Johnson & Johnson · NYSE:JNJ
Johnson & Johnson — Proxy Contest (January 2006)
32 slides from Johnson & Johnson's proxy contest presentation, Jan 17, 2006
Slide 1: Company Group Chairman Eric Milledge
Eric Milledge Company Group Chairman
Slide 2: Founded 1886 in New Brunswick, New Jersey
Founded 1886 New Brunswick, New Jersey In a Former Wallpaper Factory By three brothers with a dream… that Joseph Lister’s theories about sterilization could save lives in America’s hospitals
Slide 3: World's Most Comprehensive and Broadly Based Health Care Company
V- & World's Most Co hensive and Broadl ed Han, Cyrg company = A pre ¥: ai
Slide 4: Products, Patients & Customers
Products Patients & Customers
Slide 5: Operating Companies
=e Operating Companies ». ~ In ountri [orld Selling Pr in ; vv —_
Slide 6: Global Presence
Global Presence
Slide 7: Strategic Principles
Broadly Based in Human Health Care Decentralized Management Manage for the Long Term Ethical Principles Our Credo Strategic Principles • • • • •
Slide 8: Our Credo
Written by General Robert Wood Johnson, Jr. in the 1940s Visionary and U.S. business leader Among the first to speak openly of a company’s responsibility Our Credo • • •
Slide 9: The Four Tenets of Our Credo
Customers Employees Community Shareholders Our Credo The Four Tenets • • • •
Slide 10: 2004 Performance Results
13.1% 18.2% 18.3% Sales Net Earnings Diluted EPS $47.3B $8.5B $2.84 2004 Performance Results
Slide 11: 2004 Sales by Segment
46.7% Consumer $8.3 Medical Devices & Diagnostics $16.9 Pharmaceuticals $22.1 17.6% 35.7% Total Sales: $47.3 Billion $U.S. Billions 2004 Sales by Segment
Slide 12: 2004 Sales by Geographic Area
59% Asia, Pacific, Africa $5.8 W. Hemisphere $2.6 Europe $11.1 U.S. $27.8 23% 6% 12% Total Sales: $47.3 Billion $U.S. Billions 2004 Sales by Geographic Area
Slide 13: Historical Performance
(1) Proforma excluding In-process R&D, taxes on repatriated cash under the AJC Act and other charges and credits 100 +10.6% +11.0% +10.7% 50 +11.1 +11.7 +14.2 20 +10.9 +10.8 +15.6 10 +11.8 +12.3 +16.9 5 +11.6 +11.1 +16.9 1 +13.1 +9.7 +16.8 Reported Operational Net Year Sales Sales Income(1) Historic
Slide 14: Historical Performance: Consecutive Years of Increases
(1) Proforma excluding In-process R&D, taxes on repatriated cash under the AJC Act and other charges and credits 72 Consecutive years of Sales increases 20 Consecutive years of double digit Earnings increases (1) 42 Consecutive years of Dividend increases Historical Performance • • •
Slide 15: Investment in Research
$U.S. Billions 9.6% Percent to Sales 11.0% Investment in Research
Slide 16: LifeScan
€LLIFESCAN
Slide 17: LifeScan Vision
“Creating a world without limits for people with diabetes” LifeScan Vision
Slide 18: LifeScan At A Glance
U.S. International Employees 1,600 2,100 Sales Force 400 420 Customer Service 220 70 2004 Sales $1.7B LifeScan At A Glance
Slide 19: Worldwide Glucose Monitoring Market
Ex U.S. U.S. 5.1 5.7 6.5 8.3 10 .0 Source: LifeScan Estimates, Analyst Reports $ Billions CAGR 8% Worldwide Glucose Monitoring Market
Slide 20: LifeScan Key Products
Source: International Diabetes Federation LifeScan Key Products
Slide 21: LifeScan is the #1 Manufacturer of Test Strips in the U.S.
LifeScan is the #1 Manufacturer of Test Strips in the U.S.
Slide 22: LifeScan is #1 Recommended by U.S. Healthcare Professionals
LifeScan is #1 Recommended by U.S. Healthcare Professionals
Slide 23: LifeScan #1 at U.S. Health Plans
YTD July 2005 LifeScan #1 at U.S. Health Plans
Slide 24: LifeScan Dollar Sales
$ Billions LifeScan Dollar Sales
Slide 25: LifeScan Mission
“To fundamentally change our business from , and transform LifeScan from an episodic monitoring company to a company.” measurement to management true diabetes management LifeScan Mission
Slide 26: Our Strategic Direction
Continued leadership in Glucose Monitoring Expansion into Insulin Delivery Creation of Diabetes Management solutions Glucose Monitoring • • • Episodic Continuous Diabetes Management Medication Insulin Delivery Our Strategic Direction
Slide 27: Giaek PORAT 1.GsaN
Giaek PORAT 1.GsaN
Slide 28: Making diabetes management easier
Making diabetes management easier through product innovation, exceptional customer support and customized education programs.
Slide 29: Advancing Care Together
Advancing Care Together
Slide 30: LifeScan Sales & Marketing
Direct to Consumer Marketing Leading in Multi- Cultural Marketing Best-in-Class Customer Support Strong CRM Programs with 3.4M Database LifeScan Sales & Marketing • • • •
Slide 31: Culture For Success
Extraordinary talent Entrepreneurship – intelligent risk taking Collaboration and team work Passion and sense of urgency Speed, flexibility, agility Flawless execution • • • • • • Culture For Success
Slide 32: The Johnson & Johnson Family
The Johnson & Johnson Family