Jennifer A. Bruno Worldwide Director Wellness & Health Promotion Johnson & Johnson

1. ORC Western Occupational Safety & Health GroupORC Integrated Employee Wellness Strategies Task ForceJoint Quarterly Meeting – June 15, 2006 Jennifer A. Bruno Worldwide Director Wellness & Health Promotion Johnson & Johnson

2. The World’s most comprehensive and most broadly based Health Care Company • 2005 sales of $50.5 billion • 230 operating companies in 57 countries selling products throughout the world • Three worldwide business segments • Consumer • Medical Devices/Diagnostics • Pharmaceutical • Managed by a unique form of decentralized management 116,000 employees worldwide

3. Business Segments

4. Our Credo The Four Tenets • Customers • Employees • Community • Stockholders

5. Healthy People, Healthy Planet, Healthy Business Healthy People Healthy Employees Workplace Safety OUTCOMES Lower Health Care Costs Improve Productivity Reduce Hazardous Workplace Exposure Improve Health Risk Factors DRIVERS Organizational Culture of Health Medical Case Management Talent and Competencies Identification of Occupational Health Risks Management of Occupational Health Risks

6. Health & Safety Vision We are committed to making Johnson & Johnson the world leader in health and safety by achieving healthy lifestyles and injury-free workplaces

7. Occupational Health Global Integrated Health Executive Health Health Promotion Travel Health Absence Management Employee Assistance

8. Global Integrated Health Objectives • Leadership, consultation, guidance and support for the delivery of quality employee health programs and services worldwide: • Absence & Disability Management • Employee Assistance • Wellness & Health Promotion • Occupational Health • Proactive injury and illness preventive strategies for employees worldwide • Delivery of consistent global health services • Uniform health standards with local consideration • Performance metrics for the global health community

9. Integrated Health Services- US • Absence & Disability Management • - Management Consultation • Medical Case Management • Short Term Disability (STD) • Disability Appeal Committee • Vocational Rehabilitation • Return-to-Work Planning • Medical Leave Certification • Workers’ Comp Case Coordination • Injury/Illness Prevention • Workplace/Job Accommodation • Employee Assistance • Management Consultation • Critical Incident Debriefing • 800 Line Crisis Assistance • Short Term Counseling and Referral • Supervisor Training • Coordination of Field Alcohol/Drug Training • Case Management • Educational Training • Mental Health/Substance Abuse Screening • Occupational Health • Pre-placement Assessments • Medical Surveillance • Emergency Treatments • Regulatory Compliance • Ergonomics Program • Preventive Screening • Drug Free Workplace • Global Health Standards Guidelines & Policy • Deployment • Workers’ Comp Case Management • Return to Work Evaluation • Wellness & Health Promotion • Healthy People • Health Profiles • Target Risk Interventions • Health Education • Environmental/Cultural Support • Wellness Center Management • Exercise Classes/Personal Training • Fitness Assessments • Job Conditioning • Exercise Reimbursement/Travel Fitness • Integration with Benefits & Disease Management • Work, Family & Personal Life • LifeWorks Consultation Resource & Referral • Childcare, Parenting, Adoption • Eldercare – Nursing Home Evaluation • Legal, Education, Consumerism • LifeWorks 800# 24/7 • Work/Life Seminars • Educational Materials • LifeWorks Online • NURTURE SPACE • College Coach

10. The Link Between Health & Productivity • 200 million days lost/year due to depression resulting in estimated cost of $30-40 billion • Medical cost and lost productivity attributable to obesity amounted to an estimated $99 billion annually • 50% of deaths from heart disease & stroke can be avoided by reducing major risk factors: high blood pressure, high cholesterol, obesity, smoking • $92 billion in lost productivity due to smoking related illness & premature death • Severe influenza pandemic may precipitate a global recession with cost exceeding $800 billion

11. Achieve the Regional Healthy People Goals Achieve the Health & Safety Goals Achieve 80% of the Healthy Planet 2010 Goals Healthiest and Safest Workforce in the Most Environmentally Responsible Corporation in the World • Fulfill Credo Responsibility • Help Employees Adapt to Rapidly Changing Business Environments • Improve Employee Productivity • Control Health Care Costs Healthy Employees Healthy Company Why Healthiest Workforce?

12. Creating a Culture of Health Commitment HealthyPeople Motivation Effective Approach

13. Commitment • Leadership • Public advocacy for healthy workplaces • Internal management emphasis (talkingthe talk and walking the walk) • Healthy Lifestyle Support • Physical fitness—fitness centers, walking trails, pedometer initiative, exercise classes, exercise reimbursement, contests • Healthy eating—cafeterias, vending, meeting food • Integration of Healthy People 2005 with Benefit Design • Global Policies – HIV/AIDS & Tobacco Free Workplaces

14. Commitment • Management Communications • Communications inside andoutside the organization • Health identified as a key element of J&J’s sustainability • Tracking and reporting of healthand safety metrics by operatingcompany, including: • Health Profile participation • Performance against HealthyPeople targets

15. Well/Low Risk Disease and Injury Risk Chronic Disease High Risk/High Cost Claimants* • Keep well (mind and body) • Keep safe • Identify and manage health and injury risks • Identify and manage/mitigate disease impact • Identify and focus medical and disease management resources Effective Approach • Objectives • Address spectrum of needs, and invest in people/programs through strategies that can yield the biggest benefit. • Use proven programs/methods • Measure outcomes/manage program investments accordingly

16. J&J Payroll & Eligibility Financial Management Medical Vendor Performance & Quality Management IntegratedDataWarehouseandAnalytics Drug Care Management Benefit Planning & Design Health & Wellness Regulatory Compliance STD and LTD Worker’s Compensation Program Evaluation Dental & Vision Health & Productivity Management Financial Accounting Effective Approach • Integrated data drives planning, enables evaluation to achieve total economic value from benefit investments

17. Motivation • Alignment of Incentives • Healthy People Health Plan • Healthy People Initiative • Clear Focus (Smoking, BP, Cholesterol, Activity) • Tracking and Enterprise-Wide Reporting • Operating Company-Level Reporting/Accountability

18. Motivation Biometrics Wallet Card Lifestyle Program Promotion Marketing & Communications—Healthy People Branding Web Resource Promotion Newsletter Personal Profile Reminder • J&J’s Better Health – Better Future tag line addresses both the personal and business motives around health improvement

19. Indicator SmokingTobacco Use Blood PressureAbove 140/90 CholesterolAbove 240 Inactivity30 min of activity < 3 days/wk Healthy People 2010 US Dept. of Health & Human Services Healthy People 2010 • Designed to promote health and disease prevention for all Americans by 2010. • The program has two overarching goals: • To increase the quality and years of healthy life • and • To eliminate health disparities nationwide Baseline Target 24% 12% 28% 16% 21% 17% 40% 20%

20. Inspire & Align Plan Execute Monitor & Improve • Prepared Business Case • Identified key executive as Healthy People Champion • Created Healthy People Task Force • Enrolled Key Business Partners • Established Health Indicator Targets • Developed Data Collection and Tracking System • Launched Communications • Standardized Menu of Services • Started Deployment • Implemented Best Practices Behavioral Interventions • Redesigned J&J Health Benefits Plan • Integrated HRA and Disease Management Counseling • Implementing Programs to Address Inactivity • Piloting Healthy Eating Plan • Preparing Worldwide Next Generation Goals • Incorporating Healthy Culture Measures in Business Processes 2002 2005 Healthy People Strategy

21. Health Profile • Personalized assessment of health status and lifestyle practices • Employees invited via email to complete 15-minute online assessment every two years • Employees consent to sharing results of their Health Profile (with HCP) in order to meet participation requirements for benefit incentive • Immediate feedback and lifestyle resources provided • Everyone receives Online Action Planning Guides • Higher risk employees referred for lifestyle counseling

22. Lifestyle Counseling Online, telephonic tailored programs to the needs of the individual in areas that align with our Healthy People program focus A personalized and effective Smoking Cessation plan A personalized Nutrition plan made simple A personalized & comprehensive Weight Management program A personalized Stress Management plan

23. Healthy Eating One billion overweight adults – 300 million of them obese • Eat Complete • Support employees’ efforts to reduce their risk primarily for hypertension, high cholesterol, cancer and obesity • Opportunities for employees to access and enjoy Nutritionally Dense Whole Foods at every cafeteria, food station, vending machine, catered event, and whenever food is served at company functions • Piloted at 6 companies in the US • Expansion of program by request in 2006 Results = increased sales, decreased subsidy and high customer satisfaction

24. Physical Activity • At least 60% of global population fails to achieve 30 minutes moderate intensity physical activity daily (WHO) • Physical Activity Programs • Knowledge Building & Behavior Change • Pedometers – 30,000 participants globally • Million Step Challenge – 10,000 participants • Exercise Reimbursement Program – 4,600 participants • Online & Nurse Counseling – 5,000 participants • Environmental & Cultural Support • Fitness Centers/Fitness Rooms • Walking Trails • Stairwell Campaigns • Fitness Center Design & Activity Guidelines Continue to build momentum toward a global culture that encourages and supports healthy lifestyles.

25. By year end 2005, 50% of employees & household members worldwide had access to Employee Assistance services. This number will increase to 70% by year end 2006. Mental Health & Depression Depression is the leading cause of disability globally, and the 4th leading health burden affecting humanity. (WHO) Employee Assistance Services (EAP) • Worldwide • 50% of employees have access to services • 6,000 employees have received resilience training • Productivity Outcomes Study - U.S. • Absence decreased in 96% of EAP clients • Mental health status improved in 78% of EAP clients • $4,000 savings per EAP user • Mental Health Screening • Confidential self-assessment to identify individual vulnerability • Referral to mental health resource if indicated by screen results • Accessed by 13,000 employees

26. Cancer Prevention Single largest preventable cause of disease and premature death in the world • Applies to all operating company locations, (property, buildings, leased buildings, company vehicles and company-sponsored meetings) • Flexible guideline to comply with local, state, regional laws or collective bargaining agreements • Operating companies manage transition to “tobacco-free” by no later than January 2007 • Partnership with Global Human Resources and Worldwide Benefits & Health • Support materials and toolkit from Worldwide Health & Safety 80% of Operating Companies have implementation plans in place; 30% are already “Tobacco Free”

27. Avian Influenza The world is now closer to another influenza pandemic than at any time since 1968, when the last of the previous centuries three pandemics began. (WHO) • Pandemic Preparedness • Distributed “Guidance on Preparedness for Human Influenza Pandemic” to management • Business Continuity Planning • Developed detailed site specific BCP procedure that is pandemic phase dependent • Communication Plan • Education & Awareness Campaign • Human Resource Guidelines • BCP – Supply Chain management • Assist contacts with access to antiviral prophylaxis and treatment • Partnerships and Resources • CDC, WHO, Local Health and Government Agencies • International SOS, Business Group on Health Continuing To Evaluate And Anticipate Needs

28. Complex Medical Conditions Chronic Medical Conditions • Cancer • High-Risk Pregnancies • Spinal Injuries • Organ Transplants • Diabetes • Asthma • Heart Disease • Hypertension CareConnect • Telephonic counseling program designed for individuals with complex or chronic medical conditions • Individuals are matched to a registered nurse with specific expertise in their condition

29. Healthy People Medical Plan • Employees receive annual $500 discount on medical plan contributions • To maintain the $500 discount, employees must: • Complete a Health Profile every two years • Participate in Health Profile Counseling, if identified by health risk criteria • Participate in CareConnect, if identified by chronic or complex condition criteria • If employee chooses not to participate in any one of the requirements, they forfeit the annual discount

30. Healthy Employees – U.S. • Healthy People Indicators provide US enterprise-wide focus and performance targets • Performance meets or exceeds all targets, except physical activity/inactivity

31. Healthy People U.S.Impact on Health Outcomes & Excess Cost 17,940 17,480 8,740 6,440 5,520 4,600 3,680 2,300 Data extrapolated to J&J average population of 46,000 and J&J per capital Health Care Costs

32. Health Risk Reduction Financial Impact: Physical Activity 17,940 J&J Inactive Baseline 17,480 # Inactive Current MINUS X $1068 Excess Cost/Inactive Employee For every 1% improvement in our physical activity risk, the potential cost avoidance is almost $500M. Potential Cost Avoidance $491,280

33. Impact on J&J Salaried Health Care Costs • In 2005, J&J’s per capita increase was 6% (National Data 9.5%) • Since 1999, J&J’s average trend was at least 1% below the national trend, despite having a significantly richer plan • J&J initially attributed its success to their Healthy People programs and initiatives, now being expanded to the Global Employee community

34. Health & Financial Outcomes Impact on Health Risks For 4500 Employees identified as High Risk % Health Risk Change Modified Risk Factors

35. Health & Financial Outcomes • Financial Impact (per employee per year) UtilizationType Healthcare Expenditures in Dollars

36. Comments? Questions?Thank You.