HCEA 2012 STATE of the INDUSTRY

1. Frank Skinner, HCEA Executive Director HCEA 2012STATE of the INDUSTRY

2. Research Underwriters

3. Why is this important? Understanding big picture trends empowers youto make better informed decisions.

4. HCEAState of the Industry 1 2 3 Measurable Trends Future Outlook Industry Issues Industry perspective from multiple viewpoints

5. 1 Measurable Trends Top 50, Attendance, Exhibits, Space Cost, International

6. 2.2%professional attendance Attendance Growth in the Top 50, 2010 to 2011 5.4%totalattendance

7. Professional attendance has rebounded to pre-recession levels. 2.7% Attendance Growth in the Top 50, 2011 vs .2007

8. Professional attendance growth for some, not for others. Attendance Growth in the Top 50 8 meetings 10+ % 5 meetings 20+ %

9. 5%professional attendance Large Meetings: 4,000+ Total Attendee Attendance Growth by Meeting Category .8%totalattendance

10. 9.3%professional attendance Medium Meetings: 2,000-3,999 Total Meetings Attendance Growth by Meeting Category 1.9%totalattendance

11. 13.5%professional attendance Small Meetings: Less than 2,000 Total Attendees Attendance Growth by Meeting Category 22.7%totalattendance Note: There was a decline in the number of meetings reported with less than 200 attendees, likely making the average increases higher than normal.

12. From meetings with 10,000+ total attendees 1998 23.6% 2003 19.9% 2008 29.0% 2010 23.2% 2011 25.2% International Attendance Growth *Percentages from 1998 and 2003 include smaller sample sizes and historical estimates by event organizers.

13. From meetings with 4,000+ total attendees • 201018.3% • 2011 18.9% • Over 8 events with 50%+ international attendees. • Range from 60% to less than 1%. International Attendance Growth

14. .06%net sq. ft. Large Meetings: 4,000+ Total Attendee Exhibit Hall Growth by Meeting Category 6.2%number of exhibits Note: Exhibit figures have been adjusted from 2007 to 2011 to reflect updated reporting definitions.

15. .2%net sq. ft. Medium Meetings: 2,000-3,999 Total Meetings Exhibit Hall Growth by Meeting Category 15.5%number of exhibits Note: Exhibit figures have been adjusted from 2007 to 2011 to reflect updated reporting definitions.

16. Small Meetings: Less than 2,000 Total Attendees -26%net sq. ft. Exhibit Hall Growth by Meeting Category 20.7%number of exhibits Note: There was a significant decline in the number of meetings reported with less than 200 attendees, likely making the average increases higher than normal.

17. Space cost increased across all meeting categories. 10x10 Space Cost by Meeting Category 5% 18.4% 9.5%

18. Benchmarking the baseline Cost per professional attendee

19. 2011 and the last five years Medical Meeting Location Trends

20. 2011 and the last five years 2011 Top 20 Destinations Top 20 Destinations, Last 5 Years Medical Meeting Location Trends 52%of all reported meetings over the last five years were held in the top 20 destinations. 48%of all reported meetings in 2011 were held in the top 20 destinations. Note: Only meetings reported to HCEA are tabulated.

21. When are medical meetings most often held? 71%of meetings were held in 6 months: Mar, Apr, May, Jun, Sep and Oct. Medical Meeting Timing Trends

22. 2 Future Outlook What do your colleagues think?

23. Layoffs, Pharma • 61,109 in 2009 • 53,636 in 2010 • 19,076 in 2011 • Layoffs, Health Care/Products • 46,220 in 2009 • 28,058 in 2010 • 27,373 in 2011 • Source: Challenger, Gray & Christmas Industry Jobs

24. Dow Jones Titan Index of Healthcare • Source: Dow Jones

25. In 2012 do you anticipate that your needs in the following areas will increase, decrease or stay the same? Healthcare Exhibitor Spend Outlook

26. In 2012, do you anticipate that your primary conference attendance will: Medical Show Organizer Outlook

27. In 2012, do you anticipate that the number of your exhibits will: Medical Show Organizer Outlook

28. In 2012, do you anticipate that the net square footage of your exhibit hall will: Medical Show Organizer Outlook

29. What do you see as the biggest challenges facing healthcare conventions in the coming year? Future Outlook

30. What do you see as the biggest challenges facing healthcare exhibitorsin the coming year? Future Outlook

31. 3 Industry Issues Existing and emerging trends, concerns and opportunities

32. Company scrutiny of ROI Industry Issues • Exhibit space has been in decline. • Sponsorship is under a magnifying glass. • Concern about reaching the right people. • Need better metrics to make better decisions. • Better options for reporting HCP interactions and better NPI integration. • Cost of exhibiting makes participation a harder sell.

33. Attendance dynamics; Opportunities Industry Issues • Attendance at large shows is up but that doesn’t mean attendance is up in the hall. • Better reporting of attendance demographics.

34. Emerging Issues in Europe Industry Issues Can European industry codes impact exhibits and attendance at U.S. medical meetings? Yes • EFPIA – European Federation of Pharmaceutical Industries and Associations • EucoMed Medical Technology

35. PPACA, Sunshine and Compliance Industry Issues • Supreme Court – What will decision be? • NPI challenges and opportunities • Compliance paralysis?

36. Innovating the exhibition experience Industry Issues Exhibitors must be even more creativeto attract HCPs and provide a stellar learning experiencewith each booth visit. More hands-on learning opportunities in the hall. Better collaboration between show organizers and exhibitors to make the exhibit hall “the place to be.”

37. New era of learning and engagement The industry is rising to the challengeof re-inventing the medical meeting and exhibition experience.

38. Frank Skinner, HCEA Executive Director HCEA 2012STATE of the INDUSTRY