Johnson and Johnson 2012 Annual Report Download - page 3

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CHAIRMAN’S LETTER
To Our Shareholders
ALEX GORSKY
Chairman, Board of Directors, and
Chief Executive Officer
As I began to compose this letter, I realized how quickly my first year has
passed as Chief Executive Officer of Johnson & Johnson. It has been a
year with many rewarding moments, as well as some challenges. Though
a year of transition, we made solid progress on many fronts, including
building out strategic platforms, while establishing exciting new ones.
I am honored to be just the seventh CEO in our long history. This legacy of
leadership is a tribute to the success and stability of Johnson & Johnson, and to the
belief in the importance of our purpose held in common with us by our shareholders
over so many decades. Personally, I am truly humbled to lead the incredibly talented
and dedicated people who work for Johnson & Johnson.
One challenge all of us in the world today face together is health and health care.
This is true in both developed and emerging markets. When combined with the
rapidly changing demographics of an aging population, a growing middle class and
the persistence of chronic disease, the scale and complexity of the issue is magnified.
It is my belief that providing high-quality health care to patients and consumers
around the world in a sustainable manner is society’s greatest challenge. But it is also
the greatest hope for a better future for every individual, every family, every
community and every country.
Johnson & Johnson works at the very center of this challenge, across the broadest base of any company in global health care. Every
day, we are working to help people everywhere live longer, healthier, and happier lives. We recognize that with our global leadership
comes a responsibility; one we consider a privilege. I’m pleased with how we are meeting that responsibility, but I’m far from satisfied.
The passing last fall of former CEO James Burke reminded us all that the simple set of beliefs defined in Our Credo can guide our
Company through all the challenges and complexities of these or any time. My overarching goal as CEO is to ensure that our nearly
128,000 employees in more than 275 operating companies around the world will always be united by Our Credo and our single
purpose: Caring for the world, one person at a time.
LEGACY OF CARING
That purpose was at work here in New Jersey, the home state of Johnson & Johnson, when Hurricane Sandy roared through so many
communities last year. Immediately partnering with the American Red Cross, Save the Children, AmeriCares and other disaster-
assistance groups, Johnson & Johnson was able to help provide aid and relief. We provided more than 20,000 first-aid kits that were
used by emergency responders. We provided the blankets that warmed families in shelters. We were there with more than $5 million
in funding, responding to the governors of three states in this region. Most importantly, our people were there in their own
communities. Immediately and without hesitation, they were on the front lines of response and relief efforts wherever and however
they could.
It is this example of caring by individuals that inspires caring in the whole community, and reminds me of how firmly and
fundamentally compassion is woven into the fabric of our culture. This legacy of caring continues as we renew our commitment to
philanthropy and citizenship all over the world. We will look to go beyond relief and rebuilding, and explore programs that will make
communities more resilient and prepare them to endure any kind of disaster, be it natural or economic.
2012 BUSINESS RESULTS
Our solid business results in 2012 were achieved while continuing to deliver meaningful innovation in health care to patients and
customers.
• We generated significant cash flow and maintained our AAA credit rating. Importantly, we continued our track record of
consistent performance, with 29 straight years of adjusted earnings*increases and 50 consecutive years of dividend increases.
Johnson & Johnson is one of only six companies in the Standard & Poor’s 100 Index to achieve that record.
• In our Pharmaceuticals business segment, our results included strong growth of key products and successful new launches.
As a result of our continuing commitment to research and development, collaboration and innovation, we expect to
maintain strong momentum. We continue to make important investments in building strategic partnerships and advancing
our pipeline, positioning us well to deliver sustainable growth in 2013 and beyond.
CHAIRMAN’S LETTER