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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): 

July 20, 2023

Johnson & Johnson

 (Exact name of registrant as specified in its charter)

  

New Jersey			1-3215			22-1024240
(State or Other Jurisdiction of Incorporation)			(Commission File Number)			(IRS Employer Identification No.)

One Johnson & Johnson Plaza, New Brunswick, New Jersey  08933 

(Address of Principal Executive Offices)

 (Zip Code) 

Registrant's telephone number, including area code:

732-524-0400

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 

☐             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

☐             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17

               CFR 240.14d-2(b)) 

☐             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17

               CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

    Emerging growth company ☐  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, Par Value $1.00			JNJ			New York Stock Exchange
0.650% Notes Due May 2024			JNJ24C			New York Stock Exchange
5.50% Notes Due November 2024			JNJ24BP			New York Stock Exchange
1.150% Notes Due November 2028			JNJ28			New York Stock Exchange
1.650% Notes Due May 2035			JNJ35			New York Stock Exchange

 

 

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Item 2.02     Results of Operations and Financial Condition

On July 20, 2023, Johnson & Johnson issued the attached press release (Exhibit 99.1) announcing its sales and earnings for the second quarter ended July 2, 2023.

 

Item 9.01    Financial Statements and Exhibits

(d)     Exhibits. 

 

Exhibit No.			Description of Exhibit
99.1			Press Release dated July 20, 2023 for the period ended July 2, 2023
99.2			Unaudited Comparative Supplementary Sales Data and Condensed Consolidated Statement of Earnings for the fiscal second quarter and six months
104			The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Johnson & Johnson

(Registrant)

Date:

July 20, 2023

By:

/s/ Robert J. Decker, Jr.

Robert J. Decker, Jr. Controller (Principal Accounting Officer)

Exhibit 99.1

JOHNSON & JOHNSON REPORTS 2023 SECOND-QUARTER RESULTS:

•2023 Second-Quarter reported sales growth of 6.3% to $25.5 Billion with operational growth of 7.5%* and adjusted operational growth of 6.2%*. Operational growth excluding COVID-19 Vaccine of 8.9%*

•Earnings per share (EPS) of $1.96 increasing 8.9% and adjusted EPS of $2.80 increasing by 8.1%*

•Company is increasing 2023 full-year guidance midpoints for adjusted operational sales excluding COVID-19 Vaccine and adjusted operational EPS

•Johnson & Johnson intends to "split off" Kenvue shares through an exchange offer as the form of its next step in the separation, subject to market conditions

New Brunswick, N.J. (July 20, 2023) – Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2023. “Our robust performance in the second quarter and first half of 2023 is a testament to the hard work and commitment of our colleagues around the world,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “We are entering the back half of the year from a position of strength with numerous catalysts, including becoming a two-sector company focused on Pharmaceutical and MedTech innovation.”

OVERALL FINANCIAL RESULTS:

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

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Excludes intangible amortization expense and special items

Note: values may have been rounded

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REGIONAL SALES RESULTS:

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

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

SEGMENT SALES RESULTS:

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

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: Values may have been rounded

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SECOND QUARTER 2023 SEGMENT COMMENTARY:

Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Pharmaceutical

Pharmaceutical worldwide adjusted operational sales grew 3.9%*. Excluding the COVID-19 Vaccine, adjusted operational sales grew 6.2%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), and CARVYKTI (ciltacabtagene autoleucel) in Oncology, STELARA (ustekinumab) and TREMFYA (guselkumab) in Immunology, UPTRAVI (selexipag) and OPSUMIT (macitentan) in Pulmonary Hypertension, and SPRAVATO (esketamine) in Neuroscience. Growth was partially offset by ZYTIGA (abiraterone acetate) and IMBRUVICA (ibrutinib) in Oncology, COVID-19 Vaccine (Ad26.COV2.S) in Infectious Diseases, and REMICADE (infliximab) in Immunology.

MedTech

MedTech worldwide adjusted operational sales grew 9.9%*, driven primarily by electrophysiology products in Interventional Solutions, trauma in Orthopaedics, wound closure products in General Surgery, biosurgery in Advanced Surgery, and contact lenses in Vision. MedTech worldwide operational sales grew 14.7%*, with the acquisition of Abiomed contributing 4.8%.

Consumer Health

Consumer Health worldwide adjusted operational sales increased 7.7%* largely driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, upper respiratory products, international smoking cessation products, and IMODIUM in digestive health products. Additional contributors to growth were NEUTROGENA in Skin Health/Beauty products and Women’s Health products outside the United States.

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NOTABLE NEW ANNOUNCEMENTS 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.

Regulatory			Janssen Marks First Approval Worldwide for AKEEGA (Niraparib and Abiraterone Acetate Dual Action Tablet) with EC Authorisation for the Treatment of Patients with Metastatic Castration Resistant Prostate Cancer with BRCA1/2 Mutations			Press Release
			Milvexian Granted U.S. FDA Fast Track Designation for All Three Indications Under Evaluation in Phase 3 Librexia Program: Ischemic Stroke, Acute Coronary Syndrome and Atrial Fibrillation			Press Release
			Janssen Submits New Drug Application to U.S. FDA Seeking Approval of Investigational Single Tablet Combination Therapy of Macitentan and Tadalafil for Treatment of Patients with Pulmonary Arterial Hypertension (PAH)			Press Release
			Janssen Submits Supplemental Biologics License Application to U.S. FDA Seeking Approval of CARVYKTI for the Earlier Treatment of Patients with Relapsed or Refractory Multiple Myeloma			Press Release
Data Release			Janssen Reports First Results from Phase 2 SunRISe-1 Study of TAR-200 and Anti-PD-1 Antibody Cetrelimab in Patients with Bacillus Calmette-Guérin-Unresponsive Non-Muscle-Invasive Bladder Cancer			Press Release
			First Phase 3 TREMFYA (guselkumab) Data in Inflammatory Bowel Disease Show Positive Induction Results Among Patients with Moderately to Severely Active Ulcerative Colitis			Press Release
			New Data Published on Biosense Webster QDOT MICRO Catheter – the Latest Advancement in Focal RF Ablation for Treating AFib			Press Release
			Janssen to Highlight Scientific Advances and Commitment to Transform Cancer Care at ASCO and EHA with More than 90 Presentations Showcasing Robust, Differentiated Portfolio and Pipeline in Hematologic Malignancies and Solid Tumors			Press Release
			New Phase 2 Data Demonstrate Potential Benefit of Nipocalimab for Pregnant Individuals at High Risk of Early-Onset Severe Hemolytic Disease of the Fetus and Newborn (HDFN)			Press Release
			Janssen Announces Positive Topline Results for JNJ-2113—a Novel, First and Only Oral IL-23 Receptor Antagonist Peptide in Development for Moderate-to-Severe Plaque Psoriasis1			Press Release
			Treatment with RYBREVANT (amivantamab-vmjw) Plus Chemotherapy Resulted in Statistically Significant and Clinically Meaningful Improvement in Progression-Free Survival in Patients with Newly Diagnosed EGFR Exon 20 Insertion Mutation-Positive Non-Small Cell Lung Cancer1			Press Release
Other			Johnson & Johnson Announces Launch of Kenvue Inc. IPO Roadshow			Press Release
			Janssen Enters Worldwide Collaboration and License Agreement with Cellular Biomedicine Group to Develop Next Generation CAR-T Therapies			Press Release

1 Subsequent to the quarter

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FULL-YEAR 2023 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.

($ in Billions, except EPS)			July 2023			April 2023
Adjusted Operational Sales1,2,5 Change vs. Prior Year / Mid-point			6.0% – 7.0% / 6.5%			4.5% – 5.5% / 5.0%
Operational Sales2,5/ Mid-point Change vs. Prior Year / Mid-point			$99.3B – $100.3B / $99.8B 7.0% – 8.0% / 7.5%			$97.9B – $98.9B / $98.4B 5.5% – 6.5% / 6.0%
Estimated Reported Sales3,5/ Mid-point Change vs. Prior Year / Mid-point			$98.8B – $99.8B / $99.3B 6.5% – 7.5% / 7.0%			$97.9B – $98.9B / $98.4B 5.5% – 6.5% / 6.0%
Adjusted Operational EPS (Diluted)2,4/ Mid-point Change vs. Prior Year / Mid-point			$10.60 – $10.70 / $10.65 4.5% – 5.5% / 5.0%			$10.50 – $10.60 / $10.55 3.5% – 4.5% / 4.0%
Adjusted EPS (Diluted)3,4 / Mid-point Change vs. Prior Year / Mid-point			$10.70 – $10.80 / $10.75 5.5% – 6.5% / 6.0%			$10.60 – $10.70 / $10.65 4.5% – 5.5% / 5.0%

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: July 2023 = $1.09 and April 2023 = $1.10 (Illustrative purposes only)

4 Non-GAAP financial measure; excludes intangible amortization expense and special items

5 Excludes COVID-19 Vaccine

Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

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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 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest, most diversified healthcare products 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.

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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 and 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: 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 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.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.

Press Contacts:						Investor Contacts:
Tesia Williams						Jessica Moore
[email protected]						[email protected]

Exhibit 99.2

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SECOND QUARTER
															Percent Change
			2023						2022						Total						Operations						Currency
Sales to customers by
geographic area
U.S.			$	13,444					12,197						10.2			%			10.2						—
Europe			5,894						6,085						(3.1)						(3.9)						0.8
Western Hemisphere excluding U.S.			1,713						1,536						11.5						17.7						(6.2)
Asia-Pacific, Africa			4,479						4,202						6.6						12.5						(5.9)
International			12,086						11,823						2.2						4.7						(2.5)
Worldwide			$	25,530					24,020						6.3			%			7.5						(1.2)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

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Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SIX MONTHS
															Percent Change
			2023						2022						Total						Operations						Currency
Sales to customers by
geographic area
U.S.			$	25,961					23,611						10.0			%			10.0						—
Europe			12,226						12,109						1.0						3.0						(2.0)
Western Hemisphere excluding U.S.			3,300						3,018						9.3						16.1						(6.8)
Asia-Pacific, Africa			8,789						8,708						0.9						8.2						(7.3)
International			24,315						23,835						2.0						6.5						(4.5)
Worldwide			$	50,276					47,446						6.0			%			8.2						(2.2)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

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Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SECOND QUARTER
															Percent Change
			2023						2022						Total						Operations						Currency
Sales to customers by
segment of business
Consumer Health
U.S.			$	1,787					1,687						6.0			%			6.0						—
International			2,224						2,118						5.0						9.0						(4.0)
			4,011						3,805						5.4						7.7						(2.3)
Pharmaceutical (1)
U.S.			7,818						7,159						9.2						9.2						—
International			5,913						6,158						(4.0)						(2.5)						(1.5)
			13,731						13,317						3.1						3.8						(0.7)
Pharmaceutical excluding COVID-19 Vaccine (1)
U.S.			7,818						7,114						9.9						9.9						—
International			5,628						5,659						(0.5)						1.5						(2.0)
			13,446						12,773						5.3						6.2						(0.9)
MedTech
U.S.			3,839						3,351						14.6						14.6						—
International			3,949						3,547						11.3						14.7						(3.4)
			7,788						6,898						12.9						14.7						(1.8)
U.S.			13,444						12,197						10.2						10.2						—
International			12,086						11,823						2.2						4.7						(2.5)
Worldwide			25,530						24,020						6.3						7.5						(1.2)
U.S.			13,444						12,152						10.6						10.6						—
International			11,801						11,324						4.2						7.0						(2.8)
Worldwide excluding COVID-19 Vaccine (1)			$	25,245					23,476						7.5			%			8.9						(1.4)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales reconciliation schedules.

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Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)			SIX MONTHS
															Percent Change
			2022						2021						Total						Operations						Currency
Sales to customers by
segment of business
Consumer Health
U.S.			$	3,522					3,244						8.6			%			8.6						—
International			4,341						4,147						4.7						10.1						(5.4)
			7,863						7,391						6.4						9.5						(3.1)
Pharmaceutical (1)
U.S.			14,841						13,791						7.6						7.6						—
International			12,303						12,395						(0.7)						3.1						(3.8)
			27,144						26,186						3.7						5.5						(1.8)
Pharmaceutical excluding COVID-19 Vaccine (1)
U.S.			14,841						13,671						8.6						8.6						—
International			11,271						11,514						(2.1)						1.9						(4.0)
			26,112						25,185						3.7						5.5						(1.8)
MedTech
U.S.			7,598						6,576						15.5						15.5						—
International			7,671						7,293						5.2						10.3						(5.1)
			15,269						13,869						10.1						12.8						(2.7)
U.S.			25,961						23,611						10.0						10.0						—
International			24,315						23,835						2.0						6.5						(4.5)
Worldwide			50,276						47,446						6.0						8.2						(2.2)
U.S.			25,961						23,491						10.5						10.5						—
International			23,283						22,954						1.4						6.1						(4.7)
Worldwide excluding COVID-19 Vaccine (1)			$	49,244					46,445						6.0			%			8.3						(2.3)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Refer to supplemental sales reconciliation schedules.

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Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)			SECOND QUARTER
			2023												2022												Percent
									Percent												Percent						Increase
			Amount						to Sales						Amount						to Sales						(Decrease)
Sales to customers			$	25,530					100.0						$	24,020					100.0						6.3
Cost of products sold			8,212						32.2						7,919						33.0						3.7
Gross Profit			17,318						67.8						16,101						67.0						7.6
Selling, marketing and administrative expenses			6,665						26.1						6,226						25.9						7.1
Research and development expense			3,829						15.0						3,703						15.4						3.4
Interest (income) expense, net			(23)						(0.1)						(26)						(0.1)
Other (income) expense, net*			(60)						(0.2)						273						1.1
Restructuring			145						0.5						85						0.4
Earnings before provision for taxes on income			6,762						26.5						5,840						24.3						15.8
Provision for taxes on income			1,618						6.4						1,026						4.3						57.7
Net earnings			$	5,144					20.1						$	4,814					20.0						6.9
Net earnings per share (Diluted)			$	1.96											$	1.80											8.9
Average shares outstanding (Diluted)			2,625.7												2,667.9
Effective tax rate			23.9			%									17.6			%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income			$	8,824					34.6						$	8,171					34.0						8.0
Net earnings			$	7,358					28.8						$	6,912					28.8						6.5
Net earnings per share (Diluted)			$	2.80											$	2.59											8.1
Effective tax rate			16.6			%									15.4			%
* Fiscal second quarter Other (income) expense, net includes $37 million related to the Company's 10.4% non-controlling interest in Kenvue, Inc. from the time of the initial public offering on May 8, 2023 through the end of the fiscal second quarter.
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant gains from divestitures, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, significant gains from divestitures, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.

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Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)			SIX MONTHS
			2022												2021												Percent
									Percent												Percent						Increase
			Amount						to Sales						Amount						to Sales						(Decrease)
Sales to customers			$	50,276					100.0						$	47,446					100.0						6.0
Cost of products sold			16,607						33.0						15,517						32.7						7.0
Gross Profit			33,669						67.0						31,929						67.3						5.4
Selling, marketing and administrative expenses			12,803						25.5						12,164						25.6						5.3
Research and development expense			7,392						14.7						7,165						15.1						3.2
In-process research and development			49						0.1						610						1.3
Interest (income) expense, net			(43)						(0.1)						(38)						(0.1)
Other (income) expense, net*			7,168						14.3						171						0.4
Restructuring			275						0.5						155						0.3
Earnings before provision for taxes on income			6,025						12.0						11,702						24.7						(48.5)
Provision for taxes on income			949						1.9						1,739						3.7						(45.4)
Net earnings			$	5,076					10.1						$	9,963					21.0						(49.1)
Net earnings per share (Diluted)			$	1.93											$	3.73											(48.3)
Average shares outstanding (Diluted)			2,630.7												2,669.2
Effective tax rate			15.8			%									14.9			%
Adjusted earnings before provision for taxes and net earnings (1) (A)
Earnings before provision for taxes on income			$	17,292					34.4						$	16,389					34.5						5.5
Net earnings			$	14,426					28.7						$	14,041					29.6						2.7
Net earnings per share (Diluted)			$	5.48											$	5.26											4.2
Effective tax rate			16.6			%									14.3			%
* Fiscal six months Other (income) expense, net includes $37 million related to the Company's 10.4% non-controlling interest in Kenvue, Inc. from the time of the initial public offering on May 8, 2023 through the end of the fiscal second quarter.
(1) See Reconciliation of Non-GAAP Financial Measures.
(A) NON-GAAP FINANCIAL MEASURES "Adjusted earnings before provision for taxes on income," "adjusted net earnings," "adjusted net earnings per share (diluted)," and "adjusted effective tax rate" are non-GAAP financial measures and should not be considered replacements for GAAP results. The Company provides earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate on an adjusted basis because management believes that these measures provide useful information to investors. Among other things, these measures may assist investors in evaluating the Company's results of operations period over period. In various periods, these measures may exclude such items as intangible asset amortization expense, significant gains from divestitures, significant costs associated with acquisitions, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters). Special items may be highly variable, difficult to predict, and of a size that sometimes has substantial impact on the Company's reported results of operations for a period. Management uses these measures internally for planning, forecasting and evaluating the performances of the Company's businesses, including allocating resources and evaluating results relative to employee performance compensation targets. Unlike earnings before provision for taxes on income, net earnings, net earnings per share (diluted), and effective tax rate prepared in accordance with GAAP, adjusted earnings before provision for taxes on income, adjusted net earnings, adjusted net earnings per share (diluted), and adjusted effective tax rate may not be comparable with the calculation of similar measures for other companies. The limitations of using these non-GAAP financial measures as performance measures are that they provide a view of the Company's results of operations without including all events during a period, such as intangible asset amortization expense, significant gains from divestitures, the effects of an acquisition, restructuring, litigation, and changes in applicable laws and regulations (including significant accounting or tax matters) and do not provide a comparable view of the Company's performance to other companies in the health care industry. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.

---

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
						Second Quarter
			(Dollars in Millions Except Per Share Data)			2023						2022
			Net Earnings, after tax- as reported			$	5,144					$	4,814
			Pre-tax Adjustments
			Litigation related			137						385
			Intangible Asset Amortization expense			1,211						1,095
			COVID-19 Vaccine related costs 1			165						276
			Consumer Health separation costs			282						268
			Restructuring related 2			145						128
			Medical Device Regulation 3			85						70
			Acquisition, integration and divestiture related			38						-
			(Gains)/losses on securities			(1)						109
			Tax Adjustments
			Tax impact on special item adjustments 4			(373)						(313)
			Consumer Health separation tax related costs			546						2
			Tax legislation and other tax related			(21)						78
			Adjusted Net Earnings, after tax			$	7,358					$	6,912
			Average shares outstanding (Diluted)			2,625.7						2,667.9
			Adjusted net earnings per share (Diluted)			$	2.80					$	2.59
			Operational adjusted net earnings per share (Diluted)			$	2.84
			Notes:
1			COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.
2			In the first and second quarter of 2023, the company completed a prioritization of its research and development (R&D) investment within the Pharmaceutical segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development.  The restructuring expenses of $145 million in the quarter ($275 million Q2 YTD) include the termination of partnered and non-partnered program costs and asset impairments.
3			European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed during 2024.
4			The tax impact related to special item adjustments reflects the current and 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 Measures
						Six Months Ended
			(Dollars in Millions Except Per Share Data)			2023						2022
			Net Earnings, after tax- as reported			$	5,076					$	9,963
			Pre-tax Adjustments
			Litigation related			7,037						385
			Intangible Asset Amortization expense			2,415						2,203
			COVID-19 Vaccine related costs 1			609						276
			Consumer Health separation costs			582						370
			Restructuring related 2			275						200
			Medical Device Regulation 3			149						130
			Acquisition, integration and divestiture related			80						-
			(Gains)/losses on securities			71						520
			IPR&D			49						610
			Other			-						(7)
			Tax Adjustments
			Tax impact on special item adjustments 4			(2,430)						(706)
			Consumer Health separation tax related costs			557						98
			Tax legislation and other tax related			(44)						(1)
			Adjusted Net Earnings, after tax			$	14,426					$	14,041
			Average shares outstanding (Diluted)			2,630.7						2,669.2
			Adjusted net earnings per share (Diluted)			$	5.48					$	5.26
			Operational adjusted net earnings per share (Diluted)			$	5.59
			Notes:
1			COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.
2			In the first and second quarter of 2023, the company completed a prioritization of its research and development (R&D) investment within the Pharmaceutical segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development.  The restructuring expenses of $145 million in the quarter ($275 million Q2 YTD) include the termination of partnered and non-partnered program costs and asset impairments.
3			European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed during 2024.
4			The tax impact related to special item adjustments reflects the current and 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 (A)
SECOND QUARTER 2023 ACTUAL vs. 2022 ACTUAL
Segments
						Consumer Health						Pharmaceutical						MedTech						Total
WW As Reported						5.4		%				3.1		%				12.9		%				6.3		%
U.S.						6.0		%				9.2		%				14.6		%				10.2		%
International						5.0		%				(4.0)		%				11.3		%				2.2		%
WW Currency						(2.3)						(0.7)						(1.8)						(1.2)
U.S.						—						—						—						—
International						(4.0)						(1.5)						(3.4)						(2.5)
WW Operational						7.7		%				3.8		%				14.7		%				7.5		%
U.S.						6.0		%				9.2		%				14.6		%				10.2		%
International						9.0		%				(2.5)		%				14.7		%				4.7		%
Abiomed																		(4.8)						(1.4)
U.S.																		(8.1)						(2.2)
International																		(1.7)						(0.5)
All Other Acquisitions and Divestitures						0.0						0.1						0.0						0.1
U.S.						0.0						0.0						0.0						0.0
International						0.0						0.3						0.0						0.2
WW Adjusted Operational						7.7		%				3.9		%				9.9		%				6.2		%
U.S.						6.0		%				9.2		%				6.5		%				8.0		%
International						9.0		%				(2.2)		%				13.0		%				4.4		%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.

---

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth (A)
SIX MONTHS 2023 ACTUAL vs. 2022 ACTUAL
Segments
						Consumer Health						Pharmaceutical						MedTech						Total
WW As Reported						6.4		%				3.7		%				10.1		%				6.0		%
U.S.						8.6		%				7.6		%				15.5		%				10.0		%
International						4.7		%				(0.7)		%				5.2		%				2.0		%
WW Currency						(3.1)						(1.8)						(2.7)						(2.2)
U.S.						—						—						—						—
International						(5.4)						(3.8)						(5.1)						(4.5)
WW Operational						9.5		%				5.5		%				12.8		%				8.2		%
U.S.						8.6		%				7.6		%				15.5		%				10.0		%
International						10.1		%				3.1		%				10.3		%				6.5		%
Abiomed																		(4.7)						(1.4)
U.S.																		(8.2)						(2.3)
International																		(1.6)						(0.5)
All Other Acquisitions and Divestitures						0.0						0.1						0.0						0.1
U.S.						0.0						0.0						0.0						0.0
International						0.0						0.3						0.0						0.2
WW Adjusted Operational						9.5		%				5.6		%				8.1		%				6.9		%
U.S.						8.6		%				7.6		%				7.3		%				7.7		%
International						10.1		%				3.4		%				8.7		%				6.2		%
Note: Percentages are based on actual, non-rounded figures and may not sum
(A) NON-GAAP FINANCIAL MEASURE “Adjusted operational sales growth" excludes acquisitions, divestitures and translational currency and is a non-GAAP financial measure. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. Due to the variable nature of acquisitions and divestitures, and the impact they may have on the analysis of underlying business performance and trends, management believes that providing this measure enhances an investor’s understanding of the Company’s performance and may assist in the evaluation of ongoing business operations period over period. This non-GAAP financial measure is presented to permit investors to more fully understand how management assesses the performance of the Company, including for internal evaluation of the performance of the Company's businesses and planning and forecasting for future periods. The use of this non-GAAP financial measure as a performance measure is limited in that it provides a view of the Company's results of operations without including all events during a period and may not provide a comparable view of the Company's performance to that of other companies in the health care industry.

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2023						2022						Reported			Operational (1)			Currency
CONSUMER HEALTH SEGMENT (2)
OTC
US						$			712						663						7.5		%	7.5		%	—		%
Intl									947						818						15.7			19.0			(3.3)
WW									1,659						1,482						12.0			13.9			(1.9)
SKIN HEALTH / BEAUTY
US									650						629						3.4			3.4			—
Intl									498						497						0.3			3.8			(3.5)
WW									1,148						1,126						2.0			3.5			(1.5)
ORAL CARE
US									173						170						1.7			1.7			—
Intl									225						224						0.3			3.4			(3.1)
WW									398						394						0.9			2.7			(1.8)
BABY CARE
US									99						88						12.5			12.5			—
Intl									261						287						(9.1)			(4.0)			(5.1)
WW									360						375						(4.0)			(0.2)			(3.8)
WOMEN'S HEALTH
US									4						3						(2.1)			(2.1)			—
Intl									235						228						3.5			10.2			(6.7)
WW									238						230						3.4			10.0			(6.6)
WOUND CARE / OTHER
US									149						133						12.3			12.3			—
Intl									58						65						(10.3)			(4.6)			(5.7)
WW									207						197						4.9			6.8			(1.9)
TOTAL CONSUMER HEALTH
US									1,787						1,687						6.0			6.0			—
Intl									2,224						2,118						5.0			9.0			(4.0)
WW						$			4,011						3,805						5.4		%	7.7		%	(2.3)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2023						2022						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (3)
IMMUNOLOGY
US						$			2,865						2,853						0.4		%	0.4		%	—		%
Intl									1,631						1,559						4.7			6.6			(1.9)
WW									4,496						4,411						1.9			2.6			(0.7)
REMICADE
US									277						391						(29.3)			(29.3)			—
US Exports (4)									33						44						(24.9)			(24.9)			—
Intl									152						212						(28.2)			(25.2)			(3.0)
WW									462						647						(28.6)			(27.6)			(1.0)
SIMPONI / SIMPONI ARIA
US									285						301						(5.1)			(5.1)			—
Intl									244						266						(8.2)			(4.3)			(3.9)
WW									529						566						(6.6)			(4.7)			(1.9)
STELARA
US									1,817						1,731						4.9			4.9			—
Intl									981						868						13.0			14.1			(1.1)
WW									2,797						2,599						7.6			8.0			(0.4)
TREMFYA
US									450						382						17.8			17.8			—
Intl									255						214						19.4			21.0			(1.6)
WW									706						597						18.3			18.9			(0.6)
OTHER IMMUNOLOGY
US									4						3						17.8			17.8			—
Intl									0						0						—			—			—
WW									4						3						17.8			17.8			—
INFECTIOUS DISEASES
US									395						415						(4.9)			(4.9)			—
Intl									727						901						(19.4)			(22.0)			2.6
WW									1,121						1,316						(14.8)			(16.6)			1.8
COVID-19 VACCINE
US									—						45						*			*			—
Intl									285						499						(43.0)			(47.4)			4.4
WW									285						544						(47.7)			(51.8)			4.1
EDURANT / rilpivirine
US									8						9						(9.0)			(9.0)			—
Intl									258						215						19.9			17.3			2.6
WW									266						225						18.6			16.2			2.4
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US									382						355						7.6			7.6			—
Intl									109						110						(0.2)			(1.0)			0.8
WW									491						464						5.8			5.6			0.2
OTHER INFECTIOUS DISEASES
US									5						6						(27.2)			(27.2)			—
Intl									74						77						(3.5)			3.6			(7.1)
WW									79						83						(5.2)			1.3			(6.5)
See footnotes at end of schedule

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Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2023						2022						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (3) (Continued)
NEUROSCIENCE
US						$			1,029						896						14.9%			14.9%			—%
Intl									764						837						(8.8)			(4.6)			(4.2)
WW									1,793						1,734						3.5			5.5			(2.0)
CONCERTA / methylphenidate
US									64						38						68.2			68.2			—
Intl									143						123						16.3			21.3			(5.0)
WW									208						161						28.6			32.4			(3.8)
INVEGA SUSTENNA / XEPLION / INVEGA
TRINZA / TREVICTA
US									721						691						4.3			4.3			—
Intl									310						362						(14.4)			(12.6)			(1.8)
WW									1,031						1,054						(2.1)			(1.5)			(0.6)
SPRAVATO
US									144						74						93.2			93.2			—
Intl									25						11						*			*			*
WW									169						85						98.2			98.5			(0.3)
OTHER NEUROSCIENCE
US									100						93						9.3			9.3			—
Intl									286						341						(16.4)			(9.9)			(6.5)
WW									386						433						(10.9)			(5.8)			(5.1)
ONCOLOGY
US									2,069						1,679						23.2			23.2			—
Intl									2,329						2,362						(1.4)			0.1			(1.5)
WW									4,398						4,042						8.8			9.7			(0.9)
CARVYKTI
US									114						24						*			*			—
Intl									3						—						*			*			*
WW									117						24						*			*			*
DARZALEX
US									1,322						1,021						29.5			29.5			—
Intl									1,110						965						15.0			17.0			(2.0)
WW									2,431						1,986						22.4			23.4			(1.0)
ERLEADA
US									241						233						3.6			3.6			—
Intl									326						218						49.7			51.7			(2.0)
WW									567						450						25.9			26.9			(1.0)
IMBRUVICA
US									262						349						(24.9)			(24.9)			—
Intl									579						620						(6.7)			(5.7)			(1.0)
WW									841						970						(13.2)			(12.6)			(0.6)
ZYTIGA / abiraterone acetate
US									9						19						(55.2)			(55.2)			—
Intl									218						486						(55.1)			(53.8)			(1.3)
WW									227						505						(55.1)			(53.8)			(1.3)
OTHER ONCOLOGY
US									122						33						*			*			—
Intl									92						72						27.8			29.4			(1.6)
WW									214						106						*			*			*
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2023						2022						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (3) (Continued)
PULMONARY HYPERTENSION
US						$			684						560						22.0		%	22.0		%	—		%
Intl									289						284						2.0			5.7			(3.7)
WW									972						843						15.3			16.5			(1.2)
OPSUMIT
US									328						265						23.7			23.7			—
Intl									179						173						3.4			6.0			(2.6)
WW									507						438						15.7			16.7			(1.0)
UPTRAVI
US									338						272						24.2			24.2			—
Intl									61						56						10.0			14.1			(4.1)
WW									399						328						21.8			22.5			(0.7)
OTHER PULMONARY HYPERTENSION
US									18						23						(23.8)			(23.8)			—
Intl									48						55						(10.9)			(3.7)			(7.2)
WW									66						78						(14.7)			(9.7)			(5.0)
CARDIOVASCULAR / METABOLISM / OTHER
US									776						757						2.6			2.6			—
Intl									174						215						(19.0)			(18.3)			(0.7)
WW									950						972						(2.2)			(2.0)			(0.2)
XARELTO
US									637						609						4.7			4.7			—
Intl									—						—						—			—			—
WW									637						609						4.7			4.7			—
OTHER
US									138						148						(6.3)			(6.3)			—
Intl									174						215						(19.0)			(18.3)			(0.7)
WW									313						363						(13.8)			(13.4)			(0.4)
TOTAL PHARMACEUTICAL
US									7,818						7,159						9.2			9.2			—
Intl									5,913						6,158						(4.0)			(2.5)			(1.5)
WW						$			13,731						13,317						3.1		%	3.8		%	(0.7)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2023						2022						Reported			Operational (1)			Currency
MEDTECH SEGMENT (2) (3)
INTERVENTIONAL SOLUTIONS
US						$			908						525						73.1		%	73.1		%	—		%
Intl									712						525						35.7			40.7			(5.0)
WW									1,620						1,049						54.4			56.9			(2.5)
ELECTROPHYSIOLOGY
US									609						499						22.0			22.0			—
Intl									587						469						25.1			30.0			(4.9)
WW									1,196						968						23.5			25.9			(2.4)
ABIOMED
US									272						—						*			*			—
Intl									59						—						*			*			*
WW									331						—						*			*			*
OTHER INTERVENTIONAL SOLUTIONS
US									27						26						4.5			4.5			—
Intl									67						56						20.0			25.3			(5.3)
WW									93						81						15.1			18.8			(3.7)
ORTHOPAEDICS
US									1,388						1,338						3.7			3.7			—
Intl									878						820						7.0			9.0			(2.0)
WW									2,265						2,157						5.0			5.7			(0.7)
HIPS
US									250						240						4.1			4.1			—
Intl									147						148						(0.8)			1.2			(2.0)
WW									397						388						2.2			3.0			(0.8)
KNEES
US									221						216						2.4			2.4			—
Intl									142						133						6.3			8.0			(1.7)
WW									363						349						3.9			4.5			(0.6)
TRAUMA
US									483						464						4.3			4.3			—
Intl									255						232						9.9			10.9			(1.0)
WW									739						696						6.1			6.5			(0.4)
SPINE, SPORTS & OTHER
US									433						418						3.5			3.5			—
Intl									334						306						9.0			11.6			(2.6)
WW									766						724						5.8			7.0			(1.2)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SECOND QUARTER
																					% Change
									2023						2022						Reported			Operational (1)			Currency
MEDTECH SEGMENT (2) (3) (Continued)
SURGERY
US						$			1,015						992						2.2		%	2.2		%	—		%
Intl									1,580						1,458						8.4			12.6			(4.2)
WW									2,594						2,450						5.9			8.4			(2.5)
ADVANCED
US									466						454						2.7			2.7			—
Intl									757						702						7.8			12.1			(4.3)
WW									1,222						1,156						5.8			8.4			(2.6)
GENERAL
US									548						538						1.9			1.9			—
Intl									823						756						8.9			13.1			(4.2)
WW									1,372						1,294						6.0			8.4			(2.4)
VISION
US									529						496						6.6			6.6			—
Intl									778						745						4.6			7.1			(2.5)
WW									1,308						1,241						5.4			6.9			(1.5)
CONTACT LENSES / OTHER
US									409						374						9.1			9.1			—
Intl									530						519						2.2			4.8			(2.6)
WW									939						894						5.1			6.6			(1.5)
SURGICAL
US									120						122						(1.1)			(1.1)			—
Intl									249						225						10.1			12.3			(2.2)
WW									369						347						6.2			7.6			(1.4)
TOTAL MEDTECH
US									3,839						3,351						14.6			14.6			—
Intl									3,949						3,547						11.3			14.7			(3.4)
WW						$			7,788						6,898						12.9		%	14.7		%	(1.8)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2023						2022						Reported			Operational (1)			Currency
CONSUMER HEALTH SEGMENT (2)
OTC
US						$			1,457						1,333						9.3		%	9.3		%	—		%
Intl									1,844						1,609						14.6			19.4			(4.8)
WW									3,301						2,943						12.2			14.8			(2.6)
SKIN HEALTH / BEAUTY
US									1,267						1,173						8.0			8.0			—
Intl									991						965						2.7			8.1			(5.4)
WW									2,258						2,138						5.6			8.0			(2.4)
ORAL CARE
US									332						313						6.2			6.2			—
Intl									427						447						(4.7)			(0.3)			(4.4)
WW									759						760						(0.2)			2.4			(2.6)
BABY CARE
US									195						173						12.7			12.7			—
Intl									524						557						(6.0)			0.1			(6.1)
WW									719						730						(1.6)			3.1			(4.7)
WOMEN'S HEALTH
US									7						7						(0.1)			(0.1)			—
Intl									449						452						(0.7)			7.2			(7.9)
WW									455						458						(0.6)			7.1			(7.7)
WOUND CARE / OTHER
US									264						245						7.9			7.9			—
Intl									107						117						(8.4)			(1.5)			(6.9)
WW									371						361						2.6			4.9			(2.3)
TOTAL CONSUMER HEALTH
US									3,522						3,244						8.6			8.6			—
Intl									4,341						4,147						4.7			10.1			(5.4)
WW						$			7,863						7,391						6.4		%	9.5		%	(3.1)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2023						2022						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (3)
IMMUNOLOGY
US						$			5,313						5,354						(0.8)		%	(0.8)		%	—		%
Intl									3,295						3,176						3.8			8.2			(4.4)
WW									8,608						8,530						0.9			2.6			(1.7)
REMICADE
US									553						749						(26.2)			(26.2)			—
US Exports (4)									74						124						(40.3)			(40.3)			—
Intl									322						437						(26.2)			(22.5)			(3.7)
WW									949						1,310						(27.5)			(26.3)			(1.2)
SIMPONI / SIMPONI ARIA
US									556						588						(5.4)			(5.4)			—
Intl									510						549						(7.1)			(1.1)			(6.0)
WW									1,066						1,137						(6.2)			(3.3)			(2.9)
STELARA
US									3,268						3,110						5.1			5.1			—
Intl									1,974						1,777						11.1			15.2			(4.1)
WW									5,241						4,887						7.2			8.7			(1.5)
TREMFYA
US									856						773						10.7			10.7			—
Intl									489						413						18.4			22.8			(4.4)
WW									1,346						1,187						13.4			15.0			(1.6)
OTHER IMMUNOLOGY
US									7						9						(30.2)			(30.2)			—
Intl									0						0						—			—			—
WW									7						9						(30.2)			(30.2)			—
INFECTIOUS DISEASES
US									787						876						(10.2)			(10.2)			—
Intl									1,920						1,737						10.5			12.3			(1.8)
WW									2,707						2,613						3.6			4.7			(1.1)
COVID-19 VACCINE
US									—						120						*			*			—
Intl									1,032						881						17.1			18.4			(1.3)
WW									1,032						1,001						3.0			4.2			(1.2)
EDURANT / rilpivirine
US									17						18						(5.3)			(5.3)			—
Intl									529						454						16.4			18.0			(1.6)
WW									546						473						15.6			17.1			(1.5)
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US									760						724						5.0			5.0			—
Intl									208						242						(13.9)			(12.1)			(1.8)
WW									968						965						0.3			0.7			(0.4)
OTHER INFECTIOUS DISEASES
US									10						14						(30.6)			(30.6)			—
Intl									151						160						(5.6)			(1.2)			(4.4)
WW									161						174						(7.6)			(3.6)			(4.0)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2023						2022						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (3) (Continued)
NEUROSCIENCE
US						$			2,007						1,739						15.4%			15.4%			—%
Intl									1,590						1,735						(8.4)			(3.8)			(4.6)
WW									3,597						3,475						3.5			5.8			(2.3)
CONCERTA / methylphenidate
US									134						73						84.0			84.0			—
Intl									279						245						13.9			20.7			(6.8)
WW									414						318						30.0			35.3			(5.3)
INVEGA SUSTENNA / XEPLION / INVEGA
TRINZA / TREVICTA
US									1,434						1,352						6.0			6.0			—
Intl									641						749						(14.5)			(10.7)			(3.8)
WW									2,075						2,102						(1.3)			0.1			(1.4)
SPRAVATO
US									255						135						88.3			88.3			—
Intl									45						20						*			*			*
WW									300						155						93.1			93.8			(0.7)
OTHER NEUROSCIENCE
US									184						179						3.1			3.1			—
Intl									625						721						(13.4)			(8.7)			(4.7)
WW									809						900						(10.1)			(6.4)			(3.7)
ONCOLOGY
US									3,958						3,261						21.4			21.4			—
Intl									4,552						4,731						(3.8)			0.0			(3.8)
WW									8,510						7,992						6.5			8.8			(2.3)
CARVYKTI
US									184						24						*			*			—
Intl									5						—						*			*			*
WW									189						24						*			*			*
DARZALEX
US									2,513						1,974						27.3			27.3			—
Intl									2,182						1,868						16.8			21.5			(4.7)
WW									4,695						3,842						22.2			24.5			(2.3)
ERLEADA
US									490						439						11.8			11.8			—
Intl									619						412						50.3			55.9			(5.6)
WW									1,109						850						30.4			33.2			(2.8)
IMBRUVICA
US									532						719						(26.0)			(26.0)			—
Intl									1,136						1,288						(11.8)			(8.8)			(3.0)
WW									1,668						2,008						(16.9)			(15.0)			(1.9)
ZYTIGA / abiraterone acetate
US									25						38						(34.7)			(34.7)			—
Intl									447						1,006						(55.6)			(53.0)			(2.6)
WW									472						1,044						(54.8)			(52.3)			(2.5)
OTHER ONCOLOGY
US									214						67						*			*			—
Intl									162						156						3.6			7.1			(3.5)
WW									376						224						68.0			70.4			(2.4)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2023						2022						Reported			Operational (1)			Currency
PHARMACEUTICAL SEGMENT (2) (3) (Continued)
PULMONARY HYPERTENSION
US						$			1,284						1,132						13.4		%	13.4		%	—		%
Intl									561						563						(0.4)			5.5			(5.9)
WW									1,844						1,695						8.8			10.8			(2.0)
OPSUMIT
US									601						538						11.6			11.6			—
Intl									346						343						0.9			6.1			(5.2)
WW									947						881						7.5			9.5			(2.0)
UPTRAVI
US									642						541						18.7			18.7			—
Intl									119						112						6.6			11.7			(5.1)
WW									761						653						16.6			17.5			(0.9)
OTHER PULMONARY HYPERTENSION
US									41						53						(23.0)			(23.0)			—
Intl									95						108						(11.7)			(2.8)			(8.9)
WW									136						161						(15.5)			(9.5)			(6.0)
CARDIOVASCULAR / METABOLISM / OTHER
US									1,491						1,429						4.3			4.3			—
Intl									386						453						(14.7)			(12.0)			(2.7)
WW									1,877						1,882						(0.3)			0.4			(0.7)
XARELTO
US									1,215						1,117						8.8			8.8			—
Intl									—						—						—			—			—
WW									1,215						1,117						8.8			8.8			—
OTHER
US									275						312						(11.8)			(11.8)			—
Intl									386						453						(14.7)			(12.0)			(2.7)
WW									662						765						(13.5)			(11.9)			(1.6)
TOTAL PHARMACEUTICAL
US									14,841						13,791						7.6			7.6			—
Intl									12,303						12,395						(0.7)			3.1			(3.8)
WW						$			27,144						26,186						3.7		%	5.5		%	(1.8)		%
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2023						2022						Reported			Operational (1)			Currency
MEDTECH SEGMENT (2) (3)
INTERVENTIONAL SOLUTIONS
US						$			1,771						1,019						73.8		%	73.8		%	—		%
Intl									1,352						1,123						20.5			27.0			(6.5)
WW									3,123						2,141						45.8			49.3			(3.5)
ELECTROPHYSIOLOGY
US									1,180						969						21.7			21.7			—
Intl									1,109						1,001						10.8			17.3			(6.5)
WW									2,288						1,970						16.2			19.5			(3.3)
ABIOMED
US									536						—						*			*			—
Intl									119						—						*			*			*
WW									655						—						*			*			*
OTHER INTERVENTIONAL SOLUTIONS
US									55						51						10.8			10.8			—
Intl									125						121						2.8			8.9			(6.1)
WW									180						171						5.1			9.5			(4.4)
ORTHOPAEDICS
US									2,751						2,627						4.7			4.7			—
Intl									1,759						1,719						2.3			6.4			(4.1)
WW									4,510						4,345						3.8			5.4			(1.6)
HIPS
US									491						465						5.6			5.6			—
Intl									296						312						(5.1)			(1.3)			(3.8)
WW									787						777						1.3			2.8			(1.5)
KNEES
US									447						417						7.2			7.2			—
Intl									284						271						4.8			8.8			(4.0)
WW									731						688						6.3			7.9			(1.6)
TRAUMA
US									974						939						3.7			3.7			—
Intl									522						505						3.2			7.0			(3.8)
WW									1,496						1,444						3.6			4.9			(1.3)
SPINE, SPORTS & OTHER
US									839						805						4.1			4.1			—
Intl									657						630						4.2			8.7			(4.5)
WW									1,495						1,436						4.2			6.1			(1.9)
See footnotes at end of schedule

---

Johnson & Johnson
Segment Sales
(Dollars in Millions)
									SIX MONTHS
																					% Change
									2023						2022						Reported			Operational (1)			Currency
MEDTECH SEGMENT (2) (3) (Continued)
SURGERY
US						$			1,990						1,913						4.0		%	4.0		%	—		%
Intl									3,039						2,971						2.3			7.7			(5.4)
WW									5,028						4,884						3.0			6.3			(3.3)
ADVANCED
US									910						871						4.5			4.5			—
Intl									1,430						1,431						0.0			5.3			(5.3)
WW									2,340						2,302						1.7			5.0			(3.3)
GENERAL
US									1,079						1,042						3.6			3.6			—
Intl									1,608						1,540						4.5			10.0			(5.5)
WW									2,688						2,582						4.1			7.4			(3.3)
VISION
US									1,087						1,017						6.9			6.9			—
Intl									1,521						1,481						2.7			7.5			(4.8)
WW									2,608						2,498						4.4			7.2			(2.8)
CONTACT LENSES / OTHER
US									853						774						10.1			10.1			—
Intl									1,039						1,030						0.9			6.3			(5.4)
WW									1,892						1,804						4.9			8.0			(3.1)
SURGICAL
US									234						243						(3.6)			(3.6)			—
Intl									482						451						6.7			10.2			(3.5)
WW									716						694						3.1			5.4			(2.3)
TOTAL MEDTECH
US									7,598						6,576						15.5			15.5			—
Intl									7,671						7,293						5.2			10.3			(5.1)
WW						$			15,269						13,869						10.1		%	12.8		%	(2.7)		%
See footnotes at end of schedule
Note: Column and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-
rounded figures and, therefore, may not recalculate precisely.
* 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 current year product disclosures
(4) Reported as U.S. sales

---

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
									SECOND QUARTER
																					Percent Change
									2023						2022						Total						Operations						Currency
			Pharmaceutical
			U.S.						$	7,818					7,159						9.2			%			9.2						-
			International						5,913						6,158						(4.0)						(2.5)						(1.5)
			Worldwide						13,731						13,317						3.1						3.8						(0.7)
			COVID-19 Vaccine
			U.S.						-						45						*						*						-
			International						285						499						(43.0)						(47.4)						4.4
			Worldwide						285						544						(47.7)						(51.8)						4.1
			Pharmaceutical excluding COVID-19 Vaccine
			U.S.						7,818						7,114						9.9						9.9						-
			International						5,628						5,659						(0.5)						1.5						(2.0)
			Worldwide						13,446						12,773						5.3						6.2						(0.9)
			Worldwide
			U.S.						13,444						12,197						10.2						10.2						-
			International						12,086						11,823						2.2						4.7						(2.5)
			Worldwide						25,530						24,020						6.3						7.5						(1.2)
			COVID-19 Vaccine
			U.S.						-						45						*						*						-
			International						285						499						(43.0)						(47.4)						4.4
			Worldwide						285						544						(47.7)						(51.8)						4.1
			Worldwide
			U.S.						13,444						12,152						10.6						10.6						-
			International						11,801						11,324						4.2						7.0						(2.8)
			Worldwide excluding COVID-19 Vaccine						$	25,245					23,476						7.5			%			8.9						(1.4)
			Note: Columns and rows within tables may not add due to rounding
			* Percentage greater than 100% or not meaningful

---

Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
									SIX MONTHS
																					Percent Change
									2022						2021						Total						Operations						Currency
			Pharmaceutical
			U.S.						$	14,841					13,791						7.6			%			7.6						-
			International						12,303						12,395						(0.7)						3.1						(3.8)
			Worldwide						27,144						26,186						3.7						5.5						(1.8)
			COVID-19 Vaccine
			U.S.						-						120						*						*						-
			International						1,032						881						17.1						18.4						(1.3)
			Worldwide						1,032						1,001						3.0						4.2						(1.2)
			Pharmaceutical excluding COVID-19 Vaccine
			U.S.						14,841						13,671						8.6						8.6						-
			International						11,271						11,514						(2.1)						1.9						(4.0)
			Worldwide						26,112						25,185						3.7						5.5						(1.8)
			Worldwide
			U.S.						25,961						23,611						10.0						10.0						-
			International						24,315						23,835						2.0						6.5						(4.5)
			Worldwide						50,276						47,446						6.0						8.2						(2.2)
			COVID-19 Vaccine
			U.S.						-						120						*						*						-
			International						1,032						881						17.1						18.4						(1.3)
			Worldwide						1,032						1,001						3.0						4.2						(1.2)
			Worldwide
			U.S.						25,961						23,491						10.5						10.5						-
			International						23,283						22,954						1.4						6.1						(4.7)
			Worldwide excluding COVID-19 Vaccine						$	49,244					46,445						6.0			%			8.3						(2.3)
			Note: Columns and rows within tables may not add due to rounding
			* Percentage greater than 100% or not meaningful