Johnson & Johnson Reports 2020 Second-Quarter Results:

- Sales of $18.3 billion reflecting a decline of 10.8%, operational decline of 9.0%* and adjusted operational decline of 8.8%*, primarily driven by the negative impact of the COVID-19 pandemic

- EPS of $1.36 decreased 34.6%; adjusted EPS of $1.67 decreased 35.3%*; 2019 included gain from sale of Advanced Sterilization Products (ASP) business

- Company increasing Full Year Sales and EPS guidance

News provided by

Johnson & Johnson

Jul 16, 2020, 06:40 ET

NEW BRUNSWICK, N.J., July 16, 2020 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter 2020. "Our second quarter results reflect the impact of COVID-19 and the enduring strength of our Pharmaceutical business, where we saw continued growth even in this environment," said Alex Gorsky, Chairman and Chief Executive Officer. "Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives." Mr. Gorsky continued, "We are bringing together our best minds, our global footprint and our sophisticated supply chain technology to deliver on our commitment to provide the vaccine on a not-for-profit basis for emergency pandemic use, globally. We know the need is urgent, and every day we commit to doing our part to find a solution for the global good."

OVERALL FINANCIAL RESULTS:

		SECOND QUARTER
	($ in Millions, except EPS)	2020	2019	% Change
	Reported Sales	$ 18,336	$ 20,562	(10.8)%
	Net Earnings	3,626	5,607	(35.3)%
	EPS (diluted)	$ 1.36	$ 2.08	(34.6)%

	Non-GAAP*	SECOND QUARTER
	($ in Millions, except EPS)	2020	2019	% Change
	Operational Sales^1,2	N/A	N/A	(9.0)%
	Adjusted Operational Sales^1,3	N/A	N/A	(8.8)%
	Adjusted Net Earnings^1,4	4,446	6,950	(36.0)%
	Adjusted EPS (diluted)^1,4	$ 1.67	$ 2.58	(35.3)%

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
⁴Excludes intangible amortization expense and special items

REGIONAL SALES RESULTS:

		SECOND QUARTER		% Change
	Adjusted ($ in Millions) 1	Adjusted 2020²	Adjusted 2019²	Adjusted Reported²	Adjusted Operational^1,2	Adjusted Currency²	Adjusted Operational^1,3
	U.S.	$ 9,539	$ 10,403	(8.3)%	(8.3)	-	(8.1)
	International	8,797	10,159	(13.4)%	(9.6)	(3.8)	(9.4)
	Worldwide	$ 18,336	$ 20,562	(10.8)%	(9.0)	(1.8)	(8.8)

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
Note: values may have been rounded

SEGMENT SALES RESULTS:

		SECOND QUARTER		% Change
	Adjusted ($ in Millions) ¹	Adjusted 2020¹	Adjusted 2019¹	Adjusted Reported²	Adjusted Operational^1,2	Adjusted Currency¹	Adjusted Operational^1,3
	Consumer Health	$ 3,296	$ 3,544	(7.0)%	(3.6)	(3.4)	(3.4)
	Pharmaceutical	10,752	10,529	2.1%	3.9	(1.8)	3.9
	Medical Devices	4,288	6,489	(33.9)%	(32.7)	(1.2)	(32.5)
	Worldwide	$ 18,336	$ 20,562	(10.8)%	(9.0)	(1.8)	(8.8)

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
Note: values may have been rounded

SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.4%* as results were negatively impacted by the COVID-19 pandemic most notably reflected in skin health and beauty care products, followed by women's health care products and international baby care products. Partially offsetting this impact was growth in over-the-counter products including TYLENOL analgesics; digestive health products and ZARBEE'S NATURALS; and LISTERINE mouthwash in oral care products. Both over-the-counter and oral care products were positively impacted by COVID-19.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.9%* driven by STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression. 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, international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma, 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 32.5%* primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, Vision and Interventional Solutions businesses.

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	TREMFYA (guselkumab) – U.S. Food and Drug Administration (FDA) Approves for Adult Patients with Active Psoriatic Arthritis (PsA)¹	(press release)
	ZABDENO (Ad26.ZEBOV) and MVABEA (MVA-BN-Filo) – European Commission Approves Janssen's Preventive Ebola Vaccine¹	(press release)
	DARZALEX (daratumumab) – European Commission (EC) Grants Marketing Authorisation for Subcutaneous Formulation for all Currently Approved Intravenous Formulation Indications	(press release)
	SIRTURO (bedaquiline) – U.S. FDA Approves New Pediatric Formulation as Part of Combination Therapy to Treat Children with Pulmonary Multidrug- Resistant Tuberculosis	(press release)
	DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) – U.S. FDA Approves a new Subcutaneous Formulation of Daratumumab for the Treatment of Patients with Multiple Myeloma	(press release)
	IMBRUVICA (ibrutinib) – U.S. FDA Approves IMBRUVICA Plus Rituximab for Treatment of Patients with Chronic Lymphocytic Leukemia (CLL)	(press release)
Regulatory Submissions	SIMPONI ARIA (golimumab) – Submission to the U.S. Food and Drug Administration (FDA) for the Treatment of Polyarticular Juvenile Idiopathic Arthritis and Juvenile Psoriatic Arthritis	(press release)
Other	STELARA (ustekinumab) Discontinuation of Phase 3 LOTUS Study in Systemic Lupus Erythematosus	(press release)
	Johnson & Johnson Announces Acceleration of its COVID-19 Vaccine Candidate; Phase 1/2a Clinical Trial to Begin in Second Half of July	(press release)
	Biosense Webster Unveils Late-Breaking Results from PRECEPT Study in Patients with Persistent Atrial Fibrillation	(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.

	July 2020	April 2020
($ in Billions, except EPS)
Adjusted Operational Sales^1,2 Change vs. Prior Year	(0.8%) – 1.0%	(3.0%) - 0.5%
Operational Sales² Change vs. Prior Year	$81.0 to $82.5 (1.3%) – 0.5%	$79.2 to $82.2 (3.5%) - 0.0%
Estimated Reported Sales³ Change vs. Prior Year	$79.9 to $81.4 (2.6%) – (0.8%)	$77.5 to $80.5 (5.5%) - (2.0%)

Adjusted Operational EPS (Diluted)^2,4 Change vs. Prior Year	$7.85 to $8.05 (9.6%) - (7.3%)	$7.65 to $8.05 (11.9%) - (7.3%)
Adjusted EPS (Diluted)^3,4 Change vs. Prior Year	$7.75 - $7.95 (10.7%) – (8.4%)	$7.50 to $7.90 (13.6%) - (9.0%)

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 2020 = $1.12 Euro Average Rate: April 2020 = $1.09 (Illustrative purposes only)
⁴Non-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 8:00 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)	SECOND QUARTER						SIX MONTHS
			Percent Change						Percent Change
	2020	2019	Total		Operations	Currency	2020	2019	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 9,539	10,403	(8.3)	%	(8.3)	-	$ 20,238	20,532	(1.4)	%	(1.4)	-

Europe	4,063	4,733	(14.2)		(11.5)	(2.7)	8,890	9,342	(4.8)		(2.1)	(2.7)
Western Hemisphere excluding U.S.	1,133	1,455	(22.1)		(8.9)	(13.2)	2,635	2,958	(10.9)		(0.1)	(10.8)
Asia-Pacific, Africa	3,601	3,971	(9.3)		(7.7)	(1.6)	7,264	7,751	(6.3)		(4.9)	(1.4)
International	8,797	10,159	(13.4)		(9.6)	(3.8)	18,789	20,051	(6.3)		(2.9)	(3.4)

Worldwide	$ 18,336	20,562	(10.8)	%	(9.0)	(1.8)	$ 39,027	40,583	(3.8)	%	(2.2)	(1.6)


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)	SECOND QUARTER						SIX 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.	$ 1,557	1,537	1.3	%	1.3	-	$ 3,297	2,975	10.8	%	10.8	-
International	1,739	2,007	(13.4)		(7.4)	(6.0)	3,624	3,887	(6.8)		(1.9)	(4.9)
	3,296	3,544	(7.0)		(3.6)	(3.4)	6,921	6,862	0.9		3.6	(2.7)

Pharmaceutical
U.S.	6,120	5,783	5.8		5.8	-	12,181	11,365	7.2		7.2	-
International	4,632	4,746	(2.4)		1.4	(3.8)	9,705	9,408	3.2		6.7	(3.5)
	10,752	10,529	2.1		3.9	(1.8)	21,886	20,773	5.4		7.0	(1.6)

Medical Devices
U.S.	1,862	3,083	(39.6)		(39.6)	-	4,760	6,192	(23.1)		(23.1)	-
International	2,426	3,406	(28.8)		(26.4)	(2.4)	5,460	6,756	(19.2)		(16.8)	(2.4)
	4,288	6,489	(33.9)		(32.7)	(1.2)	10,220	12,948	(21.1)		(19.8)	(1.3)

U.S.	9,539	10,403	(8.3)		(8.3)	-	20,238	20,532	(1.4)		(1.4)	-
International	8,797	10,159	(13.4)		(9.6)	(3.8)	18,789	20,051	(6.3)		(2.9)	(3.4)
Worldwide	$ 18,336	20,562	(10.8)	%	(9.0)	(1.8)	$ 39,027	40,583	(3.8)	%	(2.2)	(1.6)

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)	SECOND QUARTER

	2020			2019			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 18,336		100.0	$ 20,562		100.0	(10.8)
Cost of products sold	6,579		35.9	6,940		33.8	(5.2)
Gross Profit	11,757		64.1	13,622		66.2	(13.7)
Selling, marketing and administrative expenses	4,993		27.2	5,546		27.0	(10.0)
Research and development expense	2,707		14.8	2,666		13.0	1.5
In-process research and development	6		0.0	-		-
Interest (income) expense, net	26		0.2	(5)		0.0
Other (income) expense, net	24		0.1	(1,683)		(8.2)
Restructuring	61		0.3	57		0.2
Earnings before provision for taxes on income	3,940		21.5	7,041		34.2	(44.0)
Provision for taxes on income	314		1.7	1,434		6.9	(78.1)
Net earnings	$ 3,626		19.8	$ 5,607		27.3	(35.3)

Net earnings per share (Diluted)	$ 1.36			$ 2.08			(34.6)

Average shares outstanding (Diluted)	2,665.5			2,691.7

Effective tax rate	8.0	%		20.4	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 5,337		29.1	$ 8,614		41.9	(38.0)
Net earnings	$ 4,446		24.2	$ 6,950		33.8	(36.0)
Net earnings per share (Diluted)	$ 1.67			$ 2.58			(35.3)
Effective tax rate	16.7	%		19.3	%

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

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

	2020			2019			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 39,027		100.0	$ 40,583		100.0	(3.8)
Cost of products sold	13,641		35.0	13,555		33.4	0.6
Gross Profit	25,386		65.0	27,028		66.6	(6.1)
Selling, marketing and administrative expenses	10,196		26.1	10,765		26.5	(5.3)
Research and development expense	5,287		13.5	5,524		13.6	(4.3)
In-process research and development	6		0.0	890		2.2
Interest (income) expense, net	(16)		0.0	(2)		0.0
Other (income) expense, net	(655)		(1.7)	(1,705)		(4.2)
Restructuring	119		0.3	93		0.3
Earnings before provision for taxes on income	10,449		26.8	11,463		28.2	(8.8)
Provision for taxes on income	1,027		2.7	2,107		5.1	(51.3)
Net earnings	$ 9,422		24.1	$ 9,356		23.1	0.7

Net earnings per share (Diluted)	$ 3.53			$ 3.47			1.7

Average shares outstanding (Diluted)	2,671.0			2,697.0

Effective tax rate	9.8	%		18.4	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 12,581		32.2	$ 15,481		38.1	(18.7)
Net earnings	$ 10,600		27.2	$ 12,611		31.1	(15.9)
Net earnings per share (Diluted)	$ 3.97			$ 4.68			(15.2)
Effective tax rate	15.7	%		18.5	%

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

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

		Second Quarter		Six Months Ended
	(Dollars in Millions Except Per Share Data)	2020	2019	2020	2019
	Net Earnings, after tax- as reported	$3,626	$5,607	$9,422	$9,356

	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,127	1,118	2,245	2,248
	Litigation expense, net	613	409	733	832
	IPR&D	6	-	6	890
	Restructuring related	115	142	233	232
	Acquisition and Integration related ¹	29	55	(933)	122
	Unrealized (gains)/losses on securities	(533)	(148)	(206)	(306)
	Medical Device Regulation ²	37	-	51	-
	Other	3	(3)	3	-

	Tax Adjustments
	Tax impact on special item adjustments ³	(253)	(230)	(520)	(763)
	Tax legislation and related impacts	(324)	-	(434)	-
	Adjusted Net Earnings, after tax	$4,446	$6,950	$10,600	$12,611
	Average shares outstanding (Diluted)	2,665.5	2,691.7	2,671.0	2,697.0
	Adjusted net earnings per share (Diluted)	$1.67	$2.58	$3.97	$4.68
	Operational adjusted net earnings per share (Diluted)	$1.69		$4.01

	Notes:
¹	Acquisition and integration related costs for the six months of 2020 primarily includes a $983M Contingent Consideration reversal 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
SECOND QUARTER 2020 ACTUAL vs. 2019 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	(7.0)%	2.1%	(33.9)%	(10.8)%
U.S.	1.3%	5.8%	(39.6)%	(8.3)%
International	(13.4)%	(2.4)%	(28.8)%	(13.4)%

WW Currency	(3.4)	(1.8)	(1.2)	(1.8)
U.S.	-	-	-	-
International	(6.0)	(3.8)	(2.4)	(3.8)

WW Operational	(3.6)%	3.9%	(32.7)%	(9.0)%
U.S.	1.3%	5.8%	(39.6)%	(8.3)%
International	(7.4)%	1.4%	(26.4)%	(9.6)%

General Surgery
*Advanced Sterilization Products*			0.1	0.1
U.S.			0.0	0.0
International			0.3	0.2

Baby Care
*Baby Center*	0.3			0.0
U.S.	0.7			0.1
International	0.0			0.0

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

WW Adjusted Operational	(3.4)%	3.9%	(32.5)%	(8.8)%
U.S.	2.0%	5.8%	(39.5)%	(8.1)%
International	(7.5)%	1.5%	(26.1)%	(9.4)%

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

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

Adjusted Operational Sales Growth
SIX MONTHS 2020 ACTUAL vs. 2019 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	0.9%	5.4%	(21.1)%	(3.8)%
U.S.	10.8%	7.2%	(23.1)%	(1.4)%
International	(6.8)%	3.2%	(19.2)%	(6.3)%

WW Currency	(2.7)	(1.6)	(1.3)	(1.6)
U.S.	-	-	-	-
International	(4.9)	(3.5)	(2.4)	(3.4)

WW Operational	3.6%	7.0%	(19.8)%	(2.2)%
U.S.	10.8%	7.2%	(23.1)%	(1.4)%
International	(1.9)%	6.7%	(16.8)%	(2.9)%

Skin Health / Beauty
*Dr. Ci Labo - Japan*	(0.2)			0.0
U.S.	0.0			0.0
International	(0.4)			(0.1)

General Surgery
*Advanced Sterilization Products*			1.0	0.4
U.S.			1.1	0.4
International			0.9	0.4

Baby Care
*Baby Center*	0.3			0.0
U.S.	0.7			0.1
International	0.0			0.0

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

WW Adjusted Operational	3.6%	7.0%	(18.8)%	(1.7)%
U.S.	11.5%	7.2%	(22.0)%	(0.8)%
International	(2.5)%	6.7%	(15.9)%	(2.6)%

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

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
		2020	2019	Reported	Operational ⁽¹⁾	Currency		2020	2019	Reported	Operational ⁽¹⁾	Currency
CONSUMER HEALTH SEGMENT ^(2,3)
BABY CARE
US		$ 96	99	-3.5%	-3.5%	-		$ 188	186	1.2%	1.2%	-
Intl		260	344	-24.3%	-16.6%	-7.7%		529	651	-18.7%	-12.6%	-6.1%
WW		356	443	-19.7%	-13.6%	-6.1%		717	837	-14.3%	-9.5%	-4.8%
ORAL CARE
US		170	155	9.7%	9.7%	-		346	306	12.9%	12.9%	-
Intl		227	234	-2.8%	4.0%	-6.8%		446	450	-0.8%	4.6%	-5.4%
WW		397	389	2.2%	6.3%	-4.1%		792	756	4.8%	8.0%	-3.2%
OTC
US		627	484	29.6%	29.6%	-		1,316	991	32.8%	32.8%	-
Intl		522	580	-10.1%	-5.0%	-5.1%		1,181	1,160	1.8%	6.0%	-4.2%
WW		1,149	1,064	7.9%	10.7%	-2.8%		2,497	2,151	16.1%	18.3%	-2.2%
SKIN HEALTH / BEAUTY⁽⁴⁾
US		536	663	-19.2%	-19.2%	-		1,195	1,251	-4.5%	-4.5%	-
Intl		471	539	-12.5%	-8.2%	-4.3%		929	1,041	-10.7%	-7.4%	-3.3%
WW		1,007	1,202	-16.2%	-14.3%	-1.9%		2,124	2,292	-7.3%	-5.8%	-1.5%
WOMEN'S HEALTH
US		3	3	-2.9%	-2.9%	-		7	6	14.3%	14.3%	-
Intl		199	250	-20.4%	-12.0%	-8.4%		427	472	-9.6%	-2.1%	-7.5%
WW		202	253	-20.1%	-11.8%	-8.3%		434	478	-9.3%	-1.9%	-7.4%
WOUND CARE / OTHER
US		126	132	-4.7%	-4.7%	-		245	234	4.7%	4.7%	-
Intl		59	61	-2.4%	3.7%	-6.1%		111	114	-1.9%	2.8%	-4.7%
WW		185	193	-4.0%	-2.1%	-1.9%		356	348	2.6%	4.1%	-1.5%

TOTAL CONSUMER HEALTH
US		1,557	1,537	1.3%	1.3%	-		3,297	2,975	10.8%	10.8%	-
Intl		1,739	2,007	-13.4%	-7.4%	-6.0%		3,624	3,887	-6.8%	-1.9%	-4.9%
WW		$ 3,296	3,544	-7.0%	-3.6%	-3.4%		$ 6,921	6,862	0.9%	3.6%	-2.7%


See footnotes at end of schedule

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

IMMUNOLOGY
US		$ 2,362	2,379	-0.7%	-0.7%	-		$ 4,772	4,542	5.1%	5.1%	-
Intl		1,161	1,087	6.8%	11.0%	-4.2%		2,389	2,175	9.8%	13.7%	-3.9%
WW		3,523	3,466	1.6%	3.0%	-1.4%		7,161	6,717	6.6%	7.9%	-1.3%
REMICADE
US		593	801	-25.8%	-25.8%	-		1,218	1,575	-22.7%	-22.7%	-
US Exports ⁽⁶⁾		133	62	*	*	-		243	138	75.7%	75.7%	-
Intl		208	244	-14.5%	-8.7%	-5.8%		464	496	-6.4%	-1.6%	-4.8%
WW		935	1,107	-15.5%	-14.2%	-1.3%		1,925	2,209	-12.9%	-11.8%	-1.1%
SIMPONI / SIMPONI ARIA
US		256	281	-8.7%	-8.7%	-		528	544	-2.9%	-2.9%	-
Intl		289	282	2.6%	6.8%	-4.2%		547	543	0.8%	4.8%	-4.0%
WW		546	563	-3.0%	-0.9%	-2.1%		1,075	1,087	-1.1%	1.0%	-2.1%
STELARA
US		1,138	1,058	7.5%	7.5%	-		2,355	1,940	21.4%	21.4%	-
Intl		558	499	11.9%	15.5%	-3.6%		1,161	1,022	13.6%	16.9%	-3.3%
WW		1,697	1,558	8.9%	10.1%	-1.2%		3,516	2,963	18.7%	19.8%	-1.1%
TREMFYA
US		241	176	36.7%	36.7%	-		428	344	24.4%	24.4%	-
Intl		101	59	71.0%	73.4%	-2.4%		210	108	94.0%	97.1%	-3.1%
WW		342	235	45.4%	46.0%	-0.6%		638	452	41.1%	41.8%	-0.7%
OTHER IMMUNOLOGY
US		-	-	-	-	-		-	-	-	-	-
Intl		3	3	11.8%	21.6%	-9.8%		6	6	2.7%	8.4%	-5.7%
WW		3	3	11.8%	21.6%	-9.8%		6	6	2.7%	8.4%	-5.7%
INFECTIOUS DISEASES
US		416	387	7.4%	7.4%	-		852	744	14.5%	14.5%	-
Intl		463	475	-2.5%	2.6%	-5.1%		946	964	-1.8%	2.7%	-4.5%
WW		878	862	1.9%	4.7%	-2.8%		1,798	1,708	5.3%	7.8%	-2.5%
EDURANT / rilpivirine
US		10	12	-14.0%	-14.0%	-		22	24	-6.9%	-6.9%	-
Intl		246	198	24.5%	27.7%	-3.2%		458	397	15.4%	18.4%	-3.0%
WW		256	210	22.2%	25.2%	-3.0%		480	421	14.1%	17.0%	-2.9%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		379	344	10.5%	10.5%	-		775	659	17.7%	17.7%	-
Intl		130	191	-32.0%	-26.1%	-5.9%		314	399	-21.4%	-15.8%	-5.6%
WW		510	535	-4.7%	-2.6%	-2.1%		1,089	1,058	2.9%	5.0%	-2.1%
OTHER INFECTIOUS DISEASES
US		25	31	-18.7%	-18.7%	-		54	61	-11.2%	-11.2%	-
Intl		87	86	1.0%	8.7%	-7.7%		174	168	3.8%	9.4%	-5.6%
WW		113	117	-4.2%	1.5%	-5.7%		229	229	-0.2%	3.9%	-4.1%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change					% Change
		2020	2019	Reported	Operational ⁽¹⁾	Currency	2020	2019	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US		778	664	17.4%	17.4%	-	1,526	1,387	10.1%	10.1%	-
Intl		809	875	-7.6%	-4.1%	-3.5%	1,719	1,780	-3.5%	-0.5%	-3.0%
WW		1,587	1,538	3.2%	5.2%	-2.0%	3,245	3,167	2.5%	4.1%	-1.6%
CONCERTA / Methylphenidate
US		55	15	*	*	-	107	112	-4.2%	-4.2%	-
Intl		94	123	-23.0%	-20.2%	-2.8%	212	239	-11.0%	-8.6%	-2.4%
WW		149	137	8.7%	11.2%	-2.5%	320	351	-8.9%	-7.2%	-1.7%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		576	506	13.8%	13.8%	-	1,120	989	13.2%	13.2%	-
Intl		303	312	-2.8%	0.3%	-3.1%	642	619	3.7%	6.7%	-3.0%
WW		879	818	7.5%	8.6%	-1.1%	1,762	1,608	9.5%	10.7%	-1.2%
RISPERDAL CONSTA
US		74	81	-9.3%	-9.3%	-	150	158	-4.9%	-4.9%	-
Intl		79	101	-21.2%	-18.1%	-3.1%	173	203	-14.9%	-11.9%	-3.0%
WW		153	182	-15.9%	-14.2%	-1.7%	323	361	-10.5%	-8.9%	-1.6%
OTHER NEUROSCIENCE
US		75	62	21.5%	21.5%	-	150	128	16.8%	16.8%	-
Intl		331	340	-2.5%	1.7%	-4.2%	691	719	-3.9%	-0.8%	-3.1%
WW		406	401	1.2%	4.7%	-3.5%	841	847	-0.7%	1.8%	-2.5%
ONCOLOGY
US		1,181	1,013	16.6%	16.6%	-	2,356	1,975	19.3%	19.3%	-
Intl		1,609	1,684	-4.4%	-0.9%	-3.5%	3,448	3,240	6.4%	9.9%	-3.5%
WW		2,791	2,697	3.5%	5.7%	-2.2%	5,804	5,215	11.3%	13.5%	-2.2%
DARZALEX
US		492	369	32.9%	32.9%	-	955	721	32.3%	32.3%	-
Intl		409	405	1.2%	5.9%	-4.7%	883	682	29.6%	34.7%	-5.1%
WW		901	774	16.3%	18.8%	-2.5%	1,838	1,403	31.0%	33.5%	-2.5%
ERLEADA
US		136	62	*	*	-	255	120	*	*	-
Intl		33	7	*	*	*	57	10	*	*	*
WW		170	69	*	*	*	313	130	*	*	*
IMBRUVICA
US		447	367	21.5%	21.5%	-	879	716	22.6%	22.6%	-
Intl		502	463	8.3%	13.4%	-5.1%	1,101	898	22.6%	27.4%	-4.8%
WW		949	831	14.1%	17.0%	-2.9%	1,980	1,615	22.6%	25.3%	-2.7%
VELCADE
US		-	-	-	-	-	-	-	-	-	-
Intl		98	224	-56.1%	-55.2%	-0.9%	206	487	-57.7%	-56.9%	-0.8%
WW		98	224	-56.1%	-55.2%	-0.9%	206	487	-57.7%	-56.9%	-0.8%
ZYTIGA / abiraterone acetate
US		87	198	-55.6%	-55.6%	-	226	383	-40.9%	-40.9%	-
Intl		480	500	-3.9%	-2.0%	-1.9%	1,032	994	3.8%	6.1%	-2.3%
WW		568	698	-18.6%	-17.2%	-1.4%	1,258	1,377	-8.6%	-7.0%	-1.6%
OTHER ONCOLOGY
US		20	16	22.9%	22.9%	-	42	34	21.4%	21.4%	-
Intl		87	85	2.2%	5.9%	-3.7%	169	169	-0.3%	3.3%	-3.6%
WW		106	101	5.5%	8.6%	-3.1%	210	203	3.4%	6.3%	-2.9%
PULMONARY HYPERTENSION
US		545	439	24.2%	24.2%	-	1,031	869	18.7%	18.7%	-
Intl		243	251	-3.3%	-1.0%	-2.3%	503	477	5.3%	7.9%	-2.6%
WW		789	690	14.2%	15.0%	-0.8%	1,534	1,346	13.9%	14.9%	-1.0%
OPSUMIT
US		256	203	26.1%	26.1%	-	485	375	29.3%	29.3%	-
Intl		150	146	3.0%	5.7%	-2.7%	310	279	11.2%	14.1%	-2.9%
WW		406	348	16.5%	17.6%	-1.1%	795	654	21.6%	22.8%	-1.2%
UPTRAVI
US		254	175	44.5%	44.5%	-	466	351	32.6%	32.6%	-
Intl		28	28	4.0%	7.3%	-3.3%	66	50	33.6%	37.6%	-4.0%
WW		282	203	39.0%	39.5%	-0.5%	532	401	32.7%	33.2%	-0.5%
OTHER PULMONARY HYPERTENSION
US		37	61	-40.2%	-40.2%	-	81	143	-43.5%	-43.5%	-
Intl		64	78	-17.6%	-16.4%	-1.2%	126	149	-15.1%	-13.7%	-1.4%
WW		101	140	-27.5%	-26.9%	-0.6%	207	292	-29.0%	-28.3%	-0.7%
CARDIOVASCULAR / METABOLISM / OTHER
US		837	902	-7.2%	-7.2%	-	1,643	1,849	-11.1%	-11.1%	-
Intl		347	373	-7.0%	-2.4%	-4.6%	701	771	-9.1%	-5.6%	-3.5%
WW		1,184	1,275	-7.1%	-5.8%	-1.3%	2,344	2,620	-10.5%	-9.5%	-1.0%
XARELTO
US		559	549	1.7%	1.7%	-	1,086	1,091	-0.5%	-0.5%	-
Intl		-	-	-	-	-	-	-	-	-	-
WW		559	549	1.7%	1.7%	-	1,086	1,091	-0.5%	-0.5%	-
INVOKANA / INVOKAMET
US		132	132	-0.8%	-0.8%	-	249	286	-13.0%	-13.0%	-
Intl		47	43	9.1%	14.8%	-5.7%	105	92	14.1%	18.1%	-4.0%
WW		179	177	1.6%	3.1%	-1.5%	354	379	-6.4%	-5.5%	-0.9%
PROCRIT / EPREX
US		70	113	-38.3%	-38.3%	-	146	261	-44.1%	-44.1%	-
Intl		66	70	-5.0%	-2.3%	-2.7%	145	148	-2.2%	-0.1%	-2.1%
WW		136	183	-25.6%	-24.6%	-1.0%	291	409	-28.9%	-28.2%	-0.7%
OTHER
US		78	107	-27.7%	-27.7%	-	163	211	-22.9%	-22.9%	-
Intl		234	260	-10.2%	-5.3%	-4.9%	451	531	-15.0%	-11.3%	-3.7%
WW		312	368	-15.3%	-11.8%	-3.5%	614	742	-17.3%	-14.6%	-2.7%
TOTAL PHARMACEUTICAL
US		6,120	5,783	5.8%	5.8%	-	12,181	11,365	7.2%	7.2%	-
Intl		4,632	4,746	-2.4%	1.4%	-3.8%	9,705	9,408	3.2%	6.7%	-3.5%
WW		$ 10,752	10,529	2.1%	3.9%	-1.8%	$ 21,886	20,773	5.4%	7.0%	-1.6%

See footnotes at end of schedule

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

INTERVENTIONAL SOLUTIONS
US		255	366	-30.5%	-30.5%	-	620	709	-12.6%	-12.6%	-
Intl		335	385	-12.8%	-10.9%	-1.9%	697	774	-9.9%	-8.0%	-1.9%
WW		590	750	-21.5%	-20.5%	-1.0%	1,317	1,482	-11.2%	-10.2%	-1.0%
ORTHOPAEDICS
US		869	1,331	-34.7%	-34.7%	-	2,119	2,649	-20.0%	-20.0%	-
Intl		583	894	-34.8%	-32.6%	-2.2%	1,371	1,779	-22.9%	-20.6%	-2.3%
WW		1,451	2,224	-34.7%	-33.9%	-0.8%	3,489	4,428	-21.2%	-20.3%	-0.9%
HIPS
US		137	216	-36.5%	-36.5%	-	343	429	-20.1%	-20.1%	-
Intl		88	147	-39.8%	-37.3%	-2.5%	220	295	-25.4%	-22.8%	-2.6%
WW		226	364	-37.8%	-36.8%	-1.0%	563	725	-22.3%	-21.2%	-1.1%
KNEES
US		108	218	-50.5%	-50.5%	-	322	441	-27.1%	-27.1%	-
Intl		66	153	-56.8%	-55.3%	-1.5%	196	299	-34.6%	-32.7%	-1.9%
WW		174	372	-53.1%	-52.5%	-0.6%	517	741	-30.1%	-29.3%	-0.8%
TRAUMA
US		354	407	-12.9%	-12.9%	-	761	824	-7.6%	-7.6%	-
Intl		198	265	-25.2%	-22.6%	-2.6%	445	533	-16.5%	-13.9%	-2.6%
WW		553	672	-17.8%	-16.7%	-1.1%	1,207	1,357	-11.1%	-10.0%	-1.1%
SPINE, SPORTS & OTHER⁽⁷⁾
US		270	490	-45.0%	-45.0%	-	693	955	-27.4%	-27.4%	-
Intl		230	328	-29.9%	-27.9%	-2.0%	510	651	-21.7%	-19.6%	-2.1%
WW		499	818	-39.0%	-38.2%	-0.8%	1,202	1,606	-25.1%	-24.3%	-0.8%
SURGERY
US		490	926	-47.0%	-47.0%	-	1,334	1,927	-30.8%	-30.8%	-
Intl		1,060	1,427	-25.7%	-22.6%	-3.1%	2,317	2,821	-17.9%	-14.8%	-3.1%
WW		1,551	2,353	-34.1%	-32.2%	-1.9%	3,651	4,748	-23.1%	-21.3%	-1.8%
ADVANCED
US		277	396	-30.0%	-30.0%	-	658	800	-17.7%	-17.7%	-
Intl		498	633	-21.2%	-18.4%	-2.8%	1,065	1,209	-11.9%	-8.9%	-3.0%
WW		775	1,029	-24.6%	-22.9%	-1.7%	1,723	2,009	-14.2%	-12.4%	-1.8%
GENERAL
US		213	530	-59.8%	-59.8%	-	676	1,127	-40.0%	-40.0%	-
Intl		562	794	-29.2%	-26.0%	-3.2%	1,252	1,612	-22.4%	-19.2%	-3.2%
WW		775	1,325	-41.5%	-39.5%	-2.0%	1,928	2,739	-29.6%	-27.8%	-1.8%
VISION
US		248	461	-46.1%	-46.1%	-	687	907	-24.2%	-24.2%	-
Intl		447	701	-36.1%	-34.8%	-1.3%	1,075	1,383	-22.3%	-20.8%	-1.5%
WW		695	1,161	-40.1%	-39.3%	-0.8%	1,762	2,290	-23.0%	-22.2%	-0.8%
CONTACT LENSES / OTHER
US		203	333	-39.0%	-39.0%	-	549	654	-16.1%	-16.1%	-
Intl		352	509	-30.9%	-29.6%	-1.3%	819	1,011	-19.0%	-17.6%	-1.4%
WW		554	842	-34.1%	-33.3%	-0.8%	1,368	1,666	-17.9%	-17.0%	-0.9%
SURGICAL
US		45	128	-64.6%	-64.6%	-	138	253	-45.3%	-45.3%	-
Intl		96	191	-49.9%	-48.8%	-1.1%	256	371	-31.0%	-29.6%	-1.4%
WW		141	319	-55.8%	-55.2%	-0.6%	394	624	-36.8%	-36.0%	-0.8%

TOTAL MEDICAL DEVICES
US		1,862	3,083	-39.6%	-39.6%	-	4,760	6,192	-23.1%	-23.1%	-
Intl		2,426	3,406	-28.8%	-26.4%	-2.4%	5,460	6,756	-19.2%	-16.8%	-2.4%
WW		$ 4,288	6,489	-33.9%	-32.7%	-1.2%	$ 10,220	12,948	-21.1%	-19.8%	-1.3%


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