HCEA 2013 STATE of the INDUSTRY

1. Jackie Beaulieu, HCEA Executive Vice President HCEA 2013STATE of the INDUSTRY

2. Research Underwriters

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

4. AHA American Heart Association or Anesthesia History Association

5. 161,406 Total Attendees Reported in 2012

6. Flying Physicians Association Association for Play Therapy Blepharospasm Research Foundation

7. Attendance swings for two large events 20% 32%

8. Medical meetings represent over 400 specialties

9. Accreditation Council for Continuing Medical Education (ACCME)  AdvaMed Code of Ethics AgenceFrançaise de Sécurité Sanitaire des Produits de Santé (AFSSAPS) American Medical Associaiton (AMA) Best Practices on Exhibitor Designated Contractors Canada Food & Drug Act Canada Rx&D Code of Ethical Practices Canadian Pharma Code  Code for Interactions with Companies Council of Medical Specialty Societies (CMSS)  Department of Healthcare and Human Services, Office of the Inspector General (OIG) EFPIA Codes of Practice EucoMedCode of Ethical Business Practice Food and Drug Administration (FDA) Guidelines for U. S. Healthcare Conventions HCEA Convention Housing Position Statement IFPMA Americas Region IFPMA Asia & Pacific Region IFPMA European Region IFPMA Middle East and Africa Region International Pharmaceutical Congress Advisory Association (IPCAA) International Pharmaceutical Federation (FIP) IPCAA Healthcare Congress Guidelines Medical Imaging and Technology Alliance (MITA) OIG Guidance PhRMACode on Interactions with Healthcare Professionals Physcian Payment and Affordable Care Act (PPACA) Physcian Payment Sunshine Act (2009) Prescription Drug Advertising and Promotional Labeling - DRAFT GUIDANCE Product Name Placement, Size, and Prominence in Advertising and Promotional Labeling Regulatory Acts Sponsorship Solicitation Guidelines Statments and Guidelines TSEA/HCEA Standard on Electronic Output Files Washington, DC SafeRxLaw 80 Approximately …industry codes, guidelines and laws by state and country

10. HCEAState of the Industry 1 3 2 Meeting Trends Economic Trends Future Outlook Industry perspective from multiple viewpoints

11. 1 Meeting Trends Top 50, Attendance, Exhibits, Space Cost, International

12. .64%professional attendance Attendance Growth in the Top 50, 2011 to 2012 .04%totalattendance Note: HCEA updates historical data as reported, which is reflected in successive reports. In some instances where professional attendance has not been supplied HCEA applies a standard baseline average ratio to the organizer’s reported total attendance.

13. Professional attendance is nearly back to pre-recession levels. Attendance Growth in the Top 50, 2012 vs .2007 -.01% Note: HCEA updates historical data as reported, which is reflected in successive reports. In some instances where professional attendance has not been supplied HCEA applies a standard baseline average ratio to the organizer’s reported total attendance.

14. Healthcare Sector vs. Overall Exhibition Industry, Index of Attendees, 2009=100 Attendance Trends in CEIR Index

15. Professional attendance growth for some, not for others. Attendance Growth in the Top 50 8 meetings 10+ % 4 meetings 10+ %

16. 11.7%professional attendance Large Meetings: 4,000+ Total Attendees Attendance Growth by Meeting Category 11.5%totalattendance

17. From meetings with 10,000+ total attendees 1998 23.6% 2003 19.9% 2008 29.0% 2011 25.2% 2012 25.3% International Attendance Growth *Percentages from 1998 and 2003 include smaller sample sizes and historical estimates by event organizers.

18. .52%net sq. ft. Large Meetings: 4,000+ Total Attendee Exhibit Hall Trends in Exhibits and Net Sq. Ft. 27%number of exhibits Note: Exhibit figures have been adjusted from 2006 forward to reflect updated reporting definitions.

19. Space cost maintains increases. 10x10 Space Cost Trends from 1997-2012 Space cost is 22% higher than the inflation-adjusted rate in 2012.

20. 2011 and the last five years Medical Meeting Location Trends

21. 2012 Top 20 Destinations 2010 Top 20 CEIR Destinations 64%of 712 reported U.S. medical meetings were held in 20 destinations. 49% of 11,041 U.S. exhibitions were held in 20 destinations, according to CEIR Census 2010 Medical Meeting Location Trends

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

23. All meetings held from the 2010 CEIR census. Timing Trends for All Meetings 62% According to the 2010 CEIR census the top 6 months are: Mar, Apr, May, Sep, Oct, Nov.

24. 2 Economic Trends Economics, Dow Jones, GDP

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

26. Despite multiple recessions, annual national healthcare expenditures from 1960 through 2012 have increased. National Healthcare Expenditure (% Change)

27. Year-on-Year % Change CEIR Total Index vs. Quarterly Real GDP

28. 3 Future Outlook What do your colleagues think?

29. In 2014, do you anticipate that your company will exhibit: Healthcare Exhibitor Outlook 58 Companies Reporting

30. In 2014 do you expect that your spending in the following areas will increase, decrease or have no change? Healthcare Exhibitor Outlook 58 Companies Reporting

31. In 2014, do you anticipate that your primary conference attendance will: Medical Show Organizer Outlook 28 Associations Reporting

32. In 2014, do you expect that your net square footage will: Medical Show Organizer Outlook 28 Associations Reporting

33. In 2014, do you anticipate that the number of your exhibits will: Medical Show Organizer Outlook 28 Associations Reporting

34. What do you see as the biggest challenges facing healthcare exhibitorsin the coming year? Future Outlook • Budget constraints/cost management • Regulations/Guidelines • Traffic in hall / attendee interaction • Exhibitors not being creative enough to adapt how they interact on the show floor • Show organizers not being creative enough to make the exhibit hall more compelling

35. What do you see as the biggest challenges facing healthcare conventions in the coming year? Future Outlook • Traffic in hall / attendee interaction • Budget and cost implications • Regulations/Guidelines • Sustainability of the current convention/exhibit model

36. Success Trends Industry Issues Exercising collaborationbetween show organizers and exhibitors to make the exhibit hall compelling, cost conscience and valuable. Exhibitors who are being proactive in re-inventing how they weave education and science into their exhibit experience to attract HCPs. Ongoing evolution of turning exhibit halls into ecosystems of clinical and scientific exploration for HCPs.

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

38. Jackie Beaulieu, HCEA Executive Vice President HCEA 2013STATE of the INDUSTRY