Corporate Sustainability: The Journey of Greening our Company

1. Corporate Sustainability: The Journey of Greening our Company

2. Agenda • J&J’s Sustainability Framework • Sustainability / Green Accomplishments

3. J&J and Sustainability Credo Values Customers Communities • >100 years of sharing time, talents, & resources • $500 MM in charitable giving & disaster relief /yr. • Strong environmental responsibility Credo is our framework for sustainability • >100 years of products - improved quality of life • Most trusted brands & companies • Access Programs , HIV Focus; Wellness Speaks to social, environmental, and economic responsibility Employees Shareholders • Increased sales for 75 consecutive years • Dividends raised 45 consecutive years • Adjusted earnings increases for 24 years • Engaged, diverse, and healthy global workforce • Superior workplace policies & ethics • Workplaces are among safest in world Strategy at both Corporate and Group levels It’s Our Credo. It’s the right thing to do. It has business value

4. Environmental performance Corporate Sustainability Initiatives Financial performance Accounting Corporate governance Human rights / labor issues Ethical conduct Stakeholder engagement Talent management Marketing practices Responsible lobbying/public policy Occupational health & safety Risk & crisis management Philanthropy The ability to provide for the needs of the world's current population without damaging the ability of future generations to provide for themselves.

5. Healthy People, Healthy Planet, Healthy Business Vision & Strategy Healthy Planet EHS Standards 2010 Goals

6. The Journey Business Value sustainable business growth Market Opportunity public trust Opportunity Risk Reduction compliance Necessity Source: Tebo group Business Integration

7. “THE ENVIRONMENT IS THE ULTIMATE HUMAN HEALTH ISSUE”

8. Developing a Sustainability Culture

9. Compliance Zero releases, violations, permit exceedances Environmental Literacy Increased employee environmental literacy Biodiversity Enhanced biodiversity conservation Transparency Share facility specific sustainability information publicly Product Stewardship Improved environmental profile of products; take-back programs for electronic equipment Paper & Packaging Increased sourcing of paper & packaging from certified forests or increased recycled content; franchise goals for eliminating PVC CO2 Reduction 7% absolute reduction over 1990 levels for stationary sources; 30% reduction in emissions per km for fleet vehicle compared to 2003 levels Water Use 10% absolute reduction over 2005 levels Waste Reduction 10% absolute reduction over 2005 levels for non-hazardous & hazardous waste External Mfg New operating standards deployed & conformance measured Our Environmental Responsibility:Developing a Sustainability Culture

10. Culture of Health Evolution • Established Health & Wellness Shared Service, integrating: • Employee Assistance • Occupational Health • Wellness & Health Promotion • Disability Management • LIVE FOR LIFE®: Program initiated for Wellness and EAP • James E. Burke, CEO, set two goals: • Employees become “healthiest in the world” • Reduce health care costs through on-site programs and services • Global expansion of integrated services to provide: • Leadership • Consultation • Guidance • Support • Wellness & Prevention identified as key New Business strategy • Acquisition of Health Media and Human Performance Institute • Health & Wellness key policies harmonized as part of Global HR Transfor-mation (GHRT)

11. Johnson & Johnson Employee Health Indicators (By % of Profiled U.S. Employees) Source: 2008 Sustainability Report

12. Think Long Term Linking Interventions To Cost Avoidance

13. Results and Business ValueNext Generation Goals Environmental goals 2001 -2005 Source: 2006 Sustainability Report

14. SustainabilityProgress vs. Healthy Planet Goals Source: 2008 Sustainability Report

15. SustainabilityProgress vs. Healthy Planet Goals Source: 2008 Sustainability Report

16. Environmental Footprint: Goal-10% Absolute Water Reduction HEALTHY PLANET Water Use MM m3 “Our biggest successes in reducing the use of water have come from two areas: projects aimed at controlling cooling at our sites in energy efficient ways and process changes or improvements” Ciliag AG reduced water use 35% by reusing coolant, reducing J&J’s total water use by 3.5% Source: 2008 Sustainability Report

17. Environmental Footprint: Goal-10% Absolute Reduction of Waste HEALTHY PLANET Hazardous Waste Reduction (in millions of kilograms) Both hazardous and non hazardous waste goals have been exceeded. Non Hazardous Waste Reduction (in millions of kilograms) Approaches: Manufacturing efficiency projects, plant consolidations, increased recycling, Lean & process redesign, equipment upgrades Source: 2008 Sustainability Report

18. % Eliminated 1% 100% 89% PVC Packaging GOAL: Consumer – 100% removal in all packaging by YE07 Pharm & MDD - 100% removal in 2o and 3o packaging by YE07 Usage: MM kgs

19. E-Take back Goal: By 2010, 100% of J&J electronic-based products are offered to be taken back for remanufacture or recycle (directly or via third-party) Quantity Taken Back (M kg) Thousand Kg Source: 2008 Sustainability Report

20. Lost Work Day Cases (LWDCs) and Rates 2008 Target = 0.07 32% were slips, trips, and falls and 20% were Ergo 264 90 137 116 81 69 Source: 2008 Sustainability Report

21. HEALTHY PEOPLE Fleet Accidents Per Million Mile (APMM) • Rate of accidents APMM decreased 37% since 1995 • Continuing training efforts; focusing on high risk drivers 8.76 APMM Source: 2008 Sustainability Report

22. Achieve a 7% absolute reduction in Green House Gas (CO2) emissions from facilities worldwide by 2010, compared to a base year of 1990 Climate Friendly Energy Policy July 2003 CO2 Reduction Pathways: • Energy Efficiency – Best Practices • On-site cogeneration • On-site renewables: solar, wind, landfill gas • Green power purchases • Carbon trading/REC’s

23. Reducing CO2 and Green Power Rankings Worldwide Results2010 Goal: -7%CO2 Emissions 1990-2008 vs. Sales 2008 Status: -9% 985 CO2 Emissions [Thousand Metric Tons] Sales [Billion US$] Source: 2008 Sustainability Report

24. Energy & CO2 Reductions: Corporate Fleet • Goals/Strategy: • Increase fleet fuel efficiency (CO2/KM) by 30% by 2010 • Lease higher-efficiency models, alternative fuel, hybrid vehicles, smart driving & maintenance • At the end of 2008 we had more than 2,100 hybrid vehicles in our U.S. fleet (20% of the total U.S. fleet) • 100% of our automotive purchases are made through minority suppliers which supports our aim of diversifying our supply chain. #1 Largest Corporate Fleet of Hybrid Vehicles in U.S. Automotive Fleet Magazine 11/08

25. Renewable Energy

26. Neutrogena Los Angeles, CA 546 kW

27. Mountain View, CA Three 1M Generators ALZA Landfill Gas Project Compressor Station ALZA Plaza M3 M1/M5

28. Tracking System J&J CorporateNew Brunswick, NJ234 kW

29. Heat Exchanger Installation Cogeneration PRD La Jolla, CA 2.2 MW

30. Solar PV Janssen Pharmaceutica Titusville, NJ 500 kw

31. Solar PVJ&J Consumer Products Skillman, NJ

32. Sequestration Projects • China • Thailand • Canada • Kenya

33. Reforestation Project in Inner Mongolia In 2008 Johnson and Johnson created a reforestation project in Inner Mongolia to help limit the impact of sandstorms on Beijing, Korea, and Japan. Project Supporters: JJ China JJ Medical China Shanghai JJ Pharma Local government Vision care China JJ Medical Suzhou Other NGOs • We are planning to expand this project, and plant trees in more desert areas in Inner Mongolia. • So far, 800 trees have been planted, with the hope of planting 800 more this spring.

34. Our Advocacy US Climate Action Partnership (USCAP) – A Call for Action • J&J is one of 30 partners • Supporting green house gas (GHG) regulation • Economy-wide limit on GHG emissions (80% reduction by 2050) • Market based “Cap-and-trade” system • Utilize innovative technology

35. LEED Sustainable Building Policy March 2009 All new construction and major renovations of J&J facilities (over five million dollars) will be LEED certified • LEED (Leadership in Energy and Environmental Design) was developed by the U.S. Green Building Council Committees. • Buildings must meet the requirements of the LEED certification, or equivalent. • Process helps to plan and implement sustainability solutions to best meet business needs

36. J&J Green Buildings In Progress:

37. Community Relations & Outreach Bridge to Employment Computer Donations Urban Environmental Center Summer Camp • Community outreach: • Noramco Neighbors • Bridge to employment – after school program & summer enrichment • Urban Environment Center – environmental awareness program • Developed Christina Community Resource Guide

38. Our GivingIn 2008 J&J gave $510 million dollars in charitable contributions

39. Community and Health: Tuberculosis • In 2008 Tibotec joined with the Global Alliance for TB Drug Development (TB Alliance) to share expertise and resources in the development of TMC207 and the discovery of other drugs for tuberculosis • TMC207 is the first TB compound with a new mechanism of action in nearly 40 years • It has the ability to save hundreds of thousands of people

40. Community and Health: Access to Medicines • Over the past 24 months, our companies provided more than 2.3 million units of medicine to more than 320,000 patients • The program enhances access to our HIV/AIDS medicines • Provide medicines and other products through our product giving and disaster relief programs • Provides assistance to individuals and families in the United States who may not have access to prescription medicines • We support over 100 HIV/AIDs programs across 50 countries

41. Our New Greener Product Direction…

42. Earthwards: Introduction • Earthwards is our process to make our products greener. It strives to improve the environmental performance of a product by: • reducing materials • energy • water • waste • drive innovation • The earthwards Scorecard is designed to help capture, and measure, almost all product changes that result in less material, energy, water or waste.

43. Earthwards: Steps The following is a basic outline of the earthwards process

44. Earthwards: Goals After completing the prerequisites, one begins to fill out information for three goals within the following 5 categories: Energy Materials/ Chemicals Waste Water Packaging

45. Earthwards: Creating Greener Products • We have removed 1,024 tons of PVC • from our products • Removal of Mercury (Hg) preservative from blood donor screening • Green chemistry in Active Pharmaceutical Ingredient Synthesis: • AIDs Rx Intelence process improved • 60% reduction in the use of methylene chloride • 540,000 liters/yr waste eliminated • ASP Sterilizer does not use ethylene oxide

46. OUR SUSTAINABILTY PARTNERS • Organizations we are affiliated with through membership, partnerships or sponsorships include: • World Wild Life Fund • The U.S. Climate Action Partnership • The Conservation Fund • The Trust for Public Land • Wilderness Society • SafeKids Worldwide • TogetherRx • The Partnership for Prescription Assistance

47. Transparency “...when all of the stakeholders that interact with a company can find information which is pertinent to them, which helps them, if they have this information, or that hurts them if they don't have it.” Don Tapscott, The Naked Corporation

48. Reputation Benefits too…. Global 100 Most Sustainable Companies U.S. EPA Green Power Partner of the Year Robert W. Campbell Award Excellence in EHS management 100 Best Companies for Working Mothers, Hall of Fame

49. Corporate Sustainability: Greening Your Company Thank you! Al Iannuzzi, Ph.D. Senior Director, Worldwide Environment, Health & Safety Johnson & Johnson 732-524-6382 aiannuz@its.jnj.com