Johnson & Johnson · NYSE:JNJ
Johnson & Johnson — Q1 2024 Earnings Presentation
31 slides from Johnson & Johnson's earnings presentation, Apr 16, 2024
Slide 1: Full year 2024 Results
Full year 2024 Results’ Chairman & Chief Executive Officer Johnson & Johnson 2024 was a transformative year for Johnson & Johnson, marked by strong growth, an accelerating pipeline and industry-leading investments in innovation. As a healthcare company, with a disease- centric approach, we are impro
Slide 2: 4th Quarter 2024 Earnings Call
th 4 Quarter 2024 Earnings Call January 22, 2025
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 1 CEO Remarks 2 Enterprise highlights 3 Sales performance and earnings review 4 Capital allocation and guidance 5 Q&A Joaquin Duato Jennifer Taubert Tim Schmid Chairman and Executive Vice President, Executive Vice President, Chief Executive Officer Worldwide Chairman, Worldwide Chairman, Inno
Slide 6: Joaquin Duato
Joaquin Duato Chairman and Chief Executive Officer
Slide 7: 2024: Year of progress and continued transformation
2024: Year of progress and continued transformation Operating in Disciplined ~$50 billion1 Positioned for high-unmet need, decisions to invested in R&D 5-7%2,3 growth high-growth, exit lower- and M&A through 2030 high-innovation priority and beyond segments businesses 1 Includes the announcement of
Slide 8: Innovating across the entire patient pathway
Innovating across the entire patient pathway Multiple Heart Mental Inflammatory myeloma recovery health bowel disease Impella Oral and Monoclonal Monoclonal heart pumps long-acting antibody antibodies injectables CAR-T Minimally invasive interatrial shunt Targeted icotrokinra oral peptide Nasal spra
Slide 9: Delivering on our commitments and fortifying our future
Delivering on our commitments and fortifying our future
Slide 10: Jessica Moore
Jessica Moore Vice President, Investor Relations
Slide 11: 4th Quarter 2024 sales
4th Quarter 2024 sales % Change Dollars in billions Regional sales results Q4 2024 Q4 2023 Reported Operational1 U.S. $13.2 $12.0 10.0% 10.0% Europe 4.9 5.0 (0.8) (0.2) Western Hemisphere 1.1 1.2 (2.7) 17.6 (ex U.S.) Asia-Pacific, Africa 3.3 3.3 0.1 0.9 International 9.3 9.4 (0.7) 2.5 Worldwide (WW)
Slide 12: 4th Quarter 2024 financial highlights
4th Quarter 2024 financial highlights Dollars in billions, except EPS Reported %; Operational %1 Sales GAAP earnings GAAP EPS $22.5 $21.4 $4.1 $3.4 $1.70 $1.413 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 5.3%; 6.7%1 (17.0)% (17.1)% Adjusted earnings2 Adjusted EPS2 $5.6 $4.9 $2.29 $2.043 Q4 2024
Slide 13: Full year 2024 sales
Full year 2024 sales % Change Dollars in billions Reported Operational2 Operational2 Regional sales results1 2024 2023 ex COVID-19 Vaccine U.S. $50.3 $46.4 8.3% 8.3% 8.3% Europe 20.2 20.4 (1.0) (0.6) 4.1 Western Hemisphere 4.7 4.5 3.6 20.4 20.4 (ex U.S.) Asia-Pacific, Africa 13.6 13.8 (1.2) 2.3 2.3
Slide 14: Full year 2024 financial highlights
Full year 2024 financial highlights 1 Dollars in billions, except EPS Reported %; Operational %2 Sales GAAP earnings GAAP EPS $88.8 $85.2 $14.1 $13.3 $5.795 $5.20 2024 2023 2024 2023 2024 2023 4.3%; 5.9%2, 7.0%2,4 5.6% 11.3% Adjusted earnings3 Adjusted EPS3 $25.4 $24.2 $9.985 $9.92 2024 2023 2024 20
Slide 15: Innovative Medicine highlights – 4th quarter 2024
Innovative Medicine highlights – 4th quarter 2024 Strong operational growth1 of 6.5%3 driven primarily by Oncology Reported: WW 4.4%, U.S. 11.1%, Int’l (5.1)% Key drivers of operational performance1 Operational1,3: WW 6.5%, U.S. 11.1%, Int’l (0.3)% • DARZALEX increase driven by continued strong shar
Slide 16: MedTech highlights – 4th quarter 2024
MedTech highlights – 4th quarter 2024 Strong operational growth1 of 7.6% due to commercial execution, innovation, and Shockwave Key drivers of operational performance1 Reported: WW 6.7%, U.S. 7.6%, Int’l 5.8% • Electrophysiology: Driven by global procedure growth, new product performance (QDOT, NUVI
Slide 17: Condensed consolidated statement of earnings
Condensed consolidated statement of earnings 4th Quarter 2024 2024 2023 % Increase (Unaudited; Dollar and shares in millions except per share figures) Amount % to Sales Amount % to Sales (Decrease) Sales to customers $22,520 100.0 $21,395 100.0 5.3 Cost of products sold (COGS) 7,128 31.6 6,798 31.8
Slide 18: Adjusted income before tax by segment
Adjusted income before tax by segment 1 4th Quarter 2024 % to sales $6.2B Q4 2024 Q4 2023 Innovative Medicine 32.5% 37.4% $5.4B 3 4 MedTech 10.8% 15.5% Total 24.1% 29.2% $5.1 3 Includes V-Wave acquired IPR&D expense worth (660) basis points and Laminar $4.7 milestone expense worth (340) basis points
Slide 19: Adjusted income before tax by segment
Adjusted income before tax by segment 1,2 Full year 2024 % to sales FY 2024 FY 2023 4 $29.0B $29.8B Innovative Medicine 39.4% 42.0% 5 6 MedTech 21.6% 23.7% Total 32.6% 35.0% $22.5 $23.0 Taking into consideration the items below, Adjusted income before tax for the enterprise is relatively flat 4 Incl
Slide 20: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 21: Capital allocation strategy
Capital allocation strategy Dollars in billions Q4 2024 Cash and marketable $25 securities Capital allocation Higher Debt ($37) priority Organic growth business needs Net debt ($12) Free cash flow1,2 ~$20 Free cash flow1 Note: Values may be rounded Full year 2024: $17.2B invested in R&D Competitive
Slide 22: 2025 P&L guidance
2025 P&L guidance Operational2 sales guidance of 3% and adjusted operational EPS2,4 of 8.7% (midpoints) January 2025 Comments Adjusted operational sales1,2,6 2.0% - 3.0% Midpoint of 2.5% $90.9B - $91.7B Operational sales2,6 Midpoint of $91.3B or 3.0% 2.5% - 3.5% $89.2B - $90.0B Midpoint of $89.6B or
Slide 23: Intra-Cellular Therapies Acquisition Considerations
Intra-Cellular Therapies Acquisition Considerations January 2025 excl. ITCI Anticipated impact from planned ITCI acquisition Adjusted operational sales1,2,6 2.0% - 3.0% $90.9B - $91.7B Operational sales2,6 Approx. $0.7B or 0.8% 2.5% - 3.5% $89.2B - $90.0B Estimated reported sales 3,6 Approx. $0.7B o
Slide 24: 2025 Phasing Considerations
2025 Phasing Considerations Anticipate second half operational sales growth higher than the first half • Expect more pronounced impact from newly launched products as the year progresses Innovative • STELARA biosimilar competition to accelerate; HUMIRA erosion curve remains the best proxy1 Medicine
Slide 25: Anticipated 2025 milestones driving long-term value creation
1 Anticipated 2025 milestones driving long-term value creation Innovative Medicine MedTech TREMFYA Sub-Q in CD Impella ECP nipocalimab in gMG OTTAVA progression RYBREVANT Sub-Q Advancements across Cardiovascular TAR-200 NMIBC (incl. Electrophysiology, Heart icotrokinra in PsO and UC Recovery, and Ci
Slide 26: Q&A
Q&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 P
Slide 27: Slide footer goes here if required
Slide footer goes here if required 27
Slide 28: Innovative Medicine and MedTech FY 2024 Sales
Innovative Medicine and MedTech FY 2024 Sales Strong full year 2024 operational sales growth1 across Innovative Medicine and MedTech Innovative Medicine MedTech Reported: WW 4.0%, U.S. 9.0%, Int’l (2.5)% Reported: WW 4.8%, U.S. 6.9%, Int’l 2.6% Operational1,3: WW 7.5%, U.S. 9.0%, Int’l 5.5% Operatio
Slide 29: Condensed consolidated statement of earnings
1 Condensed consolidated statement of earnings Full year 2024 2024 2023 % Increase (Unaudited; Dollar and shares in millions except per share figures) Amount % to Sales Amount % to Sales (Decrease) Sales to customers $88,821 100.0 $85,159 100.0 4.3 Cost of products sold (COGS) 27,471 30.9 26,553 31.
Slide 30: 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 PRESENTATIONS¹ Phase III Phase I/ II OPSUMIT (macitentan) US DARZALEX (daratumumab) US TREMFYA (guselkumab) US RYBREVANT (amivantamab) nipocalimab
Slide 31: Innovative Medicine Pipeline Key Events in 2025
Johnson & Johnson Innovative Medicine Pipeline Key Events in 2025* POTENTIAL APPROVALS US/EU PLANNED SUBMISSIONS US/EU POTENTIAL CLINICAL DATA PRESENTATIONS¹ Phase III Phase I/ II TAR-200 (RIS/gemcitabine plus TAR-200 (RIS/gemcitabine plus US SIMPONI (golimumab) US nipocalimab US nipocalimab US cetr