Louise Mehrotra. Vice President Investor Relations

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2 Louise Mehrotra Vice President Investor Relations

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4 Safe Harbor Statement These presentations contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of You are 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 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, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; trends toward health care cost containment; and increased scrutiny of the healthcare industry by government agencies. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson s Annual Report on Form 10-K for the fiscal year ended January 2, Copies of this Form 10-K, as well as subsequent filings, are available online at or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.

5 Safe Harbor Statement These presentations contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of You are 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 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, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; trends toward health care cost containment; and increased scrutiny of the healthcare industry by government agencies. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson s Annual Report on Form 10-K for the fiscal year ended January 2, Copies of this Form 10-K, as well as subsequent filings, are available online at or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments. Note on Non-GAAP Financial Measures These presentations may refer 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 Investor Relations section of the Company s website at

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7 William C. Weldon Chairman of the Board & Chief Executive Officer

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9 Strengthening Our Platforms for Sustainable Leadership and Profitable Growth

10 Agenda 2011 Business Highlights Health Care Market Overview Strategic Outlook 2012

11 Delivering Sustainable Growth Built on Meaningful Innovations

12 Delivering Sustainable Growth Built on Meaningful Innovations

13 A Continuing Evolution of Growth 2012 Delivering Sustainable Growth Built On Meaningful Innovations in Health Care Building on our Foundation of Growth Executing Strategies for Leadership & Growth in Health Care Well Positioned for Leadership & Growth in Health Care Expanding Market Leadership in Health Care: Investing for Sustainable Growth

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15 Delivering Sustainable Growth Built on Meaningful Innovations Major patent expirations, necessary portfolio choices & OTC quality issues addressed Focusing on significant unmet needs Converting pipelines into new products Driving growth in emerging markets

16 Our Journey Preserving Core Values & Strengths

17 Leadership & Talent Investments in R&D Advanced the Pipeline High Quality Standards Our Journey Restructuring Strategic Partnerships & Acquisitions Financial Discipline

18 Investments in R&D

19 Investments in R&D

20 Leadership & Talent Investments in R&D Advanced the Pipeline High Quality Standards Our Journey Restructuring Strategic Partnerships & Acquisitions Financial Discipline

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24 2011 Performance Highlights

25 2011 Performance Highlights Solid financial results Returned to sales growth Strong growth in emerging markets Significant free cash flow Maintained AAA credit rating Advanced robust pipeline Disciplined portfolio management Investing in strategic acquisitions and collaborations McNeil Consumer remediation on track Focus on market leadership in high growth areas

26 2011 Performance Highlights Well Positioned For Long Term Growth

27 Financial Highlights: 2011 vs % Change TOTAL COMPANY TOTAL OPS Sales $65.0B $61.6B 5.6% 2.8% Adjusted Earnings* $13.9B $13.3B 4.4% Adjusted EPS* $5.00 $ % Free Cash Flow** $11.4B $14.0B * Non-GAAP measure; excludes special items **Non-GAAP financial measure: defined as operating cash flow less capital spending; estimated as of 1/20/12

28 Consistent Performance Consecutive years of adjusted earnings increases* Consecutive years of dividend increases ~70% ~25% of sales from #1 or #2 global market share position of sales from new products introduced in the past 5 years * Non-GAAP measure; excludes special items

29 Total Shareholder Return As of 12/31/ Year 5 Year 10 Year 9.9% 3.0% 3.6% S&P % -0.2% 2.9% S&P Pharmaceutical 17.8% 3.8% 0.8% S&P H/C Equipment -0.8% -1.1% 2.5% Dow Jones Index 8.4% 2.4% 4.6% Note: Data source - Bloomberg

30 Broad Base of Health Care Leadership 2011 Sales by Segment Total Sales $65 Billion Medical Devices & Diagnostics 40% $25.8B +1.7%* $14.9B (0.7)%* Consumer 23% Pharmaceutical $24.4B 6.2%* 37% *Operational change

31 2011 Segment Operating Profit* $17.6B $2.3 $18.3B $2.1 Operating Margin % to Sales $7.7 $8.1 $7.6 $ Consumer 16.1% 14.1% MD&D 31.3% 31.3% Pharmaceuticals 33.6% 33.4% Total 28.5% 28.2% * Non-GAAP measure; excludes special items 2011 Consumer MD&D Pharmaceuticals

32 Pharmaceuticals Medical Devices & Diagnostics Consumer

33 Pharmaceutical Highlights 2011 Sales: $24.4 Billion Ops Change: 6.2% #8 Worldwide Market Rank* #6 Global Biotech Market Rank* Success of recently introduced products Significant pipeline advancements U.S. industry leader in NME approvals in both 2009 and 2011 Transforming our product portfolio *Source:3QMAT IMS Data

34 Differentiated Medicines Transform Our Portfolio Growth Products and New Products Expanding Mature/regional products Core growth products New products launched from 2009 and beyond Internal data

35 MD&D Highlights 2011 Sales: $25.8 Billion Ops Change: +1.7% #1 Worldwide MD&D Business Strong double-digit growth in BRIC markets Innovative new products Continued advancement of pipeline Investing for growth in emerging markets Sustained leadership positions (#1 or #2) in key segments Disciplined portfolio approach

36 MD&D Highlights 2011 Portfolio Decisions

37 Pending acquisition of Synthes

38 Three Global Business Groups Medical Devices & Diagnostics Global Surgery Group Global Medical Solutions Group Global Orthopaedics Group* *Pending acquisition of Synthes

39 Three Global Business Groups Focused on unique customer needs Globally integrated Streamlining decision-making process Leveraging scale

40 Consumer Highlights 2011 Sales: $14.9 Billion Ops Change: -0.7% 6th Largest Consumer Health Care Company Growth impacted by OTC supply Strong results in skin care, oral care Continued expansion in emerging markets Continued innovation Iconic brands

41 McNeil Consumer Healthcare Returning High Quality Products to Consumers Achieved major commitments to date under the Consent Decree Key products returned to market Product innovations State of art facility in Fort Washington, PA Investing in market support

42 Addressing Significant Needs and Growth Opportunities in Health Care

43 Our World Macroeconomic Government Industry

44 Our World Macroeconomic Global economic uncertainty Currency volatility Demographics/aging population Macroeconomic Global expansion

45 Our World Government Health Care Reform Pricing/Payors Regulatory

46 Our World Industry Highly competitive Significant investments Access to talent Adaptability to markets Strategic alliances & collaborations

47 Health Care Market Presents Opportunity Historical & Projected Health Care Market Growth $U.S. Trillions Developed Emerging SOURCE: Espicom CAGR (%) Total 6.7% 5.8% 6.1% Developed 5.3% 4.2% 4.1% Emerging 14.9% 12.9% 12.3%

48 Significant Unmet Need Remains Increase In Global Disease Incidence % Cancers Mental Health Disorders Diabetes Heart Disease Stroke Rheumatoid Arthritis HIV SOURCE: Global Insight, MEPS, Milken Institute, WHO

49 Ongoing Globalization Share of Global GDP - OECD vs. Other Countries Percent Other countries OECD 2020 By % of growth in healthcare revenues from emerging markets ( ) OECD per capita spending still 7x other countries per capita spending SOURCE: Organization for Economic Co-operation and Development (OECD) stats database, Factiva

50 New Technologies Hold Significant Promise Regenerative medicine/artificial organs Gene therapy Companion diagnostics Electronic stimulation Cosmeceuticals Therapeutic vaccines

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52 Strategic Outlook

53 Delivering Sustainable Growth Built On Meaningful Innovations Delivering Meaningful Innovations for Patients and Customers Building a More Agile Business Staying True to Our Operating Model and Values

54 Delivering Sustainable Growth Built On Meaningful Innovations Delivering Meaningful Innovations for Patients and Customers

55 Delivering Meaningful Innovations for Patients and Customers Organic and Collaborative Approach to Innovation Leverage Internal Capabilities Capitalize on New Technology Harness Latest Science Platforms Research & development Global breadth Talent & leadership Biomarkers Companion diagnostics Imaging Informatics Strategic alliances Licensing & acquisitions External collaborations Leverage venture capital

56 Delivering Meaningful Innovations for Patients and Customers Organic and Collaborative Approach to Innovation Identify unmet need Find and access the best science and research Develop and bring to market

57 Delivering Meaningful Innovations for Patients and Customers Organic and Collaborative Approach to Innovation

58 Delivering Meaningful Innovations for Patients and Customers Improving the Standard of Care In Hepatitis C INCIVO and TMC 435: Potential to transform the way Hepatitis C is managed TMC 435: Another novel treatment in the pipeline to treat more people INCIVO developed in collaboration with Vertex Pharmaceuticals Incorporated TMC 435 developed in collaboration with Medivir AB.

59 Delivering Meaningful Innovations for Patients and Customers Bapineuzumab Potential First-in-Class Disease Modifying Agent for Alzheimer s Disease First investigational monoclonal antibody immunotherapeutic to reach Phase 3 development Global program with four Phase 3 studies* Potential to file with US FDA in timeframe 1 1 Alzheimer s Association 1 *Global program of four Phase 3 studies being conducted as part of collaboration between Janssen Alzheimer Immunotherapy and Pfizer Inc.

60 Delivering Meaningful Innovations for Patients and Customers XARELTO (rivaroxaban) Novel Direct Factor Xa Inhibitor Two FDA Approvals Granted in 2011 Prevention of VTE Post Knee or Hip Replacement Surgery Prevention of Stroke and Systemic Embolism in Patients with Non-Valvular Atrial Fibrillation snda for use in Acute Coronary Syndrome under Review To reduce the risk of thrombotic cardiovascular events Based on strong results of ATLAS ACS TIMI 51 Study Potential FDA Submission Planned for Q EINSTEIN Treatment and Prevention of Secondary DVT and PE XARELTO co-developed with Bayer HealthCare

61 Delivering Meaningful Innovations for Patients and Customers : Innovative Option for Treating Ischemic Stroke Acquired Micrus Endovascular in 2010 REVIVE TM SE Removes blood clots and restores blood flow to the brain in patients having an ischemic stroke Available in European Union Initial cases are being performed in Germany with encouraging results Clinical trials are being planned in the US

62 Delivering Meaningful Innovations for Patients and Customers Innovative Option for Prostate Cancer ZYTIGA Significant advance for men who have received chemotherapy Developed with Cougar Biotechnology US approval April 2011 EU approval September 2011 Additional development programs Chemo-naïve CRPC and other prostate cancer patient populations Breast cancer (hormone dependent) Licensed from BTG International Ltd.

63 Delivering Meaningful Innovations for Patients and Customers Innovative Option for Intra-operative Bleeding Fibrin Pad True convergent product Product combines two biomaterials and two biologics BLA filed in the US

64 Delivering Meaningful Innovations for Patients and Customers: Innovative Option For Diabetes Management OneTouch Verio Delivering better insights to make better decisions Available in Europe and Australia US recently launched

65 Delivering Meaningful Innovations for Patients and Customers Innovative Option For Diabetes Management Canagliflozin A Novel SGLT2 Inhibitor for Type 2 Diabetes Potential clinical profile Oral, once-daily Competitive HbA1C reduction Clinically meaningful weight-loss Improved beta cell function Well tolerated Low risk for hypoglycemia Planned filing: 1H 2012 (US, EU) Canagliflozin is licensed from Mitsubishi-Tanabe Pharmaceutical Corporation

66 Delivering Meaningful Innovations for Patients and Customers Innovative Options For Diabetes Management Canagliflozin

67 Delivering Sustainable Growth Built On Meaningful Innovations Building a More Agile Business

68 Building a More Agile Business Streamlined organizational structure Disciplined portfolio management Breadth of leadership and talent

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75 Pharmaceutical R&D Pipeline recognized as one of the best in the industry Prioritizing investments Investing in L&A activities Great improvements in R&D productivity metrics

76 Portfolio Management

77 Delivering Sustainable Growth Built On Meaningful Innovations Staying True to Our Operating Model and Values

78 Our Credo We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return.

79 Strategic Framework Our Credo Operating Model Broadly Based in Human Health Care Managed for the Long Term Decentralized Management Approach Focused on People and Values Sustainable Compliant Growth High Quality, Innovative Products Robust Pipelines Global Presence Talented People

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84 Delivering Sustainable Growth Built On Meaningful Innovations Delivering Meaningful Innovations for Patients and Customers Building a More Agile Business Staying True to Our Operating Model and Values

85 Delivering Sustainable Growth Built On Meaningful Innovations Extraordinary progress Adapted well to challenges Launched new products and strengthened market leadership Advanced our pipelines Maintained a disciplined approach to investments Stayed true to our operating model and values

86 Delivering Sustainable Growth Built on Meaningful Innovations

87 2012: Delivering Sustainable Growth Built On Meaningful Innovations in Health Care We expect to continue this journey: Accelerating operational sales growth Re-introducing OTC products Advancing a robust pipeline Expanding global presence and reach Seamlessly integrating Synthes

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89 Dominic J. Caruso Vice President, Finance Chief Financial Officer

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91 2012 Guidance Estimated Operational At Constant Currency Sales 4% - 5% $67.7B - $68.3B Estimated Total At January Exchange Rates** 1% - 2% $66.0B - $66.5B Adjusted EPS* 3.5% - 5.5% $ $5.28 1% - 3% $ $5.15 * Non-GAAP measure; excludes special items 2012 Mid-January ** Euro Average Rate = 1.29 ** As of 1/19/12

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93 Save The Date: Medical Devices & Diagnostics Business Review Thursday, November 1, 2012 Hyatt Regency New Brunswick Two Albany Street New Brunswick, NJ

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