Slide 1: 3rd Quarter 2020 Results
3rd Quarter 2020 Results 3rd Quarter 2020 Sales Worldwide Worldwide Increased | Excluding acquisitions/ Increased $211B 1.7% | sxeer 2.0% Diluted Earnings Per Share Adjusted Diluted Earnings Per Share* Increased = Increased =. $1.33 | 101.5% $2.20 | 3.8% “Our third-quarter results reffect solid perf
Slide 2: 3rd Quarter 2020 Earnings Call
rd 3 Quarter 2020 Earnings Call October 13, 2020
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 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 Sales Performance and Earnings Review 2 CFO Remarks 3 Capital Allocation and Guidance 4 Q&A Jennifer Taubert Ashley McEvoy Thibaut Mongon Executive Vice President Executive Vice President Executive Vice President Worldwide Chairman, Worldwide Chairman, Worldwide Chairman, Pharmaceuticals Me
Slide 6: 3rd Quarter 2020 Sales
3rd Quarter 2020 Sales % CHANGE Dollars in Billions Regional Sales Results Q3 2020 Q3 2019 Reported Operational1 U.S. $11.1 $10.8 2.7% 2.7% Europe 4.8 4.5 8.0 4.6 Western Hemisphere 1.3 1.5 (12.9) (1.2) (ex U.S.) Asia-Pacific, Africa 3.9 4.0 (2.7) (3.2) International 10.0 9.9 0.6 0.6 Worldwide (WW)
Slide 7: 3rd Quarter 2020 Financial Highlights
3rd Quarter 2020 Financial Highlights Dollars in Billions, except EPS Reported %; Operational %1 Sales GAAP Earnings GAAP EPS $21.1 $20.7 $3.6 $1.33 $1.8 $0.66 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 1.7%; 1.7%1 102.7% 101.5% Adjusted Earnings2 Adjusted EPS2 $5.9 $2.20 $5.7 $2.12 Q3 2020 Q3
Slide 8: Consumer Health Highlights – 3rd Quarter 2020
Consumer Health Highlights – 3 Quarter 2020 rd Double digit U.S. growth partially offset by negative OUS COVID-19 impacts Reported: WW 1.3%, U.S. 11.6%, Int’l (5.6)% Key Drivers of Operational Performance1 Operational1: WW 3.0%, U.S. 11.6%, Int’l (2.7)% • U.S. increase driven by share growth for TYL
Slide 9: Pharmaceutical Highlights – 3rd Quarter 2020
Pharmaceutical Highlights – 3rd Quarter 2020 Growth across most therapeutic areas Reported: WW 5.0%, U.S. 1.5%, Int’l 9.7% Key Drivers of Operational Performance1 • Growth driven by strong uptake of STELARA in Crohn’s Disease and Ulcerative Colitis and Operational1: WW 4.6%, U.S. 1.5%, Int’l 8.8% st
Slide 10: Medical Devices Highlights – 3rd Quarter 2020
Medical Devices Highlights – 3 Quarter 2020 rd Decline driven by negative impact of COVID-19, partially offset by double digit growth in Interventional Solutions Key Drivers of Operational Performance1 Reported: WW (3.6)%, U.S. 1.2%, Int’l (8.1)% Interventional • Returned to double-digit growth driv
Slide 11: Condensed Consolidated Statement of Earnings
Condensed Consolidated Statement of Earnings 3rd Quarter 2020 2020 2019 % Increase (Unaudited; Dollar and Shares in Millions Except Per Share Figures) Amount % to Sales Amount % to Sales (Decrease) Sales to customers $21,082 100.0 $20,729 100.0 1.7 Cost of products sold 6,972 33.1 6,867 33.1 1.5 Gro
Slide 12: Adjusted Income Before Tax by Segment
1 Adjusted Income Before Tax by Segment 3rd Quarter 2020 % to Sales 3Q 2020 3Q 2019 Pharmaceutical 46.4% 43.0% Medical Devices 21.6% 29.3% Consumer Health 24.4% 21.6% Total 34.4% 34.3% Pharmaceutical Medical Devices Consumer Health Expenses Not Allocated to Segments 1 Non-GAAP measure; excludes amor
Slide 13: CFO Remarks
CFO Remarks Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 14: Capital Allocation Strategy
Capital Allocation Strategy Dollars in Billions Q3 2020 Cash and Marketable Capital Allocation $30.8 Securities HIGHER PRIORITY Debt ($37.8) Organic growth business needs Net Debt ($7.0) Free cash flow1 Free Cash Flow2 ~$13.0 Note: values may have been rounded Q3 2020: Competitive dividends Investme
Slide 15: Notable New Announcements in 3rd Quarter 2020
rd Notable New Announcements in 3 Quarter 20201 Pharmaceuticals • Regulatory Approvals: – SIMPONI ARIA (golimumab) – Approved by the U.S. Food and Drug Administration for Active Polyarticular Juvenile Idiopathic Arthritis and Extension of Its Active Psoriatic Arthritis Indication in Patients 2 Years
Slide 16: Medical Devices Update – Save the Date
Save the Date Medical Devices Update Thursday, November 19, 2020
Slide 17: Medical Devices: COVID-19 Framework
Medical Devices: COVID-19 Framework Full Year 2020 Operational Sales Impact inclusive of Q3 YTD Actuals: (-$3.5B) to (-$4.2B) Q1 Q2 Q3 Q4 Q4 Initial Impact Significant Impact Stabilization Recovery • China represented more than 40% • China declined (5%) vs. original • China grew +17%1 vs. 2019 and C
Slide 18: 2020 Guidance
2020 Guidance October July Comments Adjusted Operational 0.5% - 1.5% (0.8%) - 1.0% Increase and Tightening of Range Sales1,2 $82.0 - $82.8B $81.0 - $82.5B Operational Sales2 0.0% - 1.0% (1.3%) - 0.5% Net Impact Acq./Div: ~0.5% $81.2B - $82.0B $79.9B - $81.4B Estimated Reported Sales 3 (1.0%) – 0.0%
Slide 19: 2021 Considerations
2021 Considerations Pharmaceuticals Consumer Health Medical Devices Enterprise ‒ On going focus on ‒ Expect competitive ‒ Continued strength in ‒ Strong YoY sales and reaching patients growth with the market underlying market EPS performance through transformational and enhanced strength fundamental
Slide 20: Q&A
Q&A Jennifer Taubert Ashley McEvoy Thibaut Mongon Executive Vice President Executive Vice President Executive Vice President Worldwide Chairman, Worldwide Chairman, Worldwide Chairman, Pharmaceuticals Medical Devices Consumer Health Mathai Mammen Joseph J. Wolk Global Head of Janssen Executive Vice
Slide 21: Goluenafoluuen
Goluenafoluuen