Johnson & Johnson Reports 2017 Second-Quarter Results:

NEW BRUNSWICK, N.J., July 18, 2017 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $18.8 billion for the second quarter of 2017, an increase of 1.9% as compared to the second quarter of 2016. Operational sales results increased 2.9% and the negative impact of currency was 1.0%. Domestic sales increased 1.6%. International sales increased 2.3%, reflecting operational growth of 4.4% and a negative currency impact of 2.1%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 0.5%, domestic sales decreased 1.0% and international sales increased 2.0%.(*)

Net earnings and diluted earnings per share for the second quarter of 2017 were $3.8 billion and $1.40, respectively. Second-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.4 billion and a charge for after-tax special items of approximately $0.8 billion. Second-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.7 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.0 billion and adjusted diluted earnings per share were $1.83, representing increases of 3.1% and 5.2%, respectively, as compared to the same period in 2016.(*) On an operational basis, adjusted diluted earnings per share also increased 6.9%.(* )A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

"Our second-quarter results reflect strong adjusted earnings growth and we are optimistic that the investments we are making will accelerate our sales growth in the second half of this year. Our pharmaceutical pipeline continued its strong momentum with the approval of TREMFYA(TM) as well as the submission and approval of several key line extensions," said Alex Gorsky, Chairman and Chief Executive Officer. "The Actelion acquisition establishes a new therapeutic area as well as another engine for growth and we are pleased to welcome the Actelion colleagues to the Johnson & Johnson Family of Companies. Together with all of our businesses, we will continue to transform the lives of patients around the world."

The Company increased its sales guidance for the full-year 2017 to $75.8 billion to $76.1 billion. Additionally, the Company increased its adjusted earnings guidance for full-year 2017 to $7.12 - $7.22 per share.*

Worldwide Consumer sales of $3.5 billion for the second quarter 2017 represented an increase of 1.7% versus the prior year, consisting of an operational increase of 2.3% and a negative impact from currency of 0.6%. Domestic sales increased 7.4%, international sales decreased 2.2%, which reflected an operational decrease of 1.1% and a negative currency impact of 1.1%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales decreased 0.8%, domestic sales increased 1.2% and international sales decreased 2.3%(*).

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were negatively impacted by baby care products, partially offset by domestic over-the-counter products, including upper respiratory products and international anti-smoking aids, and NEUTROGENA(®) beauty products.

Worldwide Pharmaceutical sales of $8.6 billion for the second quarter 2017 represented a decrease of 0.2% versus the prior year with an operational increase of 1.0% and a negative impact from currency of 1.2%. Domestic sales decreased 2.6%; international sales increased 3.3%, which reflected an operational increase of 6.1% and a negative currency impact of 2.8%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 0.5%, domestic sales decreased 2.6% and international sales increased 5.1%.(*) Worldwide operational sales growth was negatively impacted by approximately 4 points due to a positive adjustment of U.S. rebate accruals in the second quarter of 2016, which did not repeat in the second quarter of 2017.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by new products and the strength of core products. Strong growth in new products include DARZALEX(® )(daratumumab), for the treatment of patients with multiple myeloma and IMBRUVICA(®) (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer. Additional contributors to operational sales growth included STELARA(®) (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, and INVEGA(® )SUSTENNA(®)/XEPLION(®)/TRINZA(®) (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults.

During the quarter, the Company announced the completion of the acquisition of Actelion Ltd., a leading biopharmaceutical company, for a total purchase price of approximately $30 billion in cash.

Also in the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for DARZALEX(®) (daratumumab) in combination with pomalidomide and dexamethasone for the treatment of patients with multiple myeloma who have received at least two prior therapies. The European Commission (EC) granted approval for DARZALEX(®) (daratumumab) for use in combination with lenalidomide and dexamethasone, or bortezomib (VELCADE(®)) and dexamethasone, for the treatment of adult patients with multiple myeloma who have received at least one prior therapy.

In addition, a supplemental New Drug Application was submitted to the FDA to update the prescribing information for XARELTO(®) (rivaroxaban) to add a 10mg dose to reduce patients' risk of recurrent venous thromboembolism (VTE) after at least six months of standard anticoagulation therapy and regulatory submissions were made to both the European Medicines Agency and the FDA for a single-tablet, two-drug regimen of dolutegravir and rilpivirine for the maintenance treatment of HIV-1 infection.

In July, subsequent to the quarter, the FDA approved TREMFYA((TM)) (guselkumab) for the treatment of adults living with moderate to severe plaque psoriasis.

Worldwide Medical Devices sales of $6.7 billion for the second quarter 2017 represented an increase of 4.9% versus the prior year consisting of an operational increase of 5.9% and a negative currency impact of 1.0%. Domestic sales increased 6.1%; international sales increased 3.9%, which reflected an operational increase of 5.8% and a negative currency impact of 1.9%. Sales included the impact of the first full quarter of the recently completed acquisition of Abbott Medical Optics which contributed 5.1%, to worldwide operational sales growth. Excluding the net impact of all acquisitions and divestitures, on an operational basis, worldwide sales increased 1.1%, domestic sales increased 0.8% and international sales increased 1.4%.(*)

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Cardiovascular business, ACUVUE(®) contact lenses in the Vision Care business, and Advanced Surgery products, partially offset by declines in the Diabetes Care business.

During the quarter, FDA clearance was received for the 30-minute STERRAD VELOCITY((TM)) Biological Indicator System for low temperature H(2)0(2) sterilization as well as approval for the SURGICEL(® )Powder Absorbable Hemostat for adjunctive hemostasis during surgery.

About Johnson & Johnson

Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 132,500 employees at more than 250 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

(*) Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted 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 Investor Relations section of the company's website at www.investor.jnj.com. 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.

Johnson & Johnson will conduct a conference call with investors to discuss this news 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 at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. 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 be found on the company's website at www.investor.jnj.com.

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: economic and financial market factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in 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, including restructuring plans; the impact of business combinations and divestitures, including the Company's ability to successfully integrate Actelion Ltd.'s products and operations and realize the expected benefits and opportunities of the transaction in the expected time frame or at all; 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; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. 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 January 1, 2017, including under "Item 1A. Risk Factors," its most recently filed Quarterly Report on Form 10-Q, including in the section captioned "Cautionary Note Regarding Forward-Looking Statements," and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.investor.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

                                          2017                2016 Total                     Operations        Currency           2017                     2016    Total         Operations           Currency
                                          ----                ---- -----                     ----------        --------           ----                     ----    -----         ----------           --------

    Sales to customers by

    segment of business


    Consumer

        U.S.                            $1,487               1,384       7.4%                             7.4                -   $2,901                    2,742          5.8%                 5.8                   -

        International                    1,991               2,035      (2.2)                           (1.1)           (1.1)    3,805                    3,872         (1.7)               (1.3)              (0.4)

                                         3,478               3,419        1.7                              2.3            (0.6)    6,706                    6,614           1.4                  1.6               (0.2)
                                         -----               -----        ---                              ---             ----     -----                    -----           ---                  ---                ----


    Pharmaceutical

        U.S.                             5,010               5,144      (2.6)                           (2.6)               -    9,882                   10,081         (2.0)               (2.0)                  -

        International                    3,625               3,510        3.3                              6.1            (2.8)    6,998                    6,751           3.7                  5.9               (2.2)

                                         8,635               8,654      (0.2)                             1.0            (1.2)   16,880                   16,832           0.3                  1.2               (0.9)
                                         -----               -----       ----                              ---             ----    ------                   ------           ---                  ---                ----


    Medical Devices

        U.S.                             3,229               3,044        6.1                              6.1                -    6,321                    6,070           4.1                  4.1                   -

        International                    3,497               3,365        3.9                              5.8            (1.9)    6,698                    6,448           3.9                  5.3               (1.4)

                                         6,726               6,409        4.9                              5.9            (1.0)   13,019                   12,518           4.0                  4.7               (0.7)
                                         -----               -----        ---                              ---             ----    ------                   ------           ---                  ---                ----


    U.S.                                 9,726               9,572        1.6                              1.6                -   19,104                   18,893           1.1                  1.1                   -

    International                        9,113               8,910        2.3                              4.4            (2.1)   17,501                   17,071           2.5                  4.0               (1.5)

    Worldwide                          $18,839              18,482       1.9%                             2.9            (1.0)  $36,605                   35,964          1.8%                 2.5               (0.7)
    ---------                          -------              ------        ---                              ---             ----   -------                   ------           ---                  ---                ----

    Johnson & Johnson and Subsidiaries
    ----------------------------------

    Supplementary Sales Data


    (Unaudited; Dollars in Millions)         SECOND QUARTER                         SIX MONTHS
    -------------------------------          --------------                         ----------

                                                                     Percent Change                                                              Percent Change
                                                                   --------------                                                           --------------

                                          2017                2016   Total                     Operations        Currency           2017                         2016    Total        Operations          Currency
                                          ----                ----   -----                     ----------        --------           ----                         ----    -----        ----------          --------

    Sales to customers by

    geographic area


    U.S.                                $9,726               9,572         1.6%                             1.6                -  $19,104                       18,893         1.1%                1.1                 -
    ----                                ------               -----          ---                              ---              ---  -------                       ------          ---                 ---               ---


    Europe                               4,232               4,090          3.5                              6.7            (3.2)    8,090                        7,937          1.9                 5.4             (3.5)

    Western Hemisphere excluding U.S.    1,499               1,542        (2.8)                           (2.7)           (0.1)    2,953                        2,873          2.8               (0.2)              3.0

    Asia-Pacific, Africa                 3,382               3,278          3.2                              4.9            (1.7)    6,458                        6,261          3.1                 4.1             (1.0)

    International                        9,113               8,910          2.3                              4.4            (2.1)   17,501                       17,071          2.5                 4.0             (1.5)
    -------------                        -----               -----          ---                              ---             ----    ------                       ------          ---                 ---              ----


    Worldwide                          $18,839              18,482         1.9%                             2.9            (1.0)  $36,605                       35,964         1.8%                2.5             (0.7)
    ---------                          -------              ------          ---                              ---             ----   -------                       ------          ---                 ---              ----

    Johnson & Johnson and Subsidiaries
    ----------------------------------

    Condensed Consolidated Statement of Earnings


    (Unaudited; in Millions Except Per Share Figures)                                SECOND QUARTER
    ------------------------------------------------                                 --------------


                                                                                2017                          2016         Percent
                                                                                ----                          ----

                                                                                                    Percent                        Percent          Increase

                                                                      Amount                        to Sales       Amount          to Sales       (Decrease)

    Sales to customers                                                       $18,839                         100.0         $18,482          100.0            1.9
    ------------------                                                       -------                         -----         -------          -----            ---

    Cost of products sold                                                      5,823                          30.9           5,336           28.9            9.1

    Selling, marketing and administrative expenses                             5,262                          28.0           5,176           28.0            1.7

    Research and development expense                                           2,285                          12.1           2,264           12.2            0.9

    In-process research and development                                            -                            -             29            0.2

    Interest (income) expense, net                                               122                           0.6             102            0.6

    Other (income) expense, net                                                  588                           3.1             557            3.0

    Restructuring                                                                 11                           0.1             114            0.6
    -------------                                                                ---                           ---             ---            ---

    Earnings before provision for taxes on income                              4,748                          25.2           4,904           26.5          (3.2)

    Provision for taxes on income                                                921                           4.9             907            4.9            1.5
                                                                                                                                                         ---

    Net earnings                                                              $3,827                          20.3          $3,997           21.6          (4.3)
    ------------                                                              ------                          ----          ------           ----           ----


    Net earnings per share (Diluted)                                           $1.40                                        $1.43                        (2.1)


    Average shares outstanding (Diluted)                                     2,741.5                                      2,794.2


    Effective tax rate                                                         19.4%                                       18.5%


    Adjusted earnings before provision for taxes and net earnings (1)

    Earnings before provision for taxes on income                             $6,285                          33.4          $6,024           32.6            4.3

    Net earnings                                                              $5,017                          26.6          $4,866           26.3            3.1

    Net earnings per share (Diluted)                                           $1.83                                        $1.74                          5.2

    Effective tax rate                                                         20.2%                                       19.2%
    ------------------                                                          ----                                         ----


    (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
    ------------------------------------------------                                 ----------


                                                                                2017                      2016         Percent
                                                                                ----                      ----

                                                                                                Percent                        Percent          Increase

                                                                      Amount                    to Sales       Amount          to Sales       (Decrease)

    Sales to customers                                                       $36,605                     100.0         $35,964          100.0            1.8
    ------------------                                                       -------                     -----         -------          -----            ---

    Cost of products sold                                                     11,209                      30.6          10,665           29.6            5.1

    Selling, marketing and administrative expenses                             9,999                      27.3           9,864           27.4            1.4

    Research and development expense                                           4,345                      11.9           4,277           11.9            1.6

    In-process research and development                                            -                        -             29            0.1

    Interest (income) expense, net                                               205                       0.6             179            0.5

    Other (income) expense, net                                                  428                       1.2             518            1.4

    Restructuring                                                                 96                       0.2             234            0.7
    -------------                                                                ---                       ---             ---            ---

    Earnings before provision for taxes on income                             10,323                      28.2          10,198           28.4            1.2

    Provision for taxes on income                                              2,074                       5.7           1,744            4.9           18.9
                                                                                                                                                    ----

    Net earnings                                                              $8,249                      22.5          $8,454           23.5          (2.4)
    ------------                                                              ------                      ----          ------           ----           ----


    Net earnings per share (Diluted)                                           $3.00                                    $3.02                        (0.7)


    Average shares outstanding (Diluted)                                     2,749.4                                  2,800.9


    Effective tax rate                                                         20.1%                                   17.1%


    Adjusted earnings before provision for taxes and net earnings (1)

    Earnings before provision for taxes on income                            $12,388                      33.8         $11,825           32.9            4.8

    Net earnings                                                             $10,055                      27.5          $9,720           27.0            3.4

    Net earnings per share (Diluted)                                           $3.66                                    $3.47                          5.5

    Effective tax rate                                                         18.8%                                   17.8%
    ------------------                                                          ----                                     ----


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

    Johnson & Johnson and Subsidiaries

    Reconciliation of Non-GAAP Financial Measures


                                                                                                                                                     Second Quarter                        % Incr. /                                                   Six Months YTD                                   % Incr. /
                                                                                                                                                     --------------                                                                                    --------------

    (Dollars in Millions Except Per Share Data)                                                                                                                    2017                               2016                        (Decr.)                                                         2017                                 2016  (Decr.)
    ------------------------------------------                                                                                                                     ----                               ----                         ------                                                         ----                                 ----   ------


    Earnings before provision for taxes on income - as reported                                                                                                  $4,748                              4,904                                 (3.2)%                                              $10,323                               10,198            1.2%


    Intangible asset amortization expense                                                                                                                           480                                326                                                                                         809                                  608


    Litigation expense, net                                                                                                                                         493                                600                                                                                         493                                  666


    Restructuring/Other (1)                                                                                                                                         128                                141                                                                                         289                                  278


    Actelion acquisition related cost                                                                                                                               213                                  -                                                                                        213                                    -


    Diabetes asset impairment                                                                                                                                       182                                  -                                                                                        182                                    -


    AMO acquisition related cost                                                                                                                                     41                                  -                                                                                         79                                    -


    In-process research and development                                                                                                                               -                                29                                                                                           -                                  29


    Other                                                                                                                                                             -                                24                                                                                           -                                  46


    Earnings before provision for taxes on income - as adjusted                                                                                                  $6,285                              6,024                                   4.3%                                              $12,388                               11,825            4.8%
                                                                                                                                                                 ------                              -----                                    ---                                               -------                               ------             ---


    Net Earnings - as reported                                                                                                                                   $3,827                              3,997                                 (4.3)%                                               $8,249                                8,454          (2.4)%


    Intangible asset amortization expense                                                                                                                           378                                238                                                                                         622                                  443


    Litigation expense, net                                                                                                                                         352                                493                                                                                         352                                  549


    Restructuring/Other                                                                                                                                             101                                 97                                                                                         222                                  217


    Actelion acquisition related cost                                                                                                                               199                                  -                                                                                        199                                    -


    Diabetes asset impairment                                                                                                                                       125                                  -                                                                                        125                                    -


    AMO acquisition related cost                                                                                                                                     35                                  -                                                                                        286                                    -


    In-process research and development                                                                                                                               -                                23                                                                                           -                                  23


    Other                                                                                                                                                             -                                18                                                                                           -                                  34


    Net Earnings - as adjusted                                                                                                                                   $5,017                              4,866                                   3.1%                                              $10,055                                9,720            3.4%
                                                                                                                                                                 ------                              -----                                    ---                                               -------                                -----             ---


    Diluted Net Earnings per share - as reported                                                                                                                  $1.40                               1.43                                 (2.1)%                                                $3.00                                 3.02          (0.7)%


    Intangible asset amortization expense                                                                                                                          0.14                               0.08                                                                                        0.23                                 0.16


    Litigation expense, net                                                                                                                                        0.13                               0.18                                                                                        0.13                                 0.19


    Restructuring/Other                                                                                                                                            0.03                               0.03                                                                                        0.08                                 0.08


    Actelion acquisition related cost                                                                                                                              0.07                                  -                                                                                       0.07                                    -


    Diabetes asset impairment                                                                                                                                      0.05                                  -                                                                                       0.05                                    -


    AMO acquisition related cost                                                                                                                                   0.01                                  -                                                                                       0.10                                    -


    In-process research and development                                                                                                                               -                              0.01                                                                                           -                                0.01


    Other                                                                                                                                                             -                              0.01                                                                                           -                                0.01


    Diluted Net Earnings per share - as adjusted                                                                                                                  $1.83                               1.74                                   5.2%                                                $3.66                                 3.47            5.5%
                                                                                                                                                                  -----                               ----                                    ---                                                 -----                                 ----             ---


    Operational Diluted Net Earnings per share - as adjusted

    at 2015 foreign currency exchange rates                                                                                                                                                          1.74                                                                                                                            3.51


    Impact of currency at 2016 foreign currency exchange rates                                                                                                     0.03                                  -                                                                                       0.06                               (0.04)


    Operational Diluted Net Earnings per share - as adjusted

    at 2016 foreign currency exchange rates                                                                                                                       $1.86                               1.74                                   6.9%                                                $3.72                                 3.47            7.2%
                                                                                                                                                                  -----                               ----                                    ---                                                 -----                                 ----             ---


    (1)Includes $13M recorded in cost of products sold and $104M recorded in other (income) expense for the second quarter 2017. Includes $17M recorded in cost of products sold and $176M recorded in other (income) expense for six months 2017 YTD.  Includes $7M recorded in cost of products sold and $20M recorded in other (income)
     expense for the  second quarter 2016.  Includes $24M recorded in cost of products sold and $20M recorded in other (income) expense for six months 2016 YTD.

    Johnson & Johnson and Subsidiaries

    Reconciliation of Non-GAAP Financial Measure


                                                                        Operational Sales Growth Excluding Acquisitions and Divestitures
                                                                        ----------------------------------------------------------------

                                                                                   SECOND QUARTER 2017 ACTUAL vs. 2016 ACTUAL



                                                                                                Segments
                                                                                                --------


                                                                                                     Consumer                             Pharmaceutical          Medical Devices         Total
                                                                                                     --------                            --------------          ---------------          -----

                                                                                                      Operational %(1)
                                                                                                       ---------------

     WW As Reported:                                                                                                 2.3%                                  1.0%                    5.9%           2.9%
     ---------------                                                                                                  ---                                    ---                      ---             ---

     U.S.                                                                                                            7.4%                                (2.6)%                    6.1%           1.6%

     International                                                                                                 (1.1)%                                  6.1%                    5.8%           4.4%


    Beauty

    Vogue                                                                                                           (2.7)                                                                        (0.5)

     U.S.                                                                                                           (5.9)                                                                        (0.9)

     International                                                                                                  (0.6)                                                                        (0.1)


    Other Neuroscience

    Controlled Substance Raw Material and API Business                                                                                                      0.6                                     0.3

     U.S.                                                                                                                                                   0.8                                     0.4

     International                                                                                                                                          0.5                                     0.2


    Diagnostics

    Ortho-Clinical Diagnostics                                                                                                                                                      0.5             0.2

     U.S.                                                                                                                                                                           0.0             0.0

     International                                                                                                                                                                  1.0             0.3


    Vision Care

    Abbott Medical Optics                                                                                                                                                         (5.1)          (1.8)

     U.S.                                                                                                                                                                         (4.6)          (1.5)

     International                                                                                                                                                                (5.6)          (2.1)


    Pulmonary Hypertension

    Actelion                                                                                                                                              (1.1)                                  (0.5)

     U.S.                                                                                                                                                 (0.8)                                  (0.4)

     International                                                                                                                                        (1.5)                                  (0.6)



    All Other Acquisitions and Divestitures                                                                         (0.4)                                                         (0.2)          (0.1)

     U.S.                                                                                                           (0.3)                                                         (0.7)          (0.2)

     International                                                                                                  (0.6)                                                           0.2           (0.1)


    WW Ops excluding Acquisitions and Divestitures                                                                 (0.8)%                                  0.5%                    1.1%           0.5%
    ==============================================                                                                  =====                                    ===                      ===             ===

     U.S.                                                                                                            1.2%                                (2.6)%                    0.8%         (1.0)%

     International                                                                                                 (2.3)%                                  5.1%                    1.4%           2.0%


    (1)Operational growth excludes the effect of translational currency

    Johnson & Johnson and Subsidiaries

    Reconciliation of Non-GAAP Financial Measure


                                                                        Operational Sales Growth Excluding Acquisitions and Divestitures
                                                                        ----------------------------------------------------------------

                                                                                      SIX MONTHS 2017 ACTUAL vs. 2016 ACTUAL



                                                                                                 Segments
                                                                                                 --------


                                                                                                     Consumer                            Pharmaceutical          Medical Devices         Total
                                                                                                     --------                            --------------         ---------------          -----

                                                                                                      Operational %(1)
                                                                                                       ---------------

     WW As Reported:                                                                                                 1.6%                                 1.2%                    4.7%           2.5%
     ---------------                                                                                                  ---                                   ---                      ---             ---

     U.S.                                                                                                            5.8%                               (2.0)%                    4.1%           1.1%

     International                                                                                                 (1.3)%                                 5.9%                    5.3%           4.0%


    Beauty

    Vogue                                                                                                           (2.9)                                                                       (0.5)

     U.S.                                                                                                           (6.1)                                                                       (0.9)

     International                                                                                                  (0.7)                                                                       (0.2)


    Other Neuroscience

    Controlled Substance Raw Material and API Business                                                                                                     0.7                                     0.3

     U.S.                                                                                                                                                  0.9                                     0.5

     International                                                                                                                                         0.4                                     0.2


    Diagnostics

    Ortho-Clinical Diagnostics                                                                                                                                                     0.5             0.2

     U.S.                                                                                                                                                                          0.0             0.0

     International                                                                                                                                                                 1.0             0.4


    Vision Care

    Abbott Medical Optics                                                                                                                                                        (3.6)          (1.3)

     U.S.                                                                                                                                                                        (3.2)          (1.0)

     International                                                                                                                                                               (4.0)          (1.5)


    Pulmonary Hypertension

    Actelion                                                                                                                                             (0.6)                                  (0.3)

     U.S.                                                                                                                                                (0.4)                                  (0.2)

     International                                                                                                                                       (0.8)                                  (0.3)


    All Other Acquisitions and Divestitures                                                                         (0.3)                                                        (0.2)          (0.1)

     U.S.                                                                                                           (0.5)                                                        (0.7)          (0.4)

     International                                                                                                  (0.1)                                                          0.2             0.1


    WW Ops excluding Acquisitions and Divestitures                                                                 (1.6)%                                 1.3%                    1.4%           0.8%
    ==============================================                                                                  =====                                   ===                      ===             ===

     U.S.                                                                                                          (0.8)%                               (1.5)%                    0.2%         (0.9)%

     International                                                                                                 (2.1)%                                 5.5%                    2.5%           2.7%


    (1)Operational growth excludes the effect of translational currency

                                                                                                                                 REPORTED SALES vs. PRIOR PERIOD ($MM)
                                                                                                                                  ------------------------------------

                                                                                                         SECOND QUARTER                                                                                   SIX MONTHS
                                                                                                         --------------                                                                                   ----------

                                                                                                                                                              % Change                                                                                                  % Change
                                                                                                                                                              --------                                                                                                  --------

                                                                                                  2017              2016   Reported                         Operational (1)         Currency                            2017      2016        Reported                  Operational (1)            Currency
                                                                                                  ----              ----   --------                         --------------          --------                            ----      ----        --------                  --------------             --------

    CONSUMER SEGMENT (2) (3)
    -----------------------

    BABY CARE
    ---------

    US                                                                                            $113              $126               -10.3%                               -10.3%               -                      $226      $247                  -8.5%                            -8.5%                  -

    Intl                                                                                           381               404                -5.7%                                -5.3%           -0.4%                       723       766                  -5.6%                            -5.7%               0.1%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             494               530                -6.8%                                -6.5%           -0.3%                       949     1,013                  -6.3%                            -6.3%               0.0%

    BEAUTY
    ------

    US                                                                                             649               554                17.1%                                17.1%               -                     1,216     1,038                  17.1%                            17.1%                  -

    Intl                                                                                           427               422                 1.2%                                 3.1%           -1.9%                       841       817                   2.9%                             4.0%              -1.1%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                           1,076               976                10.2%                                11.0%           -0.8%                     2,057     1,855                  10.9%                            11.4%              -0.5%

    ORAL CARE
    ---------

    US                                                                                             150               159                -5.7%                                -5.7%               -                       306       329                  -7.0%                            -7.0%                  -

    Intl                                                                                           244               244                 0.0%                                 0.8%           -0.8%                       450       459                  -2.0%                            -1.7%              -0.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             394               403                -2.2%                                -1.7%           -0.5%                       756       788                  -4.1%                            -3.9%              -0.2%

    OTC
    ---

    US                                                                                             432               405                 6.7%                                 6.7%               -                       909       871                   4.4%                             4.4%                  -

    Intl                                                                                           574               591                -2.9%                                -1.1%           -1.8%                     1,110     1,124                  -1.2%                            -0.2%              -1.0%
                                                                                                   ---               ---                                                                                               -----     -----

    WW                                                                                           1,006               996                 1.0%                                 2.1%           -1.1%                     2,019     1,995                   1.2%                             1.8%              -0.6%

    WOMEN'S HEALTH
    --------------

    US                                                                                               3                 7               -57.1%                               -57.1%               -                         6        13                 -53.8%                           -53.8%                  -

    Intl                                                                                           273               276                -1.1%                                -1.9%            0.8%                       512       521                  -1.7%                            -3.0%               1.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             276               283                -2.5%                                -3.3%            0.8%                       518       534                  -3.0%                            -4.2%               1.2%

    WOUND CARE / OTHER
    ------------------

    US                                                                                             140               133                 5.3%                                 5.3%               -                       238       244                  -2.5%                            -2.5%                  -

    Intl                                                                                            92                98                -6.1%                                -4.8%           -1.3%                       169       185                  -8.6%                            -8.3%              -0.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             232               231                 0.4%                                 0.9%           -0.5%                       407       429                  -5.1%                            -5.0%              -0.1%


    TOTAL CONSUMER
    --------------

    US                                                                                           1,487             1,384                 7.4%                                 7.4%               -                     2,901     2,742                   5.8%                             5.8%                  -

    Intl                                                                                         1,991             2,035                -2.2%                                -1.1%           -1.1%                     3,805     3,872                  -1.7%                            -1.3%              -0.4%
                                                                                                 -----             -----                                                                                               -----     -----

    WW                                                                                          $3,478            $3,419                 1.7%                                 2.3%           -0.6%                    $6,706    $6,614                   1.4%                             1.6%              -0.2%
                                                                                                ======            ======                                                                                              ======    ======



                                                                                                                             REPORTED SALES vs. PRIOR PERIOD ($MM)
                                                                                                                              ------------------------------------

                                                                                                       SECOND QUARTER                                                                             SIX MONTHS
                                                                                                       --------------                                                                             ----------

                                                                                                                                                           % Change                                                                                              % Change
                                                                                                                                                           --------                                                                                              --------

                                                                                                  2017              2016   Reported                         Operational (1)         Currency                            2017      2016        Reported                  Operational (1)            Currency
                                                                                                  ----              ----   --------                         --------------          --------                            ----      ----        --------                  --------------             --------

    PHARMACEUTICAL SEGMENT (2) (3)
    -----------------------------

    IMMUNOLOGY
    ----------

    US                                                                                          $2,101            $2,224                -5.5%                                -5.5%               -                    $4,224    $4,395                  -3.9%                            -3.9%                  -

    Intl                                                                                           858               814                 5.4%                                 8.0%           -2.6%                     1,665     1,553                   7.2%                             8.5%              -1.3%
                                                                                                   ---               ---                                                                                               -----     -----

    WW                                                                                           2,959             3,038                -2.6%                                -1.9%           -0.7%                     5,889     5,948                  -1.0%                            -0.7%              -0.3%

    REMICADE
    --------

    US                                                                                           1,064             1,236               -13.9%                               -13.9%               -                     2,246     2,447                  -8.2%                            -8.2%                  -

    US Exports (4)                                                                                 127               185               -31.4%                               -31.4%               -                       292       418                 -30.1%                           -30.1%                  -

    Intl                                                                                           339               359                -5.6%                                -3.4%           -2.2%                       664       694                  -4.3%                            -4.0%              -0.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                           1,530             1,780               -14.0%                               -13.6%           -0.4%                     3,202     3,559                 -10.0%                            -9.9%              -0.1%

    SIMPONI / SIMPONI ARIA
    ----------------------

    US                                                                                             230               244                -5.7%                                -5.7%               -                       459       460                  -0.2%                            -0.2%                  -

    Intl                                                                                           209               204                 2.5%                                 4.6%           -2.1%                       408       378                   7.9%                             8.6%              -0.7%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             439               448                -2.0%                                -1.0%           -1.0%                       867       838                   3.5%                             3.8%              -0.3%

    STELARA
    -------

    US                                                                                             680               559                21.6%                                21.6%               -                     1,227     1,070                  14.7%                            14.7%                  -

    Intl                                                                                           303               245                23.7%                                27.5%           -3.8%                       579       469                  23.5%                            26.8%              -3.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             983               804                22.3%                                23.4%           -1.1%                     1,806     1,539                  17.3%                            18.3%              -1.0%

    OTHER IMMUNOLOGY
    ----------------

    US                                                                                               -                -                   -                                    -               -                         -        -                     -                                -                  -

    Intl                                                                                             7                 6                16.7%                                15.8%            0.9%                        14        12                  16.7%                            14.0%               2.7%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                               7                 6                16.7%                                15.8%            0.9%                        14        12                  16.7%                            14.0%               2.7%

    INFECTIOUS DISEASES
    -------------------

    US                                                                                             341               362                -5.8%                                -5.8%               -                       667       720                  -7.4%                            -7.4%                  -

    Intl                                                                                           451               467                -3.4%                                -1.5%           -1.9%                       874       885                  -1.2%                             0.6%              -1.8%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             792               829                -4.5%                                -3.4%           -1.1%                     1,541     1,605                  -4.0%                            -3.0%              -1.0%

    EDURANT
    -------

    US                                                                                              17                14                21.4%                                21.4%               -                        29        25                  16.0%                            16.0%                  -

    Intl                                                                                           162               126                28.6%                                30.9%           -2.3%                       299       234                  27.8%                            30.6%              -2.8%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             179               140                27.9%                                30.0%           -2.1%                       328       259                  26.6%                            29.2%              -2.6%

    PREZISTA / PREZCOBIX / REZOLSTA
    -------------------------------

    US                                                                                             278               273                 1.8%                                 1.8%               -                       537       550                  -2.4%                            -2.4%                  -

    Intl                                                                                           176               186                -5.4%                                -2.9%           -2.5%                       347       361                  -3.9%                            -1.4%              -2.5%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             454               459                -1.1%                                -0.1%           -1.0%                       884       911                  -3.0%                            -2.0%              -1.0%

    OTHER INFECTIOUS DISEASES
    -------------------------

    US                                                                                              46                75               -38.7%                               -38.7%               -                       101       145                 -30.3%                           -30.3%                  -

    Intl                                                                                           113               155               -27.1%                               -26.3%           -0.8%                       228       290                 -21.4%                           -21.5%               0.1%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             159               230               -30.9%                               -30.4%           -0.5%                       329       435                 -24.4%                           -24.4%               0.0%
                                                                                                   ---               ---                -----                                 -----             ----                        ---       ---                  -----                             -----                ---

    See footnotes at end of schedule


                                                                                                                             REPORTED SALES vs. PRIOR PERIOD ($MM)
                                                                                                                              ------------------------------------

                                                                                                       SECOND QUARTER                                                                             SIX MONTHS
                                                                                                       --------------                                                                             ----------

                                                                                                                                                           % Change                                                                                              % Change
                                                                                                                                                           --------                                                                                              --------

                                                                                                  2017              2016   Reported                         Operational (1)         Currency                            2017      2016        Reported                  Operational (1)            Currency
                                                                                                  ----              ----   --------                         --------------          --------                            ----      ----        --------                  --------------             --------

    NEUROSCIENCE
    ------------

    US                                                                                             620               695               -10.8%                               -10.8%               -                     1,284     1,375                  -6.6%                            -6.6%                  -

    Intl                                                                                           847               907                -6.6%                                -4.1%           -2.5%                     1,680     1,776                  -5.4%                            -3.5%              -1.9%
                                                                                                   ---               ---                                                                                               -----     -----

    WW                                                                                           1,467             1,602                -8.4%                                -7.0%           -1.4%                     2,964     3,151                  -5.9%                            -4.9%              -1.0%

    CONCERTA / METHYLPHENIDATE
    --------------------------

    US                                                                                              76               129               -41.1%                               -41.1%               -                       184       263                 -30.0%                           -30.0%                  -

    Intl                                                                                           105               109                -3.7%                                -1.3%           -2.4%                       206       206                   0.0%                             1.3%              -1.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             181               238               -23.9%                               -22.8%           -1.1%                       390       469                 -16.8%                           -16.2%              -0.6%

    INVEGA SUSTENNA / XEPLION / TRINZA
    ----------------------------------

    US                                                                                             387               339                14.2%                                14.2%               -                       759       644                  17.9%                            17.9%                  -

    Intl                                                                                           242               221                 9.5%                                13.1%           -3.6%                       474       429                  10.5%                            13.7%              -3.2%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             629               560                12.3%                                13.7%           -1.4%                     1,233     1,073                  14.9%                            16.2%              -1.3%

    RISPERDAL CONSTA
    ----------------

    US                                                                                              91               100                -9.0%                                -9.0%               -                       186       195                  -4.6%                            -4.6%                  -

    Intl                                                                                           116               130               -10.8%                                -8.1%           -2.7%                       228       266                 -14.3%                           -12.0%              -2.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             207               230               -10.0%                                -8.5%           -1.5%                       414       461                 -10.2%                            -8.9%              -1.3%

    OTHER NEUROSCIENCE
    ------------------

    US                                                                                              66               127               -48.0%                               -48.0%               -                       155       273                 -43.2%                           -43.2%                  -

    Intl                                                                                           384               447               -14.1%                               -12.1%           -2.0%                       772       875                 -11.8%                           -10.6%              -1.2%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             450               574               -21.6%                               -20.0%           -1.6%                       927     1,148                 -19.3%                           -18.4%              -0.9%

    ONCOLOGY
    --------

    US                                                                                             697               569                22.5%                                22.5%               -                     1,361     1,118                  21.7%                            21.7%                  -

    Intl                                                                                         1,030               905                13.8%                                17.0%           -3.2%                     1,960     1,710                  14.6%                            17.6%              -3.0%
                                                                                                 -----               ---                                                                                               -----     -----

    WW                                                                                           1,727             1,474                17.2%                                19.2%           -2.0%                     3,321     2,828                  17.4%                            19.2%              -1.8%

    DARZALEX
    --------

    US                                                                                             212                95                    *                                    *               -                       413       196                      *                                *                  -

    Intl                                                                                            87                13                    *                                    *              **                       141        13                      *                                *                 **
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             299               108                    *                                    *              **                       554       209                      *                                *                 **

    IMBRUVICA
    ---------

    US                                                                                             202               144                40.3%                                40.3%               -                       392       276                  42.0%                            42.0%                  -

    Intl                                                                                           248               151                64.2%                                69.4%           -5.2%                       467       280                  66.8%                            71.4%              -4.6%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             450               295                52.5%                                55.1%           -2.6%                       859       556                  54.5%                            56.8%              -2.3%

    VELCADE
    -------

    US                                                                                               -                -                   -                                    -               -                         -        -                     -                                -                  -

    Intl                                                                                           290               342               -15.2%                               -12.6%           -2.6%                       570       646                 -11.8%                            -9.0%              -2.8%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             290               342               -15.2%                               -12.6%           -2.6%                       570       646                 -11.8%                            -9.0%              -2.8%

    ZYTIGA
    ------

    US                                                                                             241               286               -15.7%                               -15.7%               -                       474       558                 -15.1%                           -15.1%                  -

    Intl                                                                                           317               315                 0.6%                                 3.2%           -2.6%                       607       601                   1.0%                             3.0%              -2.0%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             558               601                -7.2%                                -5.8%           -1.4%                     1,081     1,159                  -6.7%                            -5.7%              -1.0%

    OTHER ONCOLOGY
    --------------

    US                                                                                              42                44                -4.5%                                -4.5%               -                        82        88                  -6.8%                            -6.8%                  -

    Intl                                                                                            88                84                 4.8%                                 7.1%           -2.3%                       175       170                   2.9%                             5.5%              -2.6%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             130               128                 1.6%                                 3.1%           -1.5%                       257       258                  -0.4%                             1.3%              -1.7%

    PULMONARY HYPERTENSION (5)
    -------------------------

    US                                                                                              40                 -                  **                                   **               -                        40         -                    **                               **                  -

    Intl                                                                                            51                 -                  **                                   **               -                        51         -                    **                               **                  -
                                                                                                   ---               ---                                                                                                ---       ---

    WW                                                                                              91                 -                  **                                   **               -                        91         -                    **                               **                  -

    OPSUMIT                                                                                                           -
    -------

    US                                                                                              24                 -                  **                                   **               -                        24         -                    **                               **                  -

    Intl                                                                                            21                 -                  **                                   **               -                        21         -                    **                               **                  -
                                                                                                   ---               ---                                                                                                ---       ---

    WW                                                                                              45                 -                  **                                   **               -                        45         -                    **                               **                  -

    TRACLEER                                                                                                          -
    --------

    US                                                                                               2                 -                  **                                   **               -                         2         -                    **                               **                  -

    Intl                                                                                            24                 -                  **                                   **               -                        24         -                    **                               **                  -
                                                                                                   ---               ---                                                                                                ---       ---

    WW                                                                                              26                 -                  **                                   **               -                        26         -                    **                               **                  -

    UPTRAVI                                                                                                           -
    -------

    US                                                                                               8                 -                  **                                   **               -                         8         -                    **                               **                  -

    Intl                                                                                             1                 -                  **                                   **               -                         1         -                    **                               **                  -
                                                                                                   ---               ---                                                                                                ---       ---

    WW                                                                                               9                 -                  **                                   **               -                         9         -                    **                               **                  -

    OTHER(6)                                                                                                          -
    -------

    US                                                                                               6                 -                  **                                   **               -                         6         -                    **                               **                  -

    Intl                                                                                             5                 -                  **                                   **               -                         5         -                    **                               **                  -
                                                                                                   ---               ---                                                                                                ---       ---

    WW                                                                                              11                 -                  **                                   **               -                        11         -                    **                               **                  -

    CARDIOVASCULAR / METABOLISM / OTHER
    -----------------------------------

    US                                                                                           1,211             1,294                -6.4%                                -6.4%               -                     2,306     2,473                  -6.8%                            -6.8%                  -

    Intl                                                                                           388               417                -7.0%                                -3.0%           -4.0%                       768       827                  -7.1%                            -3.7%              -3.4%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                           1,599             1,711                -6.5%                                -5.5%           -1.0%                     3,074     3,300                  -6.8%                            -6.0%              -0.8%

    XARELTO
    -------

    US                                                                                             642               594                 8.1%                                 8.1%               -                     1,155     1,161                  -0.5%                            -0.5%                  -

    Intl                                                                                             -                -                   -                                    -               -                         -        -                     -                                -                  -
                                                                                                   ---              ---                                                                                                ---      ---

    WW                                                                                             642               594                 8.1%                                 8.1%               -                     1,155     1,161                  -0.5%                            -0.5%                  -

    INVOKANA / INVOKAMET
    --------------------

    US                                                                                             256               348               -26.4%                               -26.4%               -                       503       645                 -22.0%                           -22.0%                  -

    Intl                                                                                            39                35                11.4%                                16.8%           -5.4%                        76        63                  20.6%                            23.9%              -3.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             295               383               -23.0%                               -22.5%           -0.5%                       579       708                 -18.2%                           -17.9%              -0.3%

    PROCRIT / EPREX
    ---------------

    US                                                                                             174               230               -24.3%                               -24.3%               -                       343       413                 -16.9%                           -16.9%                  -

    Intl                                                                                            81                92               -12.0%                                -9.7%           -2.3%                       159       183                 -13.1%                           -11.3%              -1.8%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             255               322               -20.8%                               -20.1%           -0.7%                       502       596                 -15.8%                           -15.3%              -0.5%

    OTHER
    -----

    US                                                                                             139               122                13.9%                                13.9%               -                       305       254                  20.1%                            20.1%                  -

    Intl                                                                                           268               290                -7.6%                                -3.3%           -4.3%                       533       581                  -8.3%                            -4.4%              -3.9%
                                                                                                   ---                                                                                                                  ---       ---

    WW                                                                                             407               412                -1.2%                                 1.9%           -3.1%                       838       835                   0.4%                             3.1%              -2.7%

    TOTAL PHARMACEUTICAL
    --------------------

    US                                                                                           5,010             5,144                -2.6%                                -2.6%               -                     9,882    10,081                  -2.0%                            -2.0%                  -

    Intl                                                                                         3,625             3,510                 3.3%                                 6.1%           -2.8%                     6,998     6,751                   3.7%                             5.9%              -2.2%
                                                                                                 -----             -----                                                                                               -----     -----

    WW                                                                                          $8,635             8,654                -0.2%                                 1.0%           -1.2%                   $16,880    16,832                   0.3%                             1.2%              -0.9%
                                                                                                ======             =====                                                                                             =======    ======



    See footnotes at end of schedule


                                                                                                                             REPORTED SALES vs. PRIOR PERIOD ($MM)
                                                                                                                              ------------------------------------

                                                                                                       SECOND QUARTER                                                                             SIX MONTHS
                                                                                                       --------------                                                                             ----------

                                                                                                                         % Change                                                                                                         % Change
                                                                                                                         --------                                                                                                         --------

    MEDICAL DEVICES SEGMENT (2)                                                                   2017              2016   Reported                         Operational (1)         Currency                            2017      2016        Reported                  Operational (1)            Currency
    --------------------------                                                                    ----              ----   --------                         --------------          --------                            ----      ----        --------                  --------------             --------

    CARDIOVASCULAR
    --------------

    US                                                                                            $265               235                12.8%                                12.8%               -                      $524       466                  12.4%                            12.4%                  -

    Intl                                                                                           258               235                 9.8%                                12.3%           -2.5%                       498       447                  11.4%                            13.2%              -1.8%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             523               470                11.3%                                12.6%           -1.3%                     1,022       913                  11.9%                            12.8%              -0.9%

    DIABETES CARE
    -------------

    US                                                                                             160               177                -9.6%                                -9.6%               -                       314       357                 -12.0%                           -12.0%                  -

    Intl                                                                                           261               294               -11.2%                                -9.5%           -1.7%                       506       543                  -6.8%                            -5.5%              -1.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             421               471               -10.6%                                -9.5%           -1.1%                       820       900                  -8.9%                            -8.1%              -0.8%

    DIAGNOSTICS
    -----------

    US                                                                                               -                -                   -                                    -               -                         -        -                     -                                -                  -

    Intl                                                                                             -               31                   **                                   **              **                         1        59                     **                               **                 **
                                                                                                   ---              ---                                                                                                 ---       ---

    WW                                                                                               -               31                   **                                   **              **                         1        59                     **                               **                 **

    ORTHOPAEDICS
    ------------

    US                                                                                           1,387             1,364                 1.7%                                 1.7%               -                     2,766     2,756                   0.4%                             0.4%                  -

    Intl                                                                                           956               991                -3.5%                                -1.4%           -2.1%                     1,902     1,940                  -2.0%                            -0.3%              -1.7%
                                                                                                   ---               ---                                                                                               -----     -----

    WW                                                                                           2,343             2,355                -0.5%                                 0.4%           -0.9%                     4,668     4,696                  -0.6%                             0.1%              -0.7%

    HIPS
    ----

    US                                                                                             208               197                 5.6%                                 5.6%               -                       417       400                   4.3%                             4.3%                  -

    Intl                                                                                           142               152                -6.6%                                -4.3%           -2.3%                       285       291                  -2.1%                            -0.1%              -2.0%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             350               349                 0.3%                                 1.3%           -1.0%                       702       691                   1.6%                             2.4%              -0.8%

    KNEES
    -----

    US                                                                                             236               229                 3.1%                                 3.1%               -                       482       473                   1.9%                             1.9%                  -

    Intl                                                                                           149               156                -4.5%                                -2.5%           -2.0%                       301       301                   0.0%                             2.1%              -2.1%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             385               385                 0.0%                                 0.8%           -0.8%                       783       774                   1.2%                             2.0%              -0.8%

    TRAUMA
    ------

    US                                                                                             390               381                 2.4%                                 2.4%               -                       781       762                   2.5%                             2.5%                  -

    Intl                                                                                           253               255                -0.8%                                 1.1%           -1.9%                       504       516                  -2.3%                            -1.0%              -1.3%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             643               636                 1.1%                                 1.9%           -0.8%                     1,285     1,278                   0.5%                             1.0%              -0.5%

    SPINE & OTHER
    -------------

    US                                                                                             553               557                -0.7%                                -0.7%               -                     1,086     1,121                  -3.1%                            -3.1%                  -

    Intl                                                                                           412               428                -3.7%                                -1.6%           -2.1%                       812       832                  -2.4%                            -0.7%              -1.7%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             965               985                -2.0%                                -1.1%           -0.9%                     1,898     1,953                  -2.8%                            -2.1%              -0.7%

    SURGERY
    -------

    US                                                                                           1,012             1,020                -0.8%                                -0.8%               -                     2,007     2,001                   0.3%                             0.3%                  -

    Intl                                                                                         1,372             1,377                -0.4%                                 1.6%           -2.0%                     2,648     2,624                   0.9%                             2.4%              -1.5%
                                                                                                 -----             -----                                                                                               -----     -----

    WW                                                                                           2,384             2,397                -0.5%                                 0.6%           -1.1%                     4,655     4,625                   0.6%                             1.5%              -0.9%

    ADVANCED
    --------

    US                                                                                             400               389                 2.8%                                 2.8%               -                       792       741                   6.9%                             6.9%                  -

    Intl                                                                                           533               520                 2.5%                                 4.9%           -2.4%                     1,018       984                   3.5%                             5.4%              -1.9%
                                                                                                   ---               ---                                                                                               -----       ---

    WW                                                                                             933               909                 2.6%                                 4.0%           -1.4%                     1,810     1,725                   4.9%                             6.0%              -1.1%

    GENERAL
    -------

    US                                                                                             423               421                 0.5%                                 0.5%               -                       846       840                   0.7%                             0.7%                  -

    Intl                                                                                           691               706                -2.1%                                -0.2%           -1.9%                     1,342     1,357                  -1.1%                             0.4%              -1.5%
                                                                                                   ---               ---                                                                                               -----     -----

    WW                                                                                           1,114             1,127                -1.2%                                 0.0%           -1.2%                     2,188     2,197                  -0.4%                             0.5%              -0.9%

    SPECIALTY
    ---------

    US                                                                                             189               210               -10.0%                               -10.0%               -                       369       420                 -12.1%                           -12.1%                  -

    Intl                                                                                           148               151                -2.0%                                -1.0%           -1.0%                       288       283                   1.8%                             1.7%               0.1%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             337               361                -6.6%                                -6.2%           -0.4%                       657       703                  -6.5%                            -6.5%               0.0%

    VISION CARE
    -----------

    US                                                                                             405               248                63.3%                                63.3%               -                       710       490                  44.9%                            44.9%                  -

    Intl                                                                                           650               437                48.7%                                50.3%           -1.6%                     1,143       835                  36.9%                            37.6%              -0.7%
                                                                                                   ---               ---                                                                                               -----       ---

    WW                                                                                           1,055               685                54.0%                                55.0%           -1.0%                     1,853     1,325                  39.8%                            40.2%              -0.4%

    CONTACT LENSES / OTHER
    ----------------------

    US                                                                                             274               248                10.5%                                10.5%               -                       530       490                   8.2%                             8.2%                  -

    Intl                                                                                           479               437                 9.6%                                11.2%           -1.6%                       906       835                   8.5%                             9.2%              -0.7%
                                                                                                   ---               ---                                                                                                 ---       ---

    WW                                                                                             753               685                 9.9%                                10.9%           -1.0%                     1,436     1,325                   8.4%                             8.8%              -0.4%

    SURGICAL
    --------

    US                                                                                             131                 -                  **                                   **               -                       180         -                    **                               **                  -

    Intl                                                                                           171                 -                  **                                   **               -                       237         -                    **                               **                  -
                                                                                                   ---               ---                                                                                                ---       ---

    WW                                                                                             302                 -                  **                                   **               -                       417         -                    **                               **                  -


    TOTAL MEDICAL DEVICES
    ---------------------

    US                                                                                           3,229             3,044                 6.1%                                 6.1%               -                     6,321     6,070                   4.1%                             4.1%                  -

    Intl                                                                                         3,497             3,365                 3.9%                                 5.8%           -1.9%                     6,698     6,448                   3.9%                             5.3%              -1.4%
                                                                                                 -----             -----                                                                                               -----     -----

    WW                                                                                          $6,726             6,409                 4.9%                                 5.9%           -1.0%                   $13,019    12,518                   4.0%                             4.7%              -0.7%
                                                                                                ======             =====                                                                                             =======    ======



    * Percentage greater than 100%

    ** Not meaningful

    (1) Operational growth excludes the effect of translational currency

    (2) Unaudited

    (3) Prior year amounts have been reclassified to conform to current year product disclosure

    (4) Reported as U.S. sales

    (5) Actelion acquisition completed June 16, 2017

    (6) Includes Non-Pulmonary Hypertension products

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SOURCE Johnson & Johnson