To Our Shareholders

Chairman, Board of Directors, and Chief Executive Officer
Chairman, Board of Directors, and Chief Executive Officer
Chairman, Board of Directors, and Chief Executive Officer

I am often asked what led me to work in health care and why I chose to spend most of my career at Johnson & Johnson. From my first job at Janssen, the flagship company of our Pharmaceutical segment, to my current role as the company’s Chairman and CEO 25 years later, the answer always begins with Our Credo.

A simple yet powerful document penned by General Robert Wood Johnson, the son of our founder and our company’s first Chairman, Our Credo outlines the Company’s commitments and responsibilities to the people and communities we touch every day with our products and services. For more than 70 years now, it has served as the moral compass of Johnson & Johnson – ensuring we never lose sight of our strong values and the important needs of the many stakeholders we serve.

That’s why I consider Our Credo to be one of the most visionary statements of corporate purpose ever written.


Perhaps there’s no better proof of that than the success Johnson & Johnson achieved in 2014. We delivered solid financial results, with full-year 2014 sales of $74.3 billion and adjusted net earnings of $17.1 billion*, while also continuing to make investments to accelerate growth for the long term.

And while I am pleased with our performance, we know that we can never rest, because providing sustainable high-quality health care is one of our society’s greatest challenges.

This is an unprecedented era in human history. The historic aging rate of the world’s population, along with a growing middle class around the world, brings dramatically greater demand for higher quality health care; and governments and health systems must manage this with increasingly strained resources.

At Johnson & Johnson, Our Credo compels us to innovate in areas where there are unmet medical needs, overcome barriers and advance health care in all corners of the world. For us, this involves preventing the spread of deadly infectious diseases, solving the twin challenges of over-nutrition and under-nutrition, leading breakthrough medical research and empowering citizens to take responsibility for managing their own health and wellness.

There is no company better positioned to help meet these urgent needs than Johnson & Johnson.

Given the progress we’ve made in our business over the past several years, we’re evolving our approach, placing an even greater emphasis on innovation and accelerating growth. Continued commitment to excellence in execution is a nonnegotiable part of the process.


To succeed, we have clear goals and priorities:

We will grow our R&D pipeline. Over the coming years our pharmaceutical pipeline is poised to yield a consistent flow of new product filings that will allow us to bring new medicines and technologies to patients. We will continue to build our pipeline in order to stay in the forefront.

We will lead in consumer health care markets. We will aim to expand our leadership in targeted markets by holistically addressing critical-need states in over-the-counter medicines, as well as oral care, baby and skin care markets.

We will strengthen our position in medical devices. Our focus will be on accelerating growth with innovative products and by transforming our go-to-market models to better serve our customers and patients.

The world today requires the very best that Johnson & Johnson has to offer, and we are constantly striving to come up with ways we can innovate and lead. We have made very deliberate choices about our portfolio and have focused our energies on capturing the greatest opportunities we have to advance patient care.

We are confident in the future of Johnson & Johnson for four reasons:

  • Our core businesses are strong and positioned to continue expanding their leadership;
  • We have an exciting and deep product pipeline across the entire enterprise;
  • We are changing the way we interact with our customers; and,
  • We are evolving our structure to be more effective and efficient to drive growth.

In this interconnected global society in which we live and do business, I have come to realize through my travels around the world with Johnson & Johnson that all health care is local and personal. With approximately 126,500 people working at our 265 operating companies in 60 countries across a broad range of medical specialties and community health needs, we have unique insights and capabilities that can help address the most formidable challenges. I am very proud of our colleagues around the globe who are focused on doing all they can every single day to care for the world, one person at a time.


As the largest and most diversified health care company in the world, we have both the opportunity and responsibility to help meet these challenges with boldness, vision and a driving sense of purpose. In 2014, we acknowledged and embraced this responsibility in many ways, but perhaps most significantly in our efforts to address the Ebola epidemic. Through the exceptional collaboration among the global health community, we substantially accelerated the production of our Ebola vaccine regimen with the goal of bringing the vaccine, if approved, to the families and frontline health care professionals most at risk as quickly as possible.

Our Credo is a constant reminder of the work that we do and the values that we are committed to upholding together; values that all of us strive to make real with our energy, our passion, our caring and our hard work every single day. When joined with our four long-term drivers of growth: creating value through innovation, expanding global reach with local focus, maintaining a laser focus on excellence in execution, and leading with purpose to make a difference in the world— those values come to life in ways that give our company an enduring competitive advantage.

I’ve always believed that working in health care is an honor and a privilege, and I can’t think of a better place to carry out the incredible work we do than at Johnson & Johnson, thanks in no small part to the legacy of General Robert Wood Johnson and Our Credo.

Thank you for your continued support and investment in Johnson & Johnson.


Alex Gorsky
Chairman, Board of Directors, and Chief Executive Officer
March 2015

* Non-GAAP measure. See “Reconciliation of Non-GAAP Financial Measures” on pages 70 and 71 of the Annual Report.


The Chairman’s Letter contains forward-looking statements relating to, among other things, business strategy, performance and expectations for product development. The reader is cautioned not to rely on these statements and should review the section “Cautionary Factors That May Affect Future Results” on page 19 of the Annual Report for important information about these statements, including the risks, uncertainties and other factors that could cause actual results to vary materially from the assumptions, expectations, and projections expressed in any forward-looking statements. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.