Company Name Johnson & Johnson  cell F3 is named "name" Sub-header Dollars in Millions, except per share  cell F5 is named "subheader" COPYRIGHT 2009 © by Training The Street, Inc For training purposes only! Assumption Page for Johnson & Johnson Select a scenario: Operating Assumptions Sales growth rate Gross margin SG&A expenses (as a % of sales) Other operating expenses ($ in millions) Other non-operating income / (expense) ($ millions) Marginal tax rate Proj 2014 ######## ######## ######## 4.9% 1.1% 3.7% 3.3% 68.7% 68.7% 68.7% 68.7% 28.3% 28.6% 28.5% 31.0% $8,379.7 $8,379.7 $8,379.7 $8,379.7 ($2,478.0) ######## ######## ######## 15.5% 13.5% 12.0% 13.7% Working Capital Assumptions Accounts receivable, net (collection period in days) Inventories (days outstanding) Other current assets (as % of sales) 60.0 103.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% Accounts payable (days outstanding) Accrued liabilities (as % of cost of goods sold) Other Current Liabilities (as % of cost of goods sold) 101.1 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% Long-Term Asset Assumptions Capital expenditures (as % of sales) Depreciation (as % of capex) 4.7% 76.2% 4.7% 77.2% 4.7% 78.2% 4.7% 79.2% Purchases of definite life intangibles (as % of sales) Amortization Expense (1) Equity Assumptions Stock-based compensation expense ($ in millions) Dividend payout ratio ` Base case Debt Assumptions Minimum cash balance ($ in millions) Long-term debt issuance ($ in millions) Long-term debt Repayment ($ in millions) (2) % Interest rate (revolver) (3) % Interest rate (LTD) (3) % Cash interest rate 0.5% 0.5% 0.5% 0.5% $1,350.0 $1,350.0 $1,350.0 $1,350.0 $0.0 $0.0 $0.0 $0.0 59.0% 59.0% 59.0% 59.0% $0.0 $0.0 $0.0 $0.0 $3,607.0 $1,769.0 $45.0 $76.0 $4,470.0 $2,096.0 $0.0 $1,007.0 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1) Amortization expense is projected by management to be approximately $1350M, 10-K p.32 2) Long-term obligation maturities are as follows: 2014: $1769M 2015: $76M 2016: $2096M 2017: $1526M 2018: $1526M 3) Interest charged on borrowings under the credit line agreements is based on either bids provided by banks, the prime rate or London Interbank Offered 4) Cash interest rate approximately equals to current prime rate plus 1% Do not move/edit these (being used for data validation) Management case Base case Downside case 1 Downside case 2 Input assumptions below: ######## 3.5% 68.7% 31.0% $8,379.7 ######## 13.7% Management case Base case ######## ######## ######## ######## Proj 2018 5.4% 1.6% 4.2% 3.8% 4.0% 69.0% 69.0% 69.0% 69.0% 69.0% 27.8% 28.1% 28.0% 30.5% 30.5% $8,300.0 $8,300.0 $8,300.0 $8,300.0 $8,300.0 ######## ######## ######## ######## ($2,450.0) 15.5% 13.5% 12.0% 13.7% 13.7% ######## ######## ######## 4.9% 1.1% 3.7% 68.7% 68.7% 68.7% 28.3% 28.6% 28.5% $8,379.7 $8,379.7 $8,379.7 ######## ######## ######## 15.5% 13.5% 12.0% 60.0 103.0 9.3% 58.0 100.0 9.3% 58.0 100.0 9.3% 58.0 100.0 9.3% 58.0 100.0 9.3% 58.0 100.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% 101.1 30.2% 55.1% 99.0 30.2% 55.1% 99.0 30.2% 55.1% 99.0 30.2% 55.1% 99.0 30.2% 55.1% 99.0 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 4.7% 80.2% 4.7% 75.7% 4.7% 76.7% 4.7% 77.7% 4.7% 78.7% 4.7% 79.7% 4.7% 76.2% 4.7% 77.2% 4.7% 78.2% 0.5% 0.5% 0.5% 0.5% $1,350.0 $1,350.0 $1,350.0 $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% 0.5% 0.5% $1,350.0 $1,350.0 $1,350.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1,526.0 $3,607.0 $1,769.0 $45.0 $76.0 $4,470.0 $2,096.0 $0.0 $1,007.0 $0.0 $1,526.0 $3,607.0 $1,769.0 $45.0 $76.0 $4,470.0 $2,096.0 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% ate or London Interbank Offered Rates (LIBOR), plus applicable margins. 10K p.35 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% ######## Proj 2018 3.3% 3.5% 68.7% 68.7% 31.0% 31.0% $8,379.7 $8,379.7 ######## ($2,478.0) 13.7% 13.7% Downside case 1 Downside case 2 Proj 2014 Proj 2015 Proj 2016 Proj 2017 Proj 2018 4.2% 0.6% 3.2% 2.8% 3.0% 68.0% 68.0% 68.0% 68.0% 68.0% 28.8% 29.1% 29.3% 31.5% 31.5% $8,400.0 $8,400.0 $8,400.0 $8,400.0 $8,400.0 ($2,500.0) ($2,500.0) ($2,500.0) ($2,500.0) ($2,500.0) 15.5% 13.5% 12.0% 13.7% 13.7% Proj 2014 Proj 2015 3.7% 0.1% 67.5% 67.5% 28.8% 29.1% $8,400.0 $8,400.0 ($2,500.0) ($2,500.0) 15.5% 13.5% 60.0 103.0 9.3% 60.0 103.0 9.3% 63.0 105.0 9.3% 63.0 105.0 9.3% 63.0 105.0 9.3% 63.0 105.0 9.3% 63.0 105.0 9.3% 65.0 108.0 9.3% 65.0 108.0 9.3% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 103.0 30.2% 55.1% 103.0 30.2% 55.1% 103.0 30.2% 55.1% 103.0 30.2% 55.1% 103.0 30.2% 55.1% 105.0 30.2% 55.1% 105.0 30.2% 55.1% 4.7% 79.2% 4.7% 80.2% 4.7% 76.7% 4.7% 77.7% 4.7% 78.7% 4.7% 79.7% 4.7% 80.7% 4.7% 77.2% 4.7% 78.2% 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0% $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1,007.0 $0.0 $1,526.0 $3,607.0 $1,769.0 $45.0 $76.0 $4,470.0 $2,096.0 $0.0 $1,007.0 $0.0 $1,526.0 $3,607.0 $1,769.0 $45.0 $76.0 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% Proj 2016 Proj 2017 Proj 2018 2.7% 2.3% 2.5% 67.5% 67.5% 67.5% 29.3% 31.5% 31.5% $8,400.0 $8,400.0 $8,400.0 ($2,500.0) ($2,500.0) ($2,500.0) 12.0% 13.7% 13.7% 65.0 108.0 9.3% 65.0 108.0 9.3% 65.0 108.0 9.3% 105.0 30.2% 55.1% 105.0 30.2% 55.1% 105.0 30.2% 55.1% 4.7% 79.2% 4.7% 80.2% 4.7% 81.2% 0.5% $1,350.0 0.5% $1,350.0 0.5% $1,350.0 $0.0 $0.0 $0.0 59.0% 59.0% 59.0% $0.0 $0.0 $0.0 $4,470.0 $2,096.0 $0.0 $1,007.0 $0.0 $1,526.0 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% 1.3% 4.2% 4.3% Income Statement for Johnson & Johnson Dollars in Millions, except per share 2011A Sales COGS Gross profit Actual 2012A 2013A 2014P 2015P Projected 2016P 2018 Year CAGR 2017P 2018P $65,030.0 20,360.0 44,670.0 $67,224.0 21,658.0 45,566.0 $71,312.0 22,342.0 48,970.0 $74,782.0 23,406.8 51,375.2 $75,635.9 23,674.0 51,961.9 $78,407.9 24,541.7 53,866.2 $80,995.3 25,351.5 55,643.8 $83,830.2 26,238.8 57,591.3 SG&A expenses Other operating expenses EBIT 20,969.0 7,548.0 16,153.0 20,869.0 8,828.0 15,869.0 21,830.0 8,763.0 18,377.0 21,163.3 8,379.7 21,832.2 21,643.2 8,379.7 21,939.0 22,322.7 8,379.7 23,163.8 25,108.6 8,379.7 22,155.5 25,987.4 8,379.7 23,224.3 4.8% Depreciation Amortization Stock-based compensation EBITDA 2,310.0 852.0 0.0 19,315.0 2,520.0 1,150.0 0.0 19,539.0 2,740.0 1,360.0 0.0 22,477.0 2,649.7 1,350.0 0.0 25,832.0 2,744.4 1,350.0 0.0 26,033.3 2,881.8 1,350.0 0.0 27,395.6 3,015.0 1,350.0 0.0 26,520.5 3,159.9 1,350.0 0.0 27,734.2 4.3% Interest (expense) Interest income Other non-operating income / (expense) Pretax income (571.0) 91.0 (3,312.0) 12,361.0 (532.0) 64.0 (1,626.0) 13,775.0 (482.0) 74.0 (2,498.0) 15,471.0 (559.8) 899.9 (2,478.0) 19,694.3 (637.0) 1,371.9 (2,478.0) 20,195.9 (635.7) 1,687.8 (2,478.0) 21,737.9 (735.4) 2,136.7 (2,478.0) 21,078.9 (693.1) 2,423.6 (2,478.0) 22,476.8 Income taxes Net income (loss) from dis. operation Net income 2,689.0 0.0 $9,672.0 3,261.0 339.0 $10,853.0 1,640.0 0.0 $13,831.0 3,052.6 113.0 $16,754.7 2,726.4 113.0 $17,582.5 2,608.6 113.0 $19,242.4 2,887.8 113.0 $18,304.1 3,079.3 113.0 $19,510.5 2,775.300 2,812.600 2,877.000 2,877.000 2,877.000 2,877.000 2,877.000 2,877.000 $3.49 $3.86 $4.81 $5.82 $6.11 $6.69 $6.36 $6.78 Diluted weighted average shares in millions Earnings per share Ratios & assumptions Sales growth rate Gross margin SG&A expenses (as a % of sales) Other operating expenses ($ amount) Other non-operating income / (expense) ($ amount) Marginal tax rate (1) 68.7% 32.2% $7,548.0 (3,312.0) 21.8% 3.4% 67.8% 31.0% $8,828.0 (1,626.0) 23.7% 6.1% 68.7% 30.6% $8,763.0 (2,498.0) 10.6% 4.9% 68.7% 28.3% $8,379.7 ($2,478.0) 15.5% 1.1% 68.7% 28.6% $8,379.7 ($2,478.0) 13.5% 3.7% 68.7% 28.5% $8,379.7 ($2,478.0) 12.0% 3.3% 68.7% 31.0% $8,379.7 ($2,478.0) 13.7% 3.3% 3.3% 7.1% 7.1% 3.5% 68.7% 31.0% $8,379.7 ($2,478.0) 13.7% 1) Effective tax rates are given as follows: 2011: 21.8%,2012: 23.7%, 2013: 10.6%. 10-K p. 36 COPYRIGHT 2010 © by Training The Street, Inc For training purposes only! Balance Sheet for Johnson & Johnson Dollars in Millions, except per share 2011A Cash&Cash Equivalents Short-term Investments Accounts Receivable, net Inventories Other Current Assets Total Current Assets: PP&E, net Definite Life Intangibles Indefinite Life Intangibles Goodwill Other Long-term Assets Total Assets: $24,542.0 $7,719.0 10,581.0 6,285.0 5,189.0 54,316.0 Actual 2012A $14,911.0 $6,178.0 11,309.0 7,495.0 6,223.0 46,116.0 2013A $20,927.0 $8,279.0 11,713.0 7,878.0 7,610.0 56,407.0 2014P $31,905.4 $8,279.0 12,292.9 6,605.2 6,954.7 66,037.2 2015P $39,251.3 $8,279.0 12,433.3 6,680.6 7,034.1 73,678.4 Projected 2016P $49,691.4 $8,279.0 12,889.0 6,925.5 7,291.9 85,076.7 2017P $56,362.9 $8,279.0 13,314.3 7,154.0 7,532.6 92,642.8 2018P $63,009.5 $8,279.0 13,780.3 7,404.4 7,796.2 100,269.4 14,739.0 16,097.0 16,710.0 17,537.6 18,348.1 19,151.5 19,943.3 20,723.4 18,138.0 28,752.0 27,947.0 26,970.9 25,999.1 25,041.1 24,096.1 23,165.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 16,138.0 22,424.0 22,798.0 22,798.0 22,798.0 22,798.0 22,798.0 22,798.0 10,313.0 7,958.0 8,821.0 8,821.0 8,821.0 8,821.0 8,821.0 8,821.0 $113,644.0 $121,347.0 $132,683.0 $142,164.7 $149,644.6 $160,888.4 $168,301.2 $175,777.1 Accounts Payable Accrued Liabilities Other Current Liabilities Total Current Liabilities: $5,727.0 4,608.0 12,476.0 22,811.0 $5,831.0 7,299.0 11,132.0 24,262.0 $6,266.0 7,685.0 11,724.0 25,675.0 $6,483.4 7,068.8 12,897.1 26,449.3 $6,557.4 7,149.6 13,044.4 26,751.3 $6,797.7 7,411.6 13,522.5 27,731.7 $7,022.0 7,656.2 13,968.7 28,646.9 $7,267.8 7,924.1 14,457.6 29,649.5 Revolver Long-Term Debt Deferred Income Taxes Other Long-term Liabilities Total Liabilities: 0.0 12,969.0 1,800.0 18,984.0 56,564.0 0.0 11,489.0 3,136.0 17,634.0 56,521.0 0.0 13,328.0 3,989.0 15,638.0 58,630.0 0.0 15,166.0 3,989.0 15,638.0 61,242.3 0.0 15,135.0 3,989.0 15,638.0 61,513.3 0.0 17,509.0 3,989.0 15,638.0 64,867.7 0.0 16,502.0 3,989.0 15,638.0 64,775.9 0.0 14,976.0 3,989.0 15,638.0 64,252.5 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Other Equity-related Total Equity: 3,120.0 0.0 (21,659.0) 81,251.0 (5,632.0) 57,080.0 3,120.0 0.0 (18,476.0) 85,992.0 (5,810.0) 64,826.0 3,120.0 0.0 (15,700.0) 89,493.0 (2,860.0) 74,053.0 3,120.0 0.0 (15,700.0) 96,362.4 (2,860.0) 80,922.4 3,120.0 0.0 (15,700.0) 103,571.2 (2,860.0) 88,131.2 3,120.0 0.0 (15,700.0) 111,460.6 (2,860.0) 96,020.6 3,120.0 0.0 (15,700.0) 118,965.3 (2,860.0) 103,525.3 3,120.0 0.0 (15,700.0) 126,964.6 (2,860.0) 111,524.6 Total Liabilities and Equity: Check COPYRIGHT 2010 © by Training The Street, Inc $113,644.0 $121,347.0 $132,683.0 $142,164.7 $149,644.6 $160,888.4 $168,301.2 $175,777.1 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 For training purposes only! Cash Flow Statement for Johnson & Johnson Dollars in Millions, except per share 2014P Operating activities Net income Stock-based compensation expense Depreciation Amortization (Increase) / decrease in working capital Change in other long-term assets and liabilities Cash Flow from Operating Activities: $16,754.7 0.0 2,649.7 1,350.0 2,122.5 0.0 22,876.9 2015P $17,582.5 0.0 2,744.4 1,350.0 6.8 0.0 21,683.6 Projected 2016P $19,242.4 0.0 2,881.8 1,350.0 22.1 0.0 23,496.3 2017P $18,304.1 0.0 3,015.0 1,350.0 20.6 0.0 22,689.7 2018P $19,510.5 0.0 3,159.9 1,350.0 22.6 0.0 24,043.0 Investing activities Capital expenditures Additions to definite life intangibles Cash Flow from Investing Activities: (3,477.4) (373.9) (3,851.3) (3,554.9) (378.2) (3,933.1) (3,685.2) (392.0) (4,077.2) (3,806.8) (405.0) (4,211.8) (3,940.0) (419.2) (4,359.2) Cash flow available for financing activities 19,025.7 17,750.6 19,419.1 18,477.9 19,683.8 Financing activities Issuance / (repayment) of revolver Issuance of long-term debt (Repayment) of long-term debt Repurchase of equity Dividends Other Equity-related Cash Flow from Financing Activities: 0.0 3,607.0 (1,769.0) 0.0 (9,885.3) 0.0 (8,047.3) 0.0 45.0 (76.0) 0.0 (10,373.7) 0.0 (10,404.7) 0.0 4,470.0 (2,096.0) 0.0 (11,353.0) 0.0 (8,979.0) 0.0 0.0 (1,007.0) 0.0 (10,799.4) 0.0 (11,806.4) 0.0 0.0 (1,526.0) 0.0 (11,511.2) 0.0 (13,037.2) 7,345.9 31,905.4 $39,251.3 10,440.1 39,251.3 $49,691.4 6,671.5 49,691.4 $56,362.9 6,646.6 56,362.9 $63,009.5 Net change in cash Beginning cash balance Ending cash balance COPYRIGHT 2010 © by Training The Street, Inc 10,978.4 20,927.0 $31,905.4 For training purposes only! Working Capital Schedule for Johnson & Johnson Dollars in Millions, except per share 2011A Actual 2012A 2013A 2014P 2015P Projected 2016P 2017P 2018P Sales COGS $65,030.0 20,360.0 $67,224.0 21,658.0 $71,312.0 22,342.0 $74,782.0 23,406.8 $75,635.9 23,674.0 $78,407.9 24,541.7 $80,995.3 25,351.5 $83,830.2 26,238.8 Working Capital Balances Accounts Receivable, net Inventories Other Current Assets Total Non-Cash Current Assets: $10,581.0 6,285.0 5,189.0 $22,055.0 $11,309.0 7,495.0 6,223.0 $25,027.0 $11,713.0 7,878.0 7,610.0 $27,201.0 $12,292.9 6,605.2 6,954.7 $25,852.8 $12,433.3 6,680.6 7,034.1 $26,148.1 $12,889.0 6,925.5 7,291.9 $27,106.4 $13,314.3 7,154.0 7,532.6 $28,000.9 $13,780.3 7,404.4 7,796.2 $28,980.9 $5,727.0 4,608.0 12,476.0 $22,811.0 $5,831.0 7,299.0 11,132.0 $24,262.0 $6,266.0 7,685.0 11,724.0 $25,675.0 $6,483.4 7,068.8 12,897.1 $26,449.3 $6,557.4 7,149.6 13,044.4 $26,751.3 $6,797.7 7,411.6 13,522.5 $27,731.7 $7,022.0 7,656.2 13,968.7 $28,646.9 $7,267.8 7,924.1 14,457.6 $29,649.5 $765.0 $1,526.0 Accounts Payable Accrued Liabilities Other Current Liabilities Total Non-Debt Current Liabilities: NET WORKING CAPITAL / (DEFICIT) ($756.0) (Increase)/Decrease in Working Capital ($1,521.0) ($761.0) ($596.5) ($603.3) ($625.4) ($646.0) ($668.6) $2,122.5 $6.8 $22.1 $20.6 $22.6 Ratios and Assumptions Numbers of days in the period 365 Accounts receivable, net (collection period in days) Inventories (days outstanding) Other current assets (as % of sales) 59.4 112.7 8.0% 61.4 126.3 9.3% 60.0 128.7 10.7% 60.0 103.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% 60.0 103.0 9.3% Accounts payable (days outstanding) Accrued liabilities (as % of cost of goods sold) Other current liabilities (as % of cost of goods sold) 102.7 22.6% 61.3% 98.3 33.7% 51.4% 102.4 34.4% 52.5% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% 101.1 30.2% 55.1% COPYRIGHT 2010 © by Training The Street, Inc For training purposes only! Amortization Schedule for Johnson & Johnson Dollars in Millions, except per share 2011A Sales Purchases of definite life intangibles Purchases as % of sales Amortization expense Amortization as % of definite life intangibles Beginning definite life intangibles, net Purchases of definite life intangibles (Amortization expense) (Write-offs) Ending definite life intangibles, net COPYRIGHT 2010 © by Training The Street, Inc $65,030.0 778.0 1.2% $852.0 4.7% $18,138.0 Actual 2012A 2013A $67,224.0 $71,312.0 (38.0) 266.0 (0.1%) 0.4% $1,150.0 4.0% $28,752.0 $1,360.0 4.9% $27,947.0 2014P 2015P Projected 2016P 2017P 2018P $74,782.0 373.9 0.5% $75,635.9 378.2 0.5% $78,407.9 392.0 0.5% $80,995.3 405.0 0.5% $83,830.2 419.2 0.5% $1,350.0 5.0% $1,350.0 5.2% $1,350.0 5.4% $1,350.0 5.6% $1,350.0 5.8% $27,947.0 $26,970.9 $25,999.1 $25,041.1 $24,096.1 373.9 378.2 392.0 405.0 419.2 (1,350.0) (1,350.0) (1,350.0) (1,350.0) (1,350.0) 0.0 0.0 0.0 0.0 0.0 $26,970.9 $25,999.1 $25,041.1 $24,096.1 $23,165.3 For training purposes only! PP&E and Depreciation Schedule for Johnson & Johnson Dollars in Millions, except per share Hist 2011 Actual Hist 2012 Hist 2013 Proj 2014 Proj 2015 Projected Proj 2016 Proj 2017 Proj 2018 Sales Capital Expenditures Capital Expenditures as % of Sales $65,030.0 3,670.0 5.6% $67,224.0 2,930.0 4.4% $71,312.0 3,860.0 5.4% $74,782.0 3,477.4 4.7% $75,635.9 3,554.9 4.7% $78,407.9 3,685.2 4.7% $80,995.3 3,806.8 4.7% $83,830.2 3,940.0 4.7% Depreciation expense Depreciation as % of capex Depreciation as % of PP&E, net $2,310.0 62.9% 15.7% $2,520.0 86.0% 15.7% $2,740.0 71.0% 16.4% $2,649.7 76.2% 15.1% $2,744.4 77.2% 15.0% $2,881.8 78.2% 15.0% $3,015.0 79.2% 15.1% $3,159.9 80.2% 15.2% Beginning PP&E, net Capital expenditures (Depreciation expense) (Asset sales and write-offs) Ending PP&E, net COPYRIGHT 2010 © by Training The Street, Inc $14,739.0 $16,097.0 $16,710.0 $16,710.0 $17,537.6 $18,348.1 $19,151.5 $19,943.3 3,477.4 3,554.9 3,685.2 3,806.8 3,940.0 (2,649.7) (2,744.4) (2,881.8) (3,015.0) (3,159.9) 0.0 0.0 0.0 0.0 0.0 $17,537.6 $18,348.1 $19,151.5 $19,943.3 $20,723.4 For training purposes only! Retained Earnings Schedule for Johnson & Johnson Dollars in Millions, except per share 2011A Beginning Retained Earnings Balance Net income Dividends Ending Retained Earnings Balance Dividend payout ratio COPYRIGHT 2010 © by Training The Street, Inc Actual 2012A 2013A 9,672.0 6,156.0 $81,251.0 81,251.0 10,853.0 6,614.0 $85,992.0 85,992.0 13,831.0 7,286.0 $89,493.0 63.6% 60.9% 52.7% 2014P 2015P Projected 2016P 2017P 2018P $89,493.0 $96,362.4 $103,571.2 $111,460.6 $118,965.3 16,754.7 17,582.5 19,242.4 18,304.1 19,510.5 (9,885.3) (10,373.7) (11,353.0) (10,799.4) (11,511.2) $96,362.4 ######### $111,460.6 $118,965.3 $126,964.6 59.0% 59.0% 59.0% 59.0% 59.0% For training purposes only! Debt and Interest Schedule for Johnson & Johnson Dollars in Millions, except per share 2011A Actual 2012A 2013A Cash Flow from Operating Activities Cash Flow from Investing Activities Repurchase of equity Dividends Other Equity-related Plus: beginning cash balance Less: minimum cash balance Cash available for debt repayment Long-term debt issuance Long-term debt (repayment) Excess cash available for revolver Revolver Beginning balance Issuance / (repayment) of revolver Ending balance Long-term debt Beginning balance Issuance (Repayment) Ending balance 2014P 2015P Projected 2016P 2017P 2018P $22,876.9 $21,683.6 $23,496.3 $22,689.7 $24,043.0 (3,851.3) (3,933.1) (4,077.2) (4,211.8) (4,359.2) 0.0 0.0 0.0 0.0 0.0 (9,885.3) (10,373.7) (11,353.0) (10,799.4) (11,511.2) 0.0 0.0 0.0 0.0 0.0 20,927.0 31,905.4 39,251.3 49,691.4 56,362.9 0.0 0.0 0.0 0.0 0.0 $30,067.4 $39,282.3 $47,317.4 $57,369.9 $64,535.5 3,607.0 45.0 4,470.0 0.0 0.0 (1,769.0) (76.0) (2,096.0) (1,007.0) (1,526.0) $31,905.4 $39,251.3 $49,691.4 $56,362.9 $63,009.5 $0.0 $12,969.0 $0.0 $11,489.0 $0.0 $13,328.0 $0.0 0.0 $0.0 $0.0 0.0 $0.0 $0.0 0.0 $0.0 $0.0 0.0 $0.0 $0.0 0.0 $0.0 $13,328.0 $15,166.0 $15,135.0 $17,509.0 $16,502.0 3,607.0 45.0 4,470.0 0.0 0.0 (1,769.0) (76.0) (2,096.0) (1,007.0) (1,526.0) $15,166.0 $15,135.0 $17,509.0 $16,502.0 $14,976.0 Revolver Beginning Balances Interest Rate Interest Expense $0.0 1.30% $0.0 $0.0 1.30% $0.0 $0.0 1.30% $0.0 $0.0 1.30% $0.0 $0.0 1.30% $0.0 Long-term debt Beginning Balances Interest Rate Interest Expense $13,328.0 4.20% $559.8 $15,166.0 4.20% $637.0 $15,135.0 4.20% $635.7 $17,509.0 4.20% $735.4 $16,502.0 4.20% $693.1 $559.8 $637.0 $635.7 $735.4 $693.1 $20,927.0 4.30% $899.9 $31,905.4 4.30% $1,371.9 $39,251.3 4.30% $1,687.8 $49,691.4 4.30% $2,136.7 $56,362.9 4.30% $2,423.6 Total Interest Expense Cash Balances: COPYRIGHT 2010 © by Training The Street, Inc Beginning Balances Interest Rate Interest (Income) For training purposes only! Johnson & Johnson Dollars in Millions, except per share 2011A Actual 2012A 2013A 2014P 2015P Projected 2016P 2017P 2018P 2018 Year CAGR Profitability Ratios Sales % growth $65,030.0 $67,224.0 3.4% $71,312.0 6.1% $74,782.0 4.9% $75,635.9 1.1% $78,407.9 3.7% $80,995.3 3.3% $83,830.2 3.5% 3.3% Gross profit % margin $44,670.0 68.7% $45,566.0 67.8% $48,970.0 68.7% $51,375.2 68.7% $51,961.9 68.7% $53,866.2 68.7% $55,643.8 68.7% $57,591.3 68.7% 3.3% EBITDA % margin % growth $16,153.0 24.8% $15,869.0 23.6% (1.8%) $18,377.0 25.8% 15.8% $21,832.2 29.2% 18.8% $21,939.0 29.0% 0.5% $23,163.8 29.5% 5.6% $22,155.5 27.4% (4.4%) $23,224.3 27.7% 4.8% 4.8% EBIT % margin % growth $19,315.0 29.7% $19,539.0 29.1% 1.2% $22,477.0 31.5% 15.0% $25,832.0 34.5% 14.9% $26,033.3 34.4% 0.8% $27,395.6 34.9% 5.2% $26,520.5 32.7% (3.2%) $27,734.2 33.1% 4.6% 4.3% Net income % margin % growth $9,672.0 14.9% $10,853.0 16.1% 12.2% $13,831.0 19.4% 27.4% $16,754.7 22.4% 21.1% $17,582.5 23.2% 4.9% $19,242.4 24.5% 9.4% $18,304.1 22.6% (4.9%) $19,510.5 23.3% 6.6% 7.1% Interest Coverage Interest expense Capital expenditures ($571.0) 3,670.0 ($532.0) 2,930.0 ($482.0) 3,860.0 ($559.8) 3,477.4 ($637.0) 3,554.9 ($635.7) 3,685.2 ($735.4) 3,806.8 ($693.1) 3,940.0 -33.8x -28.3x -21.9x -36.7x -29.8x -24.3x -46.6x -38.1x -30.1x -46.1x -39.0x -32.8x -40.9x -34.4x -28.9x -43.1x -36.4x -30.6x -36.1x -30.1x -25.0x -40.0x -33.5x -27.8x $19,315.0 2,689.0 $19,539.0 3,261.0 $22,477.0 1,640.0 $25,832.0 3,052.6 $26,033.3 2,726.4 $27,395.6 2,608.6 $26,520.5 2,887.8 $27,734.2 3,079.3 $12,969.0 57,080.0 70,049.0 23.7% $11,489.0 64,826.0 76,315.0 21.3% $13,328.0 74,053.0 87,381.0 23.8% $15,166.0 80,922.4 96,088.4 23.7% $15,135.0 88,131.2 103,266.2 22.6% $17,509.0 96,020.6 113,529.6 21.8% $16,502.0 103,525.3 120,027.3 19.7% $14,976.0 111,524.6 126,500.6 19.5% 0.2x 0.8x 0.2x 0.7x 0.2x 0.7x 0.2x 0.7x 0.1x 0.7x 0.2x 0.8x 0.1x 0.7x 0.1x 0.6x Cash&Cash Equivalents Accounts receivable Quick assets $24,542.0 10,581.0 35,123.0 $14,911.0 11,309.0 26,220.0 $20,927.0 11,713.0 32,640.0 $31,905.4 12,292.9 44,198.3 $39,251.3 12,433.3 51,684.6 $49,691.4 12,889.0 62,580.4 $56,362.9 13,314.3 69,677.2 $63,009.5 13,780.3 76,789.8 Inventory Current assets $6,285.0 54,316.0 $7,495.0 46,116.0 $7,878.0 56,407.0 $6,605.2 66,037.2 $6,680.6 73,678.4 $6,925.5 85,076.7 $7,154.0 92,642.8 $7,404.4 100,269.4 PP&E, net Total assets $14,739.0 113,644.0 $16,097.0 121,347.0 $16,710.0 132,683.0 $17,537.6 142,164.7 $18,348.1 149,644.6 $19,151.5 160,888.4 $19,943.3 168,301.2 $20,723.4 175,777.1 Accounts payable Current liabilities $5,727.0 22,811.0 $5,831.0 24,262.0 $6,266.0 25,675.0 $6,483.4 26,449.3 $6,557.4 26,751.3 $6,797.7 27,731.7 $7,022.0 28,646.9 $7,267.8 29,649.5 $31,505.0 2.4x 1.5x $21,854.0 1.9x 1.1x $30,732.0 2.2x 1.3x $39,587.9 2.5x 1.7x $46,927.0 2.8x 1.9x $57,345.0 3.1x 2.3x $63,995.9 3.2x 2.4x $70,619.9 3.4x 2.6x 59.4 112.7 102.7 4.4x 0.6x 69.4 61.4 126.3 98.3 4.2x 0.6x 89.4 60.0 128.7 102.4 4.3x 0.5x 86.3 60.0 103.0 101.1 4.3x 0.5x 61.9 60.0 103.0 101.1 4.1x 0.5x 61.9 60.0 103.0 101.1 4.1x 0.5x 61.9 60.0 103.0 101.1 4.1x 0.5x 61.9 60.0 103.0 101.1 4.0x 0.5x 61.9 14.9% 0.6x 2.0x 16.9% 16.1% 0.6x 1.9x 16.7% 19.4% 0.5x 1.8x 18.7% 22.4% 0.5x 1.8x 20.7% 23.2% 0.5x 1.7x 20.0% 24.5% 0.5x 1.7x 20.0% 22.6% 0.5x 1.6x 17.7% 23.3% 0.5x 1.6x 17.5% EBIT / Interest expense EBITDA / Interest expense EBITDA - Capital expenditures / Interest expense Capitalization* EBIT Taxes Total debt Total stockholders' equity Total capitalization Return on Invested Capital *all recorded at book value Leverage* Total debt / Total capitalization Total debt / EBITDA *all recorded at book value Liquidity Working capital Current ratio Quick ratio Activity Accounts receivable (collection period) Inventories (days outstanding) Accounts payable (days outstanding) Net fixed asset turnover Asset turnover Cash Conversion Cycle DuPont Analysis Return on sales Asset turnover Asset leverage Return on equity COPYRIGHT 2010 © by Training The Street, Inc For training purposes only! 
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