Result: 3.9%

2.5% 3.5%Operational Sales Growth

Result: 9.4%

5.3% 7.7%Adjusted Operational EPS Growth

Result: $15.5

$15.0 $16.7Free Cash Flow ($ Billions)

Goal:Goal: 2.5%2.5% 3-3.5.5%%

Goal:Goal: 5.3%5 3% 7-7.77%%

Goal:Goal: $15.7$15 7-$$16.716 7

$15.7

-0.2%

6.3%

13.0%

15.3%

11.0%

15.3%

1-Year 3-Year 5-Year

Total Shareholder Return

Competitor Composite J&J

50% PSUs 60% PSUs

30% Options30% Options

20% RSUs 10% RSUs

2016 Performance Year(Grant Feb. 2017)

2017 Performance Year(Grant Feb. 2018)

Change in Long-Term Incentive Mix for Executives

Change

-10% points

No change

+10% points

Change to Long-Term Incentive Mix for Executive Officers

-0.2%

6.3%

13.0%

15.3%

11.0%

15.3%

1-Year 3-Year 5-Year

Total Shareholder Return

Competitor Composite J&J

Result: 3.9%

2.5% 3.5%Operational Sales Growth

Result: 9.4%

5.3% 7.7%Adjusted Operational EPS Growth

Result: $15.5

$15.0 $16.7Free Cash Flow ($ Billions)

Goal:Goal: 2.5%2.5% 3-3.5.5%%

Goal:Goal: 5.3%5 3% 7-7.77%%

Goal:Goal: $15.7$15 7-$$16.716 7

$15.7

7%

17%

76%

ACTUAL 2016 CEO PAY MIX

Long-TermIncentives

Base Salary

AnnualPerformanceBonus

94% 96% 95% 93%

2013 2014 2015 2016

Shareholder votes cast in favor ofour "Say on Pay" proposal

50% PSUs 60% PSUs

30% Options30% Options

20% RSUs 10% RSUs

2016 Performance Year(Grant Feb. 2017)

2017 Performance Year(Grant Feb. 2018)

Change in Long-Term Incentive Mix for Executives

Change

-10% points

No change

+10% points

Change to Long-Term Incentive Mix for Executive Officers

9%17%

74%

2016 CEO PAY MAA IX AT TARGET

Long-TermIncentives

Base Salary

AnnualPerformanceBonus

15%

17%

68%

2016 OTHER NAMED EXECUTIVE OFFICER PAYAAMIX AT TAA ARTT GET

Long-TermIncentives

Base Salary

AnnualPerformanceBonus