Johnson & Johnson · NYSE:JNJ
Johnson & Johnson — Q4 2021 Earnings Presentation
33 slides from Johnson & Johnson's earnings presentation, Jan 25, 2022
Slide 1: Worldwide Consumer Health, Pharmaceutical and Medical Devices Sales
‘ 14 Worldwide Consumer Health Sales Consumer Health worldwide reported sales increased 4.1% or 2.8% operationally’. Primary operational drivers: | Neutrogena Aveeno. Diluted Earnings Per Share Adjusted Diluted Earnings Per Share* Increased Increased Revere Imodium mggne $7.81 | 41.7% $9.80 | 22.0%
Slide 2: 4th Quarter 2021 Earnings Call
th 4 Quarter 2021 Earnings Call January 25, 2022
Slide 3: Cautionary Note on Forward-looking Statements
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, business strategy,
Slide 4: Strategic Partnerships, Collaborations & Licensing Arrangements
Strategic Partnerships, Collaborations & Licensing Arrangements During the course of this morning’s presentation, we will discuss a number of products and compounds developed in collaboration with strategic partners or licensed from other companies. The following is an acknowledgement of those relat
Slide 5: Agenda
Agenda 1 Enterprise Highlights 2 Sales Performance and Earnings Review 3 Capital Allocation and Guidance 4 CEO Remarks 5 Q&A Joaquin Duato Joseph J. Wolk Jessica Moore Chief Executive Officer Executive Vice President, Vice President, Chief Financial Officer Investor Relations 5
Slide 6: 4th Quarter 2021 Sales
4th Quarter 2021 Sales % CHANGE Dollars in Billions Regional Sales Results Q4 2021 Q4 2020 Reported Operational1 U.S. $12.2 $11.8 3.0% 3.0% Europe 6.9 5.3 31.4 34.7 Western Hemisphere 1.5 1.4 3.9 5.0 (ex U.S.) Asia-Pacific, Africa 4.3 4.0 6.6 9.0 International 12.6 10.7 18.5 21.2 Worldwide (WW) $24.
Slide 7: 4th Quarter 2021 Financial Highlights
4th Quarter 2021 Financial Highlights Dollars in Billions, except EPS Reported %; Operational %1 Sales GAAP Earnings GAAP EPS $24.8 $4.7 $1.77 $22.5 $1.7 $0.65 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 10.4%; 11.6%1 172.5% 172.3% Adjusted Earnings2 Adjusted EPS2 $5.7 $2.13 $5.0 $1.86 Q4 2021 Q
Slide 8: Full Year 2021 Sales
Full Year 2021 Sales % CHANGE Dollars in Billions Regional Sales Results 2021 2020 Reported Operational1 U.S. $47.2 $43.1 9.3% 9.3% Europe 23.6 19.0 24.3 20.7 Western Hemisphere 5.8 5.3 7.8 7.3 (ex U.S.) Asia-Pacific, Africa 17.3 15.1 14.1 11.4 International 46.6 39.5 18.2 15.3 Worldwide (WW) $93.8
Slide 9: Full Year 2021 Financial Highlights
Full Year 2021 Financial Highlights Dollars in Billions, except EPS Reported %; Operational %1 Sales GAAP Earnings GAAP EPS $93.8 $20.9 $7.81 $82.6 $14.7 $5.51 2021 2020 2021 2020 2021 2020 13.6%; 12.2%1 41.9% 41.7% Adjusted Earnings2 Adjusted EPS2 $26.2 $9.80 $21.4 $8.03 2021 2020 2021 2020 22.2% 2
Slide 10: Consumer Health Highlights – 4th Quarter 2021
Consumer Health Highlights – 4th Quarter 2021 Solid adjusted operational growth2 driven by OTC Reported: WW 1.1%, U.S. 1.3%, Int’l 0.9% Key Drivers of Operational Performance1 Operational1: WW 1.8%, U.S. 1.3%, Int’l 2.1% • Growth driven by increased U.S. adult and pediatric fever incidences (TYLENOL
Slide 11: Pharmaceutical Highlights – 4th Quarter 2021
Pharmaceutical Highlights – 4th Quarter 2021 Continued above-market performance driven by Oncology, Immunology, and Neuroscience Reported: WW 16.5%, U.S. 4.2%, Int’l 33.4% Key Drivers of Operational Performance1 • Growth driven by continued strong uptake of STELARA in Crohn’s Disease and Operational
Slide 12: Medical Devices Highlights – 4th Quarter 2021
Medical Devices Highlights – 4th Quarter 2021 Growth primarily driven by COVID-19 market recovery, commercial initiatives, and innovation Reported: WW 4.1%, U.S. 1.0%, Int’l 7.0% Key Drivers of Operational Performance1 Operational1: WW 5.3%, U.S. 1.0%, Int’l 9.3% Interventional • Market recovery, su
Slide 13: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings 4th Quarter 2021 2021 2020 % (Unaudited; Dollar and Shares in Millions Except Per Share Figures) Increase Amount % to Sales Amount % to Sales (Decrease) Sales to customers $24,804 100.0 $22,475 100.0 10.4 Cost of products sold 7,955 32.1 7,814 34.8 1.8 Gr
Slide 14: Adjusted Income Before Tax by Segment
Adjusted Income Before Tax by Segment1 4th Quarter 2021 % to Sales 4Q 2021 4Q 2020 $6.3B Pharmaceutical 34.0% 32.9% $5.6B Medical Devices 18.1% 16.5% $5.7 Consumer Health 17.9% 22.5% $4.9 $4.0 $5.3 Total 25.6% 24.9% Pharmaceutical $1.1 Medical Devices $1.2 $1.7 $1.3 Consumer Health $0.6 $0.8 ($0.4)
Slide 15: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings Full Year 2021 2021 2020 % (Unaudited; Dollar and Shares in Millions Except Per Share Figures) Increase Amount % to Sales Amount % to Sales (Decrease) Sales to customers $93,775 100.0 $82,584 100.0 13.6 Cost of products sold 29,855 31.8 28,427 34.4 5.0 Gr
Slide 16: Adjusted Income Before Tax by Segment
Adjusted Income Before Tax by Segment1 Full Year 2021 % to Sales $30.5B 2021 2020 Pharmaceutical 40.5% 42.0% $25.4B Medical Devices 25.7% 17.0% $21.1 Consumer Health 23.8% 23.8% $19.1 Total 32.5% 30.8% Pharmaceutical $7.0 Medical Devices $3.9 Consumer Health $3.5 $3.3 ($1.1) ($0.9) Expenses Not Allo
Slide 17: Notable New Announcements in 4th Quarter 2021
th Notable New Announcements in 4 Quarter 20211 Pharmaceutical • Regulatory Decisions: – European Commission Approves BYANNLI® (6-monthly Paliperidone Palmitate; PP6M) for the Maintenance Treatment of Schizophrenia in Adults – U.S. FDA Approves DARZALEX FASPRO® (daratumumab and hyaluronidase-fihj) i
Slide 18: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 19: Creating Two Global Leaders That Will Advance Our Mission
Creating Two Global Leaders Deliver Improved Health Outcomes for Patients Pursue More Targeted Business Strategies and That Will Advance and Consumers Accelerate Growth Our Mission We are taking a bold, Credo-based action to evolve our business in order to provide value to our stakeholders today, to
Slide 20: Capital Allocation Strategy
Capital Allocation Strategy Dollars in Billions Q4 2021 Cash and Marketable Capital Allocation $32 Securities HIGHER PRIORITY Debt ($34) Organic growth business needs Net Debt ($2) Free cash flow1 Free Cash Flow1,2 ~$20 Note: values may have been rounded Full Year 2021: Competitive dividends Investm
Slide 21: 2022 Sales Guidance
2022 Sales Guidance January (Incl. COVID-19 January (Base Business) Comments Vaccine) Adjusted Operational Sales1,2 6.5% - 7.5% 7.0% - 8.5% $97.3B - $98.3B $100.3B - $101.8B Estimated COVID-19 Operational Sales2 Vaccine sales of 6.5% - 7.5% 7.0% – 8.5% $3.0B - $3.5B $95.9B - $96.9B $98.9B - $100.4B
Slide 22: 2022 P&L Guidance
2022 P&L Guidance January (Incl. COVID-19 Comments Vaccine) Adjusted Operational Sales1,2 7.0% - 8.5% Midpoint of 7.7% $100.3B - $101.8B Estimated COVID-19 Vaccine Operational Sales2 7.0% – 8.5% sales of $3.0B - $3.5B $98.9B - $100.4B FX ($1.4B) or (1.5%) impact Estimated Reported Sales 3 5.5% – 7.0
Slide 23: Joaquin Duato, Chief Executive Officer
4TH QUARTER 2021 EARNINGS Joaquin Duato Chief Executive Officer
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Slide 29: Q&A
Q&A Joaquin Duato Joseph J. Wolk Jessica Moore Chief Executive Officer Executive Vice President, Vice President, Chief Financial Officer Investor Relations
Slide 30: Goluenafoluuen
Goluenafoluuen
Slide 31: Consumer Health Highlights – Full Year 2021
Consumer Health Highlights – Full Year 2021 Solid growth across all regions primarily driven by OTC Reported: WW 4.1%, U.S. 2.4%, Int’l 5.6% Key Drivers of Operational Performance1 Operational1: WW 2.8%, U.S. 2.4%, Int’l 3.1% • Growth driven by increased U.S. adult & pediatric fever and allergy inci
Slide 32: Pharmaceutical Highlights – Full Year 2021
Pharmaceutical Highlights – Full Year 2021 10th consecutive year of above-market performance driven by double-digit growth in key products Reported: WW 14.3%, U.S. 8.6%, Int’l 21.6% Key Drivers of Operational Performance1 • Growth driven by continued strong uptake of STELARA in Crohn’s Disease and O
Slide 33: Medical Devices Highlights – Full Year 2021
Medical Devices Highlights – Full Year 2021 Growth primarily driven by COVID-19 related market recovery, commercial initiatives and innovation Reported: WW 17.9%, U.S. 14.9%, Int’l 20.6% Key Drivers of Operational Performance1 Operational1: WW 16.2%, U.S. 14.9%, Int’l 17.3% Interventional • Market r