Johnson & Johnson : Reports 2020 Fourth-Quarter Results

JOHNSON & JOHNSON REPORTS 2020 FOURTH-QUARTER AND FULL YEAR RESULTS:

• 2020 Fourth-Quarter Sales of $22.5 Billion reflecting growth of 8.3%, operational growth of 7.1%* and adjusted operational growth of 7.3%*
• 2020 Full-Year Sales of $82.6 Billion reflecting growth of 0.6%, operational growth of 1.2%* and adjusted operational growth of 1.5%*
• 2020 Fourth-Quarter EPS of $0.65 decreased 56.7%; adjusted EPS of $1.86 decreased 1.1%*
• 2020 Full-Year EPS of $5.51 decreased 2.1%; adjusted EPS of $8.03 decreased 7.5%*
• Company provides 2021 guidance of adjusted operational sales growth of 8.8%* and adjusted operational EPS growth of 16.4%*

New Brunswick, N.J. (January 26, 2021) - Johnson & Johnson (NYSE: JNJ) today announced results for fourth- quarter and full year 2020. "Our notable full year performance reflects the continued confidence from patients, physicians, customers and consumers in our life-enhancing products and medicines, particularly throughout the COVID-19 pandemic," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm incredibly proud of our Johnson

• Johnson teams around the world for going above and beyond to meet stakeholder needs. These efforts, and our commitment to families around the world as the largest broad-based healthcare company, enabled us to lead in the fight against COVID-19. We continue to progress our COVID-19 vaccine candidate and look forward to sharing details from our Phase 3 study soon. Johnson & Johnson was built for times like these, and I am extremely confident in our ability to deliver lasting value and continued innovation in 2021 and for years to come."

OVERALL FINANCIAL RESULTS:

		FOURTH QUARTER
($ in Millions, except EPS)		2020		2019	% Change
Reported Sales	$	22,475	$	20,747	8.3%
Net Earnings		1,738		4,010	(56.7)%
EPS (diluted)	$	0.65	$	1.50	(56.7)%

Non-GAAP*		FOURTH QUARTER
($ in Millions, except EPS)		2020		2019	% Change
Operational Sales1,2					7.1%
Adjusted Operational Sales1,3					7.3%
Adjusted Net Earnings1,4		4,965		5,027	(1.2)%
Adjusted EPS (diluted)1,4	$	1.86	$	1.88	(1.1)%

	TWELVE MONTHS
	2020		2019	% Change
$	82,584	$	82,059	0.6%
	14,714		15,119	(2.7)%
$	5.51	$	5.63	(2.1)%

	TWELVE MONTHS
	2020		2019	% Change
				1.2%
				1.5%
	21,433		23,310	(8.1)%
$	8.03	$	8.68	(7.5)%

1. Non-GAAPfinancial 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:

		FOURTH QUARTER		% Change
								Adjusted
($ in Millions) 1		20202		20192	Reported2	Operational1,2	Currency2	Operational1,3
U.S.	$	11,809	$	10,774	9.6%	9.6%	-	9.6
International		10,666		9,973	7.0%	4.3%	2.7	4.8
Worldwide	$	22,475	$	20,747	8.3%	7.1%	1.2	7.3

		TWELVE MONTHS		% Change
								Adjusted
($ in Millions) 1		20202		20192	Reported2	Operational1,2	Currency2	Operational1,3
U.S.	$	43,133	$	42,097	2.5%	2.5	-	2.8
International		39,451		39,962	(1.3)%	(0.2)	(1.1)	0.2
Worldwide	$	82,584	$	82,059	0.6%	1.2	(0.6)	1.5

1. Non-GAAPfinancial 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:

		FOURTH QUARTER		% Change
Adjusted		Adjusted		Adjusted	Adjusted	Adjusted	Adjusted	Adjusted
($ in Millions) 1		20201		20191	Reported2	Operational1,2	Currency1	Operational1,3
Consumer Health	$	3,618	$	3,567	1.4%	2.0	(0.6)	2.1
Pharmaceutical		12,268		10,548	16.3%	14.6	1.7	14.6
Medical Devices		6,589		6,632	(0.7)%	(2.2)	1.5	(1.5)
Worldwide	$	22,475	$	20,747	8.3%	7.1	1.2	7.3
		TWELVE MONTHS		% Change
Adjusted		Adjusted		Adjusted	Adjusted	Adjusted	Adjusted	Adjusted
($ in Millions) 1		20201		20191	Reported2	Operational1,2	Currency1	Operational1,3
Consumer Health	$	14,053	$	13,898	1.1%	3.0	(1.9)	3.1
Pharmaceutical		45,572		42,198	8.0%	8.2	(0.2)	8.4
Medical Devices		22,959		25,963	(11.6)%	(11.4)	(0.2)	(10.5)
Worldwide	$	82,584	$	82,059	0.6%	1.2	(0.6)	1.5

1. Non-GAAPfinancial 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

2

FULL-YEAR 2020 SEGMENT COMMENTARY:

Consumer Health

Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.1%* driven by U.S. growth in over-the-counter products including TYLENOL analgesics, PEPCID and ZYRTEC; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products and wound care products. Growth was negatively impacted by COVID-19 primarily in skin health/beauty and international baby care partially offset by increased COVID-19 demand in oral care products.

Pharmaceutical

Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 8.4%* 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, and for adults with active psoriatic arthritis, 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 and UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization. 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, U.S. ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer, and international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma.

Medical Devices

Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 10.5%*. 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. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products. Results reflect market recovery in the second half of 2020.

3

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.

	VELYS Robotic-Assisted Solution- Receives 510(k) FDA Clearance Designed for Use with	(press release)
	the ATTUNE Total Knee System ¹
	DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)- Becomes the First FDA-	(press release)
	Approved Treatment for Patients with Newly Diagnosed Light Chain (AL) Amyloidosis ¹
Regulatory
Approvals	CABENUVA (rilpivirine/cabotegravir)- U.S. FDA Approval and European Commission	(press release)
	Authorization of the first complete long acting injectable HIV treatment ¹	(press release)
	TREMFYA (guselkumab)- European Commission Approves First-in-Class treatment for	(press release)
	Active Psoriatic Arthritis (PsA)
	Amivantamab- Submission of U.S. FDA and European Marketing Authorization Application	(press release)
	for Treatment of Patients with Metastatic Non-Small Cell Lung Cancer with EGFR Exon 20
	Insertion Mutations	(press release)
	BCMA CAR-T Therapy (ciltacabtagene autoleucel)- Rolling Submission of a Biologics
	License Application to U.S. FDA for the Treatment of Relapsed and/or Refractory Multiple	(press release)
	Myeloma
Regulatory	DARZALEX (daratumumab and hyaluronidase-fihj)- Janssen Submits Applications in U.S.
and EU Seeking Approval of DARZALEX FASPRO (daratumumab and hyaluronidase-
Submissions
fihj)/DARZALEX (daratumumab) Subcutaneous (SC) Formulation in Combination With	(press release)
	Pomalidomide and Dexamethasone for Patients With Relapsed or Refractory Multiple
	Myeloma
	Paliperidone Palmitate 6-Month- Submission of Supplemental New Drug Application to U.S.	(press release)
	FDA and European Marketing Authorization for Treatment of Schizophrenia in Adults	(press release)
	XARELTO (rivaroxaban)- Submission of Application to U.S. FDA for New Indication to	(press release)
	Expand Use in Patients with Peripheral Artery Disease
	Janssen Receives Positive CHMP Opinion for SPRAVATO (esketamine Nasal Spray) for
	the Rapid Reduction of Depressive Symptoms in a Psychiatric Emergency for Patients with	(press release)
	Major Depressive Disorder
Other
Janssen Acquires Rights to Novel Gene Therapy, Pioneering Treatment Solutions for Late-	(press release)
	Stage Age-Related Macular Degeneration
	Johnson & Johnson Initiates Second Global Phase 3 Clinical Trial of its Janssen COVID-19	(press release)
	Vaccine Candidate

1 Subsequent to the quarter

4

FULL-YEAR 2021 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)	January 2021
Adjusted Operational Sales1,2	8.0% - 9.5%
Change vs. Prior Year
Operational Sales2	$88.8B - $90.0B
Change vs. Prior Year	7.5% - 9.0%
Estimated Reported Sales3	$90.5B - $91.7B
Change vs. Prior Year	9.5% - 11.0%
Adjusted Operational EPS (Diluted)2,4	$9.25 - $9.45
Change vs. Prior Year	15.2% - 17.7%
Adjusted EPS (Diluted)3,4	$9.40 - $9.60
Change vs. Prior Year	17.1% - 19.6%

1. Non-GAAPfinancial measure; excludes the net impact of acquisitions and divestitures
2. Non-GAAPfinancial measure; excludes the impact of translational currency
3. Calculated using Euro Average Rate: January 2021 = $1.21 (Illustrative purposes only)
4. Non-GAAPfinancial 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.

5

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 pipelineof 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.comor 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:
Christina Chan	Courtney Dugan	Christopher DelOrefice	Lisa Romanko
[phone]	[phone]	[phone]	[phone]

6

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)				FOURTH QUARTER
						Percent Change
		2020	2019	Total		Operations	Currency
Sales to customers by
segment of business
Consumer Health
U.S.	$	1,509	1,470	2.7	%	2.7	-
International		2,109	2,097	0.5		1.5	(1.0)
		3,618	3,567	1.4		2.0	(0.6)
Pharmaceutical
U.S.		7,116	6,169	15.3		15.3	-
International		5,152	4,379	17.7		13.5	4.2
		12,268	10,548	16.3		14.6	1.7
Medical Devices
U.S.		3,184	3,135	1.5		1.5	-
International		3,405	3,497	(2.6)		(5.5)	2.9
		6,589	6,632	(0.7)		(2.2)	1.5
U.S.		11,809	10,774	9.6		9.6	-
International		10,666	9,973	7.0		4.3	2.7
Worldwide	$	22,475	20,747	8.3	%	7.1	1.2

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

TWELVE MONTHS

			Percent Change
2020	2019	Total	Operations	Currency

$	6,362	5,839	9.0	%	9.0	-
	7,691	8,059	(4.6)		(1.3)	(3.3)
	14,053	13,898	1.1		3.0	(1.9)
	25,735	23,874	7.8		7.8	-
	19,837	18,324	8.3		8.8	(0.5)
	45,572	42,198	8.0		8.2	(0.2)
	11,036	12,384	(10.9)		(10.9)	-
	11,923	13,579	(12.2)		(11.8)	(0.4)
	22,959	25,963	(11.6)		(11.4)	(0.2)
	43,133	42,097	2.5		2.5	-
	39,451	39,962	(1.3)		(0.2)	(1.1)
$	82,584	82,059	0.6	%	1.2	(0.6)

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)				FOURTH QUARTER
						Percent Change
Sales to customers by		2020	2019	Total		Operations	Currency
geographic area
U.S.	$	11,809	10,774	9.6	%	9.6	-
Europe		5,271	4,663	13.0		7.7	5.3
Western Hemisphere excluding U.S.		1,404	1,495	(6.1)		2.9	(9.0)
Asia-Pacific, Africa		3,991	3,815	4.6		0.7	3.9
International		10,666	9,973	7.0		4.3	2.7
Worldwide	$	22,475	20,747	8.3	%	7.1	1.2

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

TWELVE MONTHS

					Percent Change
	2020	2019	Total		Operations	Currency
$	43,133	42,097	2.5	%	2.5	-
	18,980	18,466	2.8		2.0	0.8
	5,335	5,941	(10.2)		0.4	(10.6)
	15,136	15,555	(2.7)		(3.1)	0.4
	39,451	39,962	(1.3)		(0.2)	(1.1)
$	82,584	82,059	0.6	%	1.2	(0.6)

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)				FOURTH QUARTER
		2020				2019		Percent
			Percent				Percent	Increase
	Amount	to Sales		Amount	to Sales	(Decrease)
Sales to customers	$	22,475	100.0	$	20,747	100.0	8.3
Cost of products sold		7,814	34.8			7,134	34.4	9.5
Gross Profit		14,661	65.2			13,613	65.6	7.7
Selling, marketing and administrative expenses		6,457	28.7			6,039	29.1	6.9
Research and development expense		4,032	17.9			3,232	15.6	24.8
In-process research and development		37	0.2			-	-
Interest (income) expense, net		74	0.3			4	0.0
Other (income) expense, net		2,354	10.5			16	0.1
Restructuring		60	0.3			104	0.5
Earnings before provision for taxes on income		1,647	7.3			4,218	20.3	(61.0)
Provision for/(Benefit from) taxes on income		(91)	(0.4)			208	1.0	(143.8)
Net earnings	$	1,738	7.7	$	4,010	19.3	(56.7)
Net earnings per share (Diluted)	$	0.65		$	1.50		(56.7)
Average shares outstanding (Diluted)		2,669.2				2,669.1
Effective tax rate		(5.5) %				4.9 %
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	5,601	24.9	$	5,628	27.1	(0.5)
Net earnings	$	4,965	22.1	$	5,027	24.2	(1.2)
Net earnings per share (Diluted)	$	1.86		$	1.88		(1.1)
Effective tax rate		11.4 %				10.7 %

1. See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)				TWELVE MONTHS
		2020				2019		Percent
			Percent				Percent	Increase
	Amount	to Sales		Amount	to Sales	(Decrease)
Sales to customers	$	82,584	100.0	$	82,059	100.0	0.6
Cost of products sold		28,427	34.4			27,556	33.6	3.2
Gross Profit		54,157	65.6			54,503	66.4	(0.6)
Selling, marketing and administrative expenses		22,084	26.8			22,178	27.0	(0.4)
Research and development expense		12,159	14.7			11,355	13.8	7.1
In-process research and development		181	0.2			890	1.1
Interest (income) expense, net		90	0.1			(39)	0.0
Other (income) expense, net		2,899	3.5			2,525	3.1
Restructuring		247	0.3			266	0.3
Earnings before provision for taxes on income		16,497	20.0			17,328	21.1	(4.8)
Provision for taxes on income		1,783	2.2			2,209	2.7	(19.3)
Net earnings	$	14,714	17.8	$	15,119	18.4	(2.7)
Net earnings per share (Diluted)	$	5.51		$	5.63		(2.1)
Average shares outstanding (Diluted)		2,670.7				2,684.3
Effective tax rate		10.8 %				12.7 %
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$	25,428	30.8	$	28,225	34.4	(9.9)
Net earnings	$	21,433	26.0	$	23,310	28.4	(8.1)
Net earnings per share (Diluted)	$	8.03		$	8.68		(7.5)
Effective tax rate		15.7 %				17.4 %

1. See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

	Fourth Quarter			Twelve Months Ended
(Dollars in Millions Except Per Share Data)	2020			2019	2020	2019
Net Earnings, after tax- as reported	$1,738			$4,010	$14,714	$15,119
Pre-tax Adjustments
Intangible Asset Amortization expense	1,234			1,142	4,660	4,528
Litigation expense, net	2,902			264	5,112	5,096
IPR&D	37			-	181	890
Restructuring related	85			251	448	611
Acquisition and Integration related ¹	14			90	(1,073)	319
Unrealized (gains)/losses on securities	(373)			(350)	(547)	(567)
Medical Device Regulation 2	55			-	144	-
Other	-			13	6	20
Tax Adjustments
Tax impact on special item adjustments 3	(606)			(123)	(1,608)	(1,977)
Tax legislation and other tax related	(121)			(270)		(604)		(729)
Adjusted Net Earnings, after tax	$4,965			$5,027	$21,433	$23,310
Average shares outstanding (Diluted)	2,669.2			2,669.1	2,670.7	2,684.3
Adjusted net earnings per share (Diluted)	$1.86			$1.88	$8.03	$8.68
Operational adjusted net earnings per share (Diluted)	$1.82				$8.00

Notes:

1. Acquisition and integration related costs for 2020 primarily includes a Contingent Consideration reversal of $1,148M related to the timing of certain developmental milestones associated with the Auris Health acquisition.
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.
   Prior year amounts have been reclassified to conform to current year disclosure

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

FOURTH QUARTER 2020 ACTUAL vs. 2019 ACTUAL

Segments

		Consumer Health		Pharmaceutical		Medical Devices		Total
WW As Reported		1.4%	16.3%	(0.7)%	8.3%
U.S.	2.7%	15.3%	1.5%	9.6%
International	0.5%	17.7%	(2.6)%	7.0%
WW Currency	(0.6)	1.7	1.5	1.2
U.S.	-	-	-	-
International	(1.0)	4.2	2.9	2.7
WW Operational		2.0%	14.6%	(2.2)%	7.1%
U.S.	2.7%	15.3%	1.5%	9.6%
International	1.5%	13.5%	(5.5)%	4.3%
General Surgery
Advanced Sterilization Products				0.6	0.2
U.S.				0.0	0.0
International				1.0	0.4
All Other Acquisitions and Divestitures	0.1	0.0	0.1	0.1
U.S.	0.1	(0.1)	0.2	0.0
International	0.1	0.2	0.0	0.1
WW Adjusted Operational		2.1%	14.6%	(1.5)%	7.3%
U.S.		2.8%	15.2%	1.7%	9.6%
International	1.6%	13.7%	(4.4)%	4.8%

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

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

TWELVE MONTHS 2020 ACTUAL vs. 2019 ACTUAL

Segments

		Consumer Health		Pharmaceutical		Medical Devices		Total
WW As Reported		1.1%	8.0%	(11.6)%	0.6%
U.S.	9.0%	7.8%	(10.9)%	2.5%
International	(4.6)%	8.3%	(12.2)%	(1.3)%
WW Currency	(1.9)	(0.2)	(0.2)	(0.6)
U.S.	-	-	-	-
International	(3.3)	(0.5)	(0.4)	(1.1)
WW Operational		3.0%	8.2%	(11.4)%	1.2%
U.S.	9.0%	7.8%	(10.9)%	2.5%
International	(1.3)%	8.8%	(11.8)%	(0.2)%
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				0.8	0.3
U.S.				0.6	0.2
International				1.0	0.4
Baby Care
Baby Center	0.2					0.0
U.S.	0.5					0.1
International	0.0					0.0
All Other Acquisitions and Divestitures	0.0	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		3.1%	8.4%	(10.5)%	1.5%
U.S.		9.5%	7.8%	(10.2)%	2.8%
International	(1.5)%	9.1%	(10.9)%	0.2%

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

					REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
					FOURTH QUARTER								TWELVE MONTHS
								% Change										% Change
			2020	2019		Reported	Operational (1)	Currency				2020	2019		Reported	Operational (1)	Currency
CONSUMER HEALTH SEGMENT (2,3)
OTC
US	$	543	542	0.1%	0.1%	-		$	2,460	2,010	22.4%	22.4%	-
Intl			642	653	-1.7%	-2.9%	1.2%				2,364	2,434	-2.9%	-1.2%	-1.7%
WW			1,185		1,195		-0.8%	-1.5%	0.7%				4,824		4,444		8.5%	9.4%	-0.9%
SKIN HEALTH / BEAUTY(4)
US			583	582	0.2%	0.2%	-				2,350	2,392	-1.7%	-1.7%	-
Intl			594	568	4.6%	5.0%	-0.4%				2,100	2,201	-4.6%	-2.3%	-2.3%
WW			1,177		1,150		2.4%	2.6%	-0.2%				4,450		4,593		-3.1%	-2.0%	-1.1%
ORAL CARE
US			173	159	8.3%	8.3%	-				683	621	9.9%	9.9%	-
Intl			264	233	13.5%	14.5%	-1.0%				958	906	5.7%	9.6%	-3.9%
WW			437		393		11.4%	12.0%	-0.6%				1,641		1,528		7.4%	9.7%	-2.3%
BABY CARE
US			97	85	14.3%	14.3%	-				376	362	3.7%	3.7%	-
Intl			310	336	-7.8%	-3.6%	-4.2%				1,141	1,313	-13.1%	-7.3%	-5.8%
WW			407		421		-3.4%	0.0%	-3.4%				1,517		1,675		-9.4%	-4.9%	-4.5%
WOMEN'S HEALTH
US			3	3	11.8%	11.8%	-				13	12	8.2%	8.2%	-
Intl			234	250	-6.5%	-3.1%	-3.4%				888	974	-8.8%	-2.9%	-5.9%
WW			237		253		-6.3%	-2.9%	-3.4%				901		986		-8.6%	-2.7%	-5.9%
WOUND CARE / OTHER
US			110	98	11.8%	11.8%	-				480	441	8.9%	8.9%	-
Intl			65	57	12.4%	13.0%	-0.6%				240	230	4.1%	7.3%	-3.2%
WW			175		155		12.0%	12.2%	-0.2%				720		671		7.2%	8.3%	-1.1%
TOTAL CONSUMER HEALTH
US			1,509	1,470	2.7%	2.7%	-				6,362	5,839	9.0%	9.0%	-
Intl			2,109	2,097	0.5%	1.5%	-1.0%				7,691	8,059	-4.6%	-1.3%	-3.3%
WW		$	3,618		3,567		1.4%	2.0%	-0.6%			$	14,053		13,898		1.1%	3.0%	-1.9%

See footnotes at end of schedule

					REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
					FOURTH QUARTER								TWELVE MONTHS
								% Change										% Change
PHARMACEUTICAL SEGMENT (2,5)			2020	2019		Reported	Operational (1)	Currency				2020	2019		Reported	Operational (1)	Currency
IMMUNOLOGY	$	2,845	2,517						$	10,175	9,641
US	13.0%	13.0%	-		5.5%	5.5%	-
Intl			1,261	1,005	25.4%	21.1%	4.3%				4,880	4,309	13.2%	14.0%	-0.8%
WW			4,105		3,522		16.6%	15.3%	1.3%				15,055		13,950		7.9%	8.2%	-0.3%
REMICADE
US			656	755	-13.1%	-13.1%	-				2,508	3,079	-18.5%	-18.5%	-
US Exports (6)			25	68	-62.4%	-62.4%	-				346	294	18.0%	18.0%	-
Intl			220	212	3.3%	2.7%	0.6%				893	1,007	-11.4%	-8.6%	-2.8%
WW			901		1,035		-12.9%	-13.1%	0.2%				3,747		4,380		-14.4%	-13.8%	-0.6%
SIMPONI / SIMPONI ARIA
US			315	302	4.4%	4.4%	-				1,155	1,159	-0.3%	-0.3%	-
Intl			261	213	22.9%	18.8%	4.1%				1,088	1,029	5.8%	7.0%	-1.2%
WW			576		515		12.1%	10.4%	1.7%				2,243		2,188		2.6%	3.1%	-0.5%
STELARA
US			1,572	1,194	31.6%	31.6%	-				5,240	4,346	20.6%	20.6%	-
Intl			672	506	32.7%	27.2%	5.5%				2,467	2,015	22.4%	22.2%	0.2%
WW			2,244		1,700		31.9%	30.3%	1.6%				7,707		6,361		21.1%	21.1%	0.0%
TREMFYA
US			276	199	39.1%	39.1%	-				926	764	21.3%	21.3%	-
Intl			105	71	48.1%	40.0%	8.1%				421	248	69.9%	67.9%	2.0%
WW			382		270		41.5%	39.3%	2.2%				1,347		1,012		33.2%	32.7%	0.5%
OTHER IMMUNOLOGY
US			-	-	-	-	-				-	-	-	-	-
Intl			2	2	-19.7%	-14.5%	-5.2%				11	10	6.4%	12.8%	-6.4%
WW			2		2		-19.7%	-14.5%	-5.2%				11		10		6.4%	12.8%	-6.4%
INFECTIOUS DISEASES			470	435								1,735	1,597
US			7.9%	7.9%	-				8.6%	8.6%	-
Intl			442	430	2.8%	-2.6%	5.4%				1,839	1,815	1.3%	2.2%	-0.9%
WW			912		866		5.4%	2.7%	2.7%				3,574		3,413		4.7%	5.2%	-0.5%
EDURANT / rilpivirine
US			11	14	-17.9%	-17.9%	-				44	50	-11.2%	-11.2%	-
Intl			236	209	13.4%	6.2%	7.2%				920	812	13.3%	11.9%	1.4%
WW			248		222		11.4%	4.7%	6.7%				964		861		11.9%	10.5%	1.4%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US			433	390	11.1%	11.1%	-				1,587	1,422	11.6%	11.6%	-
Intl			136	155	-12.4%	-17.1%	4.7%				597	689	-13.4%	-10.7%	-2.7%
WW			569		544		4.4%	3.1%	1.3%				2,184		2,110		3.5%	4.4%	-0.9%
OTHER INFECTIOUS DISEASES
US			25	32	-20.4%	-20.4%	-				104	126	-17.6%	-17.6%	-
Intl			71	67	5.2%	3.3%	1.9%				323	315	2.6%	5.6%	-3.0%
WW			96		99		-3.0%	-4.3%	1.3%				427		441		-3.2%	-1.0%	-2.2%

					REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
					FOURTH QUARTER								TWELVE MONTHS
								% Change										% Change
NEUROSCIENCE			2020	2019		Reported	Operational (1)	Currency				2020	2019		Reported	Operational (1)	Currency
		806	747								3,091	2,919
US			7.9%	7.9%	-				5.9%	5.9%	-
Intl			892	819	9.0%	6.2%	2.8%				3,457	3,409	1.4%	2.2%	-0.8%
WW			1,698		1,566		8.5%	7.0%	1.5%				6,548		6,328		3.5%	3.9%	-0.4%
CONCERTA / Methylphenidate
US			33	37	-9.7%	-9.7%	-				183	233	-21.4%	-21.4%	-
Intl			120	115	4.2%	1.4%	2.8%				439	463	-5.1%	-4.5%	-0.6%
WW			153		152		0.9%	-1.2%	2.1%				622		696		-10.6%	-10.2%	-0.4%
INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA
US			610	564	8.1%	8.1%	-				2,314	2,107	9.8%	9.8%	-
Intl			355	308	15.7%	10.8%	4.9%				1,339	1,224	9.4%	9.1%	0.3%
WW			965		871		10.8%	9.0%	1.8%				3,653		3,330		9.7%	9.6%	0.1%
RISPERDAL CONSTA
US			76	77	-2.5%	-2.5%	-				296	314	-5.9%	-5.9%	-
Intl			92	82	11.0%	7.7%	3.3%				346	374	-7.5%	-6.9%	-0.6%
WW			167		160		4.4%	2.7%	1.7%				642		688		-6.8%	-6.4%	-0.4%
OTHER NEUROSCIENCE
US			88	70	27.4%	27.4%	-				298	266	12.4%	12.4%	-
Intl			326	314	3.7%	3.1%	0.6%				1,334	1,349	-1.1%	0.7%	-1.8%
WW			414		383		8.0%	7.5%	0.5%				1,632		1,614		1.1%	2.6%	-1.5%
ONCOLOGY			1,469	1,153								5,092	4,299
US			27.4%	27.4%	-				18.5%	18.5%	-
Intl			1,965	1,563	25.7%	20.9%	4.8%				7,275	6,393	13.8%	14.0%	-0.2%
WW			3,434		2,716		26.4%	23.7%	2.7%				12,367		10,692		15.7%	15.8%	-0.1%
DARZALEX
US			692	444	55.6%	55.6%	-				2,232	1,567	42.4%	42.4%	-
Intl			561	385	45.4%	41.3%	4.1%				1,958	1,430	36.9%	38.0%	-1.1%
WW			1,253		830		50.9%	49.0%	1.9%				4,190		2,998		39.8%	40.3%	-0.5%
ERLEADA
US			176	103	70.8%	70.8%	-				583	297	96.1%	96.1%	-
Intl			64	13	*	*	*				176	35	*	*	*
WW			241		116		*	*	*				760		332		*	*	*
IMBRUVICA
US			492	392	25.8%	25.8%	-				1,821	1,555	17.1%	17.1%	-
Intl			625	483	29.3%	24.8%	4.5%				2,307	1,856	24.3%	25.1%	-0.8%
WW			1,117		875		27.8%	25.3%	2.5%				4,128		3,411		21.0%	21.5%	-0.5%
VELCADE
US			-	-	-	-	-				-	-	-	-	-
Intl			97	115	-15.2%	-18.5%	3.3%				408	751	-45.7%	-45.8%	0.1%
WW			97		115		-15.2%	-18.5%	3.3%				408		751		-45.7%	-45.8%	0.1%
ZYTIGA / abiraterone acetate
US			89	194	-54.3%	-54.3%	-				373	810	-54.0%	-54.0%	-
Intl			533	483	10.2%	4.3%	5.9%				2,097	1,985	5.6%	4.7%	0.9%
WW			622		677		-8.3%	-12.5%	4.2%				2,470		2,795		-11.6%	-12.3%	0.7%
OTHER ONCOLOGY
US			20	19	2.6%	2.6%	-				83	70	19.2%	19.2%	-
Intl			86	84	1.5%	-2.1%	3.6%				330	336	-1.9%	-1.4%	-0.5%
WW			105		104		1.7%	-1.2%	2.9%				413		407		1.7%	2.2%	-0.5%
PULMONARY HYPERTENSION			592	388								2,133	1,684
US			52.5%	52.5%	-				26.6%	26.6%	-
Intl			273	235	16.8%	12.5%	4.3%				1,015	939	8.2%	8.0%	0.2%
WW			865		623		39.0%	37.4%	1.6%				3,148		2,623		20.0%	20.0%	0.0%
OPSUMIT
US			279	185	52.1%	52.1%	-				1,008	766	31.7%	31.7%	-
Intl			173	143	21.2%	16.9%	4.3%				631	562	12.3%	12.3%	0.0%
WW			452		326		38.6%	36.7%	1.9%				1,639		1,327		23.5%	23.5%	0.0%
UPTRAVI
US			263	178	48.2%	48.2%	-				955	714	33.8%	33.8%	-
Intl			38	30	25.5%	20.1%	5.4%				138	105	30.9%	30.5%	0.4%
WW			301		208		44.9%	44.1%	0.8%				1,093		819		33.5%	33.4%	0.1%
OTHER PULMONARY HYPERTENSION
US			49	26	84.9%	84.9%	-				169	205	-17.6%	-17.6%	-
Intl			63	62	2.4%	-1.2%	3.6%				247	272	-9.2%	-9.4%	0.2%
WW			112		88		26.6%	24.1%	2.5%				416		476		-12.8%	-12.9%	0.1%
CARDIOVASCULAR / METABOLISM / OTHER			935	930								3,509	3,734
US			0.6%	0.6%	-				-6.0%	-6.0%	-
Intl			317	327	-2.6%	-5.4%	2.8%				1,369	1,458	-6.1%	-4.8%	-1.3%
WW			1,253		1,256		-0.2%	-1.0%	0.8%				4,878		5,192		-6.0%	-5.7%	-0.3%
XARELTO			629	609								2,345	2,313
US			3.1%	3.1%	-				1.4%	1.4%	-
Intl			-	-	-	-	-				-	-	-	-	-
WW			629		609		3.1%	3.1%	-				2,345		2,313		1.4%	1.4%	-
INVOKANA / INVOKAMET
US			159	125	27.7%	27.7%	-				564	536	5.2%	5.2%	-
Intl			58	52	11.5%	8.9%	2.6%				231	199	16.3%	17.6%	-1.3%
WW			217		177		22.9%	22.1%	0.8%				795		735		8.2%	8.6%	-0.4%
PROCRIT / EPREX
US			62	118	-46.9%	-46.9%	-				277	505	-45.1%	-45.1%	-
Intl			66	65	2.0%	-1.1%	3.1%				274	285	-3.8%	-3.6%	-0.2%
WW			129		183		-29.5%	-30.6%	1.1%				552		790		-30.2%	-30.1%	-0.1%
OTHER
US			85	78	9.4%	9.4%	-				323	380	-15.1%	-15.1%	-
Intl			194	209	-7.6%	-10.3%	2.7%				864	974	-11.3%	-9.7%	-1.6%
WW			278		286		-3.0%	-5.0%	2.0%				1,186		1,353		-12.4%	-11.2%	-1.2%
TOTAL PHARMACEUTICAL
US			7,116	6,169	15.3%	15.3%	-				25,735	23,874	7.8%	7.8%	-
Intl			5,152	4,379	17.7%	13.5%	4.2%				19,837	18,324	8.3%	8.8%	-0.5%
WW		$	12,268		10,548		16.3%	14.6%	1.7%			$	45,572	42,198		8.0%	8.2%	-0.2%
See footnotes at end of schedule

					REPORTED SALES vs. PRIOR PERIOD ($MM)								REPORTED SALES vs. PRIOR PERIOD ($MM)
					FOURTH QUARTER									TWELVE MONTHS
MEDICAL DEVICES SEGMENT (2,5)								% Change											% Change
		2020	2019		Reported	Operational (1)	Currency				2020	2019		Reported	Operational (1)	Currency
INTERVENTIONAL SOLUTIONS	$	433	377								1,452	1,443
US	14.8%	14.8%	-				0.6%	0.6%	-
Intl			460	398	15.7%	10.8%	4.9%				1,594	1,554	2.6%	2.0%	0.6%
WW			893		774		15.3%	12.8%	2.5%				3,046			2,997		1.6%	1.3%	0.3%
ORTHOPAEDICS
US			1,352	1,369	-1.3%	-1.3%	-				4,779	5,319	-10.2%	-10.2%	-
Intl			839	904	-7.3%	-11.3%	4.0%				2,984	3,520	-15.2%	-15.4%	0.2%
WW			2,191		2,273		-3.7%	-5.3%	1.6%				7,763			8,839		-12.2%	-12.3%	0.1%
HIPS
US			229	230	-0.7%	-0.7%	-				793	863	-8.2%	-8.2%	-
Intl			143	147	-2.2%	-5.8%	3.6%				487	575	-15.3%	-15.1%	-0.2%
WW			372		377		-1.3%	-2.7%	1.4%				1,280			1,438		-11.0%	-11.0%	0.0%
KNEES
US			216	239	-9.5%	-9.5%	-				743	889	-16.4%	-16.4%	-
Intl			129	156	-17.2%	-20.6%	3.4%				427	591	-27.8%	-28.0%	0.2%
WW			345		395		-12.5%	-13.9%	1.4%				1,170			1,480		-21.0%	-21.1%	0.1%
TRAUMA
US			454	413	10.0%	10.0%	-				1,648	1,652	-0.2%	-0.2%	-
Intl			268	273	-2.0%	-6.2%	4.2%				966	1,068	-9.6%	-9.7%	0.1%
WW			722		686		5.2%	3.6%	1.6%				2,614			2,720		-3.9%	-3.9%	0.0%
SPINE, SPORTS & OTHER(7)
US			453	488	-7.1%	-7.1%	-				1,595	1,915	-16.7%	-16.7%	-
Intl			299	329	-9.2%	-13.6%	4.4%				1,104	1,286	-14.1%	-14.6%	0.5%
WW			752		817		-7.9%	-9.7%	1.8%				2,699			3,201		-15.7%	-15.9%	0.2%
SURGERY			1,002	961								3,249	3,828
US			4.3%	4.3%	-				-15.1%	-15.1%	-
Intl			1,427	1,481	-3.7%	-5.9%	2.2%				4,983	5,673	-12.2%	-11.2%	-1.0%
WW			2,429		2,442		-0.5%	-1.9%	1.4%				8,232			9,501		-13.4%	-12.8%	-0.6%
ADVANCED
US			456	428	6.5%	6.5%	-				1,535	1,637	-6.2%	-6.2%	-
Intl			660	647	2.1%	-0.9%	3.0%				2,304	2,458	-6.2%	-5.6%	-0.6%
WW			1,116		1,076		3.8%	2.0%	1.8%				3,839			4,095		-6.2%	-5.8%	-0.4%
GENERAL
US			546	534	2.5%	2.5%	-				1,714	2,192	-21.8%	-21.8%	-
Intl			767	834	-8.1%	-9.8%	1.7%				2,679	3,215	-16.7%	-15.5%	-1.2%
WW			1,312		1,366		-4.0%	-5.0%	1.0%				4,392			5,406		-18.8%	-18.0%	-0.8%
VISION			397	428								1,557	1,794
US			-7.3%	-7.3%	-				-13.2%	-13.2%	-
Intl			679	713	-4.7%	-6.2%	1.5%				2,362	2,830	-16.5%	-16.2%	-0.3%
WW			1,076		1,141		-5.7%	-6.6%	0.9%				3,919			4,624		-15.2%	-15.1%	-0.1%
CONTACT LENSES / OTHER
US			289	311	-7.4%	-7.4%	-				1,213	1,304	-7.0%	-7.0%	-
Intl			507	522	-2.7%	-4.1%	1.4%				1,781	2,088	-14.7%	-14.4%	-0.3%
WW			796		833		-4.4%	-5.3%	0.9%				2,994			3,392		-11.7%	-11.5%	-0.2%
SURGICAL
US			108	117	-7.1%	-7.1%	-				344	490	-29.7%	-29.7%	-
Intl			172	191	-10.3%	-12.0%	1.7%				581	742	-21.7%	-21.5%	-0.2%
WW			280		309		-9.1%	-10.1%	1.0%				925			1,232		-24.9%	-24.7%	-0.2%
TOTAL MEDICAL DEVICES
US			3,184	3,135	1.5%	1.5%	-				11,036	12,384	-10.9%	-10.9%	-
Intl			3,405	3,497	-2.6%	-5.5%	2.9%				11,923	13,579	-12.2%	-11.8%	-0.4%
WW		$	6,589		6,632		-0.7%	-2.2%	1.5%			$	22,959		25,963		-11.6%	-11.4%	-0.2%

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

1. Unaudited
2. Previously referred to as Consumer
3. Previously referred to as Beauty
4. Certain prior year amounts have been reclassified to conform to current year product disclosures