Johnson & Johnson Reports Q4 and Full-Year 2021 Results

January 25, 2022 |

29 min read

2021 Fourth-Quarter Sales of $24.8 Billion reflecting growth of 10.4%, operational sales growth of 11.6% and adjusted operational sales growth of 12.3%.

- 2021 Fourth-Quarter Sales of $24.8 Billion reflecting growth of 10.4%, operational sales growth of 11.6%, and adjusted operational sales growth of 12.3%
- 2021 Full-Year Sales of $93.8 Billion reflecting growth of 13.6%, operational sales growth of 12.2%, and adjusted operational sales growth of 12.8%
- 2021 Fourth-Quarter EPS of $1.77 increased 172.3%; adjusted EPS of $2.13 increased 14.5%*
- 2021 Full-Year EPS of $7.81 increased 41.7%; adjusted EPS of $9.80 increased 22.0%*
- Company guides 2022 adjusted operational sales growth of 7.7%* and adjusted operational EPS growth of 9.2%*

[25-January-2022]

NEW BRUNSWICK, N.J., Jan. 25, 2022 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2021. "Our 2021 performance reflects continued strength across all segments of our business. Guided by Our Credo, I am honored to assume the role of CEO, leading our global teams in continuing our work to deliver life-changing solutions to consumers, patients, and health care providers" said Joaquin Duato, Chief Executive Officer. "Given our strong results, financial profile, and innovative pipeline we are well positioned for success in 2022 and beyond."

OVERALL FINANCIAL RESULTS

	Q4			Full Year
($ in Millions, except EPS)	2021	2020	% Change	2021	2020	% Change
Reported Sales	$ 24,804	$ 22,475	10.4%	$ 93,775	$ 82,584	13.6%
Net Earnings	4,736	1,738	172.5%	20,878	14,714	41.9%
EPS (diluted)	$ 1.77	$ 0.65	172.3%	$ 7.81	$ 5.51	41.7%

	Q4			Full Year
Non-GAAP*($ in Millions, except EPS)	2021	2020	% Change	2021	2020	% Change
Operational Sales^1,2			11.6%			12.2%
Adjusted Operational Sales^1,3			12.3%			12.8%
Adjusted Net Earnings^1,4	5,678	4,965	14.4%	26,195	21,433	22.2%
Adjusted EPS (diluted)^1,4	$ 2.13	$ 1.86	14.5%	$ 9.80	$ 8.03	22.0%

REGIONAL SALES RESULTS

Q4			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
U.S.	$ 12,163	$ 11,809	3.0%	3.0	-	3.1
International	12,641	10,666	18.5%	21.2	(2.7)	22.4
Worldwide	$ 24,804	$ 22,475	10.4%	11.6	(1.2)	12.3



Full Year			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
U.S.	$ 47,156	$ 43,133	9.3%	9.3	-	9.5
International	46,619	39,451	18.2%	15.3	2.9	16.6
Worldwide	$ 93,775	$ 82,584	13.6%	12.2	1.4	12.8

SEGMENT SALES RESULTS

Q4			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
Consumer Health	$ 3,657	$ 3,618	1.1%	1.8	(0.7)	2.9
Pharmaceutical	14,288	12,268	16.5%	17.9	(1.4)	18.6
Medical Devices	6,859	6,589	4.1%	5.3	(1.2)	5.6
Worldwide	$ 24,804	$ 22,475	10.4%	11.6	(1.2)	12.3


Full Year			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
Consumer Health	$ 14,635	$ 14,053	4.1%	2.8	1.3	3.8
Pharmaceutical	52,080	45,572	14.3%	13.1	1.2	13.6
Medical Devices	27,060	22,959	17.9%	16.2	1.7	16.8
Worldwide	$ 93,775	$ 82,584	13.6%	12.2	1.4	12.8

¹Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

² Excludes the impact of translational currency

³ Excludes the net impact of acquisitions and divestitures and translational currency

⁴Excludes intangible amortization expense and special items

Note: values may have been rounded

FULL YEAR 2021 SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide adjusted operational sales increased 3.8%* primarily driven by over-the-counter (OTC) products including TYLENOL analgesics and digestive health, in addition to NEUTROGENA and AVEENO products in Skin Health / Beauty primarily due to COVID-19 market recovery. The growth was partially offset by external supply constraints mainly impacting Skin Health / Beauty.

Pharmaceutical
Pharmaceutical worldwide adjusted operational sales grew 13.6%* driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, and INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. Also contributing to growth were sales of the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the treatment of the SARS-CoV-2 virus. This growth was partially offset by declines in U.S. sales of REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases.

Medical Devices
Medical Devices worldwide adjusted operational sales grew 16.8%*, driven primarily by the market recovery from COVID-19 impacts and the associated deferral of medical procedures in the prior year across all of our businesses including Surgery, Interventional Solutions, Vision and Orthopaedics.

NOTABLE NEW ANNOUCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction with Johnson & Johnson's other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investors section of the company's website at news releases, as well as www.factsabouttalc.com,www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

Regulatory Decisions	European Commission Approves BYANNLI® (6-monthly Paliperidone Palmitate; PP6M) for the Maintenance Treatment of Schizophrenia in Adults	(press release)
	U.S. FDA Approves DARZALEX FASPRO® (daratumumab and hyaluronidase-fihj) in Combination with Carfilzomib and Dexamethasone for Patients with Multiple Myeloma After First or Subsequent Relapse	(press release)
	Janssen EMEA Receives Conditional Marketing Authorisation for RYBREVANT® (amivantamab), the First Treatment Approved for Patients with Advanced NonSmall Cell Lung Cancer (NSCLC) with EGFR Exon 20 Insertion Mutations After Failure of Platinum-Based Therapy	(press release)
	Johnson & Johnson COVID-19 Vaccine Booster Shot Authorized for Emergency Use by U.S. FDA	(press release)
	World Health Organization Strategic Advisory Group of Experts (SAGE) Interim Recommendation Supports Use of Johnson & Johnson COVID-19 Vaccine as a Booster	(press release)
	Johnson & Johnson Announces Positive CHMP Opinion for a Booster Shot of its COVID-19 Vaccine	(press release)
	FDA Approves Two New Indications for XARELTO® (rivaroxaban) to Help Prevent and Treat Blood Clots in Pediatric Patients	(press release)
	U.S. FDA Approves New MENTOR® MemoryGel BOOST™ Breast Implant¹	(press release)
Regulatory Submissions	Janssen Seeks Approval of IMBRUVICA® (ibrutinib) in a Fixed-Duration Regimen for Patients with Untreated Chronic Lymphocytic Leukaemia (CLL) (EU)	(press release)
Regulatory Submissions	Janssen Submits Biologics License Application to U.S. FDA Seeking Approval of Teclistamab for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma	(press release)
Other	Johnson & Johnson Announces Plans to Accelerate Innovation, Serve Patients and Consumers, and Unlock Value through Intent to Separate Consumer Health Business	(press release)
	Johnson & Johnson Appoints Senior Leaders to Executive Committee	(press release)
	Johnson & Johnson announces significant progress towards its climate goals – 100% renewable electricity for all sites in the United States, Canada and Europe by 2023	(press release)
	Johnson & Johnson Medical Devices Companies Announces Strategic Partnership with Microsoft to Further Enable its Digital Surgery Solutions¹	(press release)
	Johnson & Johnson COVID-19 Booster, Administered Six Months After Two-Dose Regimen of BNT162b2, Shows Substantial Increase in Antibody and T-cell Responses	(press release)
	Johnson & Johnson Enters into Agreement to Provide its Single-Shot COVID-19 Vaccine for the World's Most Vulnerable People through Novel Humanitarian Buffer	(press release)
	Johnson & Johnson COVID-19 Vaccine Demonstrates 85 Percent Effectiveness against Hospitalization in South Africa when Omicron was Dominant	(press release)

¹Subsequent to the quarter

FULL-YEAR 2022 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

($ in Billions, except EPS)	January 2022 (ex. COVID Vx)	January 2022 (COVID Vx)	January 2022 (incl. COVID Vx)
Adjusted Operational Sales^1,2 Change vs. Prior Year	6.5% – 7.5%		7.0% – 8.5%
Operational Sales² Change vs. Prior Year	$97.3B – $98.3B 6.5% – 7.5%	$3.0B - $3.5B	$100.3B – $101.8B 7.0% – 8.5%
Estimated Reported Sales³ Change vs. Prior Year	$95.9B - $96.9B 5.0% – 6.0%	$3.0B - $3.5B	$98.9B - $100.4B 5.5% – 7.0%

Adjusted Operational EPS (Diluted)^2,4 Change vs. Prior Year			$10.60 - $10.80 8.2% – 10.2%
Adjusted EPS (Diluted)^3,4 Change vs. Prior Year			$10.40 - $10.60 6.1% – 8.2%

¹Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures

²Non-GAAP financial measure; excludes the impact of translational currency

³ Calculated using Euro Average Rate: January 2022 = $1.14 (Illustrative purposes only)

⁴Non-GAAP financial measure; excludes intangible amortization expense and special items

Note: % may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson Website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:
* "Operational sales growth" excluding the impact of translational currency, "adjusted operational sales growth" excluding the net impact of acquisitions and divestitures and translational currency, as well as "adjusted net earnings", "adjusted diluted earnings per share" and "adjusted operational diluted earnings per share" excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company's website at quarterly-results.

Copies of the financial schedules accompanying this earnings release are available on the company's website at quarterly-results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can also be found in the Investors section of the company's website at quarterly-results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position, business strategy, and the anticipated separation of the company's Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company's ability to execute business continuity plans, as a result of the COVID-19 pandemic; economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the company's ability to satisfy the necessary conditions to consummate the separation of the company's Consumer Health business on a timely basis or at all; the company's ability to successfully separate the company's Consumer Health business and realize the anticipated benefits from the separation; and the New Consumer Health Company's ability to succeed as a standalone publicly traded company. 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 3, 2021 including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in the company's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FOURTH QUARTER						TWELVE MONTHS
			Percent Change						Percent Change
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
segment of business

Consumer Health
U.S.	$ 1,529	1,509	1.3	%	1.3	-	$ 6,516	6,362	2.4	%	2.4	-
International	2,128	2,109	0.9		2.1	(1.2)	8,119	7,691	5.6		3.1	2.5
	3,657	3,618	1.1		1.8	(0.7)	14,635	14,053	4.1		2.8	1.3

Pharmaceutical
U.S.	7,418	7,116	4.2		4.2	-	27,954	25,735	8.6		8.6	-
International	6,870	5,152	33.4		36.9	(3.5)	24,126	19,837	21.6		18.8	2.8
	14,288	12,268	16.5		17.9	(1.4)	52,080	45,572	14.3		13.1	1.2

Medical Devices
U.S.	3,216	3,184	1.0		1.0	-	12,686	11,036	14.9		14.9	-
International	3,643	3,405	7.0		9.3	(2.3)	14,374	11,923	20.6		17.3	3.3
	6,859	6,589	4.1		5.3	(1.2)	27,060	22,959	17.9		16.2	1.7

U.S.	12,163	11,809	3.0		3.0	-	47,156	43,133	9.3		9.3	-
International	12,641	10,666	18.5		21.2	(2.7)	46,619	39,451	18.2		15.3	2.9
Worldwide	$ 24,804	22,475	10.4	%	11.6	(1.2)	$ 93,775	82,584	13.6	%	12.2	1.4

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

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	FOURTH QUARTER						TWELVE MONTHS
			Percent Change						Percent Change
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 12,163	11,809	3.0	%	3.0	-	$ 47,156	43,133	9.3	%	9.3	-

Europe	6,925	5,271	31.4		34.7	(3.3)	23,594	18,980	24.3		20.7	3.6
Western Hemisphere excluding U.S.	1,459	1,404	3.9		5.0	(1.1)	5,750	5,335	7.8		7.3	0.5
Asia-Pacific, Africa	4,257	3,991	6.6		9.0	(2.4)	17,275	15,136	14.1		11.4	2.7
International	12,641	10,666	18.5		21.2	(2.7)	46,619	39,451	18.2		15.3	2.9

Worldwide	$ 24,804	22,475	10.4	%	11.6	(1.2)	$ 93,775	82,584	13.6	%	12.2	1.4

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

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	FOURTH QUARTER

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 24,804		100.0	$ 22,475		100.0	10.4
Cost of products sold	7,955		32.1	7,814		34.8	1.8
Gross Profit	16,849		67.9	14,661		65.2	14.9
Selling, marketing and administrative expenses	7,154		28.9	6,457		28.7	10.8
Research and development expense	4,720		19.0	4,032		17.9	17.1
In-process research and development	0		0.0	37		0.2
Interest (income) expense, net	47		0.2	74		0.3
Other (income) expense, net	9		0.0	2,354		10.5
Restructuring	83		0.3	60		0.3
Earnings before provision for taxes on income	4,836		19.5	1,647		7.3	193.6
Provision for/(Benefit from) taxes on income	100		0.4	(91)		(0.4)	(209.9)
Net earnings	$ 4,736		19.1	$ 1,738		7.7	172.5

Net earnings per share (Diluted)	$ 1.77			$ 0.65			172.3

Average shares outstanding (Diluted)	2,670.2			2,669.2

Effective tax rate	2.1	%		(5.5)	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 6,339		25.6	$ 5,601		24.9	13.2
Net earnings	$ 5,678		22.9	$ 4,965		22.1	14.4
Net earnings per share (Diluted)	$ 2.13			$ 1.86			14.5
Effective tax rate	10.4	%		11.4	%

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

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 93,775		100.0	$ 82,584		100.0	13.6
Cost of products sold	29,855		31.8	28,427		34.4	5.0
Gross Profit	63,920		68.2	54,157		65.6	18.0
Selling, marketing and administrative expenses	24,659		26.3	22,084		26.8	11.7
Research and development expense	14,714		15.7	12,159		14.7	21.0
In-process research and development	900		1.0	181		0.2
Interest (income) expense, net	130		0.1	90		0.1
Other (income) expense, net	489		0.5	2,899		3.5
Restructuring	252		0.3	247		0.3
Earnings before provision for taxes on income	22,776		24.3	16,497		20.0	38.1
Provision for taxes on income	1,898		2.0	1,783		2.2	6.4
Net earnings	$ 20,878		22.3	$ 14,714		17.8	41.9

Net earnings per share (Diluted)	$ 7.81			$ 5.51			41.7

Average shares outstanding (Diluted)	2,674.0			2,670.7

Effective tax rate	8.3	%		10.8	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 30,464		32.5	$ 25,428		30.8	19.8
Net earnings	$ 26,195		27.9	$ 21,433		26.0	22.2
Net earnings per share (Diluted)	$ 9.80			$ 8.03			22.0
Effective tax rate	14.0	%		15.7	%

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

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

		Fourth Quarter		Twelve Months Ended
	(Dollars in Millions Except Per Share Data)	2021	2020	2021	2020
	Net Earnings, after tax- as reported	$4,736	$1,738	$20,878	$14,714

	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,121	1,234	4,697	4,660
	Litigation expense, net	274	2,902	2,328	5,112
	IPR&D	-	37	900	181
	Restructuring related	140	85	473	448
	Acquisition, integration and divestiture related ¹	26	14	(478)	(1,073)
	(Gains)/losses on securities	(198)	(373)	(533)	(547)
	Medical Device Regulation	73	55	234	144
	Consumer Health separation costs	67	-	67	-
	Other	-	-	-	6

	Tax Adjustments
	Tax impact on special item adjustments ²	(184)	(606)	(1,281)	(1,608)
	Tax legislation and other tax related	(377)	(121)	(1,090)	(604)
	Adjusted Net Earnings, after tax	$5,678	$4,965	$26,195	$21,433
	Average shares outstanding (Diluted)	2,670.2	2,669.2	2,674.0	2,670.7
	Adjusted net earnings per share (Diluted)	$2.13	$1.86	$9.80	$8.03
	Operational adjusted net earnings per share (Diluted)	$2.18		$9.65

	Notes:
¹	Acquisition, integration and divestiture related for 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S. Acquisition, integration and divestiture related for 2020 primarily includes a Contingent Consideration reversal of $1,148M related to the timing of certain developmental milestones associated with the Auris Health acquisition.

²	The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

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

Adjusted Operational Sales Growth
FOURTH QUARTER 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	1.1%	16.5%	4.1%	10.4%
U.S.	1.3%	4.2%	1.0%	3.0%
International	0.9%	33.4%	7.0%	18.5%

WW Currency	(0.7)	(1.4)	(1.2)	(1.2)
U.S.	-	-	-	-
International	(1.2)	(3.5)	(2.3)	(2.7)

WW Operational	1.8%	17.9%	5.3%	11.6%
U.S.	1.3%	4.2%	1.0%	3.0%
International	2.1%	36.9%	9.3%	21.2%

General Surgery
*Advanced Sterilization Products*			0.3	0.1
U.S.			0.0	0.0
International			0.5	0.2

Skin Health / Beauty
*Dr. Ci Labo - Sedona*	0.7			0.1
U.S.	0.0			0.0
International	1.2			0.3

All Other Acquisitions and Divestitures	0.4	0.7	0.1	0.4
U.S.	0.6	0.0	0.2	0.1
International	0.3	1.7	0.0	0.8

WW Adjusted Operational	2.9%	18.6%	5.6%	12.3%
U.S.	1.9%	4.2%	1.2%	3.1%
International	3.6%	38.6%	9.8%	22.4%

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

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

Adjusted Operational Sales Growth
TWELVE MONTHS 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	4.1%	14.3%	17.9%	13.6%
U.S.	2.4%	8.6%	14.9%	9.3%
International	5.6%	21.6%	20.6%	18.2%

WW Currency	1.3	1.2	1.7	1.4
U.S.	-	-	-	-
International	2.5	2.8	3.3	2.9

WW Operational	2.8%	13.1%	16.2%	12.2%
U.S.	2.4%	8.6%	14.9%	9.3%
International	3.1%	18.8%	17.3%	15.3%

General Surgery
*Advanced Sterilization Products*			0.5	0.1
U.S.			0.0	0.0
International			1.0	0.3

Skin Health / Beauty
*Dr. Ci Labo - Sedona*	0.5			0.1
U.S.	0.0			0.0
International	1.0			0.2

All Other Acquisitions and Divestitures	0.4	0.5	0.1	0.4
U.S.	0.6	0.0	0.4	0.2
International	0.3	1.4	0.0	0.8

WW Adjusted Operational	3.8%	13.6%	16.8%	12.8%
U.S.	3.0%	8.6%	15.3%	9.5%
International	4.4%	20.2%	18.3%	16.6%

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

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER						TWELVE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
CONSUMER HEALTH SEGMENT ⁽²⁾
OTC
US		$ 633	543	16.8%	16.8%	-		$ 2,594	2,460	5.4%	5.4%	-
Intl		740	642	15.1%	14.9%	0.2%		2,634	2,364	11.4%	6.9%	4.5%
WW		1,373	1,185	15.9%	15.8%	0.1%		5,227	4,824	8.4%	6.2%	2.2%
SKIN HEALTH / BEAUTY
US		538	583	-7.8%	-7.8%	-		2,400	2,350	2.1%	2.1%	-
Intl		546	594	-8.2%	-6.4%	-1.8%		2,141	2,100	1.9%	-0.3%	2.2%
WW		1,084	1,177	-8.0%	-7.1%	-0.9%		4,541	4,450	2.0%	1.0%	1.0%
ORAL CARE
US		159	173	-8.2%	-8.2%	-		637	683	-6.7%	-6.7%	-
Intl		246	264	-7.2%	-5.5%	-1.7%		1,008	958	5.1%	2.8%	2.3%
WW		405	437	-7.6%	-6.5%	-1.1%		1,645	1,641	0.2%	-1.2%	1.4%
BABY CARE
US		90	97	-7.5%	-7.5%	-		378	376	0.5%	0.5%	-
Intl		309	310	-0.3%	1.3%	-1.6%		1,188	1,141	4.1%	3.7%	0.4%
WW		399	407	-2.0%	-0.8%	-1.2%		1,566	1,517	3.2%	2.9%	0.3%
WOMEN'S HEALTH
US		4	3	14.1%	14.1%	-		13	13	-1.6%	-1.6%	-
Intl		230	234	-1.8%	1.2%	-3.0%		905	888	1.8%	2.0%	-0.2%
WW		233	237	-1.6%	1.3%	-2.9%		917	901	1.8%	1.9%	-0.1%
WOUND CARE / OTHER
US		106	110	-4.2%	-4.2%	-		495	480	3.1%	3.1%	-
Intl		57	65	-9.6%	-10.2%	0.6%		243	240	1.7%	-2.7%	4.4%
WW		164	175	-6.2%	-6.4%	0.2%		739	720	2.6%	1.2%	1.4%

TOTAL CONSUMER HEALTH
US		1,529	1,509	1.3%	1.3%	-		6,516	6,362	2.4%	2.4%	-
Intl		2,128	2,109	0.9%	2.1%	-1.2%		8,119	7,691	5.6%	3.1%	2.5%
WW		$ 3,657	3,618	1.1%	1.8%	-0.7%		$ 14,635	14,053	4.1%	2.8%	1.3%


See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER						TWELVE MONTHS
				% Change						% Change
PHARMACEUTICAL SEGMENT ^(2,3)		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

IMMUNOLOGY
US		$ 2,912	2,845	2.4%	2.4%	-		$ 10,843	10,175	6.6%	6.6%	-
Intl		1,443	1,261	14.5%	17.9%	-3.4%		5,907	4,880	21.0%	17.7%	3.3%
WW		4,355	4,105	6.1%	7.1%	-1.0%		16,750	15,055	11.3%	10.2%	1.1%
REMICADE
US		511	656	-22.2%	-22.2%	-		2,019	2,508	-19.5%	-19.5%	-
US Exports ⁽⁴⁾		39	25	53.5%	53.5%	-		236	346	-31.9%	-31.9%	-
Intl		214	220	-2.3%	-2.4%	0.1%		935	893	4.8%	0.4%	4.4%
WW		764	901	-15.2%	-15.2%	0.0%		3,190	3,747	-14.9%	-15.9%	1.0%
SIMPONI / SIMPONI ARIA
US		287	315	-8.9%	-8.9%	-		1,127	1,155	-2.4%	-2.4%	-
Intl		271	261	3.6%	8.4%	-4.8%		1,148	1,088	5.5%	4.1%	1.4%
WW		559	576	-3.2%	-1.0%	-2.2%		2,276	2,243	1.4%	0.8%	0.6%
STELARA
US		1,542	1,572	-1.9%	-1.9%	-		5,938	5,240	13.3%	13.3%	-
Intl		792	672	17.9%	21.7%	-3.8%		3,196	2,467	29.6%	25.9%	3.7%
WW		2,334	2,244	4.0%	5.1%	-1.1%		9,134	7,707	18.5%	17.3%	1.2%
TREMFYA
US		528	276	90.9%	90.9%	-		1,503	926	62.3%	62.3%	-
Intl		165	105	56.9%	61.8%	-4.9%		624	421	48.2%	44.0%	4.2%
WW		693	382	81.5%	82.8%	-1.3%		2,127	1,347	57.9%	56.5%	1.4%
OTHER IMMUNOLOGY
US		6	-	*	*	-		21	-	*	*	-
Intl		0	2	*	*	*		3	11	-73.3%	-74.6%	1.3%
WW		6	2	*	*	*		24	11	*	*	*
INFECTIOUS DISEASES
US		614	470	30.8%	30.8%	-		2,249	1,735	29.7%	29.7%	-
Intl		1,824	442	*	*	-3.0%		3,612	1,839	96.3%	93.4%	2.9%
WW		2,437	912	*	*	-1.5%		5,861	3,574	64.0%	62.5%	1.5%
COVID-19 VACCINE
US		213	-	*	*	-		634	-	*	*	-
Intl		1,405	-	*	*	-		1,751	-	*	*	-
WW		1,619	-	*	*	-		2,385	-	*	*	-
EDURANT / rilpivirine
US		10	11	-15.8%	-15.8%	-		41	44	-7.6%	-7.6%	-
Intl		220	236	-6.8%	-3.3%	-3.5%		953	920	3.6%	0.4%	3.2%
WW		230	248	-7.2%	-3.9%	-3.3%		994	964	3.1%	0.0%	3.1%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		380	433	-12.2%	-12.2%	-		1,508	1,587	-4.9%	-4.9%	-
Intl		135	136	-0.1%	3.0%	-3.1%		575	597	-3.6%	-6.0%	2.4%
WW		515	569	-9.3%	-8.5%	-0.8%		2,083	2,184	-4.6%	-5.2%	0.6%
OTHER INFECTIOUS DISEASES
US		11	25	-55.9%	-55.9%	-		66	104	-36.0%	-36.0%	-
Intl		63	71	-10.9%	-10.0%	-0.9%		333	323	3.0%	-0.1%	3.1%
WW		74	96	-22.9%	-22.2%	-0.7%		399	427	-6.5%	-8.9%	2.4%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER						TWELVE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US		899	806	11.4%	11.4%	-		3,347	3,091	8.3%	8.3%	-
Intl		894	892	0.2%	3.2%	-3.0%		3,664	3,457	6.0%	3.9%	2.1%
WW		1,793	1,698	5.5%	7.1%	-1.6%		7,011	6,548	7.1%	5.9%	1.2%
CONCERTA / Methylphenidate
US		55	33	68.1%	68.1%	-		172	183	-5.8%	-5.8%	-
Intl		123	120	3.2%	6.0%	-2.8%		495	439	12.8%	10.1%	2.7%
WW		178	153	17.2%	19.4%	-2.2%		667	622	7.3%	5.4%	1.9%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		668	610	9.5%	9.5%	-		2,550	2,314	10.2%	10.2%	-
Intl		361	355	1.5%	5.0%	-3.5%		1,472	1,339	10.0%	6.9%	3.1%
WW		1,029	965	6.5%	7.8%	-1.3%		4,022	3,653	10.1%	9.0%	1.1%
RISPERDAL CONSTA
US		77	76	2.3%	2.3%	-		287	296	-2.9%	-2.9%	-
Intl		63	92	-30.3%	-26.4%	-3.9%		305	346	-11.8%	-13.1%	1.3%
WW		140	167	-15.6%	-13.4%	-2.2%		592	642	-7.7%	-8.4%	0.7%
OTHER NEUROSCIENCE
US		99	88	11.7%	11.7%	-		338	298	13.3%	13.3%	-
Intl		346	326	6.2%	8.6%	-2.4%		1,391	1,334	4.3%	3.2%	1.1%
WW		445	414	7.4%	9.2%	-1.8%		1,729	1,632	6.0%	5.0%	1.0%
ONCOLOGY
US		1,594	1,469	8.5%	8.5%	-		5,958	5,092	17.0%	17.0%	-
Intl		2,184	1,965	11.1%	15.2%	-4.1%		8,590	7,275	18.1%	15.3%	2.8%
WW		3,778	3,434	10.0%	12.3%	-2.3%		14,548	12,367	17.6%	16.0%	1.6%
DARZALEX
US		867	692	25.3%	25.3%	-		3,169	2,232	42.0%	42.0%	-
Intl		778	561	38.9%	43.5%	-4.6%		2,854	1,958	45.8%	42.6%	3.2%
WW		1,645	1,253	31.4%	33.4%	-2.0%		6,023	4,190	43.8%	42.3%	1.5%
ERLEADA
US		235	176	33.4%	33.4%	-		813	583	39.3%	39.3%	-
Intl		149	64	*	*	*		478	176	*	*	*
WW		384	241	59.8%	61.3%	-1.5%		1,291	760	70.0%	68.7%	1.3%
IMBRUVICA
US		436	492	-11.3%	-11.3%	-		1,747	1,821	-4.0%	-4.0%	-
Intl		626	625	0.0%	3.4%	-3.4%		2,622	2,307	13.6%	10.4%	3.2%
WW		1,062	1,117	-5.0%	-3.1%	-1.9%		4,369	4,128	5.8%	4.1%	1.7%
ZYTIGA / abiraterone acetate
US		23	89	-74.2%	-74.2%	-		119	373	-68.1%	-68.1%	-
Intl		525	533	-1.4%	3.1%	-4.5%		2,178	2,097	3.9%	1.5%	2.4%
WW		548	622	-11.8%	-7.9%	-3.9%		2,297	2,470	-7.0%	-9.0%	2.0%
OTHER ONCOLOGY
US		34	20	64.7%	64.7%	-		110	83	31.7%	31.7%	-
Intl		106	183	-42.0%	-39.2%	-2.8%		458	738	-37.9%	-38.7%	0.8%
WW		140	202	-31.3%	-28.8%	-2.5%		568	821	-30.8%	-31.5%	0.7%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER						TWELVE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
PULMONARY HYPERTENSION
US		587	592	-0.7%	-0.7%	-		2,365	2,133	10.9%	10.9%	-
Intl		264	273	-3.6%	0.8%	-4.4%		1,085	1,015	6.9%	5.5%	1.4%
WW		851	865	-1.6%	-0.2%	-1.4%		3,450	3,148	9.6%	9.2%	0.4%
OPSUMIT
US		286	279	2.0%	2.0%	-		1,147	1,008	13.7%	13.7%	-
Intl		162	173	-6.1%	-1.7%	-4.4%		672	631	6.6%	5.1%	1.5%
WW		448	452	-1.1%	0.6%	-1.7%		1,819	1,639	11.0%	10.4%	0.6%
UPTRAVI
US		264	263	0.0%	0.0%	-		1,056	955	10.5%	10.5%	-
Intl		46	38	21.9%	24.7%	-2.8%		181	138	31.1%	27.0%	4.1%
WW		310	301	2.7%	3.1%	-0.4%		1,237	1,093	13.1%	12.6%	0.5%
OTHER PULMONARY HYPERTENSION
US		38	49	-20.1%	-20.1%	-		163	169	-3.7%	-3.7%	-
Intl		56	63	-12.2%	-6.6%	-5.6%		232	247	-5.9%	-5.4%	-0.5%
WW		94	112	-15.6%	-12.4%	-3.2%		395	416	-5.0%	-4.7%	-0.3%
CARDIOVASCULAR / METABOLISM / OTHER
US		813	935	-13.1%	-13.1%	-		3,192	3,509	-9.0%	-9.0%	-
Intl		261	317	-17.8%	-16.0%	-1.8%		1,268	1,369	-7.4%	-10.9%	3.5%
WW		1,074	1,253	-14.3%	-13.8%	-0.5%		4,460	4,878	-8.6%	-9.6%	1.0%
XARELTO
US		644	629	2.5%	2.5%	-		2,438	2,345	4.0%	4.0%	-
Intl		-	-	-	-	-		-	-	-	-	-
WW		644	629	2.5%	2.5%	-		2,438	2,345	4.0%	4.0%	-
INVOKANA / INVOKAMET
US		59	159	-63.1%	-63.1%	-		308	564	-45.4%	-45.4%	-
Intl		60	58	3.8%	4.5%	-0.7%		254	231	9.9%	5.4%	4.5%
WW		120	217	-45.1%	-44.9%	-0.2%		563	795	-29.3%	-30.6%	1.3%
PROCRIT / EPREX
US		55	62	-12.8%	-12.8%	-		223	277	-19.7%	-19.7%	-
Intl		58	66	-13.0%	-11.7%	-1.3%		256	274	-6.8%	-10.1%	3.3%
WW		113	129	-12.9%	-12.2%	-0.7%		479	552	-13.3%	-14.9%	1.6%
OTHER
US		55	85	-35.6%	-35.6%	-		223	323	-31.0%	-31.0%	-
Intl		143	194	-25.9%	-23.8%	-2.1%		758	864	-12.2%	-15.5%	3.3%
WW		198	278	-28.9%	-27.4%	-1.5%		981	1,186	-17.3%	-19.7%	2.4%
TOTAL PHARMACEUTICAL
US		7,418	7,116	4.2%	4.2%	-		27,954	25,735	8.6%	8.6%	-
Intl		6,870	5,152	33.4%	36.9%	-3.5%		24,126	19,837	21.6%	18.8%	2.8%
WW		$ 14,288	12,268	16.5%	17.9%	-1.4%		$ 52,080	45,572	14.3%	13.1%	1.2%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER						TWELVE MONTHS
				% Change						% Change
MEDICAL DEVICES SEGMENT ⁽²⁾		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

INTERVENTIONAL SOLUTIONS
US		$ 483	433	11.6%	11.6%	-		1,836	1,452	26.4%	26.4%	-
Intl		536	460	16.5%	18.8%	-2.3%		2,135	1,594	34.0%	29.8%	4.2%
WW		1,019	893	14.1%	15.3%	-1.2%		3,971	3,046	30.4%	28.2%	2.2%
ORTHOPAEDICS
US		1,305	1,352	-3.5%	-3.5%	-		5,126	4,779	7.3%	7.3%	-
Intl		851	839	1.5%	3.9%	-2.4%		3,462	2,984	16.0%	12.1%	3.9%
WW		2,155	2,191	-1.6%	-0.7%	-0.9%		8,588	7,763	10.6%	9.1%	1.5%
HIPS
US		229	229	0.4%	0.4%	-		883	793	11.4%	11.4%	-
Intl		151	143	4.9%	6.5%	-1.6%		602	487	23.6%	18.9%	4.7%
WW		380	372	2.1%	2.7%	-0.6%		1,485	1,280	16.0%	14.3%	1.7%
KNEES
US		208	216	-4.2%	-4.2%	-		787	743	5.9%	5.9%	-
Intl		135	129	4.6%	6.5%	-1.9%		538	427	26.1%	21.7%	4.4%
WW		342	345	-0.9%	-0.2%	-0.7%		1,325	1,170	13.3%	11.7%	1.6%
TRAUMA
US		467	454	2.8%	2.8%	-		1,819	1,648	10.4%	10.4%	-
Intl		261	268	-2.4%	0.7%	-3.1%		1,066	966	10.4%	7.1%	3.3%
WW		728	722	0.9%	2.0%	-1.1%		2,885	2,614	10.4%	9.2%	1.2%
SPINE, SPORTS & OTHER
US		401	453	-11.4%	-11.4%	-		1,637	1,595	2.6%	2.6%	-
Intl		304	299	2.0%	4.3%	-2.3%		1,256	1,104	13.8%	9.9%	3.9%
WW		706	752	-6.1%	-5.2%	-0.9%		2,893	2,699	7.2%	5.6%	1.6%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	FOURTH QUARTER						TWELVE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
SURGERY
US		986	1,002	-1.7%	-1.7%	-		3,867	3,249	19.0%	19.0%	-
Intl		1,527	1,427	7.0%	8.7%	-1.7%		5,945	4,983	19.3%	15.6%	3.7%
WW		2,513	2,429	3.5%	4.4%	-0.9%		9,812	8,232	19.2%	17.0%	2.2%
ADVANCED
US		457	456	0.5%	0.5%	-		1,761	1,535	14.9%	14.9%	-
Intl		735	660	11.2%	12.6%	-1.4%		2,861	2,304	24.1%	20.0%	4.1%
WW		1,192	1,116	6.8%	7.6%	-0.8%		4,622	3,839	20.4%	18.0%	2.4%
GENERAL
US		528	546	-3.4%	-3.4%	-		2,105	1,714	22.7%	22.7%	-
Intl		793	767	3.4%	5.3%	-1.9%		3,085	2,679	15.2%	11.8%	3.4%
WW		1,321	1,312	0.6%	1.7%	-1.1%		5,190	4,392	18.1%	16.1%	2.0%
VISION
US		443	397	11.4%	11.4%	-		1,857	1,557	19.3%	19.3%	-
Intl		728	679	7.2%	10.8%	-3.6%		2,831	2,362	19.8%	18.8%	1.0%
WW		1,171	1,076	8.7%	11.0%	-2.3%		4,688	3,919	19.6%	19.0%	0.6%
CONTACT LENSES / OTHER
US		316	289	9.4%	9.4%	-		1,398	1,213	15.2%	15.2%	-
Intl		518	507	1.9%	5.8%	-3.9%		2,043	1,781	14.7%	14.0%	0.7%
WW		833	796	4.6%	7.1%	-2.5%		3,440	2,994	14.9%	14.5%	0.4%
SURGICAL
US		126	108	16.8%	16.8%	-		459	344	33.5%	33.5%	-
Intl		211	172	22.9%	25.4%	-2.5%		788	581	35.7%	33.3%	2.4%
WW		338	280	20.5%	22.1%	-1.6%		1,248	925	34.9%	33.4%	1.5%

TOTAL MEDICAL DEVICES
US		3,216	3,184	1.0%	1.0%	-		12,686	11,036	14.9%	14.9%	-
Intl		3,643	3,405	7.0%	9.3%	-2.3%		14,374	11,923	20.6%	17.3%	3.3%
WW		$ 6,859	6,589	4.1%	5.3%	-1.2%		$ 27,060	22,959	17.9%	16.2%	1.7%


Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. The Company estimates that the inclusion of an additional week in the 2020 fiscal year impacted fiscal fourth quarter 2021 comparative sales growth by approximately -4% and impacted full year fiscal 2021 comparative sales growth by approximately -1%.


* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Certain prior year amounts have been reclassified to conform to current year product disclosures
(4) Reported as U.S. sales

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SOURCE Johnson & Johnson

Company Codes: NYSE:JNJ

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