CAGNY

PRESENTATION
FEBRUARY 22, 2017
CAUTIONARY NOTE ON
FORWARD-LOOKING STATEMENTS
This presentation contains “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 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 business plans, transactions and restructuring plans; market conditions and the possibility that the on-going share
repurchase program may be delayed, suspended or discontinued; the impact of business combinations and divestitures; significant adverse litigation or government
action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward
health care cost containment; changes in behavior and spending patterns or financial distress of purchasers of health care products and services; financial instability
of international economies and legal systems and sovereign risk; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety
concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet
obligations in compliance agreements with government bodies. A further list and description of these risks, uncertainties and other factors can be found in Johnson &
Johnson’s Annual Report on Form 10-K for the fiscal year ended January 3, 2016, including in Exhibit 99 thereto, and the company’s subsequent filings with the
Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.jnj.com, or on request from Johnson & Johnson. Any
forward-looking statement made in this presentation speaks only as of the date of this presentation. 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 MEASURES
This presentation refers 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.

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OUR CREDO
We believe our first responsibility is to the doctors, nurses and patients, to mothers and
fathers and all others who use our products and services. In meeting their needs everything
we do must be of high quality. We must constantly strive to reduce our costs in order to
maintain reasonable prices. Customers' orders must be serviced promptly and accurately.
Our suppliers and distributors must have an opportunity to make a fair profit.

We are responsible to our employees, the men and women who
work with us throughout the world. Everyone must be considered
as an individual. We must respect their dignity and recognize their
merit. They must have a sense of security in their jobs.
Compensation must be fair and adequate, and working conditions “ Caring for people
clean, orderly and safe. We must be mindful of ways to help our
employees fulfill their family responsibilities. Employees must feel
free to make suggestions and complaints. There must be equal
around the world by
opportunity for employment, development and advancement for
those qualified. We must provide competent management, and
anticipating their
their actions must be just and ethical.
needs, creating
We are responsible to the communities in which we live and
work and to the world community as well. We must be good
citizens – support good works and charities and bear our fair
solutions and
share of taxes. We must encourage civic improvements and
better health and education. We must maintain in good order experiences that
the property we are privileged to use, protecting the
environment and natural resources. help them and those
Our final responsibility is to our stockholders. Business must
make a sound profit. We must experiment with new ideas.
they care for live
Research must be carried on, innovative programs developed
and mistakes paid for. New equipment must be purchased, healthy, vibrant lives”
new facilities provided and new products launched. Reserves
must be created to provide for adverse times. When we
operate according to these principles, the stockholders should
realize a fair return.

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DID YOU KNOW?

• $13.3B in NTS

• Global leader in 7 Consumer categories

• Operations in more than 80 countries

• Iconic brands

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ICONIC BRANDS

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OUR BRANDS ARE CLUSTERED
IN 6 BROAD CATEGORIES

BEAUTY OTC BABY CARE

ORAL CARE WOMEN'S
WOUND CARE
HEALTH

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OUR BRANDS ARE CLUSTERED
IN 6 BROAD CATEGORIES

~30% ~30%
BEAUTY
OTC

12% 15% BABY CARE

~5% 8%
ORAL CARE

WOUND CARE WOMEN’S HEALTH

Based on FY 2016 Consumer sales,

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WE HAVE 12 MEGABRANDS

3 BRANDS > $1B

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OUR 12 MEGABRANDS DELIVER
65% OF SALES TODAY

$1B Brands
~75%

~65%

2016 2020
Aspiration1
1. Internal estimate.

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WE ARE GLOBAL LEADERS ACROSS
NUMEROUS PRODUCT SEGMENTS

1 2
• Allergy Care
• Diaper Rash
• Baby Toiletries
• Facial Cleansers
• Digestive Remedies
• Mouthwash • Feminine Care
• Smoking Cessation Aids • Sun Protection
• Therapeutic Beauty
• Wound Care

Source: Euromonitor FY 2015 data.
Note: Therapeutic Beauty includes hair loss treatments, acne treatments and medicated shampoos;
Wound Care includes adhesive bandages, first aid kits, gauze, and tape.

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WITH >50% OF SALES OUTSIDE
OF NORTH AMERICA
28%
45%
EMEA

NORTH AMERICA

17%
ASIA PACIFIC

10%
LATIN AMERICA

2016 Net Trade Sales

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OUR 2016 INVESTOR MEETINGS

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OUR 2016 COMMITMENTS

1. Grow topline faster than the market

2. Expand our profit margin to reach
benchmark levels

3. Accelerate growth through acquisitions

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WE HAVE MADE
SIGNIFICANT
PROGRESS AGAINST
OUR COMMITMENTS

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GROWING FASTER THAN
THE MARKET IN 2016

NTS GROWTH1: +4.2%
PEER COMPOSITE
GROWTH2: +3.2%
MARKET GROWTH3: +2.9%
1. Operational growth excluding Acquisitions and Divestitures, additional 2015 shipping days and impact of Venezuela
2. GSR data and internal analysis
3. Source: Neilson market data

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2016 MARKET SHARE

NTS ($ billions) Share Growth (% pts)

OTC 4.0 +0.4
Beauty 4.0 ----
Oral Care 1.5 +0.6
Feminine
Care 1.1 +0.3

Wound Care 0.8 +0.2
Baby 1.9 -1.8

Source: ACT NTS Dec 2016 in USD

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WE ARE DELIVERING MAJOR
IMPROVEMENTS IN PROFITABILITY

19.9%
Adjusted Income Before Tax*
14.3%

+560BPS
2015 2016

*NON-GAAP measure

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WE ARE ACCELERATING GROWTH
THROUGH ACQUISITIONS
Premium Hair Global Allergy

Light Therapy Derma-Cosmetics

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OUR 2016 COMMITMENTS

1. Grow topline faster than the market

2. Expand our profit margin to reach
benchmark levels

3. Accelerate growth through acquisitions

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WHAT IS
J&J CONSUMER’S
RIGHT TO WIN?

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CLEAR RIGHT TO WIN

1. Strong portfolio of enduring brands

2. Playing in attractive, growing categories

3. Powerful strategy that drives
competitive advantage

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COLLECTION OF ENDURING WORLD-CLASS BRANDS

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GROWING THROUGH INSIGHT-LED INNOVATION,
ENDORSED BY PROFESSIONALS

#1 Allergist
recommended brand #1 Brand of OTC pain
reliever hospitals use most #1 Dermatologist
recommended

#1 Dentist recommended
mouthwash #1 Pediatrician recommended
brand of ibuprofen #1 Hospital
recommended

#1 Recommended by
doctors and moms 70 Years relied on
by doctors 70 Years recommended
by dermatologists

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PLAYING IN LARGE STRUCTURALLY
ATTRACTIVE CATEGORIES
Our total consumer categories represent ~$350B globally

2015 Market Sizes ($B)

$15 $160 ORAL CARE
$40
BABY CARE BEAUTY

$100 $30 $3
OTC WOMEN’S HEALTH WOUND CARE

Source: Euromonitor FY 2015 data

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…THAT ARE GROWING FASTER THAN
CONSUMER PACKAGED GOODS AVERAGE
5 Year Sales CAGR1

BABY CARE
6% BEAUTY3
6% ORAL CARE4
4%
5% 7% 3%
OTC WOMEN’S HEALTH WOUND CARE

Our categories are growing a weighted average of >4% versus
CPG2 market growth of 3~4%
1. Source: Euromonitor, 2010-2015 CAGR
2. Consumer Packaged Goods Five Year Sales CAGR
3. Excludes cosmetics
4. Excludes toothbrush & toothpaste

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FAVORABLE CONSUMER TRENDS

NATURAL / ORGANICS MILLENNIALS ARE DIGITAL /
HEALTHY BEAUTY SOCIAL NATIVES 135 MILLION NEW BIRTHS/YEAR

OTC SELF-CARE SOLUTIONS LIFESTYLE HEALTH ISSUES DISCIPLINED GEOGRAPHIC PORTFOLIO
AGING POPULATION
MANAGEMENT

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OUR STRATEGY POSITIONS US TO BE A
SIGNIFICANT CONTRIBUTOR TO J&J

2016 2017–2020

$13.3B
Target

Revenue
1~2pts
Above market growth per year

19.9% Profitability 1
Growing earnings faster
than sales

1. Adjusted Income Before Tax by Segment (Non-GAAP Measure).

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FUNDAMENTAL PRINCIPLES GUIDING
OUR STRATEGY
Change the rules of the game through global, transformational,
science-based innovation

Create an ecosystem that builds enduring, loyal relationships with
consumers over time

Make our brands more available to our consumers
wherever they are

Drive profitability and margin expansion

Further leverage acquisitions to accelerate growth

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TRANSFORMATIONAL SCIENCE-BASED INNOVATION

FOCUS ON FEWER EXCELLENCE EXTERNAL DESIGN
& BIGGER IN SCIENCE FOCUS THINKING

Differentiated Innovation Regulatory and Engage World’s Best Consumer and
With Global Scale Clinical Excellence Innovators and Scientists Patient-centric Solutions

Leader in R&D Professional
Partner of Choice Brand Loyalty
Productivity Endorsement

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FOCUS ON FEWER & BIGGER IDEAS

# of projects by Launch Year Estimated Portfolio Value by Launch Year

-50% 3x
vs.
2015

2015 2016 2017 2018 2015 2016 2017 2018

Data indexed to 2015 number of projects and portfolio value

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EXCELLENCE IN SCIENCE:
POWERFUL SUN PROTECTION

Leader in Prevention Leader in Protection Strong Professional
Endorsement

1 in every 3 1
#1
person dies from
Melanoma every Dermatologist
recommended
cancers diagnosed
globally is a Skin Cancer 57minutes
(in the US)

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EXTERNAL FOCUS: LIGHT THERAPY

Neutrogena Light Therapy Acne Mask Winning Clinical Efficacy

• Miniaturized LED light based device
• Commonly used in Dermatologist offices
• Disruptive technology

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BUILDING A CONNECTED ECOSYSTEM

Analytics

Trigger-
Precision
based
Marketing
Marketing
Digital
Ecosystem

Influencer “Virtual”
Marketing professional
detailing

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EXPAND DIGITAL ECOSYSTEM:
JOHNSON’S BEDTIME

• Johnson's Bedtime app
delivers on-demand sleep
support via a mobile device

• Soon to be launched on
Amazon Echo
+
• Scientifically proven
bedtime routine has helped
hundreds of thousands of
babies across 18 countries.

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EXPAND DIGITAL ECOSYSTEM:
NEUTROGENA SHADE FINDER

Skincare Questions Get the Look Questions

• Neutrogena shade enhances
shopper experience on our
own and e-retailer sites.

• Increased revenue 2x by
helping women find the right
product for their skin tone.

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EXPAND DIGITAL ECOSYSTEM:
ZYRTEC SNEEZE TRIGGER

• Zyrtec Sneeze Trigger app reaches
consumers in their local zip code
during their moment of need

• Increased purchase intent +14pts
Delivering Premium Capitalizing On Local
• Expanding model to include Engagement through the Seasonality with Sneeze-
more brands, consumers and ALLERGY CAST® App triggered Media
professionals

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MAKE OUR BRANDS MORE AVAILABLE TO OUR
CONSUMERS WHEREVER THEY ARE

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AVEENO GLOBAL EXPANSION
Launching in 15+ markets by the end of 2017

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GLOBALIZING LE PETIT MARSEILLAIS
Successful European expansion continues, launched in the
U.S. and in Canada in 2017

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MAKING OUR BRANDS MORE AVAILABLE

E-Commerce Emerging Markets

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E-COMMERCE: FOCUS ON
FUNDAMENTALS SCANR

Search Content

How to Win-
Focus on
Fundamentals
SCANR
Rating & Available
Reviews Assortment
at the Right Place

Navigation
46
BROADENING OUR REACH &
DRIVING PENETRATION

• Well-distributed in key markets

• Focused on driving coverage

• Significant upside potential

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DRIVE PROFITABILITY & MARGIN EXPANSION

Revenue Marketing
Growth Productivity
Management

>$1B
in savings
2014-2016

Supply Chain SG&A
Transformation Optimization

48
WE ARE DELIVERING MAJOR
IMPROVEMENTS IN PROFITABILITY

Adjusted Income
Before Tax Margin1

+560BPS
2015 2016

Operating Income2

2X
2014 2015 2016
1. Non-GAAP measure
2. Adjusted for constant exchange rates and excluding one-time items

49
PRODUCTIVITY INITIATIVES
DELIVERING MAJOR VALUE

Revenue
Partnering with customers Marketing Consolidated media
for shared value optimizing
Growth
Productivity spend behind one
pricing, assortment, and
Management
global advertising
promotion & trade terms agency

>$1B
Pursuing game-changing Implemented aggressive
initiatives around entire Supply Chain SG&A cost savings program that
value chain Transformation achieved >$250M in 1st year
Optimization

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ACCELERATE INORGANIC GROWTH
THROUGH ACQUISITIONS
Five Key Priorities

1 Build scale in OTC

2 Enable growth in BEAUTY

3 Lead in BABY with business model innovation

4 Accelerate growth with regional
opportunities; reinvent key markets

5 Invest in long-term external pipeline

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OUR FOCUS IS TO CREATE A VIRTUOUS
CYCLE OF PROFITABLE GROWTH

Revenue Growth
Drives sustainable P&L Productivity
Management profitable growth
over time

Big Innovation
& Brand Building

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A STRONG, CONSISTENT, SUSTAINABLE BUSINESS

33 Consecutive years of
adjusted operational
earnings growth1 54 Consecutive
years of dividend
increases2
AAA Rated Balanced Sheet
Operational &
investment flexibility

~ 75%
of sales from #1 or #2
~ 70%
of 10 year free
cash flow
returned to
shareholders3
global market share position

$ B 1 24 Brands/Platforms
with > $1b in sales ~ 22% of sales from products
launched in past 5 years

1. Non-GAAP measure; excludes intangible amortization expense, special items and the impact of translational currency
2. Inclusive of the April 2016 dividend declaration
3. Non-GAAP measure; defined as operating cash flow less capital spending

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TOTAL RETURN TO SHAREHOLDERS SUMMARY
As of 12/31/2016

1 Year 3 Year 5 Year 10 Year

15.3% 11.0% 15.3% 9.0%

Competitor Composite* -0.2% 6.3% 13.0% 7.0%

Consumer Competitor Composite* 3.6% 3.4% 9.9% 7.3%

S&P 500 12.0% 8.9% 14.6% 6.9%

Dow Jones Industrial Average 16.5% 8.7% 12.9% 7.5%
Data Source: Bloomberg
* For a list of the companies included, see page 40 of company’s 2016 Proxy Statement

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WE ARE WELL
POSITIONED FOR
SUSTAINED GROWTH

World-class: portfolio of brands in large,
growing categories
Strong innovation pipeline and world-class
brand building
Well-positioned to grow sales above the
market while continuing to expand margins
to achieve benchmark profitability
Our strategy positions us to be a significant
contributor to Johnson & Johnson

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QUESTIONS?