Slide 1: 2nd Quarter 2023 Results
2nd Quarter 2023 Results fohwenafohwon 2nd Quarter 2023 Sales $13.7 Worldwide Pharmaceutical Sales Worldwide Worldwide gate Ee . iz incrensed ae Excluding acauisitions/ lncrensed tae Billion Pharmaceutical worldwide reported sales increased 3.1% 95 5 B 6 3% divastiturcaonian 6 99 or 3.8% operational
Slide 2: 2nd Quarter 2023 Earnings Call
2 Quarter 2023 nd Earnings Call July 20, 2023
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 and business strate
Slide 4: Strategic Partnerships, Collaborations & Licensing Arrangements
Strategic Partnerships, Collaborations & Licensing Arrangements During the course of this 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 relationships:
Slide 5: Agenda
Agenda 1 CEO Remarks 2 Enterprise Highlights 3 Sales Performance and Earnings Review 4 Capital Allocation and Guidance 5 Q&A Joaquin Duato Joseph J. Wolk Erik Haas Jessica Moore Chairman of the Board and Executive Vice President, Worldwide Vice President, Vice President, Chief Executive Officer Chie
Slide 6: Joaquin Duato
Joaquin Duato Chairman of the Board and Chief Executive Officer
Slide 7: Biosense Webster
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Slide 8: Slide 8
Slide 9: Notable Announcements in the 2nd Quarter
Notable Announcements in the 2 Quarter nd 1 Pharmaceutical • Regulatory: – Janssen Marks First Approval Worldwide for AKEEGA (Niraparib and Abiraterone Acetate Dual Action Tablet) with EC Authorisation for the Treatment of Patients with Metastatic Castration Resistant Prostate Cancer with BRCA1/2 Mu
Slide 10: Jessica Moore
Jessica Moore Vice President, Investor Relations
Slide 11: 2nd Quarter 2023 Sales
2nd Quarter 2023 Sales % CHANGE Dollars in Billions Regional Sales Results Q2 2023 Q2 2022 Reported Operational1 U.S. $13.4 $12.2 10.2% 10.2% Europe 5.9 6.1 (3.1) (3.9) Western Hemisphere 1.7 1.5 11.5 17.7 (ex U.S.) Asia-Pacific, Africa 4.5 4.2 6.6 12.5 International 12.1 11.8 2.2 4.7 Worldwide (WW)
Slide 12: 2nd Quarter 2023 Financial Highlights
2nd Quarter 2023 Financial Highlights Dollars in Billions, except EPS Reported %; Operational %1 Sales GAAP Earnings GAAP EPS $25.5 $5.1 $24.0 $1.96 $4.8 $1.80 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 6.3%; 7.5%1 6.9% 8.9% Adjusted Earnings2 Adjusted EPS2 $7.4 $6.9 $2.80 $2.59 Q2 2023 Q2 2022
Slide 13: Pharmaceutical Highlights – 2nd Quarter 2023
Pharmaceutical Highlights – 2nd Quarter 2023 Strong operational growth1 of 6.2% excl. COVID-19 Vaccine driven by Oncology, Immunology, and PH Key Drivers of Operational Performance1 Reported: WW 3.1%, U.S. 9.2%, Int’l (4.0)% Operational1: WW 3.8%, U.S. 9.2%, Int’l (2.5)% • STELARA increase driven by
Slide 14: MedTech Highlights – 2nd Quarter 2023
MedTech Highlights – 2nd Quarter 2023 Exceptional operational growth1 fueled by innovation and strong commercial execution across all franchises Reported: WW 12.9%, U.S. 14.6%, Int’l 11.3% Key Drivers of Operational Performance1 Operational1: WW 14.7%, U.S. 14.6%, Int’l 14.7% • Electrophysiology: Do
Slide 15: Consumer Health Highlights – 2nd Quarter 2023
Consumer Health Highlights – 2nd Quarter 2023 Operational growth1 primarily driven by OTC Reported: WW 5.4%, U.S. 6.0%, Int’l 5.0% Key Drivers of Operational Performance1 Operational1: WW 7.7%, U.S. 6.0%, Int’l 9.0% • Growth driven by price actions, and strong TYLENOL and MOTRIN performance due OTC
Slide 16: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings 2nd Quarter 2023 2023 2022 % Increase (Unaudited; Dollar and Shares in Millions Except Per Share Figures) Amount % to Sales Amount % to Sales (Decrease) Sales to customers $25,530 100.0 $24,020 100.0 6.3 Cost of products sold 8,212 32.2 7,919 33.0 3.7 Gro
Slide 17: Adjusted Income Before Tax by Segment
Adjusted Income Before Tax by Segment1 2nd Quarter 2023 % to Sales Q2 2023 Q2 2022 $8.8B $8.2B Pharmaceutical 42.7% 42.0% MedTech 28.6% 26.5% $5.9 $5.6 Consumer Health 23.5% 25.9% Total 34.6% 34.0% Pharmaceutical $2.2 $1.8 MedTech $0.9 $1.0 Consumer Health ($0.2) ($0.2) Expenses Not Allocated to Seg
Slide 18: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 19: Kenvue
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Slide 20: Capital Allocation Strategy
Capital Allocation Strategy Dollars in Billions Q2 2023 Cash and Marketable Capital Allocation $29 Securities HIGHER PRIORITY Debt ($46) Organic growth business needs Net Debt* ($17) Free cash flow1 Free Cash Flow1,2 ~$5.4. Note: values may have been rounded Q2 2023: Competitive dividends $3.8B inve
Slide 21: 2023 Guidance Summary
2023 Guidance Summary Improved performance outlook driving higher adjusted operational earnings per share1 guidance January Adjusted Operational EPS1 $10.50 Improved Performance Outlook 0.05 April Adjusted Operational EPS1 $10.55 Collaboration and License Agreement (0.10) with Cellular Biomedicine G
Slide 22: 2023 P&L Guidance
2023 P&L Guidance Raising top- and bottom-line guidance due to strong Q2 performance July April Comments Adjusted Operational Sales1,2,6 6.0% - 7.0% 4.5% - 5.5% Increasing midpoint to 6.5% $99.3B - $100.3B $97.9B - $98.9B Operational Sales2,6 Increasing midpoint by $1.4B to 7.5% 7.0% - 8.0% 5.5% - 6
Slide 23: 2023 Phasing Considerations
2023 Phasing Considerations July April Adjusted Operational Sales1,2,4 6.0% - 7.0% 4.5% - 5.5% $99.3B - $100.3B $97.9B - $98.9B Operational Sales2,4 7.0% - 8.0% 5.5% - 6.5% $98.8B - $99.8B $97.9B - $98.9B Estimated Reported Sales3,4 6.5% - 7.5% 5.5% - 6.5% MedTech • Anticipate normal seasonality and
Slide 24: Driving Meaningful Value Creation
Driving Meaningful Value Creation Pharmaceutical MedTech Growth of existing assets Commercial execution Upcoming pipeline advancements Upcoming pipeline advancements Regulatory and clinical milestones Exposure to higher growth markets Continued uptake of newly Driving continued adoption of launched
Slide 25: Additional Q2 2023 Highlights
Additional Q2 2023 Highlights 25
Slide 26: Enterprise Business Review
Reminder: Save the Date Introducing Our First Ever… Enterprise Business Review Focused on the New Johnson & Johnson Tuesday, December 5, 2023 New York Stock Exchange
Slide 27: Erik Haas
Erik Haas Worldwide Vice President, Litigation
Slide 28: Q&A
Q&A Joaquin Duato Joseph J. Wolk Erik Haas Jessica Moore Chairman of the Board and Executive Vice President, Worldwide Vice President, Vice President, Chief Executive Officer Chief Financial Officer Litigation Investor Relations
Slide 29: Gohwrenatohnren
Gohwrenatohnren
Slide 30: Pharmaceutical Pipeline — Key Events in 2023
fag Pharmaceutical Pipeline — Key Events in 2023* POTENTIAL APPROVALS US/EU PLANNED SUBMISSIONS US/EU POTENTIAL CLINICAL DATA Phase III Phase II vs AKEEGA (niraparib/abiraterone) » us AKEEGA » CARVYKTI (ciltacabtagene autoleucel) ¥ JNJ-2113 ~ © 11 Prostate cancer metastatic castration- L1 Prostate c