Johnson and Johnson 2010 Annual Report Download - page 7

CHAIRMAN’S LETTER 5
brands and smaller sizes in certain markets.
Despite the headwinds, we saw positive
momentum in emerging markets, where
sales grew by double digits.
Operational sales decreased in most of
our consumer franchises. However, we saw
growth in many product lines, including
DABAO® skin care products, NICORETTE®,
JOHNSON’S®, AVEENO® and LE PETIT
MARSEILLAIS®, where our science-based
innovations and expansion into emerging
markets continued to drive strong results.
We also introduced new product
innovations and line extensions to iconic
brands, such as JOHNSON’S® NATURAL®,
LISTERINE® ZERO™, PRECISE™ from the
makers of TYLENOL®, ZYRTEC® Liquid
Gels and CYTOMIMIC™ technology in
several new skin care products.
Our Consumer business continues to distinguish itself
with science-based innovations, proprietary technologies and
recommendations by health care professionals. More than a
billion people around the world count on our consumer products
for themselves and their families.
OUR ENDURING STRENGTH
With the challenges of 2010, and within the context of our
125th anniversary in 2011, we are reminded more than ever of
our heritage. Unwavering commitment to the principles embodied
in Our Credo and an appreciation for the elements of our
operating model are as strong today as at any time in our history
.
We are not perfect; we will make mistakes. And when we
do, we hold ourselves accountable to correct them. That
accountability is inherent in Our Credo. Its tenets demand a
special level of responsibility … first to patients and customers,
then to our employees, our communities and our shareholders.
Our Credo remains our North Star.
Another enduring strength is the character of the people of
Johnson & Johnson. Despite diverse businesses, we are united by
an extraordinary bond—a commitment to caring for one person
at a time and touching the world—originating from Our Credo
values. It is a quiet sense of purpose focused around the lives we
affect, the families and children we touch, and the professionals
who support their health.
Our products, our pipeline and our global presence make us
strong as a company. Our people and Our Credo set us apart.
OUR COMMITMENT TO WOMEN AND CHILDREN
As our businesses have diversified and expanded globally,
Johnson & Johnson remains true to the foundation of our
company: caring for the health and well-being of mothers and
children. We have a heritage unlike any other company. Because
we are especially privileged to touch mothers at the most intimate
moments with their newborn child, we have a bond forged on
deep emotional trust—one that builds a special connection with
people. It also magnifies our commitment to help ensure that
mothers and children, wherever they may live, enjoy good
health care.
Consistent with our legacy, Johnson & Johnson responded
with a five-year commitment to the United
Nations’ renewed efforts to advance the
Millennium Development Goals of reducing
mortality in women and children by 2015.
Our commitment aims to help as many as
120 million women each year for the next
five years, reaching 50 countries. It includes
initiatives such as mobile health
information for expectant mothers, safe
birth programs and 200 million doses
annually of mebendazole, a treatment for
intestinal worms in children.
In addition to this commitment, we
support nearly 650 other philanthropic
programs in more than 50 countries. While
working on saving and improving the lives
of women and children, we also focus on
building the skills of people who serve
community health needs, as well as
preventing diseases and reducing stigma and disability in
underserved communities.
OUR COMMITMENT TO YOU
I commit to you, our shareholders, that as we enter 2011,
Johnson & Johnson is well-positioned for future growth. We will
restore quality and confidence in our products. We will continue
to introduce differentiated new products that advance important
unmet needs in human health and well-being. We will continue
building and advancing pipelines that fuel our long-term success.
And we’ll continue expanding into new health care categories and
emerging markets that offer unprecedented opportunities to
touch more people around the world with better care.
Most important, we will never lose sight of who we are.
Our Credo, our operating model and our people are enduring
sources of success. We are deeply committed to the people who
use our products, to our employees, to the communities in which
we live and work, and to you, our loyal shareholders.
William C. Weldon
Chairman, Board of Directors, and Chief Executive Officer
March 16, 2011
1 Excludes special items.
2 Free cash flow is defined as operating cash flow less capital spending.
See Reconciliation of Non-GAAP Financial Measures, page 76.
Unwavering
commitment to the
principles embodied
in Our Credo and an
appreciation for the
elements of our
operating model
are as strong today
as at any time in
our history.