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Chairman & Chief Executive Officer 1 2 OUR CREDO 2018 AND - - PowerPoint PPT Presentation
Chairman & Chief Executive Officer 1 2 OUR CREDO 2018 AND - - PowerPoint PPT Presentation
Alex Gorsky Chairman & Chief Executive Officer 1 2 OUR CREDO 2018 AND BEYOND 3 Record Year of Investments Focused on the Long-Term Growth $10.5B $13.5B $35B R&D Sales & Marketing M&A + $1.5B vs. 2016 + $0.6B vs. 2016
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OUR CREDO
2018 AND BEYOND
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Record Year of Investments
Focused on the Long-Term Growth
$10.5B
R&D
+ $1.5B vs. 2016
$13.5B
Sales & Marketing
+ $0.6B vs. 2016
$35B
M&A
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Capital Allocation Priorities
Effectively executed against our capital allocation priorities
1 Cash flow from operations less CAPEX 2 Began Oct 2015 and completed June 2017; Does not include Employee Stock Purchase Plans
After investing in our business at competitive levels, we allocate capital to drive long-term value by first paying dividends, then using excess cash on priority M&A or share repurchases
$10.5B invested in R&D Completed $10B share repurchase2 $35B capital deployed in M&A $9B in dividends paid to shareholders
HIGHER PRIORITY LOWER PRIORITY Organic growth business needs Free cash flow1
Investment in M&A
Base dividends Increase dividends Share repurchases
Return to Shareholders Capital Allocation 2017 Investments
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J&J is one of only six companies to increase its Market Cap by >$150B in the last five years
NOTE: Market Cap appreciation per Company (Alphabet $454B, Amazon $360B, Microsoft $375B, Berkshire Hathaway $231B, Apple $205B, J&J $171B
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We blend heart, science and ingenuity to profoundly change the trajectory of health for humanity.
OUR PURPOSE
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