1. Business Acumen Training October 8, 2014 JOHNSON & JOHNSON Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

2. TEAM AWESOME PLUS ONE !!! Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

3. JOHNSON & JOHNSON 1.History, CEO, Background, Relationship to Cigna 2.Primary Products and Services, Geographic Operations, Key Customers or Demographics, Distribution Channels 3.Core Strategies, Value Proposition, Relationship to 5 Drivers 4.Recent Performance – Financial Statement Analysis 5.SWOT Analysis 6.Role in Healthcare Environment, Relationship with / Impact on Cigna 7.Key Awareness Items – What Should We Know and Do? 3 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

4. JOHNSON & JOHNSON – HISTORY, CEO, BACKGROUND 4 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

5. JOHNSON & JOHNSON – HISTORY, CEO, BACKGROUND (CONT.) 5 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

6. JOHNSON & JOHNSON – HISTORY, CEO, BACKGROUND (CONT.) 6 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna

7. 7 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna Cardiovascular stents Drugs Surgical supplies Insulin pumps with wireless blood glucose monitoring Sterilization equipment Adjustable Gastric Band Neurosurgical devices for spine, brain tumors and brain aneurysms Newest ENT device for office sinus surgery JOHNSON & JOHNSON – PRIMARY PRODUCTS AND SERVICES

8. JOHNSON & JOHNSON – CORE STRATEGIES 8 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna  Innovating in Pharmaceuticals (GROWTH, PROFIT, CASH) - Fastest growing Top 10 in US, Europe, Japan 13 New products since 2009 (PREZISTA, REMICADE)  Successful Integrating Synthes (ASSET, GROWTH, PROFIT, PEOPLE) - Integrating world’s largest, most comprehensive orthopedics company  Driving Growth by Restoring Consumer Reliability (GROWTH, PROFIT, PEOPLE) – 19.7 US Growth of OTC medications Identifying and Focusing supply on reliable brands such as Tylenol, Motrin, Listerine  Rewarding Sharholders (PROFIT, CASH, GROWTH, PEOPLE) – 35% Return, outpacing benchmarks 30 consecutive years of adjusted earnings increases 51 consecutive years of dividend increases

9. JOHNSON & JOHNSON – VALUE PROPOSITION 9 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna  Creating Value Through Innovation Research and development continues to deliver results. Gained or held market share Pharmaceutical pipeline was productive Important new medical devices were approved. Launched new consumer products globally Created new Johnson & Johnson Innovation Centers  Bringing To Life Our Global Reach with Local Focus Created a unified business model in China. Taken a unified “go-to-market” approach in Southeast Asia  Maintaining a Laser Focus on Excellent Execution Restored more of our products to shelves. Implemented a new quality and compliance operating model Strengthened & streamlined our supply chain to ensure we reliably meet demand for our products  Leading with Purpose to Make a Difference Helping to advance the United Nations Millennium Development Goals. Supporting over 500 communities globally. Helping to fight tuberculosis by making medicine more available. Created a novel donation program to increase access to our HIV medicines in Africa Made progress reformulating baby products in response to changing customer expectations. Set a new standard for data transparency.

10. JOHNSON & JOHNSON – RECENT PERFORMANCE, FINANCIAL STATEMENT ANALYSIS 10 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna Although J&J clearly outpaces Cigna in terms on Cash and Sales. Cigna appears to be more efficient in utilization of employees and we almost double our profit per employee Cash$20,927 Cash Flow$17,414 Total Revenues$71,312 Operating Profit$15,471 Operating Profit Margin21.69% Net Profit$13,831 Net Profit Margin19.40% Diluted EPS$4.81 Total Shareholders' Equity$74,053 ROE18.68% Revenue Growth6.08% Net Income Growth27.44% Dividend$2.59

11. JOHNSON & JOHNSON – SWOT ANALYSIS 11 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2014 Cigna  Not a direct competitor  Strengths: Global company Large number of resources for marketing Wide array of products Strong brand loyalty and recognition  Weaknesses: Rely on pharmaceuticals that may be impacted by generic competition (i.e. Risperdal)  Opportunities: Acquisition of Pfizer Cross selling- diagnostics, medical devices, and pharmaceuticals Increase biologics market- therapeutic proteins, monoclonal antibodies  Threats: Industry and FDA regulations Product recalls Strong global competitors offering products at lower costs