Gallery Jnj

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This presentation pitched Johnson & Johnson to my portfolio management class. The class voted to accept the stock into the class\'s $100,000 investment portfolio.

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  • Viagra
  • Googwill - 14.1 B Intangibles - 14.6 B PPE 14.1 B
  • Companies established in Latin America, Europe, Africa and Australia for more than 70 years, and in Asia for more than 50 years.
  • Companies established in Latin America, Europe, Africa and Australia for more than 70 years, and in Asia for more than 50 years.
  • Companies established in Latin America, Europe, Africa and Australia for more than 70 years, and in Asia for more than 50 years.
  • Companies established in Latin America, Europe, Africa and Australia for more than 70 years, and in Asia for more than 50 years.
  • Europe 23% Asia 14% Western Hemisphere 8% Similar profit margins in each category relative to percentages
  • Companies established in Latin America, Europe, Africa and Australia for more than 70 years, and in Asia for more than 50 years.
  • Companies established in Latin America, Europe, Africa and Australia for more than 70 years, and in Asia for more than 50 years.
  • Gallery Jnj

    1. 1. Johnson + Johnson NYSE: JNJ Recommendation: Buy Connor Gallery <ul><li>“ We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices.” </li></ul><ul><li> - JNJ Credo </li></ul>November 18, 2008 “Caring for the world, one person at a time”
    2. 2. Johnson + Johnson In 3 Sentences <ul><li>Johnson and Johnson is the world’s largest comprehensive and broadly based holding company and manufacturer of health care products. </li></ul><ul><li>The company engages in the research, development, and sales of pharmaceuticals and diverse consumer staple products including Band-Aid, Tylenol, and Splenda. </li></ul><ul><li>With sound financials, it competes in three major areas of health care including pharmaceutical products, medical devices and diagnostics, and consumer-health products. </li></ul>
    3. 3. Johnson + Johnson Key Facts <ul><li>Founded 1885 in New Jersey </li></ul><ul><li>250 companies in 57 countries </li></ul><ul><li>119,200 employees </li></ul><ul><li>Market Cap: $165 Billion </li></ul><ul><li>Net Income: $12.6 Billion </li></ul><ul><li>$4.42 EPS Vs. Industry Average of $2.08 </li></ul><ul><li>Profit Margin of 19.5% Vs. Industry Average of 10% </li></ul><ul><li>52wk Range:52.06 - 72.7 </li></ul><ul><li>Current Price: $59.29 </li></ul>
    4. 4. <ul><li>Recent Acquisitions </li></ul>Johnson + Johnson <ul><li>Pfizer </li></ul><ul><li>2005 Sales of Personal Care and OTC - $3.9b </li></ul><ul><li>Acquired many brands: </li></ul><ul><li>LISTERENE VISINE </li></ul><ul><li>SUDAFED NICORETTE </li></ul><ul><li>NEOSPORIN ZANTAC </li></ul><ul><li>All Cash Transaction - $16.6b </li></ul><ul><li>Contributed 7.4 % to total growth rate in 2007 </li></ul><ul><li>Premier Consumer Health Care Company </li></ul><ul><ul><ul><li>Combined make up 24.6% of Health Care Spyder </li></ul></ul></ul>
    5. 5. <ul><li>Market Strength </li></ul>Johnson + Johnson <ul><li>Profitability </li></ul><ul><li>Low downside risk </li></ul><ul><ul><li>Extremely well diversified </li></ul></ul><ul><ul><ul><li>Defensive in down market </li></ul></ul></ul><ul><ul><ul><li>Huge upside potential </li></ul></ul></ul><ul><li>Broad product categories </li></ul><ul><li>Brand Recognition </li></ul><ul><li>Plays to its key strengths </li></ul><ul><li>125 years of impressive history </li></ul><ul><li>R&D Budget - $7b </li></ul><ul><li>Master at acquisitions </li></ul>
    6. 6. Johnson + Johnson It Sells Itself <ul><li>The company has issued quarterly dividends to shareholders since 1944 </li></ul><ul><li>Sales have increased for 75 consecutive years </li></ul><ul><li>One of four U.S. industrials with S&P and Moody’s triple A credit rating </li></ul>
    7. 7. Johnson + Johnson Goodwill: 1982 Tylenol Murders <ul><li>Tylenol controlled approximately 37 percent of its market. Immediately after the cyanide poisonings, its market share was reduced to 7 percent (Mitchell 1989). </li></ul><ul><li>Johnson and Johnson recalled all Tylenol in the United States </li></ul><ul><li>To this day, Johnson and Johnson is studied in Harvard Case Studies for crisis management </li></ul>
    8. 8. Johnson + Johnson Consumer Products CLEAN & CLEAR AVEENO BAND-AID LISTERINE MOTRIN IB JOHNSONS NEUTROGENA PEPCID AC REMBRANDT SPLENDA SUDAFED TYLENOL
    9. 9. Johnson + Johnson Pharmaceutical Focuses and Drug Therapies Anti-infective Antipsychotic Cardiovascular Contraceptive Dermatology Gastrointestinal Immunology Neurology Pain management Virology Risperdal Invega Procit Floxin Concerta Ortho Evra
    10. 10. Johnson + Johnson Medical Devices and Diagnostics Circulatory disease management Orthopedic joint reconstruction and spinal care Wound care Women’s health Minimally invasive surgical Blood glucose monitoring and insulin delivery Diagnostic products Disposable contact lenses
    11. 11. Johnson + Johnson World Health Care Spending <ul><li>World spending: $4 Trillion </li></ul><ul><li>JNJ Revenues: $53.3 Billion </li></ul><ul><li>Piece of the action: 1.338 % </li></ul><ul><li>Strategy = GROWTH! </li></ul>
    12. 12. Johnson + Johnson Areas of Growth <ul><li>Sales in emerging markets expected to grow at 15% per year </li></ul><ul><li>250 operating companies </li></ul><ul><ul><li>Consumer: McNeil </li></ul></ul><ul><ul><li>Medical: Ethicon </li></ul></ul><ul><ul><li>Pharma: Virco Lab </li></ul></ul><ul><li>Just acquired HealthMedia to move into wellness and health services </li></ul>
    13. 13. Johnson + Johnson Areas of Growth: Consumer <ul><li>Who said a mature company can’t grow? </li></ul><ul><li>Sales: $14.5b </li></ul><ul><li>Growth rate: 48.3% </li></ul>
    14. 14. Johnson + Johnson Areas of Growth: Pharmaceuticals <ul><li>Who said a mature company can’t grow? </li></ul><ul><li>Sales: $24.9b </li></ul><ul><li>Growth rate: 6.9% </li></ul>
    15. 15. Johnson + Johnson Areas of Growth: Medical <ul><li>Who said a mature company can’t grow? </li></ul><ul><li>Sales: $21.7b </li></ul><ul><li>Growth rate: 7.2% </li></ul>
    16. 16. Johnson + Johnson <ul><li>The United States accounts for 53% of revenue </li></ul><ul><li>2007 domestic revenue: $32.4 Billion </li></ul>2007 Revenue Breakdown
    17. 17. Johnson + Johnson Growth Strategy <ul><li>Five-year compound annual growth: </li></ul><ul><ul><li>Worldwide - 11% </li></ul></ul><ul><ul><li>U.S. - 7.6% </li></ul></ul><ul><ul><li>International - 15.7% </li></ul></ul><ul><li>Issuing rebates to doctors </li></ul><ul><li>Defend or renew patents </li></ul><ul><li>Similar margins in all segments </li></ul>
    18. 18. Johnson + Johnson The Market - Qualitative Assessment <ul><li>The population is aging </li></ul><ul><ul><li>Anti-aging cosmetics </li></ul></ul><ul><ul><li>Medical needs </li></ul></ul><ul><li>More countries can afford care </li></ul><ul><li>The field is advancing rapidly </li></ul><ul><li>Obama Administration </li></ul>
    19. 19. Johnson + Johnson 2001 Recession Performance
    20. 20. Johnson + Johnson Current Market Position
    21. 21. Johnson + Johnson Current Market Position: Pharmaceuticals Competitors: Merck, Eli-Lilly, Bristol-Meyer, Schering - Plough
    22. 22. Johnson + Johnson Current Market Position Pharmaceutical Index
    23. 23. Johnson + Johnson
    24. 24. Johnson + Johnson
    25. 25. Johnson + Johnson Summary <ul><li>Largest Market Cap in Health Care </li></ul><ul><li>Invaluable Goodwill and Intangible Assets </li></ul><ul><li>Ability to weather bad times and capitalize in good times </li></ul><ul><li>Buy Johnson & Johnson </li></ul>

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