1. “Energy Efficiency - A Knowledge Management Perspective” World Environment Center Roundtable Basel, October 24-25, 2002 Karl F. Schmidt VP, WW Env.Affairs

2. AGENDA Energy Management at J&J Best Practice/Program Deployment Critical Success Factors

3. Energy Management Focus started in 1974 – rising costs, disrupted supply Regional Energy Committees – Corp.Energy Director –WW reporting system ($140MM costs in 2001) –Explore new technologies, conduct energy surveys Coordinate purchasing of energy supplies/services Coordinate major programs that benefit Corporation Drive Energy Star Enhanced Best Practices Objective: Assure continuity of operations, reduce costs and environmental footprint

4. Coordinated Programs Climate Change Action Plan including: –Climate Leaders, Green Lights (US and EU), Motor Challenge, Energy Star Buildings Green Power Development Group (WRI) –Large US energy users committed to developing green power mkts (J&J, IBM, Dow, DuPont, GM) Robust Energy Reporting System –Energy tracking/profiles, project summaries

12. CO 2 Reduction Plan Implement 100% of Enhanced Best Practices by 2005 Aggressively pursue clean energy supplies Implement new facility design criteria for all construction Pilot & develop innovative technologies & practices Add CO 2 emissions to Operating Co. dashboards Consider market based CO 2 trading (under dev.)

13. PHARM CPC MDD Legend: CautionNeeds attentionOn-target Not applicable Next Generation Goal Compliance/Risk Management Mgmt. Systems/ISO 14001 New Product/Process Review Conservation/Community Outreach Energy Use Water Use Raw Material Use Packaging Use Waste Reduction (NPO) Environmental Performance Dashboard: Mid-Yr. 2002 J&J’s Worldwide Progress CP&N Worldwide 1 34 21 34 21 34 21 3 67 76 % 84 % 4.3% 0.7% 2% 72 % 1 34 2 Actual‘01 Target 1) Non-Hazardous 2) Hazardous 3) Toxic 4) Waste Mgmt. Methods 55 or Less Viol/ Spills 100 % ISO Certified 100% w/ Plans 100 % of New Prod. 50 % Best Prax - 1 % CO2 2% 2%, 1% 1%, 2% By Business Group 4 2 36 % _+15 % 0 100 -4 10 5 5 5 ‘05 Goal

14. Energy Efficiency: Neutrogena J&J’s 1 st Photo- Voltaic System :  Clean, Renewable & Reliable  Provides 20% of total electric demand  Concurrent with Peak Demand  Favorable Payback w/ Subsidies & Tax Incentives  Great Publicity!

15. Green Energy for Cordis Europa, supplied by NUON. *Starting 2001- 10% energy from ‘Green’ supplier *Employees given chance to purchase. Total: 1,300,000 kW/yr CO2 emissions avoided= approx. 1.6 million pounds/yr

16. Critical Success Factors Single person responsible (Champion) –Team to implement at each site Goals with timeline established early Management support and recognition Provide forums/tools to share –Website, conferences, communications Regular internal/corporate reporting