JNJ-Earns

<br /> Johnson & Johnson Reports 2020 Third-Quarter Results<br />

Johnson & Johnson Reports 2020 Third-Quarter Results

– Sales of $21.1 billion reflecting an overall and operational increase of 1.7%, and adjusted operational increase of 2.0% despite the estimated negative impact of the COVID-19 pandemic

– EPS of $1.33 increased 101.5%; adjusted EPS of $2.20 increased 3.8%*

– Company increasing guidance for Full Year Reported Sales by $1.0 billion and Adjusted EPS by $0.15 driven by the strength of the recovery and strong underlying business fundamentals

PR Newswire

NEW BRUNSWICK, N.J., Oct. 13, 2020

NEW BRUNSWICK, N.J.

,

Oct. 13, 2020

/PRNewswire/ — Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2020. “Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals,” said

Alex Gorsky

, Chairman and Chief Executive Officer. “I am proud of the relentless passion and Credo-led commitment to patients and customers that our colleagues around the world continue to demonstrate as we boldly fight the COVID-19 pandemic. Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety and efficacy; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need. This resilient mindset, combined with our strategic capabilities and execution excellence, increase our optimism for continued recovery in 2020 and strong momentum entering into 2021.”

OVERALL FINANCIAL RESULTS

:

	THIRD QUARTER
($ in Millions, except EPS)	2020	2019	% Change
Reported Sales	$ 21,082	$ 20,729	1.7%
Net Earnings	3,554	1,753	102.7%
EPS (diluted)	$ 1.33	$ 0.66	101.5%

Non-GAAP*	THIRD QUARTER
($ in Millions, except EPS)	2020	2019	% Change
Operational Sales ^1,2	N/A	N/A	1.7%
Adjusted Operational Sales ^1,3	N/A	N/A	2.0%
Adjusted Net Earnings ^1,4	5,868	5,672	3.5%
Adjusted EPS (diluted) ^1,4	$ 2.20	$ 2.12	3.8%

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

REGIONAL SALES RESULTS:

	THIRD QUARTER		% Change
($ in Millions) ¹	2020 ²	2019 ²	Reported ²	Operational ^1,2	Currency ²	Adjusted Operational ^1,3
U.S.	$ 11,086	$ 10,791	2.7%	2.7%	–	2.8
International	9,996	9,938	0.6%	0.6%	0.0	1.1
Worldwide	$ 21,082	$ 20,729	1.7%	1.7%	0.0	2.0

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:

	THIRD QUARTER		% Change
($ in Millions) ¹	2020 ¹	2019 ¹	Reported ²	Operational ^1,2	Currency ¹	Adjusted Operational ^1,3
Consumer Health	$ 3,514	$ 3,469	1.3%	3.0	(1.7)	3.1
Pharmaceutical	11,418	10,877	5.0%	4.6	0.4	4.7
Medical Devices	6,150	6,383	(3.6)%	(3.9)	0.3	(3.3)
Worldwide	$ 21,082	$ 20,729	1.7%	1.7	0.0	2.0

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 COMMENTARY:

Consumer Health

Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased by 3.1%*, inclusive of the net negative impact of COVID-19 primarily in international over-the-counter products. Sales growth was driven by U.S. growth in over-the-counter products including TYLENOL analgesics and digestive health products; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products; and wound care products, primarily BAND-AID® Brand Adhesive Bandages.

Pharmaceutical

Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 4.7%* driven by DARZALEX (daratumumab), for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, and ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, and ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

Medical Devices

Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.3%*. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses. Results reflect market recovery versus the second quarter. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products.

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 available online in the Investors section of the Company’s website at

news releases

.

Regulatory Approvals	THERMOCOOL SMARTTOUCH – Biosense Webster Receives FDA Approval for SF Ablation Catheter for the Treatment of Persistent Atrial Fibrillation¹	(press release)
	SIMPONI ARIA (golimumab) – Approved by the U.S. Food and Drug Administration for Active Polyarticular Juvenile Idiopathic Arthritis and Extension of Its Active Psoriatic Arthritis Indication in Patients 2 Years of Age and Older	(press release)
	SPRAVATO (esketamine) – Janssen Announces U.S. FDA Approval of CIII Nasal Spray to Treat Depressive Symptoms in Adults with Major Depressive Disorder with Acute Suicidal Ideation or Behavior	(press release)
	DARZALEX (daratumumab) – U.S. FDA Approves New DARZALEX-Based Combination Regimen for Patients with Relapsed/Refractory Multiple Myeloma	(press release)
	STELARA (ustekinumab) – U.S. Food and Drug Administration Approves Treatment of Pediatric Patients with Moderate to Severe Plaque Psoriasis	(press release)
Regulatory Submissions	UPTRAVI (selexipag) – Janssen Submits New Drug Application (NDA) to U.S. FDA for Injection for Intravenous Use to Treat Pulmonary Arterial Hypertension (PAH)	(press release)
	DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) – Janssen Submits Application Seeking U.S. FDA Approval for the Treatment of Patients with Light Chain (AL) Amyloidosis	(press release)
Other	Johnson & Johnson Announces European Commission Approval of Agreement to Supply 200 Million Doses of Janssen’s COVID-19 Vaccine Candidate ¹	(press release)
	Johnson & Johnson Completes Acquisition of Momenta Pharmaceuticals, Inc.¹	(press release)
	Johnson & Johnson Initiates Pivotal Global Phase 3 Clinical Trial of Janssen’s COVID-19 Vaccine Candidate	(press release)
	CERENOVUS Launches New Suite of Technologies to Advance Stroke Treatment	(press release)
	Johnson & Johnson Announces that Janssen’s COVID-19 Investigational Vaccine Candidate Prevents Severe Clinical Disease in Pre-clinical Studies	(press release)
	Janssen to Discontinue Pimodivir Influenza Development Program	(press release)
	Johnson & Johnson Announces Agreement with U.S. Government for 100 Million Doses of Investigational COVID-19 Vaccine	(press release)
	U.S. FDA Grants Ethicon Breakthrough Device Designation for Monarch-enabled NeuWave Microwave Ablation Technology	(press release)

¹
Subsequent to the quarter

FULL-YEAR 2020 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.

The estimated impact of the COVID-19 pandemic is included in the guidance below.

	October 2020	July 2020

($ in Billions, except EPS)
Adjusted Operational Sales ^1,2 Change vs. Prior Year	0.5% – 1.5%	(0.8%) – 1.0%
Operational Sales ² Change vs. Prior Year	$82.0 to $82.8 0.0% – 1.0%	$81.0 to $82.5 (1.3%) – 0.5%
Estimated Reported Sales ³ Change vs. Prior Year	$81.2 to $82.0 (1.0%) – 0.0%	$79.9 to $81.4 (2.6%) – (0.8%)

Adjusted Operational EPS (Diluted) ^2,4 Change vs. Prior Year	$7.95 to $8.05 (8.4%) – (7.3%)	$7.85 to $8.05 (9.6%) – (7.3%)
Adjusted EPS (Diluted) ^3,4 Change vs. Prior Year	$7.95 to $8.05 (8.4%) – (7.3%)	$7.75 to $7.95 (10.7%) – (8.4%)

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: October 2020 = $1.14 Euro Average Rate: July 2020 = $1.12 (Illustrative purposes only)

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

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 and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: 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; 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. 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

December 29, 2019

, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” in the Company’s most recently filed Quarterly Report on Form 10-Q and the Company’s subsequent 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)	THIRD QUARTER						NINE MONTHS
			Percent Change						Percent Change
	2020	2019	Total		Operations	Currency	2020	2019	Total		Operations	Currency
Sales to customers by
segment of business

Consumer Health
U.S.	$ 1,556	1,394	11.6	%	11.6	–	$ 4,853	4,369	11.1	%	11.1	–
International	1,958	2,075	(5.6)		(2.7)	(2.9)	5,582	5,962	(6.4)		(2.2)	(4.2)
	3,514	3,469	1.3		3.0	(1.7)	10,435	10,331	1.0		3.4	(2.4)

Pharmaceutical
U.S.	6,438	6,340	1.5		1.5	–	18,619	17,705	5.2		5.2	–
International	4,980	4,537	9.7		8.8	0.9	14,685	13,945	5.3		7.4	(2.1)
	11,418	10,877	5.0		4.6	0.4	33,304	31,650	5.2		6.1	(0.9)

Medical Devices
U.S.	3,092	3,057	1.2		1.2	–	7,852	9,249	(15.1)		(15.1)	–
International	3,058	3,326	(8.1)		(8.5)	0.4	8,518	10,082	(15.5)		(14.1)	(1.4)
	6,150	6,383	(3.6)		(3.9)	0.3	16,370	19,331	(15.3)		(14.6)	(0.7)

U.S.	11,086	10,791	2.7		2.7	–	31,324	31,323	0.0		0.0	–
International	9,996	9,938	0.6		0.6	0.0	28,785	29,989	(4.0)		(1.7)	(2.3)
Worldwide	$ 21,082	20,729	1.7		1.7	0.0	$ 60,109	61,312	(2.0)		(0.8)	(1.2)


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)	THIRD QUARTER						NINE MONTHS
			Percent Change						Percent Change
	2020	2019	Total		Operations	Currency	2020	2019	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 11,086	10,791	2.7	%	2.7	–	$ 31,324	31,323	0.0	%	0.0	–

Europe	4,819	4,461	8.0		4.6	3.4	13,709	13,803	(0.7)		0.1	(0.8)
Western Hemisphere excluding U.S.	1,296	1,488	(12.9)		(1.2)	(11.7)	3,931	4,446	(11.6)		(0.4)	(11.2)
Asia-Pacific, Africa	3,881	3,989	(2.7)		(3.2)	0.5	11,145	11,740	(5.1)		(4.3)	(0.8)
International	9,996	9,938	0.6		0.6	0.0	28,785	29,989	(4.0)		(1.7)	(2.3)

Worldwide	$ 21,082	20,729	1.7	%	1.7	0.0	$ 60,109	61,312	(2.0)	%	(0.8)	(1.2)


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)	THIRD QUARTER

	2020			2019			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 21,082		100.0	$ 20,729		100.0	1.7
Cost of products sold	6,972		33.1	6,867		33.1	1.5
Gross Profit	14,110		66.9	13,862		66.9	1.8
Selling, marketing and administrative expenses	5,431		25.8	5,374		26.0	1.1
Research and development expense	2,840		13.5	2,599		12.5	9.3
In-process research and development	138		0.6	–		–
Interest (income) expense, net	32		0.1	(41)		(0.2)
Other (income) expense, net	1,200		5.7	4,214		20.3
Restructuring	68		0.3	69		0.4
Earnings before provision for taxes on income	4,401		20.9	1,647		7.9	167.2
Provision for/(Benefit from) taxes on income	847		4.0	(106)		(0.6)
Net earnings	$ 3,554		16.9	$ 1,753		8.5	102.7

Net earnings per share (Diluted)	$ 1.33			$ 0.66			101.5

Average shares outstanding (Diluted)	2,669.3			2,669.9

Effective tax rate	19.2	%		(6.4)	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 7,246		34.4	$ 7,116		34.3	1.8
Net earnings	$ 5,868		27.8	$ 5,672		27.4	3.5
Net earnings per share (Diluted)	$ 2.20			$ 2.12			3.8
Effective tax rate	19.0	%		20.3	%

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

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

	2020			2019			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 60,109		100.0	$ 61,312		100.0	(2.0)
Cost of products sold	20,613		34.3	20,422		33.3	0.9
Gross Profit	39,496		65.7	40,890		66.7	(3.4)
Selling, marketing and administrative expenses	15,627		26.0	16,139		26.3	(3.2)
Research and development expense	8,127		13.5	8,123		13.3	0.0
In-process research and development	144		0.3	890		1.4
Interest (income) expense, net	16		0.0	(43)		(0.1)
Other (income) expense, net	545		0.9	2,509		4.1
Restructuring	187		0.3	162		0.3
Earnings before provision for taxes on income	14,850		24.7	13,110		21.4	13.3
Provision for taxes on income	1,874		3.1	2,001		3.3	(6.3)
Net earnings	$ 12,976		21.6	$ 11,109		18.1	16.8

Net earnings per share (Diluted)	$ 4.86			$ 4.13			17.7

Average shares outstanding (Diluted)	2,670.8			2,688.1

Effective tax rate	12.6	%		15.3	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 19,827		33.0	$ 22,597		36.9	(12.3)
Net earnings	$ 16,468		27.4	$ 18,283		29.8	(9.9)
Net earnings per share (Diluted)	$ 6.17			$ 6.80			(9.3)
Effective tax rate	16.9	%		19.1	%

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

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

	Third Quarter		Nine Months Ended
(Dollars in Millions Except Per Share Data)	2020	2019	2020	2019
Net Earnings, after tax- as reported	$3,554	$1,753	$12,976	$11,109

Pre-tax Adjustments
Intangible Asset Amortization expense	1,181	1,138	3,426	3,386
Litigation expense, net	1,477	4,000	2,210	4,832
IPR&D	138	–	144	890
Restructuring related	130	128	363	360
Acquisition and Integration related ¹	(154)	107	(1,087)	229
Unrealized (gains)/losses on securities	32	89	(174)	(217)
Medical Device Regulation ²	38	–	89	–
Other	3	7	6	7

Tax Adjustments
Tax impact on special item adjustments ³	(482)	(1,159)	(1,002)	(1,922)
Tax legislation and related impacts	(49)	(391)	(483)	(391)
Adjusted Net Earnings, after tax	$5,868	$5,672	$16,468	$18,283
Average shares outstanding (Diluted)	2,669.3	2,669.9	2,670.8	2,688.1
Adjusted net earnings per share (Diluted)	$2.20	$2.12	$6.17	$6.80
Operational adjusted net earnings per share (Diluted)	$2.17		$6.18


	Notes:
¹	Acquisition and integration related costs for 2020 primarily includes a Contingent Consideration reversal ($165M in third quarter and $1,148M in nine months) related to the timing of certain developmental milestones associated with the Auris Health acquisition.

²	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 are 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 Medical Devices operating segments’ measures of profit and loss used for making operating decisions and assessing performance.

³	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
THIRD QUARTER 2020 ACTUAL vs. 2019 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	1.3%	5.0%	(3.6)%	1.7%
U.S.	11.6%	1.5%	1.2%	2.7%
International	(5.6)%	9.7%	(8.1)%	0.6%

WW Currency	(1.7)	0.4	0.3	0.0
U.S.	–	–	–	–
International	(2.9)	0.9	0.4	0.0

WW Operational	3.0%	4.6%	(3.9)%	1.7%
U.S.	11.6%	1.5%	1.2%	2.7%
International	(2.7)%	8.8%	(8.5)%	0.6%

General Surgery
*Advanced Sterilization Products*			0.5	0.2
U.S.			0.0	0.0
International			0.9	0.4

Baby Care
*Baby Center*	0.1			0.0
U.S.	0.4			0.1
International	0.0			0.0

All Other Acquisitions and Divestitures	0.0	0.1	0.0	0.1
U.S.	0.0	0.0	0.1	0.0
International	(0.1)	0.3	0.0	0.1

WW Adjusted Operational	3.1%	4.7%	(3.3)%	2.0%
U.S.	12.0%	1.5%	1.3%	2.8%
International	(2.8)%	9.2%	(7.6)%	1.1%

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
NINE MONTHS 2020 ACTUAL vs. 2019 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	1.0%	5.2%	(15.3)%	(2.0)%
U.S.	11.1%	5.2%	(15.1)%	0.0%
International	(6.4)%	5.3%	(15.5)%	(4.0)%

WW Currency	(2.4)	(0.9)	(0.7)	(1.2)
U.S.	–	–	–	–
International	(4.2)	(2.1)	(1.4)	(2.3)

WW Operational	3.4%	6.1%	(14.6)%	(0.8)%
U.S.	11.1%	5.2%	(15.1)%	0.0%
International	(2.2)%	7.4%	(14.1)%	(1.7)%

Skin Health / Beauty
*Dr. Ci Labo – Japan*	(0.1)			0.0
U.S.	0.0			0.0
International	(0.2)			0.0

General Surgery
*Advanced Sterilization Products*			0.9	0.3
U.S.			0.8	0.3
International			0.9	0.4

Baby Care
*Baby Center*	0.2			0.0
U.S.	0.6			0.1
International	0.0			0.0

All Other Acquisitions and Divestitures	(0.1)	0.2	0.0	0.1
U.S.	0.0	0.0	0.0	0.0
International	(0.1)	0.3	0.0	0.1

WW Adjusted Operational	3.4%	6.3%	(13.7)%	(0.4)%
U.S.	11.7%	5.2%	(14.3)%	0.4%
International	(2.6)%	7.7%	(13.1)%	(1.3)%

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)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2020	2019	Reported	Operational ⁽¹⁾	Currency		2020	2019	Reported	Operational ⁽¹⁾	Currency
CONSUMER HEALTH SEGMENT ^(2,3)
OTC
US		$ 601	477	26.0%	26.0%	–		$ 1,917	1,468	30.6%	30.6%	–
Intl		541	621	-12.9%	-12.9%	0.0%		1,722	1,781	-3.3%	-0.6%	-2.7%
WW		1,142	1,098	4.0%	4.0%	0.0%		3,639	3,249	12.0%	13.5%	-1.5%
SKIN HEALTH / BEAUTY ⁽⁴⁾
US		572	559	2.4%	2.4%	–		1,767	1,810	-2.4%	-2.4%	–
Intl		577	592	-2.7%	-0.5%	-2.2%		1,506	1,633	-7.8%	-4.9%	-2.9%
WW		1,149	1,151	-0.2%	0.9%	-1.1%		3,273	3,443	-5.0%	-3.6%	-1.4%
ORAL CARE
US		164	156	5.5%	5.5%	–		510	462	10.4%	10.4%	–
Intl		248	223	10.7%	14.4%	-3.7%		694	673	3.0%	7.9%	-4.9%
WW		412	379	8.5%	10.8%	-2.3%		1,204	1,135	6.0%	8.9%	-2.9%
BABY CARE
US		91	91	-1.0%	-1.0%	–		279	277	0.5%	0.5%	–
Intl		302	326	-7.2%	-0.6%	-6.6%		831	977	-14.9%	-8.6%	-6.3%
WW		393	417	-5.9%	-0.7%	-5.2%		1,110	1,254	-11.5%	-6.6%	-4.9%
WOMEN’S HEALTH
US		3	3	-6.9%	-6.9%	–		10	9	7.3%	7.3%	–
Intl		227	252	-9.6%	-4.0%	-5.6%		654	724	-9.6%	-2.8%	-6.8%
WW		230	255	-9.6%	-4.1%	-5.5%		664	733	-9.4%	-2.7%	-6.7%
WOUND CARE / OTHER
US		125	109	15.2%	15.2%	–		370	343	8.0%	8.0%	–
Intl		64	59	7.4%	10.3%	-2.9%		175	173	1.3%	5.4%	-4.1%
WW		189	168	12.5%	13.5%	-1.0%		545	516	5.8%	7.2%	-1.4%

TOTAL CONSUMER HEALTH
US		1,556	1,394	11.6%	11.6%	–		4,853	4,369	11.1%	11.1%	–
Intl		1,958	2,075	-5.6%	-2.7%	-2.9%		5,582	5,962	-6.4%	-2.2%	-4.2%
WW		$ 3,514	3,469	1.3%	3.0%	-1.7%		$ 10,435	10,331	1.0%	3.4%	-2.4%


See footnotes at end of schedule



	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
PHARMACEUTICAL SEGMENT ^(2,5)		2020	2019	Reported	Operational ⁽¹⁾	Currency		2020	2019	Reported	Operational ⁽¹⁾	Currency

IMMUNOLOGY
US		$ 2,558	2,582	-0.9%	-0.9%	–		$ 7,330	7,124	2.9%	2.9%	–
Intl		1,230	1,129	9.0%	8.4%	0.6%		3,619	3,304	9.5%	11.9%	-2.4%
WW		3,789	3,711	2.1%	1.9%	0.2%		10,950	10,428	5.0%	5.7%	-0.7%
REMICADE
US		634	749	-15.4%	-15.4%	–		1,852	2,324	-20.3%	-20.3%	–
US Exports ⁽⁶⁾		78	88	-11.3%	-11.3%	–		321	226	42.1%	42.1%	–
Intl		209	299	-30.1%	-28.0%	-2.1%		673	795	-15.3%	-11.6%	-3.7%
WW		921	1,136	-18.9%	-18.4%	-0.5%		2,846	3,345	-14.9%	-14.0%	-0.9%
SIMPONI / SIMPONI ARIA
US		312	313	-0.4%	-0.4%	–		840	857	-2.0%	-2.0%	–
Intl		280	273	2.4%	2.2%	0.2%		827	816	1.3%	3.9%	-2.6%
WW		592	586	0.9%	0.8%	0.1%		1,667	1,673	-0.4%	0.9%	-1.3%
STELARA
US		1,313	1,212	8.4%	8.4%	–		3,668	3,152	16.4%	16.4%	–
Intl		634	487	30.3%	28.1%	2.2%		1,795	1,509	19.0%	20.6%	-1.6%
WW		1,947	1,698	14.7%	14.0%	0.7%		5,463	4,661	17.2%	17.7%	-0.5%
TREMFYA
US		222	221	0.4%	0.4%	–		650	565	15.0%	15.0%	–
Intl		105	69	54.4%	50.4%	4.0%		316	177	78.7%	79.1%	-0.4%
WW		327	290	13.1%	12.2%	0.9%		965	742	30.2%	30.3%	-0.1%
OTHER IMMUNOLOGY
US		–	–	–	–	–		–	–	–	–	–
Intl		3	2	35.6%	44.6%	-9.0%		9	8	12.4%	19.1%	-6.7%
WW		3	2	35.6%	44.6%	-9.0%		9	8	12.4%	19.1%	-6.7%
INFECTIOUS DISEASES
US		413	418	-1.1%	-1.1%	–		1,265	1,162	8.9%	8.9%	–
Intl		451	421	7.0%	6.3%	0.7%		1,397	1,385	0.9%	3.8%	-2.9%
WW		864	839	3.0%	2.6%	0.4%		2,662	2,547	4.5%	6.1%	-1.6%
EDURANT / rilpivirine
US		11	12	-12.0%	-12.0%	–		33	36	-8.6%	-8.6%	–
Intl		226	206	9.3%	5.0%	4.3%		684	603	13.3%	13.8%	-0.5%
WW		236	218	8.1%	4.1%	4.0%		716	639	12.1%	12.6%	-0.5%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		379	373	1.5%	1.5%	–		1,154	1,032	11.8%	11.8%	–
Intl		147	135	9.1%	12.1%	-3.0%		461	534	-13.7%	-8.8%	-4.9%
WW		526	508	3.5%	4.3%	-0.8%		1,615	1,566	3.1%	4.8%	-1.7%
OTHER INFECTIOUS DISEASES
US		24	33	-26.6%	-26.6%	–		79	94	-16.6%	-16.6%	–
Intl		78	80	-2.3%	-0.4%	-1.9%		252	248	1.8%	6.3%	-4.5%
WW		102	113	-9.4%	-8.1%	-1.3%		331	342	-3.2%	0.0%	-3.2%


	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2020	2019	Reported	Operational ⁽¹⁾	Currency		2020	2019	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US		759	785	-3.5%	-3.5%	–		2,285	2,172	5.2%	5.2%	–
Intl		846	810	4.5%	4.1%	0.4%		2,565	2,590	-1.0%	0.9%	-1.9%
WW		1,605	1,595	0.6%	0.4%	0.2%		4,850	4,762	1.8%	2.9%	-1.1%
CONCERTA / Methylphenidate
US		43	84	-49.2%	-49.2%	–		150	196	-23.6%	-23.6%	–
Intl		107	109	-2.0%	-1.7%	-0.3%		319	348	-8.2%	-6.4%	-1.8%
WW		149	193	-22.6%	-22.5%	-0.1%		469	544	-13.8%	-12.6%	-1.2%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		585	554	5.6%	5.6%	–		1,704	1,543	10.5%	10.5%	–
Intl		341	297	14.9%	12.6%	2.3%		983	916	7.3%	8.6%	-1.3%
WW		926	851	8.8%	8.0%	0.8%		2,688	2,459	9.3%	9.8%	-0.5%
RISPERDAL CONSTA
US		70	79	-11.0%	-11.0%	–		220	237	-6.9%	-6.9%	–
Intl		81	89	-7.8%	-8.9%	1.1%		254	292	-12.7%	-11.0%	-1.7%
WW		152	167	-9.3%	-9.9%	0.6%		475	528	-10.1%	-9.2%	-0.9%
OTHER NEUROSCIENCE
US		60	68	-11.3%	-11.3%	–		210	196	7.1%	7.1%	–
Intl		317	316	0.3%	1.7%	-1.4%		1,008	1,035	-2.6%	-0.1%	-2.5%
WW		377	384	-1.8%	-0.6%	-1.2%		1,218	1,231	-1.1%	1.1%	-2.2%
ONCOLOGY
US		1,267	1,171	8.2%	8.2%	–		3,623	3,146	15.2%	15.2%	–
Intl		1,862	1,590	17.1%	15.5%	1.6%		5,310	4,830	9.9%	11.8%	-1.9%
WW		3,129	2,761	13.3%	12.4%	0.9%		8,933	7,976	12.0%	13.1%	-1.1%
DARZALEX
US		585	402	46.0%	46.0%	–		1,540	1,123	37.2%	37.2%	–
Intl		514	363	41.5%	40.5%	1.0%		1,397	1,045	33.7%	36.7%	-3.0%
WW		1,099	765	43.8%	43.4%	0.4%		2,937	2,168	35.5%	37.0%	-1.5%
ERLEADA
US		152	74	*	*	–		407	194	*	*	–
Intl		55	12	*	*	*		112	22	*	*	*
WW		206	86	*	*	*		519	216	*	*	*
IMBRUVICA
US		450	447	0.7%	0.7%	–		1,329	1,163	14.2%	14.2%	–
Intl		581	475	22.5%	21.2%	1.3%		1,682	1,373	22.5%	25.2%	-2.7%
WW		1,031	921	11.9%	11.2%	0.7%		3,011	2,536	18.7%	20.2%	-1.5%
VELCADE
US		–	–	–	–	–		–	–	–	–	–
Intl		105	149	-30.1%	-30.8%	0.7%		311	636	-51.2%	-50.7%	-0.5%
WW		105	149	-30.1%	-30.8%	0.7%		311	636	-51.2%	-50.7%	-0.5%
ZYTIGA / abiraterone acetate
US		58	233	-75.2%	-75.2%	–		284	616	-53.9%	-53.9%	–
Intl		532	508	4.8%	2.2%	2.6%		1,564	1,502	4.1%	4.8%	-0.7%
WW		590	741	-20.4%	-22.1%	1.7%		1,848	2,118	-12.7%	-12.3%	-0.4%
OTHER ONCOLOGY
US		21	17	35.3%	35.3%	–		63	51	25.8%	25.8%	–
Intl		76	83	-8.8%	-10.1%	1.3%		244	252	-3.1%	-1.1%	-2.0%
WW		98	100	-1.7%	-2.8%	1.1%		308	303	1.7%	3.3%	-1.6%
PULMONARY HYPERTENSION
US		510	427	19.4%	19.4%	–		1,541	1,296	18.9%	18.9%	–
Intl		239	227	5.2%	3.7%	1.5%		742	704	5.3%	6.5%	-1.2%
WW		749	654	14.5%	13.9%	0.6%		2,283	2,000	14.1%	14.6%	-0.5%
OPSUMIT
US		244	206	18.1%	18.1%	–		729	581	25.3%	25.3%	–
Intl		148	140	5.5%	3.9%	1.6%		458	419	9.3%	10.7%	-1.4%
WW		392	347	13.0%	12.3%	0.7%		1,187	1,001	18.6%	19.2%	-0.6%
UPTRAVI
US		226	185	22.4%	22.4%	–		692	536	29.1%	29.1%	–
Intl		34	25	32.3%	28.9%	3.4%		100	75	33.1%	34.6%	-1.5%
WW		260	210	23.6%	23.2%	0.4%		792	611	29.6%	29.8%	-0.2%
OTHER PULMONARY HYPERTENSION
US		40	36	11.5%	11.5%	–		121	179	-32.3%	-32.3%	–
Intl		57	61	-6.7%	-7.4%	0.7%		183	210	-12.7%	-11.9%	-0.8%
WW		97	96	0.1%	-0.3%	0.4%		304	388	-21.7%	-21.3%	-0.4%
CARDIOVASCULAR / METABOLISM / OTHER
US		931	955	-2.6%	-2.6%	–		2,574	2,804	-8.2%	-8.2%	–
Intl		351	360	-2.7%	-2.4%	-0.3%		1,052	1,131	-7.1%	-4.6%	-2.5%
WW		1,281	1,316	-2.6%	-2.5%	-0.1%		3,625	3,936	-7.9%	-7.2%	-0.7%
XARELTO
US		630	613	2.9%	2.9%	–		1,716	1,704	0.7%	0.7%	–
Intl		–	–	–	–	–		–	–	–	–	–
WW		630	613	2.9%	2.9%	–		1,716	1,704	0.7%	0.7%	–
INVOKANA / INVOKAMET
US		156	125	24.7%	24.7%	–		405	411	-1.6%	-1.6%	–
Intl		68	55	24.7%	25.2%	-0.5%		173	147	18.0%	20.7%	-2.7%
WW		224	179	24.7%	24.9%	-0.2%		578	558	3.6%	4.3%	-0.7%
PROCRIT / EPREX
US		69	126	-45.4%	-45.4%	–		215	387	-44.5%	-44.5%	–
Intl		63	72	-12.2%	-13.0%	0.8%		208	220	-5.5%	-4.3%	-1.2%
WW		132	198	-33.3%	-33.6%	0.3%		423	607	-30.4%	-29.9%	-0.5%
OTHER
US		75	91	-17.9%	-17.9%	–		238	302	-21.4%	-21.4%	–
Intl		219	234	-6.2%	-5.5%	-0.7%		670	765	-12.3%	-9.5%	-2.8%
WW		294	325	-9.5%	-9.0%	-0.5%		908	1,067	-14.9%	-12.9%	-2.0%
TOTAL PHARMACEUTICAL
US		6,438	6,340	1.5%	1.5%	–		18,619	17,705	5.2%	5.2%	–
Intl		4,980	4,537	9.7%	8.8%	0.9%		14,685	13,945	5.3%	7.4%	-2.1%
WW		$ 11,418	10,877	5.0%	4.6%	0.4%		$ 33,304	31,650	5.2%	6.1%	-0.9%

See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
MEDICAL DEVICES SEGMENT ^(2,5)		2020	2019	Reported	Operational ⁽¹⁾	Currency		2020	2019	Reported	Operational ⁽¹⁾	Currency

INTERVENTIONAL SOLUTIONS
US		399	357	11.8%	11.8%	–		1,019	1,066	-4.4%	-4.4%	–
Intl		437	382	14.0%	12.9%	1.1%		1,134	1,156	-2.0%	-1.0%	-1.0%
WW		836	741	12.9%	12.4%	0.5%		2,153	2,223	-3.1%	-2.7%	-0.4%
ORTHOPAEDICS
US		1,308	1,301	0.6%	0.6%	–		3,427	3,950	-13.2%	-13.2%	–
Intl		774	837	-7.5%	-9.0%	1.5%		2,145	2,616	-18.0%	-16.9%	-1.1%
WW		2,083	2,138	-2.6%	-3.1%	0.5%		5,572	6,566	-15.1%	-14.7%	-0.4%
HIPS
US		221	204	8.7%	8.7%	–		564	633	-10.9%	-10.9%	–
Intl		124	133	-7.2%	-8.4%	1.2%		344	428	-19.8%	-18.3%	-1.5%
WW		345	336	2.4%	1.9%	0.5%		908	1,061	-14.5%	-13.9%	-0.6%
KNEES
US		205	209	-1.9%	-1.9%	–		527	650	-19.0%	-19.0%	–
Intl		102	136	-24.8%	-26.4%	1.6%		298	435	-31.5%	-30.7%	-0.8%
WW		308	344	-10.9%	-11.6%	0.7%		825	1,085	-24.0%	-23.7%	-0.3%
TRAUMA
US		433	415	4.2%	4.2%	–		1,194	1,239	-3.6%	-3.6%	–
Intl		253	262	-3.4%	-4.7%	1.3%		698	795	-12.2%	-10.9%	-1.3%
WW		685	677	1.3%	0.7%	0.6%		1,892	2,034	-7.0%	-6.5%	-0.5%
SPINE, SPORTS & OTHER ⁽⁷⁾
US		449	472	-4.9%	-4.9%	–		1,142	1,427	-20.0%	-20.0%	–
Intl		295	306	-3.4%	-5.0%	1.6%		805	957	-15.8%	-14.9%	-0.9%
WW		745	778	-4.3%	-5.0%	0.7%		1,947	2,384	-18.3%	-18.0%	-0.3%
SURGERY
US		913	940	-3.0%	-3.0%	–		2,247	2,867	-21.7%	-21.7%	–
Intl		1,239	1,371	-9.6%	-9.5%	-0.1%		3,556	4,192	-15.2%	-13.1%	-2.1%
WW		2,152	2,311	-6.9%	-6.9%	0.0%		5,803	7,059	-17.8%	-16.6%	-1.2%
ADVANCED
US		421	409	3.0%	3.0%	–		1,079	1,209	-10.7%	-10.7%	–
Intl		579	602	-3.9%	-4.1%	0.2%		1,644	1,811	-9.2%	-7.3%	-1.9%
WW		1,000	1,010	-1.1%	-1.2%	0.1%		2,723	3,019	-9.8%	-8.7%	-1.1%
GENERAL
US		492	531	-7.6%	-7.6%	–		1,168	1,658	-29.6%	-29.6%	–
Intl		660	769	-14.1%	-13.8%	-0.3%		1,912	2,381	-19.7%	-17.5%	-2.2%
WW		1,152	1,301	-11.4%	-11.3%	-0.1%		3,080	4,040	-23.8%	-22.5%	-1.3%
VISION
US		473	459	3.1%	3.1%	–		1,160	1,366	-15.1%	-15.1%	–
Intl		608	734	-17.2%	-17.4%	0.2%		1,683	2,117	-20.5%	-19.6%	-0.9%
WW		1,081	1,193	-9.4%	-9.5%	0.1%		2,843	3,483	-18.4%	-17.8%	-0.6%
CONTACT LENSES / OTHER
US		375	339	10.9%	10.9%	–		924	993	-6.9%	-6.9%	–
Intl		455	555	-18.1%	-18.2%	0.1%		1,274	1,566	-18.7%	-17.8%	-0.9%
WW		830	893	-7.1%	-7.2%	0.1%		2,198	2,559	-14.1%	-13.6%	-0.5%
SURGICAL
US		98	120	-18.9%	-18.9%	–		236	373	-36.8%	-36.8%	–
Intl		153	180	-14.6%	-14.8%	0.2%		409	551	-25.7%	-24.8%	-0.9%
WW		251	299	-16.3%	-16.4%	0.1%		645	923	-30.2%	-29.6%	-0.6%

TOTAL MEDICAL DEVICES
US		3,092	3,057	1.2%	1.2%	–		7,852	9,249	-15.1%	-15.1%	–
Intl		3,058	3,326	-8.1%	-8.5%	0.4%		8,518	10,082	-15.5%	-14.1%	-1.4%
WW		$ 6,150	6,383	-3.6%	-3.9%	0.3%		$ 16,370	19,331	-15.3%	-14.6%	-0.7%


Note: Columns 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				(6) Reported as U.S. sales
(1) Operational growth excludes the effect of translational currency				(7) Previously referred to as Spine & Other
(2) Unaudited
(3) Previously referred to as Consumer
(4) Previously referred to as Beauty
(5) Certain prior year amounts have been reclassified to conform to current year product disclosures