JOHNSON & JOHNSON Co.

Annual Reports Analysis of Five years on

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Its products are sold in over 175 countries. J&J had

worldwide pharmaceutical sales of $24.6 billion for the

full-year 2008.

The company is listed among the Fortune 500.

The world's most respected company by Barron's

Magazine.

The corporation's headquarters is located in New

Jersey, United States.

What is Johnson & Johnson Co.???

A global American pharmaceutical, medical devices

and consumer packaged goods manufacturer.

It is founded in 1886,by Robert Wood Johnson, James

Wood Johnson & Edward Mead Johnson.

The corporation includes some 250 subsidiary

companies with operations in over 57 countries.

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Income Statement

Year Sales EBIT(Earnings before Interest & tax)

Deprecia-tion

Total Net Income

EPS(Earnings per Share)

Tax Rates(%)

1/2008 61,095.0 13,283.0 2,744.0 10,576.0 3.63 20.38

1/2007 53,324.0 14,587.0 2,194.0 11,053.0 3.73 24.23

1/2006 50,514.0 13,116.0 2,021.0 10,060.0 3.35 23.30

1/2005 47,348.0 12,331.0 2,103.0 8,180.0 2.74 33.66

In U.S. Dollars.Values in Millions.

1/2004 41,862.0 10,308.0 1,854.0 7,197.0 2.4 30.18

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Balance Sheet

Year Current Assets

Total Assets

Current Liabilities

TotalLiabilities

1/2008 29,945.0 80,954.0 19,837.0 37,635.0

1/2007 22,975.0 70,556.0 19.161.0 31,238.0

1/2006 31,480.0 58,864.0 12,635.0 20,154.0

In U.S. Dollars.Values in Millions.

1/2005 27,320.0 53,317.0 13,927.0 21,504.0

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1/2004 22,995.0 48,263.0 13,448.0 21,394.0

Trend Percentage Report (Income Statement )

Year 2004 2005 2006 2007 2008 2009(Estimated)

Total Net Income

7,197 8,180 10,060 11,053 10,576 12,900

Calculation:-(Current yr/base yr)*100

100 (8,180/7,197)*

100

(10,060/ 7,197)*

100

(11,053/ 7,197)*

100

(10,576/ 7,197)*

100

(12,900/ 7,197)

*100

Trend Percentage

100 113.65 139.78 153.57 146.95 179.24

In U.S. Dollars.Values in Millions.

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Year 2004 taken as a base year.

Graph representation of Income Statement (Total

Income)P

erce

ntag

e

Years

2004 2005 2006 2007 2008 20090

20406080

100120140160180200

100

113.65

139.78

153.57

146.95

179.24

Trend Percentage Graph

Trend Percentage

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Trend Percentage Report onBalance Sheet (Total Assets)

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Year 2004 2005 2006 2007 2008 2009(Estimated)

Total Assets 48,263.0 53,317.0 58,864.0 70,556.0 80,954.0 84,000.0

Calculation:-

(Current yr/base yr)*100

100 (53,317/48,263)*

100

(58,864/48,263)*

100

(70,556/48,263)*

100

(80,954/48,263)*

100

(84,000/48,263)*

100

Trend Percentage

100 110.47 121.90 146.19 167.73 174.04

In U.S. Dollars.Values in Millions.Year 2004 taken as a base year.

Graph representation ofBalance Sheet (Total Assets)

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2004 2005 2006 2007 2008 20090

20

40

60

80

100

120

140

160

180

200

100110.47 121.9

146.19

167.73 174.04

Trend Percentage

Trend Percentage

Per

cent

age

Years

Trend Percentage Report onBalance Sheet (Total Liabilities)

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Year 2004 2005 2006 2007 2008 2009(Estimated)

Total Assets 21,394.0 21,504.0 20,154.0 31,238.0 37,635.0 42,000.0

Calculation:-

(Current yr/base yr)*100

100 (21,504/21,394)*

100

(20,154/21,394)*

100

(31,238/21,394)*

100

(37,635/21,394)*

100

(42,000/21,394)*

100

Trend Percentage

100 100.51 94.20 146.01 175.91 196.31

Year 2004 taken as a base year.In U.S. Dollars.Values in Millions.

Graph representation ofBalance Sheet (Total

Liablities)

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2004 2005 2006 2007 2008 20090

50

100

150

200

250

100 100.51

94.2

146.01

175.91196.31

Trend Percentage

Trend Percentage

Per

cent

age

Years

Interpretations

On Income Statement:- As we know the company is listed among the

“Fortune 500”. As per the income statement, the total sales of the

company is increasing at a faster rate as compared to the previous years.

The total net income is fluctuating as in 2008 it comes down to $10,576 mill. from $11,053 mill.

The earning per share has also declined from 3.77 in 2007 to 3.63 in 2008 though there are chances that the EPS might see a rise in the coming future.

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Interpretation(Cont.)

On Balance Sheet:-

The balance sheet indicated that there is a rapid increase in the total assets & liabilities between 2006 and 2007.

On the other hand current assets have declined as in 2006 it was $31,480 mill. and by 2007 it became $22,975 mill.

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Forecasting Next Year (2009)

As per the balance sheet graph the trend percentage on liabilities as on 2004 and 2005 was stable .

Then later on it was observed that there was a decline in the trend percentage in 2006.

After which it kept increasing at a very rapid speed from 2007 onward.

So looking at the past experience we estimate that there will be a major rise in the total liabilities in 2009.

Also there will be increase in total assets in year 2009

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Opinions Given by Professionals

“JNJ is huge. I expect that given its size that the bargaining power of its suppliers is minimized. In those instances where JNJ has competition for scarce resources (e.g., pharmaceutical patents that carry high fees), JNJ has purchased the entire company. JNJ's recent purchase of Alza Corporation is a good example” WALLMART

There has been some great analysis of Ford, eBay, McDonald's, and Walmart on this company.

“For a change of pace I am going to offer an analysis of Johnson & Johnson, maker of my children's favorite form of "body art" (Band-aids), and currently one of the few holdings in my portfolio .”By eBAY

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Opinion of our group on Johnson & Johnson Co.

In health care, they have extremely high brand value, thanks in large part to their consumer goods divisions

As mentioned earlier, the pharmaceutical industry is expected to continue to grow.

Due to JNJ's position across the entire industry, JNJ's future looks strong.

For an old corporation that one would think has reached its prime, it appears that JNJ is really just starting to realize its future potential.

In conclusion, JNJ appears to look fairly "healthy" from an industry quality and company quality view. I'm looking forward to learning more about their finances in the coming lessons.

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Thank You…

Presented by :-Dharna Varma (PGDHRM/09/02)Nirankar Singh (PGDFM/09/03)Pranuj Rai (PGDFM/09/04)

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