13%2

Premium IOLs have outpaced market

growth (2X)4

J&J Vision is Delivering Consistent Above Market Performance1

1. Internal Estimates2. Proforma Results3. Operational Growth, excludes impact of translational currency4. 2017 Market Scope Global IOL Report

11consecutive quarters1

Our Contact Lens Business Has Delivered 11 Quarters of Market-Leading Performance1

7 New Products Launched Since 2015

Beauty Contact LensACUVUE Define

#1 Selling Daily Disposable Beauty Contact Lens4

7 new designs launched since 2015

Monthly Reusable Contact LensACUVUE Vita

First Time Full Family Launched Within 1 Year

Daily Disposable Contact LensACUVUE Oasys

#1 Selling Contact Lens Brand In The World4

1. Internal Estimates2. Reported Sales (Rounded)3. Approximate total lenses produced in 2017 rounded4. Euromonitor International

Most Trusted Brand - Survey conducted 12/2016 to 2/2017. Aggregated sample comprises 1,050 Eye Care Professionals from the U.S., UK, Russia, Japan & S. Korea markets, representing over ⅔ of global contact lens retail sales

ƚ

>30% Specialty (astigmatism, presbyopia, and beauty)

and grew double digits in 20172

OF REVENUE

ACUVUE Oasys & ACUVUE Moist2

Two $1B+ brands

~5BLenses manufactured

each year3

$3Bin revenue2

~50MMconsumers wear

ACUVUE every day1

ƚ

World-class researchers with deep vision expertise

Strong Foundation in Ophthalmology with Acquisition of #2 Eye Surgery Company1

WORLD’S 1ST extended depth of focus IOL

Premium IOL penetration is under-indexed2

Material Science

Optical Engineering

Broad Eye Expertise

Manufacturing

Strong Surgeon Partnerships

Seamless Acquisition

• 5,000 new employees in 37 countries3

• Transitioned consumer eyehealth products to Contact Lens business, rebranding key products to leverage ACUVUE equity

• No customer disruptions

• Value capture is on track

• Completed complex integration and delivered strong first-year results, exceeding deal-model targets

Markets where we have IOL leadership position

Canada Korea

Germany

UK / Ireland

1. 2017 Market Scope Refractive Surgery Report combined with internal estimates2. 2017 Market Scope Global IOL Report3. Internal HR estimates

Fastest growing lens in premium IOL segment2

Expanded Family by Acquiring First FDA-Cleared Treatment1 for Leading Cause of Dry Eye2

• >340MM people suffer from Dry Eye globally3

• ~86% of all Dry Eye patients have Meibomian Gland Dysfunction (MGD) 4

• The first FDA-cleared treatment for MGD

• Patients present with symptoms to all our customers: ophthalmologists, optometrists and opticians

A growing epidemic that is underdiagnosed and undertreated

Normal Meibomian Gland Structure Meibomian Gland Dropout

1. First Electronic Treatment cleared by FDA2. TFOS DEWS II Definition and Classification Report3. 2017 Market Scope Dry Eye Report4. Michael A. Lemp, MD, et.al., Cornea 2012

Creating Convenient, Globally Connected SolutionsDelivering a seamless omnichannel experience designed to reduce friction in the system and better connect consumers and ECPs for a superior eye health experience

JNJVISIONPRO.COM• A personalized, consolidated resource for

ECPs, staff and students• 1.5X Engagement from professionals2

Enhanced In-office Experience• Personalized patient experience

through lens selection and education• Evolved practice management–Smart lens dispensing unit –Audit tools to manage inventory

5x faster1

–Big data, analytics to further drive efficienciesMyACUVUE

• >3MM MyAcuvuemembers in Asia1

• Chatbot drives real-time consumer engagement using AI

• Personalized content is driving +5pt YOY new wearer acquisition1

IOL Express• Forward stocking locations

to allow surgical vision to get closer to the customer with real-time delivery

Sightbox• Convenient, membership-based service

for contact lens wearers in the United States• Coaching, education• Making it easy = staying in the category

1. Internal Sources2. Google Analytics Site Traffic, March 2018

2017 E-commerce sales up

+15%vs PY1

Our Growth Acceleration Strategies

Strong commercial execution, innovative business models and fast-moving supply chain to deliver superior eye health experiences

Seasoned globally diverse team dedicated to a noble purpose to protect and enhance sight

Differentiated and optimized portfolio to deliver short- and long-term growth

Insight-driven innovation (organic and inorganic)

To continue to deliver consistent above market growth

Xiao-Yu Song, MD, PhD

Innovation

Worldwide R&D LeaderJohnson & Johnson Vision

Delivering value across a lifetime of patient eye health needs

Pioneering the Future of Eye Care

PRESBYOPIA CATARACTSDRY EYE GLAUCOMA AMD

Great Insights

Internal / External R&D TechnologiesIconic Brand

BEAUTYPROGRESSIVE MYOPIA HYPEROPIA ASTIGMATISMMYOPIA

ALLERGY

Patient-Focused and Science-Based Innovation to Deliver Better Surgical Outcomes

Creating the Next Generation Refractive Laser

Building a Best-in-Class Cataract Surgical Suite

Expanding our Dry Eye Portfolio

Next Generation Symfony*Designed to improve near vision

Enhanced IOL Innovation with Focus on Premium Needs

Pipeline is optimized and focused

*This product is under development and not approved or cleared by FDA, and is not available for sale or commercial use in any market

Pipeline will Address New Need States with Breakthrough Contact Lens ProductsOn schedule to deliver 2 product launches per year through 2022

Introducing

Intelligent contact lenses that adapt to the light in your busy life

ACUVUE OASYS with Transitions Light Intelligent Technology

Drug Combination Contact Lenses*Designed to be a

combination product for relief of eye allergy itch

Xlens*World’s first smart contact lens

Targeting dynamic solution for presbyopia

Technology development for myopia control, dry eye symptoms, and custom lenses

First in Class 150 patents granted

First in Class

*These products are under development, are not approved or cleared by FDA, and are not available for sale or commercial use in any market

The Power of J&J Strengthens Our Competitive Advantage • Supply Chain is a competitive advantage, delivering

best-in-class COGs– New 5th generation manufacturing platform

Half the space, double the output, 35% contact lens cost reduction1

– Increased sustainabilitySolar panel farm and windmills have helped contribute to 30% reduction in utilities cost per lens1

• Accessing Johnson & Johnson signature capabilities– Patient insights from deep data science

– Upskilling doctors via 26 teaching institutes

– E-commerce and digital

– Accessing best-in-class expertise across scientific fields

1. Internal Estimates

We have a Bold Ambition to be a World Leader in Eye Health

We expect to continue delivering above market

performance1

We are creating solutions to address a lifetime of

patient eye health needs

We are leading with new ways of working to drive the market and

delight patients

We are leveraging the best of J&J

Helping people honor their eyes

1. Internal Estimates

19

Appendix

Vision Care*


• Drive contact lens penetration rates and successfully increase net new wearers

• Elevate the eye health experience with integrated, personalized and connected digital solutions

• Bring forth innovation that goes beyond vision correction to help reignite interest in the category

20

2017 SALES CHANGE1




5.2% #1 ~5% ~$13.6B

1 Operational on a pro-forma basis2 Internal estimates

* Vision Care market includes Contact Lens, Contact Lens Care (Solutions), and Dry Eye OTC

Surgical Vision


• Successfully integrate acquired companies; drive +10 pts of gross profit improvement

• Drive growth in the premium IOL segment and a superior eye health experience

• Prioritize and Optimize: Enrich the pipeline and create a sustainable corneal refractive business

21

2017 SALES CHANGE1




10.0% #2 ~5% ~$7.2B

1 Operational on a Pro-forma basis2 Internal estimates incl. Cataract + Refractive + Dry Eye Procedures (excl. OTC and Rx)

Alex Gorsky - Seeking Alpha

Documents

Transcript of Alex Gorsky - Seeking Alpha