2011 RESULTS

Johnson & Johnson returned to delivering operational sales growth in 2011. We grew adjusted earnings⁽¹⁾ for the 28th consecutive year. Our worldwide sales were $65.0 billion, an increase of 5.6 percent. Sales increased operationally 2.8 percent, reflecting the strength of new product launches in our Pharmaceuticals business segment, steady performance across our MD&D franchise, science-based innovations in our Consumer business and strong growth in emerging markets.

Approximately 70 percent of our sales were from products with No. 1 or No. 2 global market share positions. Approximately 25 percent of our sales were from products introduced in the past five years.

With our continued focus on financial discipline, our adjusted earnings were $13.9 billion⁽¹⁾ and adjusted earnings per share were $5.00⁽¹⁾, representing increases of 4.4 percent and 5.0 percent, respectively.

We invested $7.5 billion in R&D and advanced robust pipelines across all three of our business segments.

We generated significant free cash flow of approximately $11.4 billion⁽²⁾, maintained our AAA credit rating and increased the dividend to our shareholders for the 49th consecutive year.

Solid and consistent returns to shareholders have been a hallmark of Johnson & Johnson. During 2011, we generated a one-year total shareholder return of nearly 10 percent, exceeding the Standard & Poor's 500 and Dow Jones Industrial Average. Over longer timeframes, we continue to compare favorably to those indices. With a long-term management focus, our company has remained a solid investment choice for decades. (For more details, see the 2011 Business Segment Highlights.)