Mead Johnson Reports Strong Fourth Quarter and Full Year Constant Dollar Sales Growth of 7 Percent; Delivers Non-GAAP EPS Growth

  Mead Johnson Reports Strong Fourth Quarter and Full Year Constant Dollar
  Sales Growth of 7 Percent; Delivers Non-GAAP EPS Growth of 10 Percent;
  Provides 2013 Guidance

Business Wire

GLENVIEW, Ill. -- January 31, 2013

Mead Johnson Nutrition Company (NYSE: MJN) announced today its financial
results for the fourth quarter and year ended December 31, 2012.

  *Net sales of $3,901.3 million for the full year 2012 were up six percent
    from $3,677.0 million in the prior year. Excluding an unfavorable foreign
    exchange impact, sales increased seven percent. Constant dollar sales for
    the Asia/Latin America segment grew 12 percent, partially offset by a
    three percent decline in the North America/Europe segment.
  *GAAP net earnings were $2.95 per diluted share for 2012, an increase of 19
    percent compared to $2.47 per diluted share in the prior year.
  *Non-GAAP ^(1) net earnings of $3.08 per diluted share for 2012 were up 10
    percent from $2.79 per diluted share in 2011.
  *Fourth quarter 2012 sales of $981.1 million were up eight percent from
    $911.3 million in 2011, with constant dollar sales up seven percent. Sales
    for the Asia/Latin America segment grew nine percent excluding a favorable
    foreign exchange impact, while the North America/Europe segment grew four
    percent.
  *GAAP net earnings in the fourth quarter were $0.66 per diluted share,
    compared to $0.42 per diluted share in the prior year, benefiting from
    higher sales, the timing of pension settlement expense and a lower
    effective tax rate, partially offset by higher demand-generation
    investments.
  *Non-GAAP ^  net earnings totaled $0.72 per diluted share for the fourth
    quarter of 2012, compared to $0.52 per diluted share in 2011.
  *The company provided full-year 2013 GAAP EPS guidance of $3.20 to $3.28.
    Excluding specified items, estimated at $0.02 per diluted share, the
    full-year 2013 non-GAAP EPS is expected to be in the range of $3.22 to
    $3.30.

^(1)See “Non-GAAP Financial Measures” and the reconciliation of GAAP and
non-GAAP results included in this release.

“We are pleased with our strong sales and earnings performance in the fourth
quarter and the overall performance of the business in 2012,” said Chief
Executive Officer Stephen W. Golsby. “The Asia/Latin America segment delivered
strong growth, while notably in China, we recovered additional market share in
the fourth quarter, with distributors' inventory restored to normal levels by
the end of the year. The North America/Europe segment contributed four percent
sales growth in the fourth quarter as we made excellent progress building
non-WIC* market share in the United States. For the company, full-year
constant dollar sales grew at seven percent with non-GAAP earnings per share
increasing 10 percent. Tight management of general and administrative
spending, coupled with further reductions in our effective tax rate, more than
offset the impact of higher commodity costs and helped to fund continued
increases in demand-generation investments to drive longer-term growth.
Notably, the global Enfa brand reached a major milestone in 2012, exceeding $3
billion in sales.”

*WIC = United States Department of Agriculture Special Supplemental Nutrition
Program for Women, Infants, and Children

Fourth Quarter Results

Sales for the fourth quarter of 2012 totaled $981.1 million, up eight percent
from $911.3 million a year ago. Sales benefited five percent from price, two
percent from volume, and one percent from foreign exchange. Earnings before
interest and income taxes (EBIT) for the fourth quarter totaled $189.7
million, up 30 percent from $146.1 million in the prior-year period. This was
primarily driven by higher sales, the earlier recognition of pension
settlement expense in 2012, and lower IT and other IPO-related separation
expenses. These benefits were partially offset by higher demand-generation
investments.

Net earnings attributable to shareholders totaled $134.2 million, or $0.66 per
diluted share, compared to $85.6 million, or $0.42 per diluted share in the
prior-year quarter. In addition to the increase in EBIT, the effective tax
rate (ETR) decreased for the fourth quarter to 23.8 percent, compared to 32.5
percent a year ago, primarily due to favorable adjustments associated with
prior years' tax filings and lower required tax accruals. Net earnings in the
fourth quarter of 2012 also benefited by $0.01 per diluted share from
favorable prior years' tax items.

On a non-GAAP basis, which excludes specified items, net earnings attributable
to shareholders totaled $146.7 million, or $0.72 per diluted share, for the
fourth quarter of 2012, compared to $106.5 million, or $0.52 per diluted
share, for the same quarter a year ago.

Fourth Quarter Segment Results

The Asia/Latin America segment had sales of $663.5 million for the fourth
quarter of 2012, up 10 percent from $604.8 million in 2011. Sales increased
six percent from price, three percent from volume, and one percent from
foreign exchange. The China business continued to recover market share, and
distributors' inventory was restored to normal levels by year-end. Excluding
China/Hong Kong, the other markets of the Asia/Latin America segment had
organic constant dollar sales growth in the mid teens, and including the
favorable contribution from our Argentine acquisition, grew over 20 percent.
EBIT for the Asia/Latin America segment totaled $187.4 million, up four
percent compared to $179.7 million for the year-ago quarter. The EBIT increase
was driven by strong sales growth, partially offset by higher advertising and
promotion investments and lower gross margins from an unfavorable country mix.

The North America/Europe segment reported sales of $317.6 million for the
fourth quarter of 2012, up four percent from $306.5 million in 2011. Sales
benefited five percent from price offset by a one percent decline from volume.
Higher sales in the United States from gains in non-WIC market share were
partially offset by continued category decline from higher breastfeeding rates
and the transition of several smaller WIC contracts. Sales growth in the
United States was partially offset by lower sales in Europe as we refocused
the business on higher margin specialty infant formula products. EBIT totaled
$88.9 million, up 39% compared to $64.1 million in the fourth quarter a year
ago. The increase was the result of higher sales, improved gross margins from
lower U.S. dairy costs and lower operating expenses.

Corporate and Other expenses declined primarily from the timing of pension
settlement expense, which was initially triggered in the second quarter of
2012 compared to the fourth quarter of 2011.

Full-Year 2012 Results

For the year ended December 31, 2012, sales totaled $3,901.3 million, up six
percent from $3,677.0 million a year ago. Sales growth increased six percent
from price and one percent from volume, reduced by one percent from foreign
exchange.

Gross margin was down 110 basis points in 2012 versus the prior year from
higher dairy and other commodity costs, mainly in the North America/Europe
segment. Manufacturing variances were also unfavorable, primarily from lower
production volume in the North America/Europe segment.

EBIT for 2012 totaled $870.0 million, up from $774.1 million a year earlier.
The EBIT increase was primarily driven by sales growth. In addition, general
and administrative expenses were lower, driven by the reduction in IT and
IPO-related separation costs, the elimination of duplicate shared service
costs in 2011, and lower performance-based compensation expense. These factors
were partially offset by lower gross margins, higher demand-generation
investments and increased pension settlement expense.

The effective tax rate for 2012 was 23.9 percent versus 28.1 percent a year
ago. The lower effective tax rate was primarily attributable to favorable
adjustments associated with prior years' tax filings, changes in management's
assertion that certain current and prior years' foreign earnings and profits
are permanently invested abroad, and changes in the geographic earnings mix.
The benefit from prior years' tax items was $0.07 per diluted share.

Net earnings attributable to shareholders for 2012 totaled $604.5 million, or
$2.95 per diluted share, compared with $508.5 million, or $2.47 per diluted
share, for the prior-year period.

On a non-GAAP basis, which excludes specified items, net earnings attributable
to shareholders totaled $630.1 million, or $3.08 per diluted share, in 2012,
compared to $573.1 million, or $2.79 per diluted share, in 2011.

Full-Year 2012 Segment Results

Sales in the Asia/Latin America segment were $2,719.5 million, up 11 percent
from $2,447.2 million in 2011. Sales increased seven percent from price and
five percent from volume, offset by a one percent decline from foreign
exchange. The majority of the markets in the segment delivered double-digit
constant dollar sales growth from higher pricing and overall category growth,
enhanced by share gains in key markets. Constant dollar sales in China/Hong
Kong grew five percent for the full year. In China, the company made progress
in recovering market share in the second half of 2012, following a decline in
the first half of the year. Sales growth for the segment also benefited from
the Argentine acquisition in March 2012, which contributed two percent to
total company full-year growth. EBIT for the segment totaled $901.3 million,
up 11 percent compared to $811.6 million in 2011. The EBIT increase was
primarily related to sales growth, partially offset by increased
demand-generation investments.

The North America/Europe segment reported sales of $1,181.8 million for 2012,
down four percent from $1,229.8 million in 2011. Sales declined seven percent
from volume and one percent from foreign exchange, partially offset by a four
percent increase from price. The volume decline was primarily in the United
States and attributed to lower market share, category consumption and births.
Total market share was lower in comparison to the prior year, when the company
benefited from a competitor's recall, as well as the 2012 impact of the
unfounded media reports in December 2011 of alleged product contamination.
Significant progress was made in recovering market share in the fourth quarter
of 2012. EBIT totaled $246.1 million, compared to $308.4 million in 2011. The
decrease was primarily due to lower sales and gross margins, partially offset
by lower operating expenses. The gross margin decline resulted from higher
commodity costs and lower production volumes.

Corporate and Other expenses decreased from lower IT and IPO-related
separation costs, lower performance-based compensation expense and the
elimination of duplicate costs from the overlap in shared services providers
incurred in 2011 during the SAP implementation project. These factors were
partially offset by higher pension settlement expense.

Outlook for 2013

“We expect to continue to deliver strong sales growth through 2013,” Mr.
Golsby said. “We are initiating non-GAAP EPS guidance in the range of $3.22 to
$3.30, up from the $3.08 per share we delivered in 2012. Annual constant
dollar sales growth from ongoing operations are expected to be in the range of
7 percent to 8 percent and will be reduced by 1 percent as we exit several low
margin non-core businesses. Therefore, key assumptions underlying non-GAAP
guidance include an expected sales increase of 6 percent to 7 percent
excluding the effect of foreign exchange. Improved gross margins will help
fund continued increases in demand-generation investments. The 2013 non-GAAP
effective tax rate is expected to be about 25 percent, slightly higher than
the 24.3 percent reported in 2012, which included prior years' tax benefits.”

Conference Call Scheduled

Mead Johnson will host a conference call at 8:30 a.m. CST today, during which
company executives will review fourth quarter and full year financial results
and respond to questions from analysts and investors. The call will be
broadcast over the Internet at meadjohnson.com. To listen to the call, visit
the website at least 15 minutes before the call and click on the “Investors”
tab. Security analysts and investors wishing to participate by telephone
should call (866) 362-4829, pass code: Mead Johnson.Callers outside of North
America should call +1-617-597-5346 to be connected. A replay of the
conference call will be available through midnight CST Thursday, February 7,
2013, by calling (888) 286-8010 or outside of North America +1-617-801-6888,
pass code: 63045245. The replay will also be available at meadjohnson.com.

Forward-Looking Statements

Certain statements in this news release are forward looking as defined in the
Private Securities Litigation Reform Act of 1995. These statements, which are
identified by words such as “expects,” “intends” and “believes,” involve
certain risks, uncertainties and assumptions that may cause actual results to
differ materially from expectations as of the date of this news release. These
risks include, but are not limited to: (1) the ability to sustain brand
strength, particularly the Enfa family of brands; (2) the effect on the
company's reputation of real or perceived quality issues; (3) the adverse
effect of commodity costs; (4) increased competition from branded, private
label, store and economy-branded products; (5) the effect of an economic
downturn on consumers' purchasing behavior and customers' ability to pay for
product; (6) inventory reductions by customers; (7) the adverse effect of
changes in foreign currency exchange rates; (8) the effect of changes in
economic, political and social conditions in the markets where we operate; (9)
legislative, regulatory or judicial action that may adversely affect the
company's ability to advertise its products or maintain product margins; (10)
the possibility of changes in the Women, Infant and Children (WIC) program, or
participation in WIC; and (11) the ability to develop and market new,
innovative products. For additional information on these and other factors,
see the risk factors identified in the company's periodic reports, including
the annual report on Form 10-K for 2011, quarterly reports on Form 10-Q and
current reports on Form 8-K, filed with, or furnished to, the Securities and
Exchange Commission, available upon request or at meadjohnson.com. The company
undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise.

About Mead Johnson

Mead Johnson, a global leader in pediatric nutrition, develops, manufactures,
markets and distributes more than 70 products in over 50 markets worldwide.
The company's mission is to nourish the world's children for the best start in
life.The Mead Johnson name has been associated with science-based pediatric
nutrition products for over 100 years. The company's “Enfa” family of brands,
including Enfamil^® infant formula, is the world's leading brand franchise in
pediatric nutrition. For more information, go to meadjohnson.com.


MEAD JOHNSON NUTRITION COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars and shares in millions, except per share data)
(UNAUDITED)
                                                    
                        Three Months Ended December    Year Ended December 31,
                        31,
                        2012           2011           2012         2011
NET SALES               $  981.1        $  911.3       $ 3,901.3     $ 3,677.0
Cost of Products Sold   382.0          354.9         1,485.3      1,362.3
GROSS PROFIT            599.1           556.4          2,416.0       2,314.7
Expenses:
Selling, General and    235.6           237.3          877.8         926.8
Administrative
Advertising and         139.5           128.7          552.8         501.7
Promotion
Research and            27.8            28.1           95.4          92.5
Development
Other Expenses          6.5            16.2          20.0         19.6
EARNINGS BEFORE
INTEREST AND INCOME     189.7           146.1          870.0         774.1
TAXES
                                                                     
Interest Expense        16.0           13.8          65.0         52.2
EARNINGS BEFORE         173.7           132.3          805.0         721.9
INCOME TAXES
                                                                     
Provision for Income    41.4           43.0          192.6        202.9
Taxes
NET EARNINGS            132.3           89.3           612.4         519.0
Less Net Earnings
Attributable to         (1.9      )     3.7           7.9          10.5
Noncontrolling
Interests
NET EARNINGS
ATTRIBUTABLE TO         $  134.2       $  85.6       $ 604.5      $ 508.5
SHAREHOLDERS
Earnings per
Share—Basic
Net Earnings
Attributable to         $  0.66        $  0.42       $ 2.96       $ 2.48
Shareholders
Earnings per
Share—Diluted
Net Earnings
Attributable to         $  0.66         $  0.42        $ 2.95        $ 2.47
Shareholders
Weighted-average        202.9           203.8          203.6         204.3
Shares
Dividends Declared      $  0.30         $  0.26        $ 1.20        $ 1.04
per Share


MEAD JOHNSON NUTRITION COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in millions)
(UNAUDITED)
                                                       
                                                         December 31,
                                                         2012       2011
NET EARNINGS                                             $ 612.4     $ 519.0
                                                                     
OTHER COMPREHENSIVE INCOME/(LOSS)
Foreign Currency Translation Adjustments
Translation Adjustments                                  (8.4    )   (27.2   )
Tax Benefit/(Expense)                                    (13.0   )   4.7
Deferred Gains/(Losses) on Derivatives Qualifying as
Hedges
Deferred Gains/(Losses) on Derivatives Qualifying as     (12.7   )   5.8
Hedges for the Period
Reclassification Adjustment for (Gains)/Losses           0.8         2.9
Included in Net Earnings
Tax Benefit/(Expense)                                    3.5         (2.6    )
Pension and Other Post-Retirement Benefits
Deferred Gains on Pension and Other Post-Retirement      (58.5   )   (90.7   )
Benefits
Reclassification Adjustment for (Gains)/Losses           23.8        14.6
Included in Net Earnings
Tax Expense                                              10.6       24.1    
OTHER COMPREHENSIVE INCOME/(LOSS)                        (53.9   )   (68.4   )
                                                                     
COMPREHENSIVE INCOME                                     558.5      450.6   
                                                                     
Less Comprehensive Income Attributable to                7.9        10.6    
Noncontrolling Interests
                                                                     
COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS        $ 550.6    $ 440.0 


MEAD JOHNSON NUTRITION COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars and shares in millions, except per share data)
(UNAUDITED)
                                                   
                                                     December 31,
                                                     2012         2011
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents                            $ 1,042.1     $ 840.3
Receivables – net of allowances of $7.6 and $6.3,    364.6         352.6
respectively
Inventories ^(1)                                     435.9         534.9
Deferred Income Taxes – net of valuation allowance   86.4          118.5
Income Taxes Receivable                              26.0          3.3
Prepaid Expenses and Other Assets                    60.0         40.1      
Total Current Assets                                 2,015.0       1,889.7
Property, Plant, and Equipment – net                 689.9         576.1
Goodwill                                             270.6         117.5
Other Intangible Assets – net                        129.9         91.6
Deferred Income Taxes – net of valuation allowance   24.5          16.5
Other Assets                                         128.3        75.4      
TOTAL                                                $ 3,258.2    $ 2,766.8 
LIABILITIES AND EQUITY/(DEFICIT)
CURRENT LIABILITIES:
Short-term Borrowings                                $ 161.0       $ —
Accounts Payable                                     508.5         488.1
Dividends Payable                                    61.3          53.3
Note Payable                                         26.0          —
Accrued Expenses                                     220.4         229.0
Accrued Rebates and Returns                          314.8         300.1
Deferred Income – current                            36.1          47.0
Income Taxes – payable and deferred                  41.8         82.6      
Total Current Liabilities                            1,369.9       1,200.1
Long-Term Debt                                       1,523.2       1,531.9
Deferred Income Taxes – noncurrent                   15.9          5.2
Pension, Post-Retirement and Post Employment         188.8         157.2
Liabilities
Other Liabilities                                    95.1         40.4      
Total Liabilities                                    3,192.9       2,934.8
COMMITMENTS AND CONTINGENCIES
                                                                   
REDEEMABLE NONCONTROLLING INTEREST                   36.3          —
                                                                   
EQUITY/(DEFICIT)
Shareholders’ Equity
Common Stock, $0.01 par value: 3,000 authorized,     2.1           2.1
206.0 and 205.1 issued, respectively
Additional Paid-in/(Distributed) Capital             (676.6    )   (728.4    )
Retained Earnings                                    1,124.8       770.0
Treasury Stock – at cost                             (244.6    )   (89.7     )
Accumulated Other Comprehensive Loss                 (187.0    )   (133.1    )
Total Shareholders’ Equity/(Deficit)                 18.7          (179.1    )
Noncontrolling Interests                             10.3         11.1      
Total Equity/(Deficit)                               29.0         (168.0    )
TOTAL                                                $ 3,258.2    $ 2,766.8 

^(1) For the year ended December 31, 2011, inventories included $77 million
due to a higher level of advanced purchases for select dairy inputs


MEAD JOHNSON NUTRITION COMPANY
CONSOLIDATED STATEMENTS OF EQUITY/(DEFICIT) AND REDEEMABLE NONCONTROLLING INTEREST
(Dollars in millions)
(UNAUDITED)
                                                                                                        
                           Additional                                 Accumulated                                Redeemable
                           Paid-in                                    Other           Non-          Total        Non-
                 Common    (Distributed)   Retained      Treasury     Comprehensive   controlling   Equity/      controlling
                 Stock     Capital         Earnings      Stock        Loss            Interests     (Deficit)    Interest
Balance as of
December 31,     $ 2.0     $  (775.6  )    $ 474.0       $ (3.2   )   $   (64.6   )   $  9.1        $ (358.3 )   $    —
2010
Stock-based
Compensation
Awards
(includes        0.1       47.2                          (4.9     )                                 42.4
income tax
benefits of
$2.8)
Treasury Stock                                           (81.6    )                                 (81.6    )
Acquired
Distributions
to                                                                                    (8.6     )    (8.6     )
Noncontrolling
Interests
Cash Dividends                             (212.5    )                                              (212.5   )
Declared
Net Earnings                               508.5                                      10.5          519.0
Other
Comprehensive                                                         (68.5       )   0.1           (68.4    )
Income (Loss)
                                                                                                          
Balance as of
December 31,     $ 2.1    $  (728.4  )    $ 770.0      $ (89.7  )   $   (133.1  )   $  11.1      $ (168.0 )   $    —
2011
Stock-based
Compensation
Awards
(includes                  51.8                          (15.2    )                                 36.6
income tax
benefits of
$11.8)
Treasury Stock                                           (139.7   )                                 (139.7   )
Acquired
Acquisition                                                                                         —            30.2
Distributions
to                                                                                    (7.6     )    (7.6     )
Noncontrolling
Interests
Cash Dividends                             (244.7    )                                              (244.7   )
Declared
Net Earnings                               604.5                                      6.8           611.3        1.1
Redeemable
Noncontrolling                             (5.0      )                                              (5.0     )   5.0
Interest
Accretion
Other
Comprehensive                                                     (53.9       )   —            (53.9    )   
Income (Loss)
Balance as of
December 31,     $ 2.1    $  (676.6  )    $ 1,124.8    $ (244.6 )   $   (187.0  )   $  10.3      $ 29.0      $    36.3
2012


MEAD JOHNSON NUTRITION COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(UNAUDITED)
                                                     
                                                       December 31,
                                                       2012         2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings                                           $ 612.4       $ 519.0
Adjustments to Reconcile Net Earnings to Net Cash
Provided by Operating Activities:
Depreciation and Amortization                          76.9          75.3
Stock-Based Compensation Expense                       32.2          39.9
Deferred Income Tax                                    17.1          (33.3   )
Gain on Sale of Intangible Assets                      (6.5      )   —
Exchange Loss from Devaluation                         —             —
Other                                                  1.8           2.3
Changes in Assets and Liabilities
Receivables                                            (8.5      )   (7.9    )
Inventories                                            109.8         (183.3  )
Accounts Payable                                       (30.9     )   114.7
Accrued Expenses, Rebates and Returns                  (6.3      )   50.0
Income Taxes Payable                                   (62.2     )   53.2
Other Assets and Liabilities                           (14.8     )   12.6
Pension and Other Post Retirement Benefits             (28.3     )   (9.7    )
Contributions
Net Cash Provided by Operating Activities              692.7         632.8
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for Capital Expenditures                      (124.4    )   (109.5  )
Proceeds from Sale of Property, Plant and Equipment    1.5           1.6
Proceeds from Sale of Intangible Assets                6.5           —
Investment in Other Companies                          (6.3      )   (4.7    )
Payment for Acquisition                                (106.1    )   —       
Net Cash Used in Investing Activities                  (228.8    )   (112.6  )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Short-term Borrowings                    391.2         72.0
Repayments of Short-term Borrowings                    (230.2    )   (73.2   )
Payment for Capital Lease Termination                  —             —
Repayments of Notes Payable                            (52.6     )   —
Payments of Dividends                                  (236.7    )   (205.7  )
Stock-based-compensation-related Proceeds and Excess   23.3          4.5
Tax Benefits
Purchases of Treasury Stock                            (154.9    )   (87.7   )
Proceeds from Termination of Interest Rate Swaps       —             23.5
Proceeds from Promissory Note                          —             —
Distributions to Noncontrolling Interests              (7.6      )   (8.6    )
Net Cash Used in Financing Activities                  (267.5    )   (275.2  )
Effects of Changes in Exchange Rates on Cash and       5.4          (0.3    )
Cash Equivalents
                                                                             
NET INCREASE IN CASH AND CASH EQUIVALENTS              201.8         244.7
CASH AND CASH EQUIVALENTS:
Beginning of Period                                    840.3        595.6   
End of Period                                          $ 1,042.1    $ 840.3 


MEAD JOHNSON NUTRITION COMPANY
SUPPLEMENTAL FINANCIAL INFORMATION
(Dollars in millions)
(UNAUDITED)

The following chart has been restated for a segment reorganization implemented
during the fourth quarter of 2012. See additional information on page 14 of
this press release.
                                                  
                 Three Months Ended                   % Change Due to
                 December 31,
                                                                    Foreign
Net Sales        2012          2011          %        Volume   Price   Exchange
                                             Change
Asia/Latin       $ 663.5       $ 604.8       10  %    3   %    6  %    1    %
America
North            317.6        306.5        4   %    (1  )%   5  %    —
America/Europe
Net Sales        $ 981.1      $ 911.3      8   %    2   %    5  %    1    %
                                                                       
                             
Earnings
Before           2012          2011          %
Interest and                                 Change
Income Taxes
Asia/Latin       $ 187.4       $ 179.7       4   %
America
North            88.9          64.1          39  %
America/Europe
Corporate and    (86.6     )   (97.7     )   11  %
Other
EBIT             $ 189.7      $ 146.1      30  %
                                                      
                                                      
                 Year Ended December 31,              % Change Due to
                                                                       Foreign
Net Sales        2012          2011          %        Volume   Price   Exchange
                                             Change
Asia/Latin       $ 2,719.5     $ 2,447.2     11  %    5   %    7  %    (1   )%
America
North            1,181.8      1,229.8      (4  )%   (7  )%   4  %    (1   )%
America/Europe
Net Sales        $ 3,901.3    $ 3,677.0    6   %    1   %    6  %    (1   )%
                                                                       
                                                                       
                 Year Ended December 31,
Earnings
Before           2012          2011          %
Interest and                                 Change
Income Taxes
Asia/Latin       $ 901.3       $ 811.6       11  %
America
North            246.1         308.4         (20 )%
America/Europe
Corporate and    (277.4    )   (345.9    )   20  %
Other
EBIT             $ 870.0      $ 774.1      12  %
                                                                       

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures, including non-GAAP
EBIT, earnings and earnings per share information. The items included in GAAP
measures, but excluded for the purpose of determining non-GAAP EBIT, earnings
and earnings per share, are IT separation and other costs (Specified Items).
In addition, other items include the tax impact on Specified Items. Non-GAAP
EBIT, earnings and earnings per share information adjusted for these items is
an indication of the company's underlying operating results and intended to
enhance an investor's overall understanding of the company's financial
performance. In addition, this information is among the primary indicators the
company uses as a basis for evaluating company performance, setting incentive
compensation targets, and planning and forecasting of future periods. This
information is not intended to be considered in isolation or as a substitute
for financial measures prepared in accordance with GAAP. Tables that reconcile
GAAP to non-GAAP disclosure follow:


MEAD JOHNSON NUTRITION COMPANY
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Dollars in millions, except per share data)
(UNAUDITED)

FOR THE THREE MONTHS ENDED DECEMBER 31, 2012 AND 2011
                                                        
                 Earnings Before           Net Earnings              Earnings per Common
                 Interest                  Attributable
                 and Income Taxes          to Shareholders           Share - Diluted
                 2012       2011          2012       2011          2012      2011
GAAP Results     $ 189.7     $ 146.1       $ 134.2     $ 85.6        $ 0.66     $ 0.42
Specified
Items: ^ (1)
IT and other
separation       7.9         13.5
costs ^(2)
Gain on sale
of certain
non-core         (1.0    )   —
intangible
assets ^(3)
Severance and
other costs      11.5        11.4
^(3)
Legal,
settlements      (0.3    )   3.2     
and related
costs ^(2,3)
Specified
Items before     18.1        28.1          18.1        28.1          0.09       0.14
income taxes
Income tax
impact on                                  (5.6    )   (7.2    )     (0.03  )   (0.04  )
items above
Non-GAAP         $ 207.8    $ 174.2      $ 146.7    $ 106.5      $ 0.72    $ 0.52 
Results


FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
                                                        
                 Earnings Before           Net Earnings              Earnings per Common
                 Interest                  Attributable
                 and Income Taxes          to Shareholders           Share - Diluted
                 2012       2011          2012       2011          2012      2011
GAAP Results     $ 870.0     $ 774.1       $ 604.5     $ 508.5       $ 2.95     $ 2.47
Specified
Items: ^ (1)
IT and other
separation       19.9        74.7
costs ^(2)
Gain on sale
of certain
non-core         (6.5    )   —
intangible
assets ^(3)
Severance and
other costs      21.1        11.6
^(3)
Legal,
settlements      2.8        7.6     
and related
costs ^(2,3)
Specified
Items before     37.3        93.9          37.3        93.9          0.18       0.46
income taxes
Income tax
impact on                                  (11.7   )   (29.3   )     (0.05  )   (0.14  )
items above
Non-GAAP         $ 907.3    $ 868.0      $ 630.1    $ 573.1      $ 3.08    $ 2.79 
Results

^(1) All Specified Items are included in the Corporate and Other segment
^(2) Included in Selling, General and Administrative expenses
^(3) Included in Other Expenses/(Income)-net


Segment Reorganization

During the fourth quarter of 2012, the company implemented a change in its
organizational structure involving the transfer of the Puerto Rican operations
from the North America to the Latin America business. This change did not
impact Europe or Asia and did not have a material impact on the assets of
North America or Latin America. As a result of implementing this change in our
operating structure, the company will report the results of operations under
this new structure beginning with the fourth quarter of 2012. The following
unaudited financial schedule provides information regarding net sales and
earnings before interest and income taxes for 2010 and 2011, each of the four
quarters of 2011, and each of the first three quarters of 2012 on the new
reporting basis.


MEAD JOHNSON NUTRITION COMPANY
SUPPLEMENTAL FINANCIAL INFORMATION
(Dollars in millions)
(UNAUDITED)
                                                                                                                  
                   2012                                  2011                                                          2010
                   1Q         2Q           3Q          1Q         2Q         3Q         4Q         Total Year    Total Year
Net Sales
Original
Reportable
Segment
Structure:
  Asia/Latin       $ 701.3     $ 695.2       $ 639.9     $ 576.9     $ 611.6     $ 636.1     $ 598.6     $ 2,423.2     $ 1,927.1
  America
  North America    285.3      317.1        281.4      322.9      320.4      297.8      312.7      1,253.8      1,214.5   
  / Europe
Total              $ 986.6    $ 1,012.3    $ 921.3    $ 899.8    $ 932.0    $ 933.9    $ 911.3    $ 3,677.0    $ 3,141.6 
                                                                                                                       
New Reportable
Segment
Structure:
  Asia/Latin       $ 707.3     $ 702.0       $ 646.7     $ 582.5     $ 617.1     $ 642.8     $ 604.8     $ 2,447.2     $ 1,951.0
  America
  North            279.3      310.3        274.6      317.3      314.9      291.1      306.5      1,229.8      1,190.6   
  America/Europe
Total              $ 986.6    $ 1,012.3    $ 921.3    $ 899.8    $ 932.0    $ 933.9    $ 911.3    $ 3,677.0    $ 3,141.6 
                                                                                                                       
Earnings Before
Interest and
Taxes
Original
Reportable
Segment
Structure:
  Asia/Latin       $ 279.0     $ 237.5       $ 190.7     $ 216.8     $ 209.8     $ 198.4     $ 177.9     $ 802.9       $ 646.1
  America
  North            33.7        74.6          55.6        92.9        86.4        71.9        65.9        317.1         357.7
  America/Europe
  Corporate and    (63.9   )   (63.8     )   (63.1   )   (87.1   )   (92.5   )   (68.6   )   (97.7   )   (345.9    )   (320.9    )
  Other
Total              $ 248.8    $ 248.3      $ 183.2    $ 222.6    $ 203.7    $ 201.7    $ 146.1    $ 774.1      $ 682.9   
                                                                                                                       
New Reportable
Segment
Structure:
  Asia/Latin       $ 280.9     $ 239.9       $ 193.1     $ 219.0     $ 211.5     $ 201.4     $ 179.7     $ 811.6       $ 656.3
  America
  North            31.8        72.2          53.2        90.7        84.7        68.9        64.1        308.4         347.5
  America/Europe
  Corporate and    (63.9   )   (63.8     )   (63.1   )   (87.1   )   (92.5   )   (68.6   )   (97.7   )   (345.9    )   (320.9    )
  Other
Total              $ 248.8    $ 248.3      $ 183.2    $ 222.6    $ 203.7    $ 201.7    $ 146.1    $ 774.1      $ 682.9   
                                                                                                                                 

Contact:

Mead Johnson Nutrition Company
Investors:
Kathy MacDonald, (847) 832-2182
kathy.macdonald@mjn.com
or
Media:
Christopher Perille, (847) 832-2178
chris.perille@mjn.com
 
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