Johnson & Johnson : Final - JNJ Guidance Webcast

Johnson & Johnson Updated Financials & 2023 Guidance

August 30, 2023

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 strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company's ability to realize the anticipated benefits from the separation of the Company's Consumer Health business; and the New Consumer Health Company's ability to succeed as a standalone publicly traded company. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 1, 2023, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in Johnson & Johnson's subsequent Quarterly Reports on Form 10- Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov,www.jnj.comor on request from Johnson & Johnson. Any forward- looking statement made in this presentation speaks only as of the date of this presentation. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Cautionary Note on Non-GAAP Financial Measures

This presentation refers to certain non-GAAP financial measures. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the Company's website.

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Agenda

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Recast Consolidated Statement of Earnings

Consumer Health Separation Milestones

Updated 2023 J&J Guidance and Capital Allocation

Joseph J. Wolk	Jessica Moore
Executive Vice President,	Vice President,
Chief Financial Officer	Investor Relations

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Condensed Consolidated Statement of Earnings

	SIX MONTHS 2023 (RECAST)	SIX MONTH 2022 (RECAST)	%
					Increase
	Amount	% to Sales	Amount	% to Sales
(Unaudited; Dollar and Shares in Millions Except Per Share Figures)	(Decrease)
Sales to customers	$42,413	100.0	$40,055	100.0	5.9
Cost of products sold	13,149	31.0	12,340	30.8	6.6
Gross Profit	29,264	69.0	27,715	69.2	5.6
Selling, marketing and administrative expenses	10,302	24.3	9,932	24.8	3.7
Research and development expense	7,158	16.9	6,940	17.3	3.1
In-process research and development impairments	49	0.1	610	1.5
Interest income	(524)	(1.2)	(86)	(0.2)
Interest expense, net of portion capitalized	429	1.0	48	0.1
Other (income) expense, net	6,556	15.5	(211)	(0.5)
Restructuring	275	0.6	135	0.4
Earnings before provision for taxes on income	5,019	11.8	10,347	25.8	(51.5)
Provision for taxes on income	134	0.3	1,514	3.7	(91.1)
Net earnings from Continuing Operations	$4,885	11.5	$8,833	22.1	(44.7)
Net Earnings from Discontinued Operations, net of tax	191		1,130		(83.1)
Net Earnings	$5,076		$9,963		(49.1)
Net Earnings per Share (Diluted) from Continuing Operations	$1.86		$3.31		(43.8)
Net Earnings per Share (Diluted) from Discontinued Operations	$0.07		$0.42
Average shares outstanding (Diluted)	2,630.7		2,669.2
Effective tax rate from Continuing Operations	2.7%		14.6%

Adjusted earnings from continuing operations before provision for taxes and net earnings1 Earnings before provision for taxes on income from continuing operations

Net earnings from continuing operations

Net earnings per share (Diluted) from continuing operations

Average shares outstanding (Diluted)

Effective tax rate from continuing operations

$15,541	36.6
$13,070	30.8

$4.97 2,630.7 15.9%

$14,431	36.0
$12,426	31.0

$4.66 2,669.2 13.9%

7.7

5.2

6.7

1 Non-GAAP measure;	excludes intangible amortization expense and special items; see reconciliation schedules in the Investors section of the company's website	4

Joseph J. Wolk

Executive Vice President, Chief Financial Officer