Johnson & Johnson Global Health Services Award-Winning Best Practices: Employee Health

Why we do what we do OUR VISION: Have the healthiest, most engaged workforce for J&J allowing for full and productive lives. OUR MISSION: Deliver a competitive business advantage to the J&J Family of Companies, by providing the leadership and resources that enable the well being, full engagement, and productivity of J&J employees worldwide.

Health is Integral to Our Credo “The health of the employee is inseparable from the health of the Corporation.” “An important part of our Credo responsibility to our employees is providing them with resources to lead healthier lives. Good health is important to all of us. Good health is also good business.” William C. Weldon CEO Johnson & Johnson

Caring for people’s health has been our way of life since 1978 when our CEO at the time set the goal to have the world’s healthiest workforce. We know healthy employees are more engaged and productive, and disease prevention can avoid costly healthcare expenditures. We were among the first employers to offer wellness programs for employees, and continue to provide a supportive work environment that encourages healthy choices. A long-term commitment to a culture of health

Culture of Health Evolution Big Goals 1978 Integration 1995 Global 2004 Harmonization 2007 New Business Platform 2009 LIVE FOR LIFE ® : Partnership between Benefits, Safety, Medical, Wellness and EAP James E. Burke, J&J Chairman and CEO, set two major program goals:  Encourage employees to become “healthiest in the world”  Reduce health care costs through on-site programs and services Established Health & Wellness Shared Service, integrating:  Employee Assistance  Occupational Health  Wellness & Health Promotion  Disability Management Global expansion of integrated services to provide:  Leadership  Consultation  Guidance  Support Health & Wellness key policies harmonized as part of Global HR Transformation (GHRT) Wellness & Prevention identified as key New Business strategy  Acquisition of HealthMedia, Inc. and Human Performance Institute, Inc.

Operations Conceptual Model Business Service Delivery & Vendor Management Business Units/EHS & Global HR Support Global Health Strategies Expert Consultative Services Data and Systems Secondary Responsibilities Core Capabilities Primary Responsibility Quality Efficiency Effectiveness Customer Satisfaction Accurate, Complete Data Elements Capable, Systematic Processing

US/Puerto Rico: Integrated total health delivery model: –75 staff in US supporting 29 clinics –Integrated team OH, EAP, Wellness and Fitness strategic partnerships –Shared service through a centralized delivery model –Services delivered based on a Service Level Agreement –Funded per capita + additional optional services Rest of world: –J&J and contract employees deliver services to the individual sites in a decentralized model –Single site and campus models exist –Technical expertise and support provided by regional Global Health Managers and Medical Directors Global Health Service Delivery

Our Strategic Approach Address spectrum of needs Use proven programs/methods Measure outcomes/manage program investmen ts  Keep the healthy healthy  Keep employees energized & engaged  Identify and manage health and injury risks  Keep employees safe  Identify and manage/mitig ate disease impact  Keep employees working  Identify and focus medical and disease management resources  Reduce risks 8

Mental Health & Wellbeing Healthy Lifestyle Programs Integrated Program Approach Access to Employee Assistance Professionals 24/7 Telephonic Counseling Online Mental Health Screening HealthMedia Digital Coaching Programs Resiliency/Stress Management Training Yoga and Meditation Occupational Health & Disease Mgmt. Health Education & Awareness Program Health Profile & Biometrics Health Profile Counseling HealthMedia Digital Coaching Programs Pedometers and Million Step Challenges Weight Watchers and Nutritional Counseling Tobacco Cessation Programs (PIQ) Onsite Occupational Health Clinics Employee Health Centers Medical Surveillance Compliance Medical Case Management Value Added Services (Phlebotomy, Pharmacy and Physical Therapy) CareConnect & Health Advocate My eHealth (Tip of the Day, Family Health Guides, Personal Trackers) Healthy People News Healthy People Bulletin Boards Global Health Observances (ie Move For Health, World Diabetes Day, Breast Cancer Awareness, World AIDS Day) Johnson & Johnson Employees and Families 9

Promotion & Communication Clear Focus (Smoking, BP, Cholesterol, Physical Activity, Stress, Obesity, Diabetes) Tracking and Enterprise-Wide Reporting Operating Company-Level Reporting/Accountability Marketing & Communications Healthy People Branding Alignment of Incentives Healthy People Medical Plan CareConnect (disease mgmt.) Employee Health Centers 10

PARTICIPATION ENGAGEMENT & RETENTION SCALABILITY CREATE A CULTURE OF HEALTH OUTCOMES/ MEASUREMENT factors for implementing a successful program

12 Wellness & Health Promotion To help employees achieve optimal health, Wellness & Health Promotion programs provide global affiliates with leadership, consultation, guidance and support for the delivery of a wide range of quality health promotion programs and services. Improving the health of employees can deliver significant benefits, including increased productivity, but most importantly, employees can enjoy improved health, both on and off the job. Programs include: Activity Promotion; Eat Complete; Tobacco Cessation US: Programs are delivered via Health Fitness Corporation Globally: Program delivery varies but is usually coordinated with GH regional managers and site HR

Health Risk Assessment  Healthy People Initiative since 1995  Annual Health Profile  Tracking and Enterprise-Wide Reporting  Operating Company-Level Reporting/Accountability  Onward referral to Health Advising and appropriate J&J resources, such as HealthMedia®, Million Step Challenge  US Participation Rates 2009: 83%*  Incentives:  $500 Medical Benefit Discount  $250 incentive for participation in Case/Disease Management  $500 incentive for participation in Maternity Program ($250 for enrollment plus $250 for postpartum screening)  $150 for Healthy Weight Program *Typical HRA participation is between 30% & 60%

Our Risks The top three risk areas for J&J US are: Unhealthy Eating, Obesity, and Inactivity The top three areas for J&J OUS are: Unhealthy Eating, Inactivity, and Obesity The top three risk areas for J&J US are: Unhealthy Eating, Obesity, and Inactivity The top three areas for J&J OUS are: Unhealthy Eating, Inactivity, and Obesity US: N = 10,000 + OUS: N = 1,000 +

Examples of Supporting a Healthy Lifestyle PHYSICAL ACTIVITY Knowledge Building & Behavior Change  Pedometers – 30,000 participants globally  Million Step Challenge – 10,000 participants  Exercise Reimbursement Program – 5,000 participants Environmental & Cultural Support  Fitness Centers/Fitness Rooms with personalized training available  Walking Trails  Fitness Center Design & Activity Guidelines HEALTHY EATING Eat Complete  Opportunities for employees to access and enjoy Nutritionally Dense Whole Foods at every cafeteria, food station, vending machine, catered event, and whenever food is served at company functions  80% of the US locations with on-site Food Services have launched the eat complete initiative Weight Watchers: At work, as well as program discounts CANCER PREVENTION PROGRAMS Tobacco Free Workplace  Applies to all operating company locations,  98% of Operating Companies Worldwide are “Tobacco Free” Accredited CEO Cancer Gold Standard

Good Health is Good Business People Productivity Performance & Profit

High Risk Rate Comparison to US Norms and Book of Business Data (Choices Eligible) High Risk Factor (in descending order by High Risk Prevalence) Johnson & JohnsonCDC US Data* HealthFitness Book of Business Data (2009) Unhealthy Eating (<5 Servings / Day) 60.0% 75.6% (2007) 70.2% Obesity (BMI 30.0+) 20.4% 34.1% ( ) 33.5% Inactivity (<150 Moderate Minute Equivalents) 20.4% 30.5% ( ) 44.4%** Hypertension (Blood Pressure 140+/90+ mmhg) 6.3% 17.9% ( ) 8.1% Cholesterol (Total Cholesterol 240+ mg/dl) 5.3% 16.3% ( ) 6.4% Tobacco Use (Current User of Any Tobacco) 3.9% 29.6% (2006) 14.9% Glucose (126+ Fasting) 2.5% 10.2%*** ( ) 1.5%**** Stress (Heavily or Excessively Stressed) 1.6% 3.0%***** ( ) 2.8% *Based on “Health, United States, 2008” a publication by the Centers for Disease Control and Prevention and National Center for Health Statistics, except for “Unhealthy Eating” which is based off of the Behavioral Risk Factor Surveillance System (BRFSS) data from 2007 **INSIGHT 1.0 doesn’t collect Moderate Minute Equivalents; for HealthFitness Book of Business, this figure depicts 0-2 days per week of Moderate Intensity Activity ***CDC’s definition of high glucose / diabetes = “Physician Diagnosed and Undiagnosed Diabetes” ****HealthFitness figure assumes all glucose is non-fasting unless uploaded through ScreenCalc with a different fasting value *****CDC’s definition of stress = “Serious Psychological Distress” n=30,595

Commit to Long Term – Results will Follow OVERALL INCREASE IN LOW-RISK CATEGORY OVER TIME. OVERALL DECREASE IN MEDIUM/HIGH-RISK CATEGORY OVER TIME. POPULATION HEALTH RISK REDUCTION (2006 TO 2009) Employee health risk trends between suggest the Johnson & Johnson health and wellness program has an annual ROI of between $ $4.09 for every dollar spent.

Per capita healthcare costs consistently below benchmarks Population health risks trending better than the overall industry Health care costs reduced by $400/employee/year This Methodology has led to Sustainable Results Health RiskJ&J 1995—1999 J&J 2007/2008 J&J 2009 U.S. Pop 2007/2008 CDC Smoking12%4.2%3.9%18.4% High Blood Pressure 14%6.4%6.3%27.8% High Cholesterol 19%7.2%5.3%37.6% Inactivity (30 minutes of activity, less than 4 days/wk) 39%31.5%20.4%51.2%* * CDC’s definition of physical activity = “engaging in light/moderate physical activity for >/= to 30 minutes at a frequency >/= to five times per week OR engaging in vigorous physical activity >/= to 20 minutes at a frequency >/= three times per week.”

Category Excess Cost Per Risk* # of High Risk EEs ** Excess Health Care Costs # of High Risk EEs *** (extrapolated to population) Excess Health Care Costs (extrapolated to population) Obesity (BMI 30.0+) $2,234 6,248$13,958,0327,558$16,884,572 Hypertension (Blood Pressure 140+/90+ mmhg) $1,218 1,926$2,345,8682,330$2,837,940 Glucose (Fasting 126+ mg/dl) $2, $2,038,214908$2,464,312 Inactivity (Seldom or Never Active) $1,327 1,485$1,970,5951,796$2,383,292 Tobacco Use (Any use) $1,336 1,188$1,587,1681,437$1,919,832 Cholesterol (Total Cholesterol 240+ mg/dl) $850 1,611$1,369,3501,949$1,656,650 Stress (Heavily or Excessively Stressed) $2, $1,015,480579$1,227,480 Total $24,284,707$29,374,078 *Health Care Costs of $9,700 used in the Results Calculator software **2009 Health Profile participation = 30,595 employees ***Data extrapolated to J&J total eligible Choices population of 37,008 Estimated Excess Health Care Costs (Choices Eligible)

Why Global Health Metrics? Global Health Metrics will: Provide data related to the health and well-being of our employees and the subsequent impact on our business Provide accountability for our services Provide feedback on the quality and effectiveness of critical initiatives Reflect the accomplishments and earnest intentions of our staff In order to achieve our mission we must measure and understand our employees’ health risks and the effectiveness of our health service offerings to address these risks

1. Create, Promote and Sustain an Organizational Culture of Health 2015 Goal: 90 % of employees have access to health & wellness programs 2. Reduce Population Health Risk Factors 2015 Goal: 70% or more health-profiled employees are characterized as ‘low risk’” 3. Assess and Manage Occupational Health Risks Identified Through the Medical Surveillance 2015 Goal: 93% or more of all periodic Medical Surveillances completed according to schedule and significant clinical occupational observations (SCOO) identified Setting Global Enterprise Health Goals

Healthy Future 2015 February 9, 2009 Our Sustainability Strategy Going beyond the Environment and must focus on our core product benefit: health Must give us clear, actionable steps today that ensure well-being in the future Must have a sense of optimism, something for our employees to rally around

Working towards a Healthy Future How will we get there? Six overarching strategies: Safeguard the planet through increased environmental stewardship of our operations & products. Cultivate suppliers who share our standards of ethical behavior, product quality and social responsibility. Advance health literacy and access to health care products and services. Foster the most engaged, productive, health-conscious and safe workforce. Actively collaborate – more broadly and more often. Healthy Future 2015 our environment our supply chain our customers our employees our stakeholders our communities Make life-changing, long-term differences in human health through community –based partnerships