PR Newswire | Jan 25, 2022 06:26AM EST

01/25 05:25 CST

Johnson & Johnson Reports Q4 and Full-Year 2021 Results- 2021 Fourth-Quarter Sales of $24.8 Billion reflecting growth of 10.4%, operational sales growth of 11.6%*, and adjusted operational sales growth of 12.3%*- 2021 Full-Year Sales of $93.8 Billion reflecting growth of 13.6%, operational sales growth of 12.2%*, and adjusted operational sales growth of 12.8%*- 2021 Fourth-Quarter EPS of $1.77 increased 172.3%; adjusted EPS of $2.13 increased 14.5%*- 2021 Full-Year EPS of $7.81 increased 41.7%; adjusted EPS of $9.80 increased 22.0%*- Company guides 2022 adjusted operational sales growth of 7.7%* and adjusted operational EPS growth of 9.2%* NEW BRUNSWICK, N.J., Jan. 25, 2022

NEW BRUNSWICK, N.J., Jan. 25, 2022 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2021. "Our 2021 performance reflects continued strength across all segments of our business. Guided by Our Credo, I am honored to assume the role of CEO, leading our global teams in continuing our work to deliver life-changing solutions to consumers, patients, and health care providers" said Joaquin Duato, Chief Executive Officer. "Given our strong results, financial profile, and innovative pipeline we are well positioned for success in 2022 and beyond."

OVERALL FINANCIAL RESULTS

Q4 Full Year

($ in Millions, except EPS) 2021 2020 % Change 2021 2020 % Change

Reported Sales $ 24,804 $ 22,475 10.4% $ 93,775 $ 82,584 13.6%

Net Earnings 4,736 1,738 172.5% 20,878 14,714 41.9%

EPS (diluted) $ 1.77 $ 0.65 172.3% $ 7.81 $ 5.51 41.7%

Q4 Full Year

Non-GAAP*($ in Millions, except EPS) 2021 2020 % Change 2021 2020 % Change

Operational Sales^1,2 11.6% 12.2%

Adjusted Operational Sales^1,3 12.3% 12.8%

Adjusted Net Earnings^1,4 5,678 4,965 14.4% 26,195 21,433 22.2%

Adjusted EPS (diluted)^1,4 $ 2.13 $ 1.86 14.5% $ 9.80 $ 8.03 22.0%

REGIONAL SALES RESULTS

Q4 % Change

Adjusted($ in Millions) 2021 2020 Reported Operational^1,2 Currency Operational^ 1,3

U.S. $ 12,163 $ 11,809 3.0% 3.0 - 3.1

International 12,641 10,666 18.5% 21.2 (2.7) 22.4

Worldwide $ 24,804 $ 22,475 10.4% 11.6 (1.2) 12.3

Full Year % Change

Adjusted($ in Millions) 2021 2020 Reported Operational^1,2 Currency Operational^ 1,3

U.S. $ 47,156 $ 43,133 9.3% 9.3 - 9.5

International 46,619 39,451 18.2% 15.3 2.9 16.6

Worldwide $ 93,775 $ 82,584 13.6% 12.2 1.4 12.8

SEGMENT SALES RESULTS

Q4 % Change

Adjusted($ in Millions) 2021 2020 Reported Operational^1,2 Currency Operational^ 1,3

Consumer Health $ 3,657 $ 3,618 1.1% 1.8 (0.7) 2.9

Pharmaceutical 14,288 12,268 16.5% 17.9 (1.4) 18.6

Medical Devices 6,859 6,589 4.1% 5.3 (1.2) 5.6

Worldwide $ 24,804 $ 22,475 10.4% 11.6 (1.2) 12.3

Full Year % Change

Adjusted($ in Millions) 2021 2020 Reported Operational^1,2 Currency Operational^ 1,3

Consumer Health $ 14,635 $ 14,053 4.1% 2.8 1.3 3.8

Pharmaceutical 52,080 45,572 14.3% 13.1 1.2 13.6

Medical Devices 27,060 22,959 17.9% 16.2 1.7 16.8

Worldwide $ 93,775 $ 82,584 13.6% 12.2 1.4 12.8

^1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financialmeasures included in accompanying schedules

^2 Excludes the impact of translational currency

^3 Excludes the net impact of acquisitions and divestitures and translationalcurrency

^4 Excludes intangible amortization expense and special items

Note: values may have been rounded

FULL YEAR 2021 SEGMENT COMMENTARY:

Consumer HealthConsumer Health worldwide adjusted operational sales increased 3.8%* primarily driven by over-the-counter (OTC) products including TYLENOL analgesics and digestive health, in addition to NEUTROGENA and AVEENO products in Skin Health / Beauty primarily due to COVID-19 market recovery. The growth was partially offset by external supply constraints mainly impacting Skin Health / Beauty.

PharmaceuticalPharmaceutical worldwide adjusted operational sales grew 13.6%* driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, and INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. Also contributing to growth were sales of the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the treatment of the SARS-CoV-2 virus. This growth was partially offset by declines in U.S. sales of REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases.

Medical DevicesMedical Devices worldwide adjusted operational sales grew 16.8%*, driven primarily by the market recovery from COVID-19 impacts and the associated deferral of medical procedures in the prior year across all of our businesses including Surgery, Interventional Solutions, Vision and Orthopaedics.

NOTABLE NEW ANNOUCEMENTS IN THE QUARTER:The information contained in this section should be read in conjunction with Johnson & Johnson's other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investors section of the company's website at news releases, as well as www.factsabouttalc.com,www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

European Commission Approves BYANNLI(r) (6-monthly Paliperidone Palmitate; PP6M) for the (press release) Maintenance Treatment of Schizophrenia in Adults U.S. FDA Approves DARZALEX FASPRO(r) (daratumumab and hyaluronidase-fihj) in Combination with Carfilzomib and Dexamethasone for Patients with (press release) Multiple Myeloma After First or Subsequent Relapse Janssen EMEA Receives Conditional Marketing Authorisation for RYBREVANT(r) (amivantamab), the First Treatment Approved for (press release) Patients with Advanced NonSmall Cell Lung Cancer (NSCLC) with EGFR Exon 20 Insertion Mutations Regulatory After Failure of Platinum-Based Therapy Decisions Johnson & Johnson COVID-19 Vaccine Booster Shot (press release) Authorized for Emergency Use by U.S. FDA World Health Organization Strategic Advisory Group of Experts (SAGE) Interim Recommendation (press release) Supports Use of Johnson & Johnson COVID-19 Vaccine as a Booster Johnson & Johnson Announces Positive CHMP Opinion(press release) for a Booster Shot of its COVID-19 Vaccine FDA Approves Two New Indications for XARELTO(r) (rivaroxaban) to Help Prevent and Treat Blood (press release) Clots in Pediatric Patients U.S. FDA Approves New MENTOR(r) MemoryGel BOOSTTm(press release) Breast Implant^1

Janssen Seeks Approval of IMBRUVICA(r) (ibrutinib) in a Fixed-Duration Regimen for (press release) Patients with Untreated Chronic Lymphocytic Regulatory Leukaemia (CLL) (EU) Submissions Janssen Submits Biologics License Application to U.S. FDA Seeking Approval of Teclistamab for the (press release) Treatment of Patients with Relapsed or Refractory Multiple Myeloma

Johnson & Johnson Announces Plans to Accelerate Innovation, Serve Patients and Consumers, and (press release) Unlock Value through Intent to Separate Consumer Health Business Johnson & Johnson Appoints Senior Leaders to (press release) Executive Committee Johnson & Johnson announces significant progress towards its climate goals - 100% renewable (press release) electricity for all sites in the United States, Canada and Europe by 2023 Johnson & Johnson Medical Devices Companies Other Announces Strategic Partnership with Microsoft to(press release) Further Enable its Digital Surgery Solutions^1 Johnson & Johnson COVID-19 Booster, Administered Six Months After Two-Dose Regimen of BNT162b2, (press release) Shows Substantial Increase in Antibody and T-cell Responses Johnson & Johnson Enters into Agreement to Provide its Single-Shot COVID-19 Vaccine for the (press release) World's Most Vulnerable People through Novel Humanitarian Buffer Johnson & Johnson COVID-19 Vaccine Demonstrates 85 Percent Effectiveness against Hospitalization (press release) in South Africa when Omicron was Dominant

^1Subsequent to the quarter

FULL-YEAR 2022 GUIDANCE:Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

January 2022 January 2022 January 2022 ($ in Billions, except EPS) (ex. COVID Vx) (COVID Vx) (incl. COVID Vx)

Adjusted Operational Sales^1,2 6.5% - 7.5% 7.0% - 8.5% Change vs. Prior Year

Operational Sales^2 $97.3B - $98.3B $100.3B - $101.8B $3.0B - $3.5B Change vs. Prior Year 6.5% - 7.5% 7.0% - 8.5%

Estimated Reported Sales^3 $95.9B - $96.9B $98.9B - $100.4B $3.0B - $3.5B Change vs. Prior Year 5.0% - 6.0% 5.5% - 7.0%



Adjusted Operational EPS (Diluted)^2,4 $10.60 - $10.80 Change vs. Prior Year 8.2% - 10.2%

Adjusted EPS (Diluted)^3,4 $10.40 - $10.60 Change vs. Prior Year 6.1% - 8.2%

^1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures ^2 Non-GAAP financial measure; excludes the impact of translational currency ^3 Calculated using Euro Average Rate: January 2022 = $1.14 (Illustrative purposes only) ^4 Non-GAAP financial measure; excludes intangible amortization expense and special items Note: % may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson Website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:* "Operational sales growth" excluding the impact of translational currency, "adjusted operational sales growth" excluding the net impact of acquisitions and divestitures and translational currency, as well as "adjusted net earnings", "adjusted diluted earnings per share" and "adjusted operational diluted earnings per share" excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations 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 Investors section of the company's website at quarterly-results.

Copies of the financial schedules accompanying this earnings release are available on the company's website at quarterly-results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can also be found in the Investors section of the company's website at quarterly-results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:This press release 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, market position, business strategy, and the anticipated separation of the company's Consumer Health business. 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: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company's ability to execute business continuity plans, as a result of the COVID-19 pandemic; 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 satisfy the necessary conditions to consummate the separation of the company's Consumer Health business on a timely basis or at all; the company's ability to successfully separate the company's Consumer Health business and realize the anticipated benefits from the separation; 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 3, 2021 including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in the company'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.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions) FOURTH QUARTER TWELVE MONTHS

Percent Change Percent Change

2021 2020 Total Operations Currency 2021 2020 Total Operations Currency

Sales to customers by

segment of business

Consumer Health

U.S. $ 1,529 1,509 1.3 % 1.3 - $ 6,516 6,362 2.4 % 2.4 -

International 2,128 2,109 0.9 2.1 (1.2) 8,119 7,691 5.6 3.1 2.5

3,657 3,618 1.1 1.8 (0.7) 14,635 14,053 4.1 2.8 1.3

Pharmaceutical

U.S. 7,418 7,116 4.2 4.2 - 27,954 25,735 8.6 8.6 -

International 6,870 5,152 33.4 36.9 (3.5) 24,126 19,837 21.6 18.8 2.8

14,288 12,268 16.5 17.9 (1.4) 52,080 45,572 14.3 13.1 1.2

Medical Devices

U.S. 3,216 3,184 1.0 1.0 - 12,686 11,036 14.9 14.9 -

International 3,643 3,405 7.0 9.3 (2.3) 14,374 11,923 20.6 17.3 3.3

6,859 6,589 4.1 5.3 (1.2) 27,060 22,959 17.9 16.2 1.7

U.S. 12,163 11,809 3.0 3.0 - 47,156 43,133 9.3 9.3 -

International 12,641 10,666 18.5 21.2 (2.7) 46,619 39,451 18.2 15.3 2.9

Worldwide $ 24,804 22,475 10.4 % 11.6 (1.2) $ 93,775 82,584 13.6 % 12.2 1.4

Note: Percentages have been calculated using actual, non-rounded figures and,therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions) FOURTH QUARTER TWELVE MONTHS

Percent Change Percent Change

2021 2020 Total Operations Currency 2021 2020 Total Operations Currency

Sales to customers by

geographic area

U.S. $ 12,163 11,809 3.0 % 3.0 - $ 47,156 43,133 9.3 % 9.3 -

Europe 6,925 5,271 31.4 34.7 (3.3) 23,594 18,980 24.3 20.7 3.6

Western Hemisphere excluding U.S. 1,459 1,404 3.9 5.0 (1.1) 5,750 5,335 7.8 7.3 0.5

Asia-Pacific, Africa 4,257 3,991 6.6 9.0 (2.4) 17,275 15,136 14.1 11.4 2.7

International 12,641 10,666 18.5 21.2 (2.7) 46,619 39,451 18.2 15.3 2.9

Worldwide $ 24,804 22,475 10.4 % 11.6 (1.2) $ 93,775 82,584 13.6 % 12.2 1.4

Note: Percentages have been calculated using actual, non-rounded figures and,therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures) FOURTH QUARTER

2021 2020 Percent

Percent Percent Increase

Amount to Sales Amount to Sales (Decrease)

Sales to customers $ 24,804 100.0 $ 22,475 100.0 10.4

Cost of products sold 7,955 32.1 7,814 34.8 1.8

Gross Profit 16,849 67.9 14,661 65.2 14.9

Selling, marketing and administrative expenses 7,154 28.9 6,457 28.7 10.8

Research and development expense 4,720 19.0 4,032 17.9 17.1

In-process research and development 0 0.0 37 0.2

Interest (income) expense, net 47 0.2 74 0.3

Other (income) expense, net 9 0.0 2,354 10.5

Restructuring 83 0.3 60 0.3

Earnings before provision for taxes on income 4,836 19.5 1,647 7.3 193.6

Provision for/(Benefit from) taxes on income 100 0.4 (91) (0.4) (209.9)

Net earnings $ 4,736 19.1 $ 1,738 7.7 172.5

Net earnings per share (Diluted) $ 1.77 $ 0.65 172.3

Average shares outstanding (Diluted) 2,670.2 2,669.2

Effective tax rate 2.1 % (5.5) %

Adjusted earnings before provision for taxes and net earnings ^(1)

Earnings before provision for taxes on income $ 6,339 25.6 $ 5,601 24.9 13.2

Net earnings $ 5,678 22.9 $ 4,965 22.1 14.4

Net earnings per share (Diluted) $ 2.13 $ 1.86 14.5

Effective tax rate 10.4 % 11.4 %

^(1)See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures) TWELVE MONTHS

2021 2020 Percent

Percent Percent Increase

Amount to Sales Amount to Sales (Decrease)

Sales to customers $ 93,775 100.0 $ 82,584 100.0 13.6

Cost of products sold 29,855 31.8 28,427 34.4 5.0

Gross Profit 63,920 68.2 54,157 65.6 18.0

Selling, marketing and administrative expenses 24,659 26.3 22,084 26.8 11.7

Research and development expense 14,714 15.7 12,159 14.7 21.0

In-process research and development 900 1.0 181 0.2

Interest (income) expense, net 130 0.1 90 0.1

Other (income) expense, net 489 0.5 2,899 3.5

Restructuring 252 0.3 247 0.3

Earnings before provision for taxes on income 22,776 24.3 16,497 20.0 38.1

Provision for taxes on income 1,898 2.0 1,783 2.2 6.4

Net earnings $ 20,878 22.3 $ 14,714 17.8 41.9

Net earnings per share (Diluted) $ 7.81 $ 5.51 41.7

Average shares outstanding (Diluted) 2,674.0 2,670.7

Effective tax rate 8.3 % 10.8 %

Adjusted earnings before provision for taxes and net earnings ^(1)

Earnings before provision for taxes on income $ 30,464 32.5 $ 25,428 30.8 19.8

Net earnings $ 26,195 27.9 $ 21,433 26.0 22.2

Net earnings per share (Diluted) $ 9.80 $ 8.03 22.0

Effective tax rate 14.0 % 15.7 %

^(1)See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Fourth Quarter Twelve Months Ended

(Dollars in Millions Except Per Share Data) 2021 2020 2021 2020

Net Earnings, after tax- as reported $4,736 $1,738 $20,878 $14,714

Pre-tax Adjustments

Intangible Asset Amortization expense 1,121 1,234 4,697 4,660

Litigation expense, net 274 2,902 2,328 5,112

IPR&D - 37 900 181

Restructuring related 140 85 473 448

Acquisition, integration and divestiture related ^1 26 14 (478) (1,073)

(Gains)/losses on securities (198) (373) (533) (547)

Medical Device Regulation 73 55 234 144

Consumer Health separation costs 67 - 67 -

Other - - - 6

Tax Adjustments

Tax impact on special item adjustments ^2 (184) (606) (1,281) (1,608)

Tax legislation and other tax related (377) (121) (1,090) (604)

Adjusted Net Earnings, after tax $5,678 $4,965 $26,195 $21,433

Average shares outstanding (Diluted) 2,670.2 2,669.2 2,674.0 2,670.7

Adjusted net earnings per share (Diluted) $2.13 $1.86 $9.80 $8.03

Operational adjusted net earnings per share (Diluted) $2.18 $9.65

Notes:

Acquisition, integration and divestiture related for 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S.^1 Acquisition, integration and divestiture related for 2020 primarily includes a Contingent Consideration reversal of $1,148M related to the timing of certain developmental milestones associated with the Auris Health acquisition.

The tax impact related to special item adjustments reflects the current and^2 deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

FOURTH QUARTER 2021 ACTUAL vs. 2020 ACTUAL

Segments

Consumer Health Pharmaceutical Medical Devices Total

WW As Reported 1.1% 16.5% 4.1% 10.4%

U.S. 1.3% 4.2% 1.0% 3.0%

International 0.9% 33.4% 7.0% 18.5%

WW Currency (0.7) (1.4) (1.2) (1.2)

U.S. - - - -

International (1.2) (3.5) (2.3) (2.7)

WW Operational 1.8% 17.9% 5.3% 11.6%

U.S. 1.3% 4.2% 1.0% 3.0%

International 2.1% 36.9% 9.3% 21.2%

General Surgery

Advanced Sterilization Products 0.3 0.1

U.S. 0.0 0.0

International 0.5 0.2

Skin Health / Beauty

Dr. Ci Labo - Sedona 0.7 0.1

U.S. 0.0 0.0

International 1.2 0.3

All Other Acquisitions and Divestitures 0.4 0.7 0.1 0.4

U.S. 0.6 0.0 0.2 0.1

International 0.3 1.7 0.0 0.8

WW Adjusted Operational 2.9% 18.6% 5.6% 12.3%

U.S. 1.9% 4.2% 1.2% 3.1%

International 3.6% 38.6% 9.8% 22.4%

Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

TWELVE MONTHS 2021 ACTUAL vs. 2020 ACTUAL

Segments

Consumer Health Pharmaceutical Medical Devices Total

WW As Reported 4.1% 14.3% 17.9% 13.6%

U.S. 2.4% 8.6% 14.9% 9.3%

International 5.6% 21.6% 20.6% 18.2%

WW Currency 1.3 1.2 1.7 1.4

U.S. - - - -

International 2.5 2.8 3.3 2.9

WW Operational 2.8% 13.1% 16.2% 12.2%

U.S. 2.4% 8.6% 14.9% 9.3%

International 3.1% 18.8% 17.3% 15.3%

General Surgery

Advanced Sterilization Products 0.5 0.1

U.S. 0.0 0.0

International 1.0 0.3

Skin Health / Beauty

Dr. Ci Labo - Sedona 0.5 0.1

U.S. 0.0 0.0

International 1.0 0.2

All Other Acquisitions and Divestitures 0.4 0.5 0.1 0.4

U.S. 0.6 0.0 0.4 0.2

International 0.3 1.4 0.0 0.8

WW Adjusted Operational 3.8% 13.6% 16.8% 12.8%

U.S. 3.0% 8.6% 15.3% 9.5%

International 4.4% 20.2% 18.3% 16.6%

Note: Percentages are based on actual, non-rounded figures and may not sum

REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER TWELVE MONTHS

% Change % Change

2021 2020 Reported Operational ^(1) Currency 2021 2020 Reported Operational ^(1) Currency

CONSUMER HEALTH SEGMENT ^(2)

OTC

US $ 633 543 16.8% 16.8% - $ 2,594 2,460 5.4% 5.4% -

Intl 740 642 15.1% 14.9% 0.2% 2,634 2,364 11.4% 6.9% 4.5%

WW 1,373 1,185 15.9% 15.8% 0.1% 5,227 4,824 8.4% 6.2% 2.2%

SKIN HEALTH / BEAUTY

US 538 583 -7.8% -7.8% - 2,400 2,350 2.1% 2.1% -

Intl 546 594 -8.2% -6.4% -1.8% 2,141 2,100 1.9% -0.3% 2.2%

WW 1,084 1,177 -8.0% -7.1% -0.9% 4,541 4,450 2.0% 1.0% 1.0%

ORAL CARE

US 159 173 -8.2% -8.2% - 637 683 -6.7% -6.7% -

Intl 246 264 -7.2% -5.5% -1.7% 1,008 958 5.1% 2.8% 2.3%

WW 405 437 -7.6% -6.5% -1.1% 1,645 1,641 0.2% -1.2% 1.4%

BABY CARE

US 90 97 -7.5% -7.5% - 378 376 0.5% 0.5% -

Intl 309 310 -0.3% 1.3% -1.6% 1,188 1,141 4.1% 3.7% 0.4%

WW 399 407 -2.0% -0.8% -1.2% 1,566 1,517 3.2% 2.9% 0.3%

WOMEN'S HEALTH

US 4 3 14.1% 14.1% - 13 13 -1.6% -1.6% -

Intl 230 234 -1.8% 1.2% -3.0% 905 888 1.8% 2.0% -0.2%

WW 233 237 -1.6% 1.3% -2.9% 917 901 1.8% 1.9% -0.1%

WOUND CARE / OTHER

US 106 110 -4.2% -4.2% - 495 480 3.1% 3.1% -

Intl 57 65 -9.6% -10.2% 0.6% 243 240 1.7% -2.7% 4.4%

WW 164 175 -6.2% -6.4% 0.2% 739 720 2.6% 1.2% 1.4%

TOTAL CONSUMER HEALTH

US 1,529 1,509 1.3% 1.3% - 6,516 6,362 2.4% 2.4% -

Intl 2,128 2,109 0.9% 2.1% -1.2% 8,119 7,691 5.6% 3.1% 2.5%

WW $ 3,657 3,618 1.1% 1.8% -0.7% $ 14,635 14,053 4.1% 2.8% 1.3%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER TWELVE MONTHS

% Change % Change

PHARMACEUTICAL SEGMENT ^(2,3) 2021 2020 Reported Operational ^(1) Currency 2021 2020 Reported Operational ^(1) Currency

IMMUNOLOGY

US $ 2,912 2,845 2.4% 2.4% - $ 10,843 10,175 6.6% 6.6% -

Intl 1,443 1,261 14.5% 17.9% -3.4% 5,907 4,880 21.0% 17.7% 3.3%

WW 4,355 4,105 6.1% 7.1% -1.0% 16,750 15,055 11.3% 10.2% 1.1%

REMICADE

US 511 656 -22.2% -22.2% - 2,019 2,508 -19.5% -19.5% -

US Exports ^(4) 39 25 53.5% 53.5% - 236 346 -31.9% -31.9% -

Intl 214 220 -2.3% -2.4% 0.1% 935 893 4.8% 0.4% 4.4%

WW 764 901 -15.2% -15.2% 0.0% 3,190 3,747 -14.9% -15.9% 1.0%

SIMPONI / SIMPONI ARIA

US 287 315 -8.9% -8.9% - 1,127 1,155 -2.4% -2.4% -

Intl 271 261 3.6% 8.4% -4.8% 1,148 1,088 5.5% 4.1% 1.4%

WW 559 576 -3.2% -1.0% -2.2% 2,276 2,243 1.4% 0.8% 0.6%

STELARA

US 1,542 1,572 -1.9% -1.9% - 5,938 5,240 13.3% 13.3% -

Intl 792 672 17.9% 21.7% -3.8% 3,196 2,467 29.6% 25.9% 3.7%

WW 2,334 2,244 4.0% 5.1% -1.1% 9,134 7,707 18.5% 17.3% 1.2%

TREMFYA

US 528 276 90.9% 90.9% - 1,503 926 62.3% 62.3% -

Intl 165 105 56.9% 61.8% -4.9% 624 421 48.2% 44.0% 4.2%

WW 693 382 81.5% 82.8% -1.3% 2,127 1,347 57.9% 56.5% 1.4%

OTHER IMMUNOLOGY

US 6 - * * - 21 - * * -

Intl 0 2 * * * 3 11 -73.3% -74.6% 1.3%

WW 6 2 * * * 24 11 * * *

INFECTIOUS DISEASES

US 614 470 30.8% 30.8% - 2,249 1,735 29.7% 29.7% -

Intl 1,824 442 * * -3.0% 3,612 1,839 96.3% 93.4% 2.9%

WW 2,437 912 * * -1.5% 5,861 3,574 64.0% 62.5% 1.5%

COVID-19 VACCINE

US 213 - * * - 634 - * * -

Intl 1,405 - * * - 1,751 - * * -

WW 1,619 - * * - 2,385 - * * -

EDURANT / rilpivirine

US 10 11 -15.8% -15.8% - 41 44 -7.6% -7.6% -

Intl 220 236 -6.8% -3.3% -3.5% 953 920 3.6% 0.4% 3.2%

WW 230 248 -7.2% -3.9% -3.3% 994 964 3.1% 0.0% 3.1%

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA

US 380 433 -12.2% -12.2% - 1,508 1,587 -4.9% -4.9% -

Intl 135 136 -0.1% 3.0% -3.1% 575 597 -3.6% -6.0% 2.4%

WW 515 569 -9.3% -8.5% -0.8% 2,083 2,184 -4.6% -5.2% 0.6%

OTHER INFECTIOUS DISEASES

US 11 25 -55.9% -55.9% - 66 104 -36.0% -36.0% -

Intl 63 71 -10.9% -10.0% -0.9% 333 323 3.0% -0.1% 3.1%

WW 74 96 -22.9% -22.2% -0.7% 399 427 -6.5% -8.9% 2.4%

REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER TWELVE MONTHS

% Change % Change

2021 2020 Reported Operational ^(1) Currency 2021 2020 Reported Operational ^(1) Currency

NEUROSCIENCE

US 899 806 11.4% 11.4% - 3,347 3,091 8.3% 8.3% -

Intl 894 892 0.2% 3.2% -3.0% 3,664 3,457 6.0% 3.9% 2.1%

WW 1,793 1,698 5.5% 7.1% -1.6% 7,011 6,548 7.1% 5.9% 1.2%

CONCERTA / Methylphenidate

US 55 33 68.1% 68.1% - 172 183 -5.8% -5.8% -

Intl 123 120 3.2% 6.0% -2.8% 495 439 12.8% 10.1% 2.7%

WW 178 153 17.2% 19.4% -2.2% 667 622 7.3% 5.4% 1.9%

INVEGA SUSTENNA / XEPLION /INVEGA TRINZA / TREVICTA

US 668 610 9.5% 9.5% - 2,550 2,314 10.2% 10.2% -

Intl 361 355 1.5% 5.0% -3.5% 1,472 1,339 10.0% 6.9% 3.1%

WW 1,029 965 6.5% 7.8% -1.3% 4,022 3,653 10.1% 9.0% 1.1%

RISPERDAL CONSTA

US 77 76 2.3% 2.3% - 287 296 -2.9% -2.9% -

Intl 63 92 -30.3% -26.4% -3.9% 305 346 -11.8% -13.1% 1.3%

WW 140 167 -15.6% -13.4% -2.2% 592 642 -7.7% -8.4% 0.7%

OTHER NEUROSCIENCE

US 99 88 11.7% 11.7% - 338 298 13.3% 13.3% -

Intl 346 326 6.2% 8.6% -2.4% 1,391 1,334 4.3% 3.2% 1.1%

WW 445 414 7.4% 9.2% -1.8% 1,729 1,632 6.0% 5.0% 1.0%

ONCOLOGY

US 1,594 1,469 8.5% 8.5% - 5,958 5,092 17.0% 17.0% -

Intl 2,184 1,965 11.1% 15.2% -4.1% 8,590 7,275 18.1% 15.3% 2.8%

WW 3,778 3,434 10.0% 12.3% -2.3% 14,548 12,367 17.6% 16.0% 1.6%

DARZALEX

US 867 692 25.3% 25.3% - 3,169 2,232 42.0% 42.0% -

Intl 778 561 38.9% 43.5% -4.6% 2,854 1,958 45.8% 42.6% 3.2%

WW 1,645 1,253 31.4% 33.4% -2.0% 6,023 4,190 43.8% 42.3% 1.5%

ERLEADA

US 235 176 33.4% 33.4% - 813 583 39.3% 39.3% -

Intl 149 64 * * * 478 176 * * *

WW 384 241 59.8% 61.3% -1.5% 1,291 760 70.0% 68.7% 1.3%

IMBRUVICA

US 436 492 -11.3% -11.3% - 1,747 1,821 -4.0% -4.0% -

Intl 626 625 0.0% 3.4% -3.4% 2,622 2,307 13.6% 10.4% 3.2%

WW 1,062 1,117 -5.0% -3.1% -1.9% 4,369 4,128 5.8% 4.1% 1.7%

ZYTIGA / abiraterone acetate

US 23 89 -74.2% -74.2% - 119 373 -68.1% -68.1% -

Intl 525 533 -1.4% 3.1% -4.5% 2,178 2,097 3.9% 1.5% 2.4%

WW 548 622 -11.8% -7.9% -3.9% 2,297 2,470 -7.0% -9.0% 2.0%

OTHER ONCOLOGY

US 34 20 64.7% 64.7% - 110 83 31.7% 31.7% -

Intl 106 183 -42.0% -39.2% -2.8% 458 738 -37.9% -38.7% 0.8%

WW 140 202 -31.3% -28.8% -2.5% 568 821 -30.8% -31.5% 0.7%

REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER TWELVE MONTHS

% Change % Change

2021 2020 Reported Operational ^(1) Currency 2021 2020 Reported Operational ^(1) Currency

PULMONARY HYPERTENSION

US 587 592 -0.7% -0.7% - 2,365 2,133 10.9% 10.9% -

Intl 264 273 -3.6% 0.8% -4.4% 1,085 1,015 6.9% 5.5% 1.4%

WW 851 865 -1.6% -0.2% -1.4% 3,450 3,148 9.6% 9.2% 0.4%

OPSUMIT

US 286 279 2.0% 2.0% - 1,147 1,008 13.7% 13.7% -

Intl 162 173 -6.1% -1.7% -4.4% 672 631 6.6% 5.1% 1.5%

WW 448 452 -1.1% 0.6% -1.7% 1,819 1,639 11.0% 10.4% 0.6%

UPTRAVI

US 264 263 0.0% 0.0% - 1,056 955 10.5% 10.5% -

Intl 46 38 21.9% 24.7% -2.8% 181 138 31.1% 27.0% 4.1%

WW 310 301 2.7% 3.1% -0.4% 1,237 1,093 13.1% 12.6% 0.5%

OTHER PULMONARY HYPERTENSION

US 38 49 -20.1% -20.1% - 163 169 -3.7% -3.7% -

Intl 56 63 -12.2% -6.6% -5.6% 232 247 -5.9% -5.4% -0.5%

WW 94 112 -15.6% -12.4% -3.2% 395 416 -5.0% -4.7% -0.3%

CARDIOVASCULAR / METABOLISM / OTHER

US 813 935 -13.1% -13.1% - 3,192 3,509 -9.0% -9.0% -

Intl 261 317 -17.8% -16.0% -1.8% 1,268 1,369 -7.4% -10.9% 3.5%

WW 1,074 1,253 -14.3% -13.8% -0.5% 4,460 4,878 -8.6% -9.6% 1.0%

XARELTO

US 644 629 2.5% 2.5% - 2,438 2,345 4.0% 4.0% -

Intl - - - - - - - - - -

WW 644 629 2.5% 2.5% - 2,438 2,345 4.0% 4.0% -

INVOKANA / INVOKAMET

US 59 159 -63.1% -63.1% - 308 564 -45.4% -45.4% -

Intl 60 58 3.8% 4.5% -0.7% 254 231 9.9% 5.4% 4.5%

WW 120 217 -45.1% -44.9% -0.2% 563 795 -29.3% -30.6% 1.3%

PROCRIT / EPREX

US 55 62 -12.8% -12.8% - 223 277 -19.7% -19.7% -

Intl 58 66 -13.0% -11.7% -1.3% 256 274 -6.8% -10.1% 3.3%

WW 113 129 -12.9% -12.2% -0.7% 479 552 -13.3% -14.9% 1.6%

OTHER

US 55 85 -35.6% -35.6% - 223 323 -31.0% -31.0% -

Intl 143 194 -25.9% -23.8% -2.1% 758 864 -12.2% -15.5% 3.3%

WW 198 278 -28.9% -27.4% -1.5% 981 1,186 -17.3% -19.7% 2.4%

TOTAL PHARMACEUTICAL

US 7,418 7,116 4.2% 4.2% - 27,954 25,735 8.6% 8.6% -

Intl 6,870 5,152 33.4% 36.9% -3.5% 24,126 19,837 21.6% 18.8% 2.8%

WW $ 14,288 12,268 16.5% 17.9% -1.4% $ 52,080 45,572 14.3% 13.1% 1.2%

REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER TWELVE MONTHS

% Change % Change

MEDICAL DEVICES SEGMENT ^(2) 2021 2020 Reported Operational ^(1) Currency 2021 2020 Reported Operational ^(1) Currency

INTERVENTIONAL SOLUTIONS

US $ 483 433 11.6% 11.6% - 1,836 1,452 26.4% 26.4% -

Intl 536 460 16.5% 18.8% -2.3% 2,135 1,594 34.0% 29.8% 4.2%

WW 1,019 893 14.1% 15.3% -1.2% 3,971 3,046 30.4% 28.2% 2.2%

ORTHOPAEDICS

US 1,305 1,352 -3.5% -3.5% - 5,126 4,779 7.3% 7.3% -

Intl 851 839 1.5% 3.9% -2.4% 3,462 2,984 16.0% 12.1% 3.9%

WW 2,155 2,191 -1.6% -0.7% -0.9% 8,588 7,763 10.6% 9.1% 1.5%

HIPS

US 229 229 0.4% 0.4% - 883 793 11.4% 11.4% -

Intl 151 143 4.9% 6.5% -1.6% 602 487 23.6% 18.9% 4.7%

WW 380 372 2.1% 2.7% -0.6% 1,485 1,280 16.0% 14.3% 1.7%

KNEES

US 208 216 -4.2% -4.2% - 787 743 5.9% 5.9% -

Intl 135 129 4.6% 6.5% -1.9% 538 427 26.1% 21.7% 4.4%

WW 342 345 -0.9% -0.2% -0.7% 1,325 1,170 13.3% 11.7% 1.6%

TRAUMA

US 467 454 2.8% 2.8% - 1,819 1,648 10.4% 10.4% -

Intl 261 268 -2.4% 0.7% -3.1% 1,066 966 10.4% 7.1% 3.3%

WW 728 722 0.9% 2.0% -1.1% 2,885 2,614 10.4% 9.2% 1.2%

SPINE, SPORTS & OTHER

US 401 453 -11.4% -11.4% - 1,637 1,595 2.6% 2.6% -

Intl 304 299 2.0% 4.3% -2.3% 1,256 1,104 13.8% 9.9% 3.9%

WW 706 752 -6.1% -5.2% -0.9% 2,893 2,699 7.2% 5.6% 1.6%

REPORTED SALES vs. PRIOR PERIOD ($MM) REPORTED SALES vs. PRIOR PERIOD ($MM)

FOURTH QUARTER TWELVE MONTHS

% Change % Change

2021 2020 Reported Operational ^(1) Currency 2021 2020 Reported Operational ^(1) Currency

SURGERY

US 986 1,002 -1.7% -1.7% - 3,867 3,249 19.0% 19.0% -

Intl 1,527 1,427 7.0% 8.7% -1.7% 5,945 4,983 19.3% 15.6% 3.7%

WW 2,513 2,429 3.5% 4.4% -0.9% 9,812 8,232 19.2% 17.0% 2.2%

ADVANCED

US 457 456 0.5% 0.5% - 1,761 1,535 14.9% 14.9% -

Intl 735 660 11.2% 12.6% -1.4% 2,861 2,304 24.1% 20.0% 4.1%

WW 1,192 1,116 6.8% 7.6% -0.8% 4,622 3,839 20.4% 18.0% 2.4%

GENERAL

US 528 546 -3.4% -3.4% - 2,105 1,714 22.7% 22.7% -

Intl 793 767 3.4% 5.3% -1.9% 3,085 2,679 15.2% 11.8% 3.4%

WW 1,321 1,312 0.6% 1.7% -1.1% 5,190 4,392 18.1% 16.1% 2.0%

VISION

US 443 397 11.4% 11.4% - 1,857 1,557 19.3% 19.3% -

Intl 728 679 7.2% 10.8% -3.6% 2,831 2,362 19.8% 18.8% 1.0%

WW 1,171 1,076 8.7% 11.0% -2.3% 4,688 3,919 19.6% 19.0% 0.6%

CONTACT LENSES / OTHER

US 316 289 9.4% 9.4% - 1,398 1,213 15.2% 15.2% -

Intl 518 507 1.9% 5.8% -3.9% 2,043 1,781 14.7% 14.0% 0.7%

WW 833 796 4.6% 7.1% -2.5% 3,440 2,994 14.9% 14.5% 0.4%

SURGICAL

US 126 108 16.8% 16.8% - 459 344 33.5% 33.5% -

Intl 211 172 22.9% 25.4% -2.5% 788 581 35.7% 33.3% 2.4%

WW 338 280 20.5% 22.1% -1.6% 1,248 925 34.9% 33.4% 1.5%

TOTAL MEDICAL DEVICES

US 3,216 3,184 1.0% 1.0% - 12,686 11,036 14.9% 14.9% -

Intl 3,643 3,405 7.0% 9.3% -2.3% 14,374 11,923 20.6% 17.3% 3.3%

WW $ 6,859 6,589 4.1% 5.3% -1.2% $ 27,060 22,959 17.9% 16.2% 1.7%

Note: Columns and rows within tables may not add due to rounding. Percentageshave been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

The Company estimates that the inclusion of an additional week in the 2020fiscal year impacted fiscal fourth quarter 2021 comparative sales growth byapproximately -4% and impacted full year fiscal 2021 comparative sales growthby approximately -1%.

* Percentage greater than 100% or not meaningful

(1) Operational growth excludes the effect of translational currency

(2) Unaudited

(3) Certain prior year amounts have been reclassified to conform to currentyear product disclosures

(4) Reported as U.S. sales

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SOURCE Johnson & Johnson