Slide 1: Worldwide Consumer Health, Pharmaceutical and MedTech Sales
» Worldwide Consumer Health Sales? ~ Consumer Health worldwide reported sales decreased (0.4)%, but increased 4.7% operationally’. Primary operational drivers: | Neutrogena Aveeno. S oo Diluted Earnings Per Share Adjusted Diluted Earnings Per Share* Increased a Decreased $1.68 | 22.6% $2.55 | (1.9)%
Slide 2: 3rd Quarter 2022 Earnings Call
rd 3 Quarter 2022 Earnings Call October 18, 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 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 Enterprise Highlights 2 Sales Performance and Earnings Review 3 Capital Allocation and Guidance 4 Q&A Ashley McEvoy Thibaut Mongon Jennifer Taubert Joseph J. Wolk Jessica Moore Executive Vice President Executive Vice President Executive Vice President Executive Vice President Vice President
Slide 6: 3rd Quarter 2022 Sales
3rd Quarter 2022 Sales % CHANGE Dollars in Billions Regional Sales Results Q3 2022 Q3 2021 Reported Operational1 U.S. $12.5 $12.0 4.1% 4.1% Europe 5.5 5.6 (1.1) 14.5 Western Hemisphere 1.6 1.5 4.1 9.1 (ex U.S.) Asia-Pacific, Africa 4.3 4.3 (0.9) 10.5 International 11.3 11.4 (0.3) 12.3 Worldwide (WW)
Slide 7: 3rd Quarter 2022 Financial Highlights
3rd Quarter 2022 Financial Highlights Dollars in Billions, except EPS Reported %; Operational %1 Sales GAAP Earnings GAAP EPS $23.8 $23.3 $4.5 $1.68 $3.7 $1.37 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 1.9%; 8.1%1 21.6% 22.6% Adjusted Earnings2 Adjusted EPS2 $6.8 $7.0 $2.60 $2.55 Q3 2022 Q3 20
Slide 8: Consumer Health Highlights – 3rd Quarter 2022
Consumer Health Highlights – 3rd Quarter 2022 Operational growth1 across all regions Reported3: WW (0.4)%, U.S. 2.1%, Int’l (2.3)% Key Drivers of Operational Performance1,3 Operational1,3: WW 4.7%, U.S. 2.1%, Int’l 6.7% • Growth driven by price actions and increased Cough/Cold/Flu and pediatric feve
Slide 9: Pharmaceutical Highlights – 3rd Quarter 2022
Pharmaceutical Highlights – 3rd Quarter 2022 Continued above-market performance primarily driven by Oncology and Immunology Reported3: WW 2.6%, U.S. 3.0%, Int’l 2.0% Key Drivers of Operational Performance1,3 Operational1,3: WW 9.0%, U.S. 3.0%, Int’l 16.7% • STELARA increase driven by market growth a
Slide 10: MedTech Highlights – 3rd Quarter 2022
MedTech Highlights – 3rd Quarter 2022 Operational growth1 reflects procedure recovery and benefits from innovation & commercial execution Reported: WW 2.1%, U.S. 7.7%, Int’l (2.9)% Key Drivers of Operational Performance1 Operational1: WW 8.1%, U.S. 7.7%, Int’l 8.5% Interventional • Double digit grow
Slide 11: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings 3rd Quarter 2022 2022 2021 % (Unaudited; Dollar and Shares in Millions Except Per Share Figures) Increase Amount % to Sales Amount % to Sales (Decrease) Sales to customers $23,791 100.0 $23,338 100.0 1.9 Cost of products sold 7,807 32.8 7,250 31.1 7.7 Gro
Slide 12: Adjusted Income Before Tax by Segment
Adjusted Income Before Tax by Segment1 3rd Quarter 2022 % to Sales $8.1B $8.1B Q3 2022 Q3 2021 Pharmaceutical3 41.9% 43.8% MedTech 25.5% 25.5% $5.6 $5.7 Consumer Health3 24.3% 24.2% Total 33.9% 34.5% Pharmaceutical $1.7 $1.7 MedTech $0.9 $0.9 Consumer Health ($0.1) ($0.2) 2 Expenses Not Allocated to
Slide 13: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 14: Capital Allocation Strategy
Capital Allocation Strategy Dollars in Billions Q3 2022 Cash and Marketable Capital Allocation $34 Securities HIGHER PRIORITY Debt ($32) Organic growth business needs Net Cash $2 Free cash flow1 Free Cash Flow1,2 ~$13 Note: values may have been rounded Q3 2022: Competitive dividends Investment in M&
Slide 15: U.S. Inflation Remains at Highest Levels Since the 1980s
U.S. Inflation Remains at Highest Levels Since the 1980s Source: The New York Times; Bureau of Labor Statistics As of September 13, 2022 15
Slide 16: 2022 P&L Guidance
2022 P&L Guidance Reaffirming Adjusted Operational Sales and Reported Adjusted EPS midpoints; Increasing Adjusted Operational EPS performance offsetting continued unfavorable currency impacts October July Comments Adjusted Operational Sales1,2,6 6.7% - 7.2% 6.5% - 7.5% Tightening of range $97.5B - $
Slide 17: 2023 Considerations
2023 Considerations Pharmaceutical MedTech Consumer Health • Impact from new products and • Continue to utilize strategic price • Remain confident in our ability to commercial execution expected increases to offset inflationary grow sales every year toward to enhance our competitiveness pressures; e
Slide 18: Notable Announcements in 3rd Quarter 2022
1 Notable Announcements in 3rd Quarter 2022 Consumer Health – Johnson & Johnson Appoints Larry Merlo as Non-Executive Chair Designate of Planned New Consumer Health Company – Johnson & Johnson Announces Kenvue as the Name for Planned New Consumer Health Company MedTech • Product Launches: – Biosense
Slide 19: Q&A
Q&A Ashley McEvoy Thibaut Mongon Jennifer Taubert Joseph J. Wolk Executive Vice President Executive Vice President Executive Vice President Executive Vice President, Worldwide Chairman, Worldwide Chairman, Worldwide Chairman, Chief Financial Officer MedTech Consumer Health Pharmaceuticals
Slide 20: Goluenatohweon
Goluenatohweon