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CHAIRMAN’S LETTER 1
The men and women of Johnson & Johnson
come to work each day driven by a shared
passion: caring. Our caring touches the lives
of people around the world. It motivates
us to identify unmet health care needs,
reach increasing numbers of patients and
consumers, and create broader solutions—
not only for the most serious medical
conditions but also for the general health
and well-being of the world’s population.
Our caring empowers others. It touches patients and
consumers across the world, and it inspires hope. It’s grounded
in the fundamental tenets of Our Credo and in a decentralized
management approach that keeps our people close to their
customers and their markets. It drove our business success in
2008, and it mobilizes us to capitalize on new health care opportu-
nities while we meet the challenges ahead in an unprecedented,
dicult global economic setting.
We remember 2008 as a year of extraordinary
economic events that shook our financial markets and global econ-
omies. Against this backdrop, I am proud of our accomplishments.
Johnson & Johnson delivered on its financial commitments,
driven by the strength of a broad base of human health care busi-
nesses. We achieved these results despite anticipated market
challenges—such as increased generic competition worldwide and
patent expirations—even as we faced an unanticipated deteriora-
tion of the global economy.
Worldwide sales grew to $63.7 billion, an increase of 4.3 percent.
Operational growth was 1.9 percent. We achieved strong adjusted
earnings growth of 6.8
(1)
percent and adjusted earnings per share
growth of 9.6
(1)
percent, which was higher than adjusted earnings
growth due to our share-repurchase program. Free cash ow was
strong at approximately $12 billion.
(2)
While growing our businesses, we also took thoughtful,
disciplined actions to streamline and improve our cost structure.
Within our Pharmaceuticals and Cordis businesses, approximately
$1.6 billion in annual savings were realized. We anticipate
additional savings in 2009 from standardization initiatives we
have invested in over time.
Meanwhile, we remain on track to fulfill the potential of the
Pfizer Consumer Healthcare acquisition, expecting to meet or
                
To Our
Shareholders

Chairman, Board of Directors, and Chief Executive Ocer
$63.7
NET SALES
(in billions of dollars)
20082004 2005 2006 2007 20082004 2005 2006 2007
$4.57
$3.63
$2.74
$3.35
$3.73
DILUTED EARNINGS PER SHARE
(in dollars)
20082004 2005 2006 2007
$1.620
$53.3
$61.1
$50.5
$47.3
$1.795
$1.095
$1.275
$1.455
DIVIDENDS PAID PER SHARE
(in dollars)