Johnson & Johnson · NYSE:JNJ
Johnson & Johnson — Q3 2024 Earnings Presentation
23 slides from Johnson & Johnson's earnings presentation, Oct 15, 2024
Slide 1: 3rd Quarter 2024 Results
3'4 Quarter 2024 Results’ Johnson & Johnson's strong >» results in the third quarter reflect Worldwide Innovative Medicine sales Worldwide MedTech sales = the unique breadth of our business Innovative Medicine worldwide reported MedTech worldwide reported sales y, i and commitment to delivering sale
Slide 2: 3rd Quarter 2024 Earnings Call
3 Quarter 2024 Earnings Call October 15, 2024 Johnson&Johnson
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, and market position and business st
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 CEO Remarks Enterprise highlights Capital allocation and guidance Q&A @ ®@ @) Sales performance and earnings review © © _~ Joaquin Duato Jennifer Taubert Tim Schmid Chairman and Executive Vice President, Executive Vice President, Chief Executive Officer Worldwide Chairman, Worldwide Chairman,
Slide 6: Joaquin Duato
Joaquin Duato Chairman and Chief Executive Officer
Slide 7: Jessica Moore
Jessica Moore Vice President, Investor Relations
Slide 8: Quarter 2024 sales
3 Quarter 2024 sales % Change Dollars in billions Regional sales results! Q3 2024 Q3 2023 Reported Operational’ U.S. $12.9 $12.0 7.6% 7.6% Europe 49 47 4.0 3.0 Western Hemisphere (ex US.) 1.2 1.2 0.3 20.3 Asia-Pacific, Africa EL) EL) 0.5 1.5 International 9.6 9.4 2.2 4.6 Worldwide (WW) $22.5 $21.4 5
Slide 9: 3rd Quarter 2024 financial highlights
3" Quarter 2024 financial highlights’ Dollars in billions, except EPS Reported %; Operational %? Sales $22.5 $21.4 Q3 2024 Q32023 5.2%; 6.3%? Adjusted earnings? $5.9 $6.8 Q3 2024 Q3 2023 (13.3)% "Reflects continuing operations of Jotnson & Johnson GAAP earnings $4.3 $2.7 Q3 2024 Q3 2023 (37.5)% SJ 2
Slide 10: Innovative Medicine highlights — 3rd quarter 2024
Innovative Medicine highlights — 3'¢ quarter 2024 Strong operational growth’ of 6.3% driven by Oncology and Pulmonary Hypertension Reported: Operational: WW 4.9%, U.S. 7.5%, Intl 1.2% WW 6.3%, U.S. 7.5%, Int’l 4.4% WW sales $MM Reported growth m™ Operational growth! Oncology CVM/Other $5,380 $884 18
Slide 11: MedTech highlights — 3rd quarter 2024
MedTech highlights — 3" quarter 2024 Solid operational growth! of 6.4% due to commercial execution and innovation Reported: WW 5.8%, U.S. 7.8%, Int’l 3.9% Operational: WW 6.4%, U.S. 7.8%, Int'l 5.0% WW sales $MM Reported growth — ™ Operational growtht Orthopaedics $2,191 1.2%, 1.3% Cardiovascular? $
Slide 12: Condensed consolidated statement of earnings
Condensed consolidated statement of earnings’ J&J 3'™4 Quarter 2024 (Unaudited; Dollar and shares in millions except per share figures) Sales to customers Cost of products sold (COGS) Gross Profit Selling, marketing and administrative expenses (SM&A) Research and development expense (R&D) In-process
Slide 13: Adjusted income before tax by segment
Adjusted income before tax by 3'4 Quarter 2024 $7.3B (go> 2024° 2023 "Reflects continuing operations of Johnson & Johnson SU 280°-G44? measure exudes amortization expense and special tems; see reconcation schedules onthe Investor Relation section ofthe company's website Estimated as of 10/15/2024 No
Slide 14: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 15: Innovative Medicine regulatory and upcoming milestones
Johnson Regulatory milestones: QA Wrvere VANT* (amivantamab-vmjw) 2¢; Balversa’ " (erdafitinib) 3,4,S mg tablets QUONNSON | sini Innovative Medicine JS&J ame: Generatizea Myasthenia Gravis; RA: Rheumatoid Arthritis QA RYBREVANT™ (amivantamab- vj) 30 mg/7m Select upcoming milestones: JNuJ-2113 JNJ-48
Slide 16: MedTech launches and milestones
Johnson &Johnson MedTech J&J Successfully completed the acquisition of V-Wave Recent launches VELYS SPINE VOLT | Tri-LEAP Matrix-STERNUM | sistem | Anatomie Piting Fixation System System Clinical / regulatory milestones and upcoming updates OTTAVA | VARIPULSE IMPELLA ECP
Slide 17: Capital allocation strategy
Capital allocation strategy Dollars in billions Q3 2024 Cash and marketable $20 Capital allocation securities Higher I Debt ($36) priority Organic growth business needs Net debt ($16) | Free cash flow! ~$14 Free cash flow! Note: Values may be rounded Q3 2024: $5.0B invested in R&D Competitive divide
Slide 18: 2024 P&L guidance
2024 P&L guidance’ Improved performance and M&A investment driving updated adjusted operational earnings per share’ guidance (Includes impact from the recently announced acquisition of V-Wave) J&J Adjusted operational sales?” Operational sales?” Estimated reported sales” Adjusted pre-tax operating m
Slide 19: 2024 Guidance summary
2024 Guidance summary Improved performance and M&A investment driving updated adjusted operational earnings per share’ guidance 2024 2025 January Adjusted Operational EPS! $10.65 Improved performance outlook 0.08 M&A Impact (NM26, Shockwave, Proteologix) ($0.68) ($0.33) July Adjusted Operational EPS
Slide 20: 2025 Considerations
2025 Considerations Confidence in delivering above the $57 billion target; growth of key brands and continued uptake from recently launched products Innovative Medicine Continued STELARA biosimilar erosion in Europe; anticipated biosimilar entry in the U.S. in January Negative impact associated with
Slide 21: Joaquin Duato, Jennifer Taubert, Tim Schmid and team
a Joaquin Duato Jennifer Taubert Tim Schmid Chairman and Executive Vice President, Executive Vice President, Chief Executive Officer Worldwide Chairman, Worldwide Chairman, Innovative Medicine MedTech Joseph J. Wolk John Reed Jessica Moore Executive Vice President, Executive Vice President, Vice Pre
Slide 22: Johnson & Johnson
Johnson&Johnson
Slide 23: Innovative Medicine Pipeline Key Events in 2024
Johnson & Johnson Innovative Medicine Pipeline Key Events in 2024* POTENTIAL APPROVALS US/EU PLANNED SUBMISSIONS US/EU POTENTIAL CLINICAL DATA Sum of Check Change Sum of Check Change Sum Phase of Check III Change OPSUMIT (macitentan) P US OPSUMIT (macitentan) US SIMPONI (golimumab) P TREMFYA (guselk