Deliverable 7 - Business Management Concepts Capstone Power Point (12SlidesMin)

Johnson & Johnson Profile

1 Johnson AND Johnson Plz New Brunswick, NJ 08933-0002 United States Phone: 1-732-524-0400 http://www.jnj.com

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Table of Contents

Company Overview 1

Key Information 1

Key Financials 1

Company Rankings 2

Key People 2

Company Description 3

Company History 5

Industry Information 6

People 7

Employees 7

Board Members 7

Biographies 8

ALEX GORSKY 8

JOSEPH J WOLK 8

PETER M FASOLO 8

PAULUS STOFFELS 9

MICHAEL H ULLMANN 10

JIM SWANSON 10

Company Financials 11

Financial Summary 11

Annual Income Statement 12

Quarterly Income Statement 13

Annual Balance Sheet 14

Quarterly Balance Sheet 15

Annual Cash Flow 16

Quarterly Cash Flow 17

Financial Market Data 18

Historical Financials 19

Competition 20

Competitors List 20

Competitive Landscape 21

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Company Overview

1 Johnson AND Johnson Plz New Brunswick, NJ 08933-0002 United States Phone: 1-732-524-0400 http://www.jnj.com

Johnson & Johnson (J&J) is a diversified health care giant operating through more than 260 companies located in more than 60 countries. Its Pharmaceuticals division is focused on manufacturing medicines for infectious diseases, neurological, cardiovascular, pulmonary hypertension, autoimmune, and oncology ailments. Top sellers are psoriasis drugs Remicade and Stelara and cancer drug Zytiga. J&J's Medical Devices division offers surgical equipment, orthopedic products, and contact lenses, among other items. Finally, J&J's Consumer business makes over-the-counter (OTC) drugs and products for baby, skin, oral, women's, and first-aid care. The company operates worldwide but makes about half of revenue in the US.

Key Information

DUNS Number 001307081 Location Type Parent/Headquarters Subsidiary Status No Manufacturer Yes Company Type Publicly Traded Company - Corporation Plant/Facility Size (Square Foot) 14,910.00 Owns/Rents Accountant PricewaterhouseCoopers LLP Total Employees 132,200 Employee Growth (1-3 years) 6% Employees At This Location 1,000 Year of Founding or Change in Control 1886 Primary Industry 1486: Pharmaceutical Manufacturing Primary SIC Code 28340000: Pharmaceutical preparations Primary NAICS Code 325412: Pharmaceutical Preparation Manufacturing Tradestyle Johnson & Johnson Latitude/Longitude 40.499489 / -74.441814

Key Financials

Fiscal Year-End December 2019 Sales (Actual) $82,059.00M 1-Year Sales Growth 0.59% Net Income $15,119.00M 1-Year Net Income Growth (1.16)% Total Assets $157,728.00M Market Value $360,947.93M Prescreen Score Low Risk

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Company Rankings

35 in Fortune 1000 Revenue Rank (2020) 35 in Fortune 500 (2020)

Key People

Name Title

ALEX GORSKY Chairman of the Board, Chief Executive Officer JOSEPH J WOLK Executive Vice President, Chief Financial Officer PETER M FASOLO Executive Vice President, Officer PAULUS STOFFELS Executive Vice President, Officer MICHAEL H ULLMANN Executive Vice President, General Counsel JIM SWANSON Officer

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Company Description

Operations Consumer. The Pharmaceuticals segment (accounting for about half of annual revenue) operates in six primary therapeutic areas: immunology, oncology, neuroscience, cardiovascular and metabolic diseases, infectious diseases, and pulmonary hypertension. The segment's operating companies include Janssen Biotech and Janssen Pharmaceuticals. Its top selling drugs are Remicade and Stelara for arthritis and other inflammatory conditions; each drug brings in more than $5 billion in annual sales. Other key drugs include schizophrenia medication Invega Sustenna, rheumatoid arthritis drug Simponi, AIDS therapy Prezista, cardiovascular drug Xarelto, hypertension drug Opsumit, and cancer treatments Zytiga, Imbruvica, Darzalex, and Velcade. The Medical Devices segment (about 30% of sales) focuses on surgery, orthopedics, vision, and interventional (cardiovascular and neurovascular) products including orthopaedic products; general surgery, biosurgical, endomechanical and energy products; electrophysiology products to treat cardiovascular disease; and vision surgery. The Consumer segment (nearly 15% of sales) includes beauty care brands Aveeno, Clean & Clear, and Neutrogena and a range of OTC pharmaceuticals including Tylenol, Sudafed, and Benadryl. Other offerings include baby care (Johnson's), oral care (Listerine), women's health (Stayfree, Carefree, and o.b.), and wound care products (Band-Aid and Neosporin).

Financial Performance In 2019, worldwide sales increased 1% to $82.1 billion as compared to an increase of 7% in 2018. Sales by U.S. companies were $42.1 billion in 2019 and $41.9 billion in 2018. This represents increases of 1% in 2019 and 5% in 2018. The company's net income in 2019 fell by $178 million to $15.1 billion compared to $15.3 billion in 2018. The fall was due to the increase on their operating expenses. Cash held by the company at the end of 2019 fell by $802 million to $17.3 billion compared to $18.1 billion in 2018. Cash provided by operations was $23.4 billion while cash used for investing and financing activities were $6.2 billion and $18.0 billion, respectively.

Geographic Reach Headquartered in New Brunswick, US, J&J has approximately 260 operating companies in 60 countries selling products around the world. It has research facilities in more than a dozen countries and operates in about 100 manufacturing facilities in North America, Asia, Europe, and the Middle East. While the US and Europe represent the company's largest markets (accounting for about 50% and nearly 25% of sales, respectively). The Asia-Pacific region and Africa together account for nearly 20% of revenue, while the non-US Western Hemisphere accounts for nearly 5%.

Mergers and Acquisitions While it continues to streamline its businesses for optimal performance, J&J is also keeping pace with its acquisition strategy by pursuing purchases both large and small. In late 2019, the Janssen Pharmaceutical Companies of Johnson & Johnson completed the acquisition of all rights to the investigational compound bermekimab, which has multiple dermatological indications, along with certain employees, from XBiotech Inc., for $750 million. Janssen pursue bermekimab indications outside of dermatology, XBiotech may be eligible to receive additional payments upon the receipt of certain commercialization authorizations. Janssen Research & Development will develop bermekimab. The agreement combination. In a separate transaction of the same year, Johnson & Johnson acquired TARIS Biomedical LLC (TARIS), a privately-owned biotechnology company specializing in the development of a novel drug delivery technology for the treatment of bladder diseases including cancer. The company's lead clinical-stage product, TAR-200, uses the proprietary TARIS System, which features a silicone-based drug delivery device that allows for the

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continuous release of medication into the bladder. Financial terms of the transaction are not being disclosed. In 2019, the company acquired Auris Health, Inc for $3.4 billion. That deal furthered J&J's presence in surgical robotics — a field it is targeting for future growth. Also in 2019, J&J purchased the 80% of Japanese skincare firm Ci:z that it didn't already own for more than $2 billion.

Sales and Marketing J&J distributes its pharmaceutical and medical device products to retailers, wholesalers, and health care providers including hospitals. Products are marketed to consumers and health professionals. The company's consumer products are sold to the general public and sold online and to retail outlets and distributors throughout the world. J&J's three largest customers are wholesalers that distribute products across all three segments, each representing between 10% and 15% of sales. Advertising expenses worldwide, which comprised television, radio, print media and Internet advertising, were $2.2 billion in 2019, $2.6 billion in 2018 and $2.5 billion in 2017, respectively.

Strategy The Company announced plans to implement a series of actions across its Global Supply Chain that are intended to focus resources and increase investments in the critical capabilities, technologies and solutions necessary to manufacture and supply its product portfolio, enhance agility and drive growth. The Global Supply Chain actions will include expanding the use of strategic collaborations and bolstering initiatives to reduce complexity, improve cost-competitiveness, enhance capabilities and optimize the Supply Chain network. During 2019, the Company divested its Advanced Sterilization Products (ASP) business to Fortive Corporation for an aggregate value of approximately $2.8 billion, consisting of $2.7 billion of cash proceeds and $0.1 billion of retained net receivables. As of December 30, 2018, the assets held for sale on the Consolidated Balance Sheet were $0.2 billion of inventory, $0.1 billion of property, plant and equipment, net and $0.3 billion of goodwill. The Company recognized a pre-tax gain recorded in Other (income) expense, net, of approximately $2.0 billion.

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Company History

Company Background Brothers James and Edward Mead Johnson founded their medical products company in 1885 in New Brunswick, New Jersey. After expanding into surgical dressings, in 1921 the company introduced two of its classic products, the Band-Aid and Johnson's Baby Cream. Subsidiary Ortho Pharmaceutical (birth control products) was formed in 1931 and the Ethicon (sutures) unit was acquired in 1947. In 1959 Johnson & Johnson bought McNeil Labs, which launched Tylenol (acetaminophen) as an OTC drug the next year. Foreign acquisitions included Switzerland's Cilag-Chemie (1959) and Belgium's Janssen (1961). New products in the 1980s included ACUVUE disposable contact lenses. The company bought LifeScan (blood- monitoring products for diabetics) in 1986, but eventually divested the firm in 2018. Other purchases included Neutrogena (1994), DePuy (1998), Centocor Biotech (1999), Micrus Endovascular (2010), Crucell (2010), and Synthes (2012). In early 2017 the company acquired Swiss biotech Actelion, which focuses on rare diseases, for $30 billion. It also purchased Abbott Medical Optics (now J&J Surgical Vision) from Abbott Laboratories for $4.3 billion.

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Industry Information

Primary SIC Code 28340000: Pharmaceutical preparations

Primary NAICS Code 325412: Pharmaceutical Preparation Manufacturing

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People

Employees

Title Name Age Salary Bonus

Chairman of the Board, Chief Executive Officer

ALEX GORSKY -- $1.60M --

Executive Vice President, Chief Financial Officer

JOSEPH J WOLK -- -- --

Executive Vice President, Officer

PETER M FASOLO -- -- --

Executive Vice President, Officer

PAULUS STOFFELS -- $1.14M --

Executive Vice President, General Counsel

MICHAEL H ULLMANN -- $645,385.00 --

Officer JIM SWANSON -- -- --

Board Members

Title Name Age

Chairman of the Board, Chief Executive Officer

ALEX GORSKY --

Board Member A WASHINGTON -- Board Member MR. ALAN DAVIS -- Board Member MR. CHARLES PRINCE -- Board Member MS. EMY RAPHAEL -- Board Member Member MS. GENA PEMBERTON -- Member of the Board MR. JAMES CULLEN -- Advisory Board Member MR. JOE KULLE -- Advisory Board Member MR. JOE KULLECHCIO -- Ww Director Human Resources, Global Board Member

MS. MARCELLA COLLINS --

Board Member MR. MARK MCCLELLAN -- Board Member MS. MARY BECKERLE -- Board Member MR. PAUL KELLY -- Board Member MR. RICHARD BACKE -- Board Member MR. SCOTT DAVIS --

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Biographies

ALEX GORSKY

Title held since 2012: Chairman and CEO

Current Company Titles 2012 - Present : Chairman and CEO 2012 - 2012 : CEO 2011 - 2012 : Vice Chairman Executive Committee 2009 - 2011 : Worldwide Chairman, Medical Devices and Diagnostics Group 2009 - 2009 : Worldwide Chairman, Surgical Care Group

Current Company Compensation History Year Salary Bonus Total 2016: $1.60M -- $26.87M 2015: $1.61M -- $23.80M 2014: $1.50M -- $24.99M 2013: $1.45M -- $16.91M 2012: $1.09M -- $10.98M 2011: $847,692.00 -- $6.84M

Biography Mr. Gorsky began his Johnson & Johnson career in 1988 as a sales representative with Janssen Pharmaceutica in the Pharmaceuticals business. Over the next 15 years, he advanced through positions of increasing responsibility in sales, marketing, and management. In 2001, he was appointed President of Janssen, and in 2003, promoted to Company Group Chairman of Johnson & Johnson's pharmaceuticals business in Europe, the Middle East and Africa. He left the Company in 2004 to join the Novartis Pharmaceuticals Corporation, where he served as head of the company's pharmaceuticals business in North America. Four years later, he returned to Johnson & Johnson as Company Group Chairman and Worldwide Franchise Chairman for Ethicon in the medical devices business. In 2009, he was appointed Worldwide Chairman of the Surgical Care Group and to the Johnson & Johnson Executive Committee. He was appointed Vice Chairman of the Executive Committee in January 2011. Mr. Gorsky holds a Bachelor of Science degree from the U.S. Military Academy at West Point, NY, and spent six years in the U.S. Army. In 1996, he earned a Master of Business Administration (MBA) degree from the Wharton School of the University of Pennsylvania.

Source: Company Web Site

JOSEPH J WOLK

Current Company Titles Unknown - Present : Executive Vice President, Chief Financial Officer

PETER M FASOLO

Title held since 2016: EVP and Chief Human Resources Officer

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Current Company Titles 2016 - Present : EVP and Chief Human Resources Officer 2011 - 2016 : VP Global Human Resources

Biography Peter M. Fasolo is the Executive Vice President, Chief Human Resources Officer, responsible for the global talent, recruiting, diversity, compensation, benefits, employee relations and all aspects of the human resources agenda for the Company. Mr. Fasolo is a member of the Executive Committee, Management Compensation Committee, and Chairman of the Pension and Benefits Committee. Mr. Fasolo first joined Johnson & Johnson in 2004 as Worldwide Vice President, Human Resources for Cordis Corporation. He was then named Vice President, Global Talent Management, with responsibility for executive assessment and development. Mr. Fasolo left Johnson & Johnson in 2007 to join Kohlberg Kravis Roberts & Co. (KKR) as Chief Talent Officer for the portfolio companies owned by the firm. He returned to Johnson & Johnson in September 2010 as Vice President, Global Human Resources. Mr. Fasolo has more than 20 years of global experience in healthcare, having spent 13 years with Bristol-Myers Squibb in executive level, human resource roles in the pharmaceutical, medical devices and consumer segments. He serves on the Board of the Human Resources Policy Association in Washington, D.C., is a member of the Board of Directors for the Families and Work Institute in New York, also serves on the Board of The Crisis Ministry of Mercer County, and is a Trustee of the Robert Wood Johnson Hospital in New Jersey. Mr. Fasolo earned a Ph.D. in Organizational Behavior from the University of Delaware, an M.A. in Industrial Psychology from Fairleigh Dickinson University and a B.A. in Psychology from Providence College.

Source: Company Web Site

PAULUS STOFFELS

Title held since 2016: EVP and Chief Scientist Officer

Current Company Titles 2016 - Present : EVP and Chief Scientist Officer 2012 - 2016 : Chief Scientific Officer and Worldwide Chairman, Pharmaceuticals 2011 - 2012 : Worldwide Chairman, Pharmaceuticals 2009 - 2011 : Chairman, Pharmaceutical Research and Development

Current Company Compensation History Year Salary Bonus Total 2016: $1.14M -- $12.73M 2015: $1.16M -- $10.79M 2014: $1.08M -- $18.34M 2013: $952,923.00 -- $7.82M 2012: $825,385.00 -- $7.34M

Biography Dr. Paul Stoffels is Executive Vice President, Chief Scientific Officer Johnson & Johnson. In this role, he works with R&D leaders across Johnson & Johnson to set the enterprise-wide innovation agenda and is a member of the Johnson & Johnson Executive Committee. Paul chairs the Johnson & Johnson R&D Management Committee and provides oversight to the Johnson & Johnson Development Corporation (JJDC) and the Johnson & Johnson Innovation centers, with the goal of catalyzing innovative science and technology. Additionally, Paul has oversight for product safety of all products of the Johnson & Johnson Family of Companies worldwide. Paul also is Worldwide Chairman, Pharmaceuticals, Johnson & Johnson, with responsibility for expansion of the company’s therapeutic pipeline through global R&D and strategic

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partnerships, licensing and acquisitions. He oversees teams across the Janssen Pharmaceutical Companies of Johnson & Johnson, which discover and develop treatments for unmet medical needs in the therapeutic areas of cardiovascular & metabolism, immunology, infectious disease &vaccines, neuroscience and oncology. Prior to his role as Worldwide Chairman, he served as Global Head, Johnson & Johnson Pharmaceutical R&D from 2009 - 2011, as Company Group Chairman, Central Nervous System & Internal Medicine, from 2006 - 2009, and as Company Group Chairman, Global Virology, from 2005-2006. Paul joined Johnson & Johnson in 2002 with the acquisition of Virco and Tibotec, where he was Chief Executive Officer of Virco and as Chairman of Tibotec, and led the development of a number of leading products for the treatment of HIV. Paul studied Medicine at the University of Diepenbeek and the University of Antwerp in Belgium and Infectious Diseases and Tropical Medicine at the Institute of Tropical Medicine in Antwerp, Belgium. He began his career as a physician in Africa, focusing on HIV and tropical diseases research.

Source: Company Web Site

MICHAEL H ULLMANN

Title held since 2016: EVP and General Counsel

Current Company Titles 2016 - Present : EVP and General Counsel 2012 - 2016 : VP and General Counsel

Current Company Compensation History Year Salary Bonus Total 2015: $645,385.00 -- $5.68M 2014: $591,346.00 -- $5.96M 2013: $542,308.00 -- $4.36M

Biography Michael H. Ullmann is Executive Vice President, General Counsel of Johnson & Johnson and a member of the Company’s Executive Committee and Management Committee. Mike joined Johnson & Johnson as a mergers and acquisitions attorney in 1989 and has held various management positions in the Company’s Law Department since 1999. Prior to assuming his current position in 2012, Mike served as General Counsel of the Worldwide Medical Devices Group for six years. He also served as Corporate Secretary from 1999 to 2006. Prior to joining Johnson & Johnson, Mike practiced law in New York City. He graduated magna cum laude from Cornell University, College of Arts & Sciences, and earned his law degree from Columbia University School of Law. Mike serves on the Columbia Law School Board of Visitors, the Cornell University Alumni Council and the Rutgers Institute for Ethical Leadership Executive Business Cabinet.

Source: Company Web Site

JIM SWANSON

Current Company Titles Unknown - Present : Officer

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Company Financials

Financial Summary

Company Type Publicly Traded Company - Corporation NYSE:JNJ Parent/Headquarters

Fiscal Year-End December 2019 Sales (Actual) $82,059.00M 1-Year Sales Growth 0.59% 2019 Net Income $15,119.00M 1-Year Net Income Growth (1.16)% Prescreen Score Low Risk

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Annual Income Statement

All amounts in millions of US Dollars except per share amounts.

Dec 2019 Dec 2018 Dec 2017 Dec 2016 Revenue 82,059.00 81,581.00 76,450.00 71,890.00 Cost of Goods Sold 27,556.00 27,091.00 25,439.00 21,789.00 Gross Profit 54,503.00 54,490.00 51,011.00 50,101.00 Gross Profit Margin 66.42% 66.79% 66.72% 69.69% SG&A Expense 22,178.00 22,540.00 21,520.00 20,067.00 Depreciation and Amortization -- -- -- -- Operating Income 20,080.00 20,049.00 18,489.00 20,862.00 Operating Margin 24.47% 24.58% 24.18% 29.02% Nonoperating Income -- -- -- -- Nonoperating Expenses -- -- -- -- Income Before Taxes 17,328.00 17,999.00 17,673.00 19,803.00 Income Taxes 2,209.00 2,702.00 16,373.00 3,263.00 Net Income After Taxes 15,119.00 15,297.00 1,300.00 16,540.00

Continuing Operations 15,119.00 15,297.00 1,300.00 16,540.00 Discontinued Operations -- -- -- -- Total Operations -- -- -- -- Total Net Income 15,119.00 15,297.00 1,300.00 16,540.00 Net Profit Margin 18.42% 18.75% 1.70% 23.01%

Diluted EPS from Continuing Operations -- -- -- -- Diluted EPS from Total Operations -- -- -- -- Diluted EPS from Total Net Income 5.63 5.61 0.47 5.93 Dividends Per Share 3.75 3.54 3.32 3.15

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Quarterly Income Statement

All amounts in millions of US Dollars except per share amounts.

Quarter Ending Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019 Revenue 21,082.00 18,336.00 20,691.00 20,747.00 20,729.00 Cost of Goods Sold 6,972.00 6,579.00 7,062.00 7,134.00 6,867.00 Gross Profit 14,110.00 11,757.00 13,629.00 13,613.00 13,862.00 Gross Profit Margin 66.93% 64.12% 65.87% 65.61% 66.87% SG&A Expense 5,431.00 4,993.00 5,203.00 6,039.00 5,374.00 Depreciation and Amortization -- -- -- -- -- Operating Income 5,701.00 4,051.00 5,846.00 4,342.00 5,889.00 Operating Margin 27.04% 22.09% 28.25% 20.93% 28.41% Nonoperating Income -- -- -- -- -- Nonoperating Expenses -- -- -- -- -- Income Before Taxes 4,401.00 3,940.00 6,509.00 4,218.00 1,647.00 Income Taxes 847.00 314.00 713.00 208.00 (106.00) Net Income After Taxes 3,554.00 3,626.00 5,796.00 4,010.00 1,753.00

Continuing Operations 3,554.00 3,626.00 5,796.00 4,010.00 1,753.00 Discontinued Operations -- -- -- -- -- Total Operations -- -- -- -- -- Total Net Income 3,554.00 3,626.00 5,796.00 4,010.00 1,753.00 Net Profit Margin 16.86% 19.78% 28.01% 19.33% 8.46%

Diluted EPS from Continuing Operations -- -- -- -- -- Diluted EPS from Total Operations -- -- -- -- -- Diluted EPS from Total Net Income 1.33 1.36 2.17 1.50 0.66 Dividends Per Share 1.01 1.01 0.95 0.95 0.95

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Annual Balance Sheet

All amounts in millions of US Dollars except per share amounts.

Assets Dec 2019 Dec 2018 Dec 2017 Dec 2016

Cash 17,305.00 18,107.00 17,824.00 18,972.00 Net Receivables 14,481.00 14,098.00 13,490.00 11,699.00 Inventories 9,020.00 8,599.00 8,765.00 8,144.00 Other Current Assets -- -- -- -- Total Current Assets 45,274.00 46,033.00 43,088.00 65,032.00 Net Fixed Assets 17,658.00 17,035.00 17,005.00 15,912.00 Other Noncurrent -- -- -- -- Total Assets 157,728.00 152,954.00 157,303.00 141,208.00

Shareholder's Equity Dec 2019 Dec 2018 Dec 2017 Dec 2016

Preferred Stock Equity 0.00 0.00 0.00 0.00 Common Stock Equity 3,120.00 3,120.00 3,120.00 3,120.00 Total Equity 59,471.00 59,752.00 60,160.00 70,418.00 Shares Outstanding (M) 2,632.51 2,662.32 2,682.53 2,706.51

Liabilities Dec 2019 Dec 2018 Dec 2017 Dec 2016

Accounts Payable 8,544.00 7,537.00 7,310.00 6,918.00 Short-Term Debt 1,202.00 2,796.00 3,906.00 4,684.00 Other Current Liabilities -- -- -- -- Total Current Liabilities 35,964.00 31,230.00 30,537.00 26,287.00 Long-Term Debt 26,494.00 27,684.00 30,675.00 22,442.00 Other Noncurrent 11,734.00 8,589.00 9,017.00 9,536.00 Total Liabilities 98,257.00 93,202.00 97,143.00 70,790.00

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Quarterly Balance Sheet

All amounts in millions of US Dollars except per share amounts.

Assets Quarter Ending Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019 Cash 18,965.00 11,174.00 15,530.00 17,305.00 16,249.00 Net Receivables 14,579.00 14,645.00 14,874.00 14,481.00 14,801.00 Inventories 9,599.00 9,424.00 8,868.00 9,020.00 9,173.00 Other Current Assets -- -- -- -- -- Total Current Assets 57,578.00 45,892.00 44,226.00 45,274.00 44,333.00 Net Fixed Assets 17,855.00 17,598.00 17,401.00 17,658.00 17,048.00 Other Noncurrent -- -- -- -- -- Total Assets 170,693.00 158,380.00 155,017.00 157,728.00 155,521.00

Shareholder's Equity Quarter Ending Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019 Preferred Stock Equity -- -- -- 0.00 -- Common Stock Equity 3,120.00 3,120.00 3,120.00 3,120.00 3,120.00 Total Equity 64,473.00 62,978.00 61,294.00 59,471.00 58,210.00 Shares Outstanding (M) 2,632.17 2,632.38 2,632.39 2,632.51 2,630.96

Liabilities Quarter Ending Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019 Accounts Payable 7,044.00 6,765.00 7,411.00 8,544.00 7,491.00 Short-Term Debt 5,078.00 5,332.00 2,190.00 1,202.00 2,299.00 Other Current Liabilities -- -- -- -- -- Total Current Liabilities 38,847.00 36,772.00 33,689.00 35,964.00 35,162.00 Long-Term Debt 32,680.00 25,062.00 25,393.00 26,494.00 26,919.00 Other Noncurrent 12,149.00 11,034.00 10,944.00 11,734.00 11,381.00 Total Liabilities 106,220.00 95,402.00 93,723.00 98,257.00 97,311.00

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Annual Cash Flow

All amounts in millions of US Dollars except per share amounts.

Dec 2019 Dec 2018 Dec 2017 Dec 2016 Cash & Cash Equivalents at Beginning of Year

18,107.00 17,824.00 18,972.00 13,732.00

Net Cash Provided by Operating Activities

23,416.00 22,201.00 21,056.00 18,767.00

Net Cash Provided by Investing Activities (6,194.00) (3,167.00) (14,868.00) (4,761.00) Net Cash Privided by Financing Activities (18,015.00) (18,510.00) (7,673.00) (8,551.00) Net Increase/Decrease in Cash & Equivalents

(793.00) 524.00 (1,485.00) 5,455.00

Cash & Cash Equivalents at End of Year 17,305.00 18,107.00 17,824.00 18,972.00

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Quarterly Cash Flow

All amounts in millions of US Dollars except per share amounts.

Quarter Ending Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019 Cash & Cash Equivalents at Beginning of Year

11,174.00 15,530.00 17,305.00 16,249.00 14,376.00

Net Cash Provided by Operating Activities

8,383.00 3,452.00 3,358.00 6,398.00 7,527.00

Net Cash Provided by Investing Activities (4,819.00) (7,522.00) (581.00) (1,344.00) (1,645.00) Net Cash Privided by Financing Activities 4,196.00 (357.00) (4,315.00) (4,072.00) (3,893.00) Net Increase/Decrease in Cash & Equivalents

7,760.00 (4,427.00) (1,538.00) 982.00 1,989.00

Cash & Cash Equivalents at End of Year 18,965.00 11,174.00 15,530.00 17,305.00 16,249.00

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Financial Market Data

Current Information

Last Close (04-Dec-2020) $150.27 Price/Sales Ratio 4.53 52-Week High $157.00 Price/Book Ratio 5.60 52-Week Low $109.16 Price/Earnings Ratio 21.56 60-Month Beta 0.69 Price/Cash Flow Ratio 16.96 Market Cap $360,947.93M Return on Assets 9.73% Shares Outstanding -- Return on Equity 25.36% Dividend Rate 4.04 Current Ratio 1.26 Dividend Yield 2.69% Long-Term Debt/Equity 0.45 # of Institutional Holders 1,940 % Owned by Institutions 50.16% Latest Short Interest Ratio -- Latest Net Insider Transactions 1

Growth 12 Month 36 Month 60 Month

Revenue Growth 0.59% 4.51% 2.00% EPS Growth 0.36% (1.72%) (0.25%) Dividend Growth 5.93% 5.98% 6.32%

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Historical Financials

Income Statement

Year Revenue ($M) Net Income ($M) Net Profit Margin

Dec 2019 82,059.00 15,119.00 18.42% Dec 2018 81,581.00 15,297.00 18.75% Dec 2017 76,450.00 1,300.00 1.70% Dec 2016 71,890.00 16,540.00 23.01%

2019 Year-End Financials

Debt Ratio 44.55% Return on Equity 25.36% Cash ($M) 17,305.00 Current Ratio 1.26 Long-Term Debt ($M) 26,494.00 Shares Outstanding (M) -- Dividend Yield 2.69% Dividend Payout 0.62 Market Cap ($M) 360,947.93

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Competitors List

Company Gross Revenue Employees

Abbott Laboratories $31,904.00M 107,000 ALLERGAN LIMITED $16,088.90M Amgen Inc. $23,362.00M 23,400 Arthrocare Corporation $174.80M 1,840 ASTRAZENECA PLC $24,384.00M B. Braun Melsungen Aktiengesellschaft $8,266.21M 64,600 Bayer Aktiengesellschaft $48,177.67M 106,092 Becton, Dickinson and Company $17,117.00M 72,000 Biogen Inc. $14,377.90M 7,400 Boehringer Ingelheim International GmbH $8,006.19M Boston Scientific Corporation $10,735.00M 36,000 C. R. Bard, Inc. $3,849.74M 16,300 Chattem, Inc. $218.59M 536 Colgate-Palmolive Company (Top Competitor) $15,693.00M 34,300 Cook Incorporated $505.20M 1,790 DR.REDDY'S LABORATORIES LIMITED $1,638.37M 21,650 Edwards Lifesciences Corp $4,348.00M 13,900 Eli Lilly and Company $22,319.50M 33,625 Genzyme Corporation $3,026.06M 12,000 Merck & Co., Inc. $46,840.00M 71,000 Mylan Inc $6,394.31M 30,000 Novartis AG (Top Competitor) $47,498.00M 12,200 Nutrasweet Property Holdings, Inc. $12.30M 417 Pfizer Inc. (Top Competitor) $51,750.00M 88,300 Roche Holding AG $64,247.56M 146 SANOFI $497.87M Shire Plc $15,160.60M SMITH & NEPHEW PLC $5,138.00M Stryker Corporation $14,884.00M 40,000 TERUMO CORPORATION $5,687.12M 25,378 TEVA PHARMACEUTICAL INDUSTRIES LIMITED $4,863.84M The Mentholatum Company $52.46M 200 The Procter & Gamble Company $70,950.00M 97,000 U C B $1,037.86M 12,102 Zimmer Biomet Holdings, Inc. $7,982.20M 19,900

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Competitive Landscape

Companies listed are Top Competitors.

Key Numbers Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

Annual Sales ($M) $82,059.00M $15,693.00M $48,677.00M $51,750.00M Employees 132,200 -- -- -- Market Cap ($M) $360,947.93M $67,622.05M $177,631.06M $197,158.10M

Profitability Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

Gross Profit Margin 66.42% 59.42% 70.37% 80.25% Pre-Tax Profit 21.12% 21.03% 18.37% 34.17% Net Profit Margin 18.42% 15.08% 14.67% 31.44% Return on Equity 25.36% 31,560.00% 17.50% 25.72% Return on Assets 9.73% 17.41% 8.89% 9.96% Return on Invested Capital 17.01% 33.34% 12.55% 15.89%

Valuation Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

Price/Sales Ratio 4.53 4.19 3.60 4.10 Price/Earnings Ratio 21.56 25.20 25.08 22.89 Price/Book Ratio 5.60 103.58 3.24 3.06 Price/Cash Flow 16.96 18.19 13.53 13.33

Operations Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

Days of Sales Outstanding 63.6 33.0 63.8 59.1 Inventory Turnover 3.1 4.8 2.2 1.3 Days of Cost of Goods Sold in Inventory 116.7 75.9 163.7 282.0 Asset Turnover 0.5 1.2 0.4 0.3 Net Receivables Turnover Flow 5.7 11.1 5.7 6.2 Effective Tax Rate 12.75% 23.45% 20.06% 7.83%

Financial Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

Current Ratio 1.26 1.03 1.04 0.88 Quick Ratio 0.94 0.58 0.77 0.59 Leverage Ratio 2.65 128.50 2.13 2.65 Total Debt/Equity 0.47 72.50 0.53 0.83 Interest Coverage 55.49 18.19 10.91 12.23

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Per Share Data Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

Earnings Per Share $5.72 $2.76 $5.12 $2.92 Dividend Per Share $3.75 $1.71 $0.00 $1.44 Cash Flow Per Share $8.08 $4.34 $5.73 $2.66 Working Capital Per Share $7.12 -$0.13 -$1.26 $2.47 Long-Term Debt Per Share -- -- -- -- Book Value Per Share $24.49 $0.76 $23.95 $11.58 Total Assets Per Share $64.84 $18.04 $57.01 $32.02

Growth Johnson & Johnson

Colgate- Palmolive Company

Novartis AG Pfizer Inc.

12-Month Revenue 0.59% 0.96% 5.59% (3.54%) 12-Month Net Income (1.16%) (1.38%) (6.97%) 45.91% 12-Month EPS Growth 0.36% 0.00% (5.95%) 53.48% 12-Month Dividend Growth 5.93% 3.01% (3.48%) 5.88% 36-Month Revenue 4.51% 1.08% (0.51%) (0.68%) 36-Month Net Income (2.95%) (1.02%) 20.46% 31.14% 36-Month EPS Growth (1.72%) 0.37% 21.80% 34.86% 36-Month Dividend Growth 5.98% 3.33% 1.41% 6.27%

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