Energy Efficiency & Sustainability

Simon Garrett EHS2 Manager, Janssen Cork EHS2 Comprehensive Care Group MD&D Surgical Care Group Pharmaceuticals Consumer

Janssen Supply Chain Overview Janssen Supply Chain Ireland J&J - The Structure Our Credo Healthy Future 2015 Sustainability Global mpanies… In Co 5 g tin 7 a er C p Coun o t u O 5 ri es n 7 t r 1 i in e s s 0 t a c r u o

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Collaboration & Connectivity

People - Applications - Infrastructure Supply Chain Worldwide

Comprehensive Care Group MD&D Pharmaceuticals Consumer Surgical Care Group

Janssen Supply Chain

Janssen Supply Chain Ireland T

C E N N S O H C A PE D LIVE OUR our credo EL CREDO IV E R D A E Customers L We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.

We are responsible to our employees, the men and women who work with us throughout Employees the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfil their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. Communities

We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens - support good works and charities and bear our fair share of taxes. Robert Wood Johnson We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources Stockholders

Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return. 93% of CEOs said that sustainability issues were crucial to the success of their business At Johnson & Johnson, we believe human health benefits from a healthy planet. Making our products more sustainable through design magnifies their benefits and is simply good business.

- Former CEO William Weldon, on sustainability Sustainability Fosters Employee Recruitment and Retention

Companies with strong sustainability programs have: 55% better morale 43% more efficient business processes 43% stronger public image 38% better employee loyalty

Source: Society for Human Resources Management study 2012 Sustainability is Rooted in Our Heritage Fulfilling our Credo responsibilities so people, planet & business can all live in good health today & tomorrow. Healthy People Healthy Planet Healthy Business

• Research and development for • Building on our legacy in • Enhancing outcome neglected diseases safeguarding the planet measurement in philanthropy • Affordable access to medicines • Reduce the environmental impact • Partnering with suppliers that • Advancing community wellness of our operations embrace sustainability • Fostering the most engaged, • Increase the sustainable design • Committing to enhanced health-conscious and safe of our products transparency and accessing the employees in the world power of external collaboration Healthy Future 2015 Goals

Healthy Future 2015—which launched January 1, 2011—is our five-year citizenship and sustainability strategy. This table provides an overview of the seven strategic priorities we established.

Advancing Global Health • Build research partnerships to develop treatments for neglected diseases of the developing world • Provide affordable access to HIV and tuberculosis treatments in least-developed and middle-income countries • Pioneer business models that improve affordability of our medicines in middle-income countries • Donate our treatment for intestinal worms in countries of prevalence Safeguarding the Planet • Reduce the environmental impacts of our operations • Increase the sustainable design of our products Supplier Sustainability • Establish sustainable procurement criteria and processes to catalyze improved supplier performance and diversity • Reinforce our human rights policies, processes and education with suppliers to ensure these rights are respected in all our engagements Engaged, Health-Conscious, Safe Employees • Foster an extraordinary healthy workplace environment that supports improved employee engagement and performance • Achieve benchmark safety and health performance Advancing Community Wellness • Implement health education initiatives that increase public understanding of basic health indicators and how to effectively access health resources Philanthropy Measurement • Raise the standard of outcomes measurement in philanthropy by increasing our philanthropic partners’ capacity to measure program health-related outcomes Transparency and Collaborations • Share product sustainability information, enabling people to align their lives with their social and environmental values • Identify key stakeholders and regularly engage with them on a range of sustainability concerns and opportunities • Enhance sustainability reporting 33 Reduce Facility Impacts

2015 Goals: • 20% absolute reduction in facility CO2 emissions by 2020 • Increase onsite clean-technology energy capacity to 50 MW • 20% decrease in fleet CO2 emissions per mile • 10% absolute reduction total waste disposal & water consumption Commitment to Clean Energy

Currently 38.7 MW installed or in-progress • 30 Solar • 10 Cogeneration • 3 Biomass • 2 Geothermal 4 MW PV array, 3,000kW Tri-Generation New Brunswick, NJ Limerick, Ireland

Two 500 kW wood chip boilers 4 MW PV array, Cork, Ireland New Brunswick, NJ Commitment to Clean Energy

Project pipeline of over 15MW • 4 Wind • 5 Solar • 3 Cogeneration

Little Island Janssen Sustainability One-pager Environmental - How we Protect our Planet

Packaging Facility Impact and Water Use Innovation Earthwards Renewable Energy Use Commitment to Energy Efficiency

Variable speed air Lighting upgrade HCS, Heat recovery chiller Lifescan, compressor, J&J Mumbai Memphis Puerto Rico Commitment to Energy Efficiency

Chiller upgrade Vistakon, Boiler upgrade Gas Conversion Jacksonville J&J UK J&J Thailand Campus Ireland T EC N SH N A O P C E Eithicon Biosurgery

Vistakon Vision Care Dublin Janssen Supply Chain Limerick Janssen Research & Development Cork Johnson & Johnson (Ireland) Limited D Biologics (Ireland) E Pharmaceutical Johnson & Johnson Medical L Research & Development D IV A DePuy Synthes E E Companies of Johnson & Johnson R L Campus Ireland Janssen Biologics (Ireland), Ringaskiddy, Cork Janssen Pharmaceutical, Little Island, Cork

DePuy Ireland, Ringaskiddy, Cork Vistakon, National Technology Park, Limerick

Johnson & Johnson Ireland Ltd., Tallaght, Dublin Ethicon, National Technology Park, Limerick T EC N SH N A O P Local Focus C E Dublin

Limerick

Cork D Biologics (Ireland) E Pharmaceutical L Research & Development D I A V E ER L Campus Ireland

Dublin

Limerick

Cork Biologics (Ireland)

Pharmaceutical

Research & Development T EC N SH N A O P C E

Dublin

Limerick

Cork D Biologics (Ireland) E Pharmaceutical L Research & Development D Quarterly leadership meetings I A V E ER L Campus Ireland Resource Optimization and Knowledge Sharing

Standardized Programmes and Strategies

Leveraged Cost Reduction Opportunities

Lean-Safe-Green Sustainable Relationships in the Value Stream T EC N SH N A O P C E

Dublin

Limerick

Cork Leveraged Cost Savings D Biologics (Ireland) E Pharmaceutical L Research & Development D I A V E ER L Campus Ireland Health Surveillance

Waste Disposal Leveraged Environmental /Auditing Cost Savings Monitoring

EHS Training /Consultants

Leadership & People Development – ‘Power of One’ T EC N SH N A O P C E

Dublin

Limerick

Cork D Biologics (Ireland) Best Practice & SME Sharing Pharmaceutical E L Research & Development D I A V E ER L Good Saves Campus Ireland EHS IT Systems – EnviroManager E-Induction - Log on at www.jnjinduction.com Revenue Generating Waste Recycling PSM Training/Auditing IPPC Licence BCP Simulations Contractor Management REACH/CLP Share Point Site Sustainability @ Campus Ireland

First wind turbines of any Fulfilling Our Credo responsibilities so people, planet & business can site within JnJ worldwide... all live in good health, today & tomorrow. ”iconic project for Ireland and JnJ”

CONNECT SHAPE LEAD DELIVER

Committing to accessing the Campus Ireland will achieve Product Stewardship Our EHS Awards

power of external collaboration 50% of clean tech generation ISO14001 – Environmental Management System OHSAS 18000 – Safety management System s Collabora target set by JnJ by 2015 pu tio EN 160001 first of any business in Europe m n a ISO 50001 member site was first of jnj worldwide C Product MarMarggararet’’ss iinformationnformation Stewardship d B ction pro in io oonn LLeeaadd ggoesoes hherere du je m re c 8 W ts a 2 O i years s C n ENERGY s Excellence Award I r e 2010 & 2011

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Campus Ireland d impact of our operations DePuy was the founding Compliance Record J&J Worldwide 7 - Sustainable manufacture member with Intel. Recent Awards: J&J WW Sustainability Awards years ty Climat Other multinationals fe e S Sa u 2005 2009 rv W e Academia J&J WW J&J WW y Sustainabilina ty Sustainabilin ty W Government Water recovery Projects TOP PERFORMING te Recov aterial R 2010 2011 as er M ed SITE W y w u J&J WW J&J WW a c Sustainability Sustainability R t io n % % T C E Safe & Healthy People N 98 20 N Fostering the most engaged, health-conscious S O H and safe employees in the world C A PE LIVE OUR Saves A hours w od ch ee it DE CREDO o ie y ho L Cork’s lower harbour G v lo u I e p t V SAFETY d m a E c R D e c

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CUSTOMER SUSTAINABILITY JSCI EHS2 Across Both Sites

Integration

a Bio foun harm beg en d P an s ed n s e in n i s a n s 1 J 2 n 9 0 a 8 J 1 0 8 5 33 years years

Janssen Supply Chain a harm beg P an n e in s s 1 n 9 Chem Site Portfolio 8 a J 33 1 years

API sold to Product Name Indication 50 customers Risperdal Schizophrenia Risperdal CONSTA Schizophrenia Intelence HIV Imodium Diarrhea Edurant HIV Impromen Schizophrenia Tinset Allergy Sporanox Fungal Infection Invega Schizophrenia Xeplion Schizophrenia Prezista HIV Sibelium Migrane Motilium Nausea Our Markets Worldwide Bio Site Portfolio 17 Products produced Bio foun en de ss d Product Name Stage Indication n i a n J 2 0

0 Commercial 8 5 years Commercial Rheumatoid Arthritis

Commercial Psoriasis

Post-Clinical CNTO 328 Pre-PAI Castleman’s Disease Stelara CNTO 136 Process Validation Lupus nephritis & RA Rapid and sustained clearance Clinical with infrequent dosing A Phase 3 Chronic Pain For the treatment of moderate to severe plaque psoriasis B Phase 3 Pulmonary Fibrosis C Phase 2 RA D Phase 3 Psoriasis, RA E Pre-clinical / Phase 1 Influenza A Virus F Development Influenza A Virus G Pre-Clinical Solid Tumors H Pre-Clinical Pulmonary Fibrosis I Phase 2 Asthma Our Markets J Pre-clinical / Phase 1 Asthma K Pre-clinical / Phase 1 Influenza B Virus Worldwide L Phase 3 Multiple Myeloma M Pre-clinical / Phase 1 Influenza A Virus The Janssen Formula

2 SITES / 2 PLATFORMS: Pharma Site Little Island COMMON SUCCESS Bio Site Ringaskiddy APPROACH

Pharma > 13 Products Bio - 2 Products > 17 Products

Why? • Reduce electrical energy cost. • Reduce carbon footprint and CO2 emissions. • Promote renewable energy and energy reduction initiatives. • Reduce energy cost/kg of product.

Wind Power Speed Output [m/s] [kW] ⇨ Rated Power Output: 3.000kW 1 0 2 3 ⇨ Turbine Manufacturer: Enercon 3 37 4 118 ⇨ Wind Turbine model: E101 5 258 6 479 ⇨ Rotor diameter: 101 m (50.5 m blade) 7 790 8 1200 ⇨ Hub height: 99 m 9 1710 10 2340 11 2867 12 3034 13 3050 14 3050 15 3050 16 3050 17 3050 €500k 18 3050 19 3050 Savings per National Grid 20 3050 Reducing our 21 3050 Annum approx. 22 3050 Carbon Footprint 23 3050 24 3050 25 3050 3MW Wind Turbine - Ringaskiddy

Turbine Manufacturer: Enercon Model: E101 Rated power: 3,050 kW (13m/s) Hub height: 99 m Rotor diameter: 101 m (50.5 m blade) Case Study Water Harvesting at Janssen Biologics Ringaskiddy, County Cork

Annual rainfall in locality 1207mm 2012 water recovery Program started 2013 full potential realised From 2008 to 2013 reduction of 24,000m3/annum That’s 26% of all water used By 2013 Boilers Chillers Cooling Towers were supplied 100% with rainwater • Ground water abstraction well onsite • No requirement for municipal supply equating to a potential harvest of 1.2m3 of water per m2 of roof per annum. This water is used to supply utility systems such as the cooling towers and boiler feed water systems.

This program has been complimented with the development of a groundwater abstraction well on site which can be utilised to supply water to non production related operations such as the cooling tower, fire water tank makeup, boilers or cooling systems.

With the integration of the well water abstraction and the rain water harvesting the facility is now aligned to be 100% self sufficient in all utility water requirements with no requirement for municipal supply.

Results

On a baseline of 2008, when production commenced, to 2013 water usage has been reduced by approximately 24,000m3/annum or 26% of the total water usage at the facility. This has been completed at a time of significant production increase in the order of 200%.

Water Cost (Potable In)2008 to 2013 Water Project Inception € 160000 140000 120000 100000 80000 60000 40000 20000 0 2008 2009 2010 2011 2012 2013

Figure 1 Annual Water Cost 2008 to 2013

This reduction in water utilised has resulted in a water management cost saving of approx. €40,000 per annum with realised savings of €200,000 over the period, utilising 2008 as the baseline year. Water usage 2008 to 2013 m3 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2008 2009 2010 2011 2012 2013

Figure 2 Annual Water Usage 2008 to 2013

The reduction program has also resulted in the reduction in wastewater streams requiring treatment and a direct hydraulic discharge reduction of 32% based on the 2008 baseline, a reduction of 18,000m3 of wastewater discharged per annum. 2014 Cost savings up until January 2014 €200K Future What the Future Holds

Leading While our with a purpose future is Global Reach, Local Focus promising, Campus it is not IrelanDublind promised. QuaLimericklity & Compliance Alzheimer Immunotherapy Cork Biologics (Ireland)

Pharmaceutical Excellence

Research & Development in Creating Execution Value Through Innovation Moving Beyond Our Footprint

Responsibilities: Opportunities: From doing less bad To doing more good • Carbon reduction • Recycling • Waste reduction • Education • Water reduction • Employee well-being • Packaging reduction • Human potential • Health risk reduction • Watershed regeneration • Employee safety • Energy generation • EHS regulation • Vibrant communities • Supplier compliance • Supply chain leadership • Issues management • Access to health care Thank You

Simon Garrett EHS2 Manager Janssen Cork