PROGRESS THROUGH INNOVATION

Social Responsibility and Sustainable Development

Agenda
Johnson & Johnson Corporate Social Responsibility Our approach to CSR What are the results?

Worlds Most Comprehensive and Broadly Based Health Care Company

Johnson & Johnson worldwide : Sales per segment 2006

Pharmaceuticals $23

44.% 38% 18%

Medical Devices & Diagnostics $20

Consumer products $10

Total sales : 53.3 bln dollar

The Foundation : Our Credo

Product Patients, doctors People Employees

Commitment Shareholders Society

Profit

Planet

The first text : 1943

Strategic Principles
Broadly based in Human Health Care Decentralized Management Manage for the Long Term Ethical Principles

Agenda
Johnson & Johnson Corporate Social Responsibility Our approach to CSR What are the results?

Why Corporate Social Responsibility?

Ethical & moral obligation It exemplifies and illustrates the way you do business : trustworthy, concerned, oriented to people, solutiondriven, It creates relationships It builds reputation, both internally and externally

EU and CSR
The EU Alliance on CSR is at the heart of the EU Strategy on Growth & Jobs, CSR: voluntary action, innovation and stakeholder engagement
EU commits to ensure a more business-friendly environment in Europe if companies commit to CSR. EU commits to integrate the promotion of CSR into EU policy (Trade, Development, Research etc)

Government Affairs & Policy Training, Janssen Cilag, MEWA and TURKEY Istanbul, Nov. 20-21, 2007

Value creation

Government Affairs & Policy Training, Janssen Cilag, MEWA and TURKEY Istanbul, Nov. 20-21, 2007

Agenda
Johnson & Johnson Corporate Social Responsibility Our approach to CSR What are the results?

The value chain

Shareholders - inidividuals - pension funds - institutional investors - business owners
Natural supplies Material supplies Transport Production partners Plant

Core interests : Cost reduction Time reduction Quality assurance

Distribution Center End user

Wholesale

Retail

Manufacturing Suppliers - material suppliers - banks - transport firms - co-manufacturers

Internal - Employees - Unions

External Controls - Customs - Inspections - Quality/ Safety control -

Marketing Partners - co-marketeers - licencees - wholesale - retail - ad agency -

The values chain

Supplies - environmental organisations - human rights - media
Natural supplies Material supplies Transport Production partners

Core interests : General interest Ethics Environment Social concerns

Distribution Center End user

Manufacturing - Environmental pollution - Social organisations - Diversity organisations - corporate watchers - neighbours - NIMBY
Plant

Wholesale

Retail

Social debate - equal treatment of employees - family opportunities - social contributions -

Moral judges - profits - triple hat - media

Consumer organisations - safety - healthy - ethical - desirable

Values to Value (V2V) draft model

CUSTOMER & SUPPLIER VALUE EMPLOYEE & FAMILY VALUE COMMUNITY & SOCIETY VALUE STOCK HOLDER VALUE

1. Product quality & safety 2. Customer satisfaction 3. Customer service 4. Product stewardship 5. Sustainable supplier & partner relationships

6. Employee satisfaction 7. Preferred employer 8. Diversity 9. Safe & healthy work conditions 10. Ethical conduct/ behaviour

11. Licence to operate 19. Financial results 12. Community investment 13. Stakeholder engagement 14. Transparency 15. Environmental footprint 16. Jobs 17. Human rights 18. Therapeutic Footprint 20. Stock value 21. Market position 22. Product innovation 23. Intellectual assets 24. Confidence

The Sustainability Report

Available at janssenpharmaceutica.com

Stakeholder dialogue
An initiative in conjunction with the Koning Boudewijnstichting A one-day discussion on the expectations :
Trade Unions WWF Local authorities Family of employees Local residents

The projects
The business

Employees

The environment

Example : Energy week

A week of sensitisation : - exhibition by department and suppliers - game for children - brochure with explanation - counsel : at work, at home Improvement programs (purchasing, lighting, insulation, ) Unannounced controls (computers, printers, )

Tipu Sultan Palace : Fungi, lichen and subterranean termites

Hampi (World Heritage Site UNESCO) : Fungi, lichen and algae

Started 2007

Worldwide Impact of Worms = 22.4MM

Start in 2008 = 22.4MM

>400M children severely infected globally

Cape Verde (0.17MM) Bangladesh (9MM) Uganda (8MM) Lao (2MM)

Nicaragua (1.35MM)

Cambodia (5MM) Cameroon (4MM) Zambia (1.44MM)

Worm infected children are ...

anemic malnourished have vitamin deficiencies smaller and shorter more prone to miss school due to stomach pains more vulnerable to other diseases

Worm Zones

* WHO: De-Worming for Health and Development: 3 rd Global Meeting of Partners for Parasite Control, 11/04

Global HIV access program

3% of patients on ARVs in Low-HDI countries are highly treatment experienced

Strategic focus on unmet medical need

+90% of HIV Infections occur in the developing world

Status and lessons learned

STATUS
A license and distribution agreement for Sub Saharan Africa and the Least Developed Countries outside of Africa has been signed in April 2007 with Aspen Pharmacare Ltd (South Africa), including the option for technology transfer with respect to manufacturing. Filing for registration done in 19 SSA countries + 30 additional low and middle income countries in Latin America, Asia and Middle East.

LESSONS LEARNED:
Regulatory and logistical hurdles. Need for medical training and awareness programs. Medication is only one element of the global approach.

Agenda
Johnson & Johnson Corporate Social Responsibility Our approach to CSR What are the results?

PHARMACEUTICALS
1 2 3 4 5 6 7 8 9 10 11 12 13 Johnson & Johnson Novartis Abbott Laboratories Amgen GlaxoSmithKline Eli Lilly Roche Group AstraZeneca Wyeth Pfizer Sanofi-Aventis BMS Merck

Score
7.64 6.99 6.66 6.62 6.58 6.54 6.36 5.97 5.85 5.57 5.68 5.23 5.07

BEST REPUTATION Johnson & Johnson Coca-Cola Google UPS 3M Sony Microsoft General Mills Fedex Intel

2006 2 5 4 7 3 8 1 6 -

2005 1 2 3 4 5 6 7 8 9 10

2004 1 3 5 2 7 6 9 8 11

2003 1 3 2 8 13 5 6 7 19

2002 1 3 4 10 11 13 5 12 -

2001 1 3 5 6 2 8 -

2000 1 9 5

1999 1 2 4

THANK YOU

Example -- Next Generation Goals

Outcome Drivers Dashboard
Cost Reduction
Manufacturing Cost Energy Usage

Competitive Advantage
Risk Reduction
Compliance

Time to Patient
New Product/ Process Development Design for Environment

J&J Reputation
Public Image/ Brand Equity Conservation/ Community Activities

Regulatory Compliance

Water Usage

ISO 14001/ MAARS MAP Compliance

Raw Material Usage

Non-Product Output

$ 78 MM savings for every 1% reduction in 2005

Environment

% M/F Graduates in healthcare in Belgium

80 70 60 50 40 30 20 10 0 Medicine Pharmacy 24.3 58.6
Women

75.7

41.4

Men

Source : Onderwijs Vlaanderen - Universitair Onderwijs - Aantal afgestudeerden 2000-2001 per studiegebied

 Beyond Compliance
Each Johnson & Johnson Company will
Meet all Johnson & Johnson standards and regulatory requirements Optimize products, processes and facilities by designing in quality, safety, environmental and engineering standards Proactively partner with regulators and anticipate changes in regulations, standards and public expectations Achieve operational excellence

Dashboard to follow up Womens Leadership Initiative

Dashboard to follow up
Focus Metric Demonstrated improvement in % representation of women at director level and above Recruitment Advancement Retention Development Follow up % M/F hires at director positions and above % M/F promotions to director positions and above % M/F regrettable losses at manager level and above % M/F participation on management training programs Each 6 months in board

Industry leadership
Diversity programmes Mobility CSR Energy Efficiency Employee Safety Community involvement