Johnson & Johnson · NYSE:JNJ
Johnson & Johnson — Q2 2024 Earnings Presentation
23 slides from Johnson & Johnson's earnings presentation, Jul 17, 2024
Slide 1: Quarter 2024 Results CEO remarks
24 Quarter 2024 Results' Chairman & Chief Executive Officer Johnson & Johnson Johnson & Johnson's second quarter performance reflects our relentless focus on advancing the next wave of medical innovation and resulted in strong sales and adjusted operational earnings per share growth. With a robust p
Slide 2: 2nd Quarter 2024 Earnings Call
2°¢ Quarter 2024 Earnings Call July 17, 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 Enterprise highlights Sales performance and earnings review CEO Remarks Q&A @ ®@ @) Capital allocation and guidance © © _~ Joaquin Duato Jennifer Taubert Tim Schmid Chairman and Executive Vice President, Executive Vice President, Chief Executive Officer Worldwide Chairman, Worldwide Chairman,
Slide 6: Jessica Moore
Jessica Moore Vice President, Investor Relations
Slide 7: Quarter 2024 sales
24 Quarter 2024 sales Dollars in billions Regional sales results! U.S. Europe Western Hemisphere (ex U.S.) Asia-Pacific, Africa International Worldwide (WW) J&d Note: Q2 2024 Q2 2023 $12.6 $11.7 5.2 54 1.2 1 3.5 3.6 9.9 9.9 $22.4 $21.5 yedules on the Investor Relations section of thecompany’s websit
Slide 8: 2nd Quarter 2024 financial highlights
2"4 Quarter 2024 financial highlights’ Dollars in billions, except EPS Reported %; Operational %? Sales $22.4 $21.5 Q2 2024 Q2 2023 4.3%; 6.6%, 7.2%24 Adjusted earnings? $6.8 $6.7 Q2 2024 Q22023 1.6% " Results have been recast to reflect the continuing operations of Johnson & Johnson GAAP earnings $
Slide 9: Innovative Medicine highlights — 2nd quarter 2024
Innovative Medicine highlights — 2°¢ quarter 2024 Strong adjusted operational growth? of 9.0%? driven by Oncology and Immunology Reported: WW 5.5%, U.S. 8.9%, Int’l 1.1% Operational'?: WW 8.8%, U.S. 8.9%, Int’l 8.7% WW sales $MM Reported growth ™ Operational growth! “Ssoon, CVM/Other ° $892 15.7%, 1
Slide 10: MedTech highlights — 2nd quarter 2024
MedTech highlights — 2"¢ quarter 2024 Solid operational growth! due to strong commercial execution, innovation, and procedure growth Reported: WW 2.2%, U.S. 5.7%, Int'l (1.3)% Operational: WW 4.4%, U.S. 5.7%, Int’l 3.2% WW sales $MM Reported growth — ™ Operational growtht Orthopaedics $2,312 2.1%, 3
Slide 11: Condensed consolidated statement of earnings
Condensed consolidated statement of earnings’ J&J 2"™¢ Quarter 2024 (Unaudited; Dollar and shares in millions except per share figures) Sales to customers Cost of products sold Gross Profit Selling, marketing and administrative expenses Research and development expense In-process research and develo
Slide 12: Adjusted income before tax by segment
Adjusted income before tax by segment” 2"¢ Quarter 2024 % to sales $8.4B $8.0B Q22024 Q22023 FY 2023 jnovative 44.6% 42.3% 42.0% edicine MedTech 257% 28.2% * 23.7% Total 37.4% 37.2% 35.0% “Includes favorable intellectual property litigation settlement worth ~300 basis points | | Innovative Medicine
Slide 13: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 14: Innovative Medicine milestones
Johnson &Johnson Innovative Medicine UJ spo: Sjogren's iseases MG: Mavs Gravis Disease; Rh: Rheumatoid Arts Regulatory milestones: STiemfy a igselurahy” S CARVYKTI"_ (ciltacabtagene autoleucel) 2 \ Wrvere VANT’ (ieeriteairet aa Select clinical milestones: IN yy MDARZALEX SCarvy«tr: @Tremfya RYBREVAN
Slide 15: MedTech launches and milestones
Johnson &Johnson MedTech J&J Successfully completed acquisition of Shockwave (o) Recent launches ECHELON 3000 CARTO 3 v8 Electro-Anatomical TECNIS ODYSSEY aaa ee Q2 and upcoming clinical / regulatory updates VELYS | IMPELLA ECP \\ VARIPULSE | OTTAVA g
Slide 16: Capital allocation strategy
Capital allocation strategy Dollars in billions Q2 2024 Cash and marketable $25 Capital allocation securities Higher I Debt ($41) priority Organic growth business needs Net debt ($16) I Free cash flow'2 ~$7.5 Free cash flow! Note: Values may be rounded Q2 2024: $3.4B invested in R&D Competitive divi
Slide 17: 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 0.03 April Adjusted Operational EPS' $10.68 Improved performance outlook 0.05 July Adjusted
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 acquisitions of Shockwave Medical, Proteologix, and NM26 Bispecific Antibody) Adjusted operational sales?” Operational sales?” Est
Slide 19: Phasing Considerations
Phasing Considerations Innovative Medicine MedTech + Expect stronger sales growth in the first half of the year compared to the second > Continued uptake from recently launched products > Anticipated entry of STELARA biosimilars in Europe towards the end of July > Distribution rights for REMICADE an
Slide 20: Joaquin Duato
Joaquin Duato Chairman and Chief Executive Officer
Slide 21: Q&A participants
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: Johnson & Johnson 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) US OPSUMIT (macitentan) US SIMPONI (golimumab) P TREMFYA (guselkum