Social Responsibility and

Sustainable Development

PROGRESS THROUGH INNOVATION

Agenda

• Johnson & Johnson

• Corporate Social Responsibility

• Our approach to CSR

• What are the results?

World’s Most World’s Most

Comprehensive and Comprehensive and

Broadly Based Health Care Broadly Based Health Care

CompanyCompany

World’s Most World’s Most

Comprehensive and Comprehensive and

Broadly Based Health Care Broadly Based Health Care

CompanyCompany

Johnson & Johnson worldwide : Sales per segment 2006

Consumer products$10

Pharmaceuticals$23

44.%

38%18%

Total sales : 53.3 bln dollar

Medical Devices & Diagnostics$20

The Foundation : Our Credo

Employees

Shareholders

Patients, doctors

Society

Commitment

The first text : 1943

Product People

PlanetProfit

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, solution-driven, …

• It creates relationships

• It builds reputation, both internally and externally

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

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

Agenda

• Johnson & Johnson

• Corporate Social Responsibility

• Our approach to CSR

• What are the results?

The value chain

Natural supplies

Material

supplies

Transport Production partners

PlantDistribution

Center

Wholesale Retail

End user

Core interests :

• Cost reduction

• Time reduction

• Quality assurance

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

- …

Shareholders

- inidividuals

- pension funds

- institutional investors

- business owners

The values chain

Natural supplies

Material

supplies

Transport Production partners

PlantDistribution

Center

Wholesale Retail

End user

Core interests :

• General interest

• Ethics

• Environment

• Social concerns

Supplies

- environmental

organisations

- human rights

- media

Moral judges

- profits

- triple hat

- media …

Consumer organisations

- safety

- healthy

- ethical

- desirable

Manufacturing

- Environmental pollution

- Social organisations

- Diversity organisations

- “corporate watchers”

- neighbours - NIMBY

Social debate

- equal treatment of employees

- family opportunities

- social contributions

- …

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

12. Community investment

13. Stakeholder engagement

14. Transparency

15. Environmental footprint

16. Jobs

17. Human rights

18. Therapeutic Footprint

19. Financial results

20. Stock value

21. Market position

22. Product innovation

23. Intellectual assets

24. Confidence

Values to Value (V2V) draft model

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

2

W orm Zones

Worldwide I mpact of Worms

>400M children severely infected globally

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

• 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

Cameroon (4MM)

Bangladesh (9MM)

Uganda (8MM)

Zambia (1.44MM)

= 22.4MMStarted 2007

Nicaragua (1.35MM)

Cape Verde (0.17MM)

Cambodia (5MM)

Lao (2MM)

= 22.4MMStart in 2008

Global HIV access program

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

+90% of HIV Infections occur in the developing world

Strategic focus on unmet medical need

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 Score1 Johnson & Johnson 7.64

2 Novartis 6.99

3 Abbott Laboratories 6.66

4 Amgen 6.62

5 GlaxoSmithKline 6.58

6 Eli Lilly 6.54

7 Roche Group 6.36

8 AstraZeneca 5.97

9 Wyeth 5.85

10 Pfizer 5.57

11 Sanofi-Aventis 5.68

12 BMS 5.23

13 Merck 5.07

BEST REPUTATION 2006 2005 2004 2003 2002 2001 2000 1999

Johnson & Johnson 2 1 1 1 1 1 1 1

Coca-Cola 5 2 3 3 3 3 - 2

Google 4 3 - - - - - -

UPS 7 4 5 2 4 - - -

3M 3 5 2 8 10 5 - -

Sony 8 6 7 13 11 6 - -

Microsoft 1 7 6 5 13 2 9 -

General Mills 6 8 9 6 5 - - -

Fedex - 9 8 7 12 8 - -

Intel - 10 11 19 - - 5 4

THANK YOU

Example -- Next Generation Goals

EnergyUsage

WaterUsage

Raw MaterialUsage

Non-ProductOutput

ManufacturingCost

Cost Reduction

RegulatoryCompliance

ISO 14001/MAARS MAPCompliance

Compliance

Risk Reduction

Design forEnvironment

New Product/Process Development

Time to Patient

Conservation/Community

Activities

Public Image/Brand Equity

J&J Reputation

Competitive AdvantageOutcome

Drivers

Dashboard

$ 78 MM savings for every 1% reduction in 2005

Environment

% M/F Graduates in healthcare in Belgium

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

58.6

41.4

75.7

24.3

0

10

20

30

40

50

60

70

80

Medicine Pharmacy

Women

Men

« 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

Focus Metric

Demonstrated improvement in % representation of women at director level and above

Recruitment % M/F hires at director positions and above

Advancement % M/F promotions to director positions and above

Retention % M/F regrettable losses at manager level and above

Development % M/F participation on management training programs

Follow up Each 6 months in board

Women’s Leadership Initiative Dashboard to follow up

Industry leadership

• Diversity programmes• Mobility• CSR• Energy Efficiency• Employee Safety• Community involvement