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LouiseLouise MehrotraMehrotra ViceVice PresidentPresident InvestorInvestor RelationsRelations ““SafeSafe HarborHarbor”” StatementStatement This presentation may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from the Company. The Company does not undertake to update any forward-looking statements as a result of new information or future events or developments. WilliamWilliam C.C. WeldonWeldon ChairmanChairman ofof thethe BoardBoard && ChiefChief ExecutiveExecutive OfficerOfficer TodayToday’’ss AgendaAgenda 20072007 BusinessBusiness && FinancialFinancial HighlightsHighlights SegmentSegment ResultsResults StrategicStrategic OutlookOutlook && BusinessBusiness PrioritiesPriorities BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth 20072007 –– OverviewOverview SalesSales growthgrowth –– ReportedReported +14.6%+14.6% –– OperationalOperational +11.5%+11.5% –– ProformaProforma +4.2%*+4.2%* AdjustedAdjusted earningsearnings perper shareshare +10.4%**+10.4%** SignificantSignificant progressprogress acrossacross thethe businessesbusinesses * Proforma operational growth including the net impact of PCH- See Appendix B for reconciliation ** Non GAAP. Excludes special items related to restructuring, intangible asset write-downs, IPR&D charges and the gain associated with the termination of the Guidant acquisition agreement. See Appendix A for reconciliation. BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth 20072007 –– OverviewOverview SalesSales growthgrowth –– ReportedReported +14.6%+14.6% –– OperationalOperational +11.5%+11.5% –– ProformaProforma +4.2%*+4.2%* AdjustedAdjusted earningsearnings perper shareshare +10.4%**+10.4%** SignificantSignificant progressprogress acrossacross thethe businessesbusinesses MajorMajor costcost structurestructure improvementsimprovements $10$10 BillionBillion shareshare buybackbuyback OrganizationalOrganizational changeschanges focusedfocused onon growthgrowth * Proforma operational growth including the net impact of PCH- See Appendix B for reconciliation ** Non GAAP. Excludes special items related to restructuring, intangible asset write-downs, IPR&D charges and the gain associated with the termination of the Guidant acquisition agreement. See Appendix A for reconciliation. BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth FinancialFinancial HighlightsHighlights ---- 20072007 vs.vs. 20062006 %% ChangeChange TotalTotal CompanyCompany 20072200720062006 TotalTotal OpsOps SalesSales $61.1B$61.1B $53.3B$53.3B 14.6%14.6% 11.5%11.5% AdjustedAdjusted Earnings*Earnings* $12.1B$12.1B $11.1B$11.1B 8.68.6 %% AdjustedAdjusted EPS*EPS* $4.15$4.15 $3.76$3.76 10.4%10.4% FreeFree CashCash Flow**Flow** $12.2B$12.2B $11.6B$11.6B 5.2%5.2% *Non-GAAP measure; Proforma excluding IPR&D charges and other special items. See Appendix A for reconciliation **Non-GAAP financial measure: defined as operating cash flow less capital spending; estimated as of 1/22/2008 BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth 20072007 ---- FromFrom GuidanceGuidance toto ResultsResults Jan.Jan. 20072007 20072007 GuidanceGuidance ActualActual OperationalOperational SalesSales IncreaseIncrease 11.5%11.5%--12.5%12.5% 11.5%11.5% AdjustedAdjusted EPS*EPS* $3.88$3.88--$3.93$3.93 $4.15$4.15 *Non-GAAP measure; Proforma excluding IPR&D charges and other special items. See Appendix A for reconciliation BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth 20072007 SalesSales byby SegmentSegment MD&D MD&D ConsumerConsumer ÇÇ3.9%*3.9%* 35% 24% ÇÇ44.2%*44.2%* $21.7B $14.5B 41% $24.9B PharmaceuticalPharmaceutical ÇÇ4.3%*4.3%* *Operational Growth Total Sales -- $61.1B BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth SegmentSegment OperatingOperating Profit*Profit* $15.9B $14.6B $6.0 %% toto SalesSales $5.7 20062006 25.7%25.7% 20072007 26.0%26.0% $7.6 $6.9 $2.0 $2.3 2006 2007 Consumer Pharm MD&D *Proforma including net impact of PCH; Refer to 3/2/07 8-K filing for 2006 PCH impact to operating profit; Excludes IPR&D and other special items BuildingBuilding OnOn OurOur FoundationFoundation OfOf GrowthGrowth CostCost StructureStructure ImprovementsImprovements $1.3$1.3 -- $1.6$1.6 BillionBillion inin annualannual costcost savingssavings forfor 20082008 InitiativesInitiatives onon targettarget PermanentPermanent improvementsimprovements toto costcost structurestructure Building On Our Foundation of Growth OrganizingOrganizing toto accelerateaccelerate growthgrowth Pharmaceuticals Comprehensive Care Group MD&D Office of Strategy & Growth Surgical Care Group Consumer SegmentSegment HighlightsHighlights ConsumerConsumer 20072007 BusinessBusiness HighlightsHighlights PCHPCH integrationintegration remainsremains onon tracktrack OperationalOperational salessales growthgrowth +44.2%;+44.2%; proformaproforma +4.6%*+4.6%* ApproximatelyApproximately 600600 newnew productproduct introductionsintroductions andand lineline extensionsextensions –– LISTERINE Whitening Quick Dissolving Strips, AVEENO Positively Ageless, expanded TYLENOL Rapid Release line StrongStrong doubledouble--digitdigit growthgrowth inin keykey emergingemerging marketsmarkets * Proforma operational growth including the net impact of PCH. See Appendix B for reconciliation ConsumerConsumer MajorMajor FranchiseFranchise SalesSales && OperationalOperational GrowthGrowth RatesRates 2007 Sales: $14.5 Billion 2007 Ops Growth Rate: 44.2% $ U.S. Billions McNeil OTC & Nutritionals $5.1 Skin & +85% Skin & Hair Care $3.1 +12% $1.5 Oral Care >100% $2.0 $1.0 $1.8 +8% +71% +3% All Other Baby & Kids Women's Health ConsumerConsumer MajorMajor FranchiseFranchise SalesSales && ProformaProforma OperationalOperational GrowthGrowth RatesRates 2007 Sales: $14.5 Billion 2007 Ops Growth Rate: 4.6%* $ U.S. Billions McNeil OTC & Nutritionals $5.1 Skin & +4% Skin & Hair Care $3.1 +6% $1.5 Oral Care +5% $2.0 $1.0 $1.8 +6% +13% (2%) All Other Baby & Kids Women's Health * Proforma operational growth including the net impact of PCH. See Appendix B for reconciliation WinningWinning inin HealthHealth CareCare AdvancingAdvancing ConsumerConsumer ProductsProducts ContinuedContinued differentiationdifferentiation throughthrough sciencescience--basedbased innovationinnovation LaunchLaunch ZYRTECZYRTEC OTCOTC GrowGrow throughthrough innovation/geographicinnovation/geographic expansionexpansion ofof globalglobal brandsbrands andand franchisesfranchises –– LISTERINE,LISTERINE, NICORETTENICORETTE andand SkinSkin CareCare AccelerateAccelerate growthgrowth inin emergingemerging marketsmarkets PharmaceuticalsPharmaceuticals 20072007 BusinessBusiness HighlightsHighlights NineNine productsproducts withwith salessales overover $1$1 BillionBillion VELCADEVELCADE exceededexceeded $500$500 millionmillion 70%70% ofof salessales comingcoming fromfrom #1#1 oror #2#2 marketmarket positionspositions DeliveredDelivered onon pipelinepipeline commitmentscommitments ContinuedContinued toto advanceadvance thethe pipelinepipeline –– SevenSeven toto tenten newnew filingsfilings byby 20102010 PharmaceuticalPharmaceutical MajorMajor ProductProduct SalesSales && OperationalOperational GrowthGrowth RatesRates 2007 Sales: $24.9 Billion 2007 Ops Growth Rate: 4.3% $$ U.S.U.S. BillionsBillions ACIPHEX/ACIPHEX/ HormonalHormonal PARIETPARIET DURAGESICDURAGESIC Anti-Infectives ContraceptivesContraceptives Anti-Infectives $1.2 CONCERTACONCERTA $0.9 $1.4 $1.6 TOPAMAXTOPAMAX $1.0 (14%) (11%) + 5% + 8% +9% $2.5 + 19% $5.4 OtherOther +7% $3.3 REMICADEREMICADE + 10% $4.7 $2.9 + 9% (12%) EPREX / PROCRIT Anti-psychoticsAnti-psychotics EPREX / PROCRIT PharmaceuticalsPharmaceuticals –– MajorMajor ApprovalsApprovals && SubmissionsSubmissions ApprovedApproved FiledFiled DORIBAXDORIBAX zz CeftobiproleCeftobiprole IONSYSIONSYS zz PaliperidonePaliperidone palmitatepalmitate INTELENCEINTELENCE zz UstekinumabUstekinumab (TMC125(TMC125)) zz DapoxetineDapoxetine WinningWinning inin HealthHealth CareCare AdvancingAdvancing PharmaceuticalPharmaceutical PipelinePipeline PotentialPotential NMENME FilingsFilings 20072007--20102010 2007 2008 2009-2010 Approved Approved Planned Filings INTELENCEINTELENCE™™ (TMC125) (TMC125) DORIBAXDORIBAX™™ ( (doripenem)doripenem) InfectiousInfectious DiseaseDisease InfectiousInfectious DiseaseDisease TelaprevirTelaprevir(E.U.) (E.U.) Planned Filings InfectiousInfectious DiseaseDisease Filed CarisbamateCarisbamate CentralCentral NervousNervous