1. Johnson & Johnson Regional market review April 2011

2. Regional markets continue to offer above average growth and ROI opportunities to J&J Affluent consumers that share the values and attitudes relevant to J&J Growth opportunities exist in regional for most J&J brands Case studies prove double rate of return from RTV investment FTA TV IS more dominant in regional and has grown its audience by 20% YOY

3. RTM EYEBALLS 60 sec video

4. Regional TV covers all areas outside capital cities and reaches 36% of population QLD NNSW SNSW TAS VIC REG. WA DIARY

5. Regional TV coverage includes large cities and fast growing coastal suburbs Newcastle & Central Coast Gold Coast Wollongong & Illawarra Canberra

6. Diary markets: A diverse mix of urban and rural Regional WA Port Pirie/ Broken Hill Satellite Griffith Mildura Darwin Loxton/Mt Gambier

7. Populations of major regional TV markets are comparable with the metros People Source: ATR & OZTAM 2011, Nielsen Media Research 2010 NNSW 2,079SNSW 1,410

8. Population Increase: 2001 vs. 2011 Source: ATR & OZTAM 2011 Australian population moving North and to the coast. Over 30% growth in 10 years in some regional areas National average QLDNSWVICTASMETRO

9. Urbanisation and high population growth changing the profile of regional Australia Lower cost of living and lifestyle are main attractions Rural populations moving to regional hub towns Less than 4% of households depend on farming

10. Seachange… … for baby boomers …for families

11. “Typical” Seachanger Ryan, 36. Wollongong NSW Made the seachange from the “Shire” to the “Gong”. Owns a small business in building trade Above average income & primary focus is kids and lifestyle. Loves footy, cars and teaching kids surfing.

12. Source: Roy Morgan Single Source (12mths to Dec 2010) Regional consumers have similar demographic profile to metro

13. People 18-54 with HHI $130k+ or Investments $500K+ Doubling in number of wealthy people living in regional Australia in past five years Source: Roy Morgan Single Source (12mths to Sep 2010, 2009, 2008, 2007, 2006, 2005 )

14. Why has regional spending been more stable and the outlook more positive? Lower cost of living – less debt Huge investment in infrastructure Population growth driving development of local economies Resources growth impacting many parts of regional: NSW, QLD, WA, SA.

15. Culturally Australia is a divided nation: Regional is representative of the majority Experiential International Libertarian Practical Communitarian Self Reliant Upwardly Mobile Materialist Family Focused Pragmatic Functional Patriotic Youthful Technological Energetic Conservative Institutional Self-Controlled Inner Metro 23% Outer Metro 41% Regional 36%

16. www.regionaltvmarketing.com.au According to David Chalke social researcher….

17. Regional women start their family life younger and have more children Source: Roy Morgan Single Source (12mths to Dec 2010)

18. RTM case studies are an opportunity for OMD to demonstrate effective media strategy and improve client ROI Women’s Health (June 2009- May 2010) Listerine (Jan-Dec 2009) Skin Care (Sept 2007 – July 2008) Examples …RTM is open to discussing any regionally based research project

19. Listerine Smart Rinse for Kids main driver of growth – Regional TV response higher 4 W/E Period Listerine Smart Rinse for Kids share of total sales vs. TV Spend Source: Scan Data (4 W/E 6/1/08 to 28/12/08) Coles /Woolworths/Bi Lo (Excludes NT)

20. 40 % of national Listerine sales growth came from regional markets

21. RO 3 I x Source: Aztec/Nielsen, Retail World, Adquest Jan - Dec 2008 Return from regional TV was positive by year end and 3 times rate of MTV

22. Share TV spend Carefree liners share of Liners Carefree Liners 2010: FTA TV had clear impact – regional response was as strong as metro NB: No data between Oct- Dec ‘09 Source: Scan Data (4W/E 25/1/09 – 30/5/10) Coles/ Woolworths/Bi Lo (EXCLUDES NT & TAS) NB: Tampons Excludes Coles data, AdQuest Millennium Jan-May 2010 2010 Jan - May Total TV: $973k Reg share: 21%

23. Carefree share of liners grew in every regional market YOY by 4% on average Carefree share point gain of liners YOY Source: Scan Data (4W/E 7/2/10 - 30/5/10) compared with (4 W/E 25/1/09 - 17/5/09) Coles/ Woolworths/Bi Lo (EXCLUDES NT & TAS)

24. RO 1.5 I x Rate of return on investment from regional TV was 1.5 times rate of MTV Source: Scan Data (4W/E 7/2/10 - 30/5/10) Coles/ Woolworths/Bi Lo (EXCLUDES NT & TAS), AdQuest Millennium Jan-May 2010

25. Reg. TV CPM is 45% below metro TV average and delivers double the cost efficiency and ROI Index TV market CPM indices National average CPM P18+ = 100 Source: Regional TV Agency Survey 2010

26. Share of national population Share of national TV budget Higher cost efficiency of regional TV means more can be invested to refine and target communications

27. Regional share of J&J TV budget has grown and is at upper range of competitive set – but not at full capacity Total TV $ $2.8m $858k $1.9m $1.5m $1.6m $1.2m $1.5m $3.8m $4.2m $1.5m $991k $23.3m Source: AdQuest Millennium January – December 2010

28. Regional consumers more likely to watch FTA TV but otherwise have same media habits as metro Source: Roy Morgan Single Source 12 months to Dec 2010, *AGB NMR Panorama 12 mths to Dec 2010

29. Audience share of the new commercial “digital” channels has more than tripled since June 2010 Source: Mediaweek, Metro data from OzTAM and Regional data from Regoional TAM. All People 18:00 - 23:59 June 2010 Sept 2010 Dec 2010March 2011

30. Subscription TV audiences are down in all key dayparts for the Survey Year to Date FTA viewing is up & commercial TV even more Source: Regional TAM; Survey 1-2, 2011 vs. 2010; Consolidated Data New commercial channels driving Free to air TV audiences up in 2011 Audience Year on Year % Change; Combined Agg Markets (QLD, NNSW, SNSW, VIC & TAS) Total People; Sun-Sat; Survey 1-2, 2011 vs. 2010

31. News & current affairs Local TV ads Promotions Community sponsorships Regional TV is part of the community… “We live here too” …means greater engagement

32. www.regionaltvmarketing.com.au Local content reel…

33. Regional markets will continue to offer J&J higher growth and ROI from proportional share of TV spend Affluent consumers Responsive to TV Interested in brands and new ideas Most cost efficient mass medium available to Johnson & Johnson