Slide 1: Full year 2023 results
Full year 2023 results’ Johnson & Johnson’s full year 2023 results reflect the breadth and competitiveness of our business and our relentless focus on delivering for patients. We have entered 2024 from a position of strength, and | am confident in our ability to lead the next wave of health innovati
Slide 2: 4th Quarter 2023 Earnings Call
4" Quarter 2023 Earnings Call January 23, 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 Sales performance and earnings review Capital allocation and guidance Q&A ©OOOOO Joaquin Duato Joseph J. Wolk Jessica Moore Chairman and Executive Vice President, Vice President, Chief Executive Officer Chief Financial Officer Investor Relations J&J
Slide 6: Joaquin Duato
Joaquin Duato Chairman and Chief Executive Officer
Slide 7: J&J Innovative Medicine and MedTech
J&d Innovative Medicine O Q4 Operational sales' growth excluding e O COVID-19 Vaccine J&J MedTech Q 1 % Q4 Adjusted operational sales’ growth e O
Slide 8: Innovative Medicine: Ambrx acquisition and key products
S CARVYKTI ® DARZALEX (ciltacabtagene autoleucel) (daratumumab) (@TECVAYLI NW RYBREVANT J O h nson ten YE ils hatia ll S&Johnson “24% Sisx Innovative s Medicine Johnson & Johnson to Acquire Ambrx, Advancing Next Generation ADCs to Transform the Treatment of Cancer J&J Our vision: The elimination of
Slide 9: MedTech: Abiomed integration and Laminar acquisition
Johnson &Johnson MedTech J&J Successful integration of Abiomed News Johnson & Johnson MedTech Acquires Laminar, Inc. 30 November 2023 Innovative investigational device designed for Left Atrial Appendage Elimination (LAAX) to reduce the risk of stroke in patients with non-valvular atrial fibrillation
Slide 10: 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 Sumof of Program Region Check Change Change Change Sum Sumof of Program Region Check Change Change Change Sum Sum Phase of of Program Region Check III Ch
Slide 11: Our accelerated performance
Our accelerated performance Our robust pipeline of market-shaping innovation ing innov: Surgery E Antimicrobial ETHIZIA” ©2==~ MONARCH™ = OTTAVA™ Next STRATAFIX™ Hemostatic m : * Generation and PDS™ Sutures Sealing Patch Energy Tower Orthopaedics Biomaterial: - rl FIBERGRAFT™ _ Extremities — 7 Parti
Slide 12: Joaquin Duato
Joaquin Duato Chairman and Chief Executive Officer
Slide 13: Jessica Moore
Jessica Moore Vice President, Investor Relations
Slide 14: 4th Quarter 2023 sales % Change
4" Quarter 2023 sales 7 % Change Dollars in billions Regional sales results! Q4 2023 Q4 2022 Reported Operational? U.S. $12.0 $10.8 11.0% 11.0% Europe 5.0 5.1 (3.2) (5.8) Western Hemisphere (ex US.) 1.2 1.0 14.0 18.1 Asia-Pacific, Africa 3.3 3.0 9.7 124 International 9.4 9.1 2.9 2.7 Worldwide (WW) $
Slide 15: 4th Quarter 2023 financial highlights
4" Quarter 2023 financial highlights’ Dollars in billions, except EPS Reported %; Operational %? Sales GAAP earnings $21.4 $19.9 $4.1 | $3.2 Q4 2023 Q42022 Q4 2023 = Q42022 7.3%; 7.2%? 28.0% Adjusted earnings? $5.6 $5.4 Q42023 =Q42022 2.4% SR Resutsheve been recast to reflect the contiing operations
Slide 16: Full year 2023 sales % Change
Full year 2023 sales % Change Dollars in billions Regional sales results! 2023 2022 Reported Operational? U.S. $46.4 $42.0 10.6% 10.6% Europe 20.4 20.7 (1.2) (2.2) Western Hemisphere (ex US.) 4.5 41 10.7 15.8 Asia-Pacific, Africa 13.8 13.2 3.9 9.5 International 38.7 38.0 1.9 3.8 Worldwide (WW) $85.2
Slide 17: Full year 2023 financial highlights
Full year 2023 financial highlights’ Dollars in billions, except EPS Reported %; Operational %? Sales GAAP earnings $85.2 $80.0 $16.4 $13.3 a 2023 2022 2023 2022 6.5%; 7.4%? (18.6)% Adjusted earnings? $25.4 $23.8 2023 2022 6.8% SR Resutsheve been recast to reflect the contiing operations of Johnson
Slide 18: Innovative Medicine highlights — 4th quarter 2023
Innovative Medicine’ highlights — 4" quarter 2023 Strong operational growth? of 9.5% excl. COVID-19 Vaccine driven by Oncology and Immunology Reported: Operational?: WW 4.2%, U.S. 9.5%, Int'l (2.5)% WW 4.0%, U.S. 9.5%, Int'l (3.1)% WW sales $MM Reported growth ™ Operational growth? Oncology CVM/Othe
Slide 19: MedTech highlights — 4th quarter 2023
MedTech highlights — 4" quarter 2023 Exceptional adjusted operational growth? due to procedures, strong commercial execution, and innovation Reported: WW 13.3%, U.S. 14.1%, Int’l 12.4% Operational’: WW 13.4%, U.S. 14.1%, Int’l 12.8% WW Sales $MM Reported growth ml Operational growth Orthopaedics $2,
Slide 20: Condensed consolidated statement of earnings
Condensed consolidated statement of earnings’ 4* Quarter 2023 zozs 2022 E Increase (Unaudited; Dollar and shares in millions except per share figures) moan sbto Sates moan sbto Sates (Decrease) Sales to customers $21,395 400.0 $19,939 400.0 73 Cost of products sold 6.798 318 6,084 30.5 417 Gross Pro
Slide 21: Adjusted income by segment
Adjusted income by segment” 4* quarter 2023 $6.28 $6.5B ($0.1) > ($0.1) 2023° 2022 " Results have been recast to reflect the continuing operations of Johnson & Johnson 2Non-GAAP measure; excludes amortization expense and specal tems; see reconciliation schedules on the Investor Relations section oft
Slide 22: Joseph J. Wolk
Joseph J. Wolk Executive Vice President, Chief Financial Officer
Slide 23: Capital allocation strategy
Capital allocation strategy Dollars in billions Q4 2023 Capital allocation Cash and marketable $23 Higher I securities aed ; ; Debt ($29) Organic growth business needs I Net debt! ($6) Free cash flow? Free cash flow2 ~$18 Full year 2023: Competitive dividends , , Investment in M&A 1 $15.1B invested
Slide 24: 2024 P&L guidance
2024 P&L guidance’ Adjusted operational sales?3.” Operational sales?” Estimated reported sales*.” Adjusted pre-tax operating margin®.® Net other income® Net interest expense / (income) Effective tax rate5 Adjusted EPS (operational)*5 Adjusted EPS (reported)*> Average Shares Outsanding® " Results hav
Slide 25: 2024 Considerations
2024 Considerations * Expect slightly stronger sales in the first half of the year compared to the second Innovative Medicine > Continued uptake from recently launched products > Anticipated entry of Stelara biosimilars in Europe towards the middle of the year * Operational sales growth expected to
Slide 26: Joaquin Duato, Joseph J. Wolk, Jessica Moore
Joaquin Duato Joseph J. Wolk Jessica Moore Chairman and Executive Vice President, Vice President, Chief Executive Officer Chief Financial Officer Investor Relations Johnson&Johnson
Slide 27: Johnson&Johnson
Johnson&Johnson
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Slide 29: Innovative Medicine highlights — FY 2023
Innovative Medicine’ highlights — FY 2023 Strong operational growth? of 7.2% excl. COVID-19 Vaccine driven by Oncology and Immunology Reported: WW 4.2%, U.S. 9.0%, Int’l (1.5)% Operational2: WW 4.8%, U.S. 9.0%, Int’l (0.2)% WW sales $MM Reported growth ™ Operational growth? Oncology $17,661 CVM/Othe
Slide 30: MedTech highlights — FY 2023
MedTech highlights — FY 2023 Strong adjusted operational growth? due to procedures, strong commercial execution, and innovation Reported: WW 10.8%, U.S. 14.2%, Int’l 7.7% Operational’: WW 12.4%, U.S. 14.2%, Int’l 10.6% WW Sales $MM Reported growth ml Operational growtht Orthopaedics . $8,942 Interve
Slide 31: Condensed consolidated statement of earnings
Condensed consolidated statement of earnings’ Full year 2023 2028 ae — (Unaudited; Dollar and shares in millions except per share figures) moan sbto Sates moan sbto Sates (Decrease) Sales to customers $85,159 400.0 $79,990 400.0 65 Cost of products sold 26,553 31.2 24,596 30.7 8.0 Gross Profit, 58,6
Slide 32: Adjusted income by segment
Adjusted income by segment” Full year 2023 % to sales $29.8B ° $28.0B FY 2023 FY 2022 Innovative Medicine* 42.0% 41.0% MedTech 23.7% 25.5% Total 35.0% 35.0% || Innovative Medicine* (8) MedTech HE Expenses not allocated to segments 2023° 2022 lation schedules on the Investor Relations section of the
Slide 33: Innovative Medicine Pipeline Key Events in 2023
Johnson & Johnson Innovative Medicine Pipeline Key Events in 2023* POTENTIAL APPROVALS US/EU PLANNED SUBMISSIONS US/EU POTENTIAL CLINICAL DATA Sum Sumof of Program Region Check Change Change Change Sum Sum Phase of of Program Region Check III Change Change Change Phase I/II P US AKEEGA (niraparib/ab