Cautions Concerning Forward-looking Statements

Transcription

1 1

2 Cautions Concerning Forward-looking Statements These presentations contain 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 viewer 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: challenges and uncertainties inherent in new product development, including uncertainty of clinical success and decisions of regulatory authorities regarding approval, labeling and other matters that could affect the availability or commercial potential of product candidates; uncertainty of commercial success for new and existing products; the ability of the company to successfully execute strategic plans, including restructuring plans; competition, including technological advances, new products and patents attained by competitors; impact of business combinations and divestitures; challenges to patents; changes to applicable laws and regulations, including global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns or financial distress of purchasers of health care products and services; product efficacy or safety concerns resulting in product recalls or regulatory action; manufacturing difficulties or delays; significant adverse litigation or government action, including related to product liability claims; financial instability of international economies and legal systems; and increased scrutiny of the health care industry by government agencies. A further list and description of these risks, uncertainties and other factors can be found in Johnson & Johnson s Annual Report on Form 10-K for the fiscal year ended January 3, 2016, including in Exhibit 99 thereto, and the company s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at or on request from Johnson & Johnson. Any forward-looking statement made in these presentations speaks only as of the date of these presentations. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments. 2

3 Notice Regarding Non-GAAP Statements These presentations may refer to certain non-gaap financial measures. These non-gaap financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. A reconciliation of certain of these non-gaap financial measures to the most directly comparable GAAP financial measures can be found in the Investor Relations section of the Company s website at Note: Operational sales growth excludes translational currency impact and is a non-gaap financial measure. Notice Regarding Trademarks Third-party trademarks used herein are trademarks of their respective owners. 3

4 Strategic Partnerships, Collaborations and Licensing Arrangements During the course of this morning s presentations, we will discuss a number of products developed in collaboration with strategic partners or licensed from other companies. Following is an acknowledgement of those relationships. Diabetes Care Orthopaedics Surgery Consumer INVOKANA licensed from Mitsubishi Tanabe Pharma Corporation; ANIMAS VIBE in partnership with Dexcom; ONETOUCH VERIO FLEX uses Bluetooth MONOVISC and ORTHOVISC licensed from Anika Therapeutics, Inc.; Kick 2D Surgical Navigation co-developed with Brainlab AG; Various products in connection with the Cooperation Agreement with the AO Foundation; TRUMATCH developed in collaboration with imorphics Ltd and Materialise; CARTO software in partnership with Siemens SURGIFLO research collaboration with Ferrosan Medical Devices A/S ZYRTEC licensed from UCB Inc. and its affiliates; RHINOCORT licensed from AstraZeneca AB 4

5 Art, Science & Ambition Josh Ghaim, Ph.D. Chief Technology Officer, Consumer Alison Lewis Chief Marketing Officer, Consumer 5

6 Transformed Our Brand Building and Innovation Model Power of Art & Science Building Global Brands Differentiated Innovation Pipeline Accelerated Growth Established mega brands and expanded globally Developed a highly differentiated, more valuable innovation pipeline Unlocked accelerated sales and share growth 6

7 All Embedded into a Global Brand Building Framework J&J BRAND SPOTLIGHT Innovation Communication Design Experience BRAND GROWTH PLAN BRAND CREATIVE IDEA CONNECTIONS PLAN EXPERIENCE & CONTENT DEVELOPMENT MEASUREMENT 7

8 That Indexes Above Industry ROI US 1 ROI Indices 2015 EMEA 2 ROI Indices CPG Benchmark Index (Values indexed to Benchmark) TV Digital Print TV Digital Print 1. Based on 2015 mphasize Models, weighted by spend 2. Based on 2015 Neilsen Models in UK, France and Spain, weighted by spend 8

9 Allowing Us to Unlock Brand Value Through Three Growth Pathways Gain global share Grow global consumption Grow global household penetration 9

10 World-class Capabilities Strengthened Our Core Insight-led innovation backed by science R&D capabilities in key Emerging Markets (Brazil, China and India) Global external innovation ecosystem Global quality, regulatory and clinical operations supporting global launches 10

11 Focus on Six Key Consumer Health Growth Categories Beauty OTC Baby Care Oral Health Women s Health Wound Care Aging population Significant unmet need in: Sun Care Anti-aging Aging population Consumer shift to self-care 135 million babies born per year 75% of births in Emerging Markets High incidence of cavities and gum disease Access to care in Emerging Markets Significant unmet need in Emerging Markets Aging population Chronic conditions Consumer shift to self-care Driving Growth through Insight-led Innovation Backed by Scientific Excellence 11

12 Repeatable Insight-led Innovation Model for Growth FOCUS ON FEWER & BIGGER: Differentiated Innovation with Global Scale EXTERNAL FOCUS: Engage World s Best Innovators and Scientists DESIGN THINKING: Consumer and Patient-centric Solutions EXCELLENCE IN SCIENCE: Regulatory and Clinical Excellence Leader in R&D Productivity Partner of Choice Brand Loyalty Professional Endorsement 12

13 Our Innovation Model is Delivering Strong Portfolio Value # of Projects by Launch Year Estimated Portfolio Value by Launch Year -50% 3x vs x vs Data indexed to 2015 number of projects and portfolio value 13

14 Robust Innovation Pipeline in 2016: Launching More Than 100 New Products 14

15 Delivering Transformational Innovation Through Strategic Partnerships External Innovation Over 50 Active Partnerships Globally Emerging Sciences microbiome, biomimicry, 3D printing Strong Innovation Ecosystem academia, entrepreneurs, strategic suppliers collaboration on oral health equity investment in energy based device start-up Health & Technology sensors, personalization, diagnostics Johnson & Johnson Innovation Innovation Centers, JLabs, JJDC and cross-sector collaborations equity investment in new OTC delivery form R&D collaboration leading to an acquisition 1 1. Estimated Q closing 15

16 Design Thinking: Consumer and Patient-centric Solutions insights universal human & health insights to uncover and articulate unmet needs create translate unmet needs into opportunities and create health & well-being solutions Ability to test & learn with speed deliver irresistible product and brand user experiences scale adapt and globally scale solutions with speed 16

17 Excellence in Science and Clinical Efficacy Drives Professional Endorsement Scientific Publications 90% of baby skin publications 48% of skin care publications over 100 oral health publications Regulatory & Clinical Excellence Enterprise capabilities enable us to drive new product innovations classified as medical devices or new drugs by regulatory bodies globally Intellectual Property 1 Strong Professional Endorsement 1 #1 dermatologist recommended Neutrogena patents granted / pending allergist recommended brand Zyrtec hospital recommended Johnson s dentist recommended Listerine 1. US only data 17

18 18

19 Skincare is a Large Category and Caring for the Skin is a Fundamental Need $160 Billion Growing +3% 1 1. Source: Euromonitor, CAGR Skincare is fundamental Skin is the largest organ of the body and its 1 st barrier, providing protection against harsh environmental factors 19

20 Our Ambition is High Today Ranked #2 in US Tomorrow Ranked #1 in US Ranked #4 globally Ranked #2-3 globally Source: Internal estimate 20

21 With Growth Fueled by Four Foundational Areas Power of a Big Idea Globally Scaled Communications Global Market Expansion Re-thinking What s Possible in Innovation 21

22 Neutrogena Elevates the Brand to Unique Space in Beauty At Neutrogena, our job is to allow each woman to put her best face forward. That is why we continue to create, innovate and rethink what is possible in skincare. Health Beauty 22

23 23

24 Neutrogena Poised to Unlock Growth Behind See What s Possible Launched globally in 30 Markets Global PR launch 250MM Reach 2X More than other brands US growth 1 Dermatologist recommended +2 Share points over 2 years 1. US Nielsen 2014 & 2015 Market Share 24

25 Neutrogena Hydro Boost: Best-in-class Skin Hydration Platform Translating insights from Asia into global success Water Gel Matrix with Hyaluronic Acid (absorbs up to 1000x its weight in water) Progressively releases moisture all day long Winning with clinical efficacy, best-in-class product aesthetics and consumer experience 25

26 Neutrogena Sun Care: Powerful Protection + Consumer Preferred Aesthetics Addressing consumer unmet need of performance and aesthetics wet skin technology Powerful protection wet or dry, no dripping, no whitening 26

27 Neutrogena Rapid Wrinkle Repair : Superior Retinol Anti-aging Technology Driving efficacy through formulation and manufacturing know how Before After 50% MORE Retinol Clinically proven to work on even the deepest wrinkles. Results in just 1 week. Building on over 25 years of research on retinol clinical efficacy and safety to drive consumer perceivable results 27

28 Introducing Skin Care for the Digital Generation 28

29 29

30 Introducing Skin Care for the Digital Generation 30

31 31

32 Caring for the World s Babies is Our Calling New moms entering category every day 135 million babies born each year; 75% in emerging markets 73% only use one product during care occasions 32

33 And Re-birthing Our Baby B O R N Build JOHNSON S today! Build Today Own Own New Rituals new rituals Rock Rock Premium premium Nurture Nail Our Future our future 33

34 Grow Baby, Grow! Build Today! Own New Rituals Rock Premium Nurture Our Future New Creative Idea Wipes Innovation Market Expansion Follow Millennial Moms Ages & Stages Innovation Restages Global Activation CAPTURE Diaper Rash Expansion EXPAND New News BabyCenter Owned Asset RETAIN 34

35 Grow Baby, Grow! Build Today! Own New Rituals Rock Premium Nurture Our Future Millennial Relevance / Reach Ages & Stages Innovation CAPTURE EXPAND RETAIN Half Bath Wipe Extra Moisture Head-to-Toe Bedtime Range Emerging Market Pure Protect Shiny Drops 35

36 Grow Baby, Grow! Build Today! Own New Rituals Rock Premium Nurture Our Future Wipes Innovation Diaper Rash Expansion Anchored in Skin Care Benefits Desitin Expansion New Diaper Rash Acquisition 36

37 Grow Baby, Grow! Build Today! Own New Rituals Rock Premium Nurture Our Future Market Expansion German Restage and Market Expansion New News!!!! 37

38 Grow Baby, Grow! Build Today! Own New Rituals Rock Premium Nurture Our Future Digital Acceleration Leveraging Owned Assets Transformational Innovation to Come For JOHNSON S to regain brand relevance, it has to meet changing consumer needs. Innovation is one way. Another way is to identify relevant goals that can be tied to moments that reflect our brand purpose, keeping in mind that JOHNSON S is truly a priceless brand. Powerful Asset 14 markets Covers 73% of JOHNSON S sales 45 million unique visits monthly JOHNSON S: DEFINING THE MASTER BRAND AUGUST 2014?? PAGE 3 38

39 39

40 Listerine Speaks to the Transformative Power of the Brand Spit out impossible and sink your teeth into a life of possible Fully Ready It s Working 40

41 Coupled with the Transformative Power of the Science 5x 2x less plaque less gum disease VS. BRUSHING ALONE Data on file 41

42 Driving More People to Swish Attracting New Users Increasing # of Swishes Million HHS (27% to 53% 1 household penetration) +5 Swishes / Week Twice daily usage $17B MARKET OPPORTUNITY 1. Kantar data, global penetration equal to US penetration 42

43 43

44 And We Are Seeing Bold Results YTD! Market share +1.4 pts to 42.3% Sales +8.0% 1 Live in 80+ Markets simultaneously Digital 1/3 of media mix Professional Recommendations 1. Operational growth, March 2016 YTD excludes Venezuela 44

45 Transformed Our Brand Building and Innovation Model Power of Art & Science Building Global Brands Differentiated Innovation Pipeline Accelerated Growth Established mega brands and expanded globally Developed a highly differentiated, more valuable innovation pipeline Unlocked accelerated sales and share growth 45

46 46