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Digital Barometer for life sciences Spain

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Across Health’s Digital Barometer Know which way the wind blows!“ For several years now, Across Health has been running a unique digital landscape survey among life sciences leaders in EMEA. This year’s edition of the Digital Barometer has taken, next to a global perspective with exclusive results from Europe, US and China, also a deep dive into the Spanish market . It gives you a 360°view on the status, challenges and future of “The New Normal” in life sciences, i.e. when digital communication is no longer new, but is the norm. I’m convinced you’ll find these results inspiring and trust they will help you reach the next level... Thanks again for your participation and enjoy our hot-off-the-press findings! Fonny Schenck Managing Partner, Across Group CEO, Across Health 9/11/2012 Across Health Digital Barometer 2012 2

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Table of contents • Executive summary • Key survey statistics • Current adoption of digital • Benchmark against competitors • Digital satisfaction • Most common eTactics • Key challenges • Key bottlenecks • Digital understanding • The future of digital in life sciences • Top priorities for digital • Digital marketing, sales & medical budgets9/11/2012 Across Health Digital Barometer 2012 3

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Executive summary9/11/2012 Across Health Digital Barometer 2012 4

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Executive summary• Overall, digital adoption levels are perceived to be behind those of other industries in Spain• Standard websites are still most often used, although there is a clear acceleration of more innovative tactics such as mobile and social. Also self-service HCP portals are popular in Spain.• In general, satisfaction levels for current digital activities are low• Future priority is put on cross-channel programmes which points to a more mature use.• Digital spent is low in Spain and even lower “It’s not about being when compared to EMEA spent. digital anymore, it’s now about being clever with• ROI questions, regulatory issues, lack of internal digital.” knowledge and digital strategy are seen as most important hurdles Peter Hinssen9/11/2012 Across Health Digital Barometer 2012 5

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9/11/2012 Across Health Digital Barometer 2012 6

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Key survey statistics9/11/2012 Across Health Digital Barometer 2012 7

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Key survey statistics • 392 respondents from life sciences companies completed the online survey between mid May and August 2012, of which 52 Spanish respondents • Industry spread Pharma, Biotech, OTC companies, Medical devices • Geographical spread Europe, Middle East & Africa (EMEA). This report contains a subanalysis for Spain • Local vs international spread Global, regional, national / local • Functional spread Marketing, Medical, Sales, Digital, IT, CRM, other9/11/2012 Across Health Digital Barometer 2012 8

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Most respondents come from pharma Pharmaceutical company 77% Medical devices company 8% Technology provider 6% Biotechnology company 2% OTC company 2% Others 6%9/11/2012 Across Health Digital Barometer 2012 9

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Majority of the respondents is working nationally/locally, 14% workat a regional or global level Regional Global 4% 10% National / local 87%9/11/2012 Across Health Digital Barometer 2012 10

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Functional Spread Marketing 50%eBusiness/Digital 40% Sales 10% CRM 8% IT 6% Medical 4% Marketing and Digital/eBusiness represent 90% of all answers Others 8% 9/11/2012 Across Health Digital Barometer 2012 11

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Current adoption • Benchmark against other industries and competitors • Digital satisfaction • Most common eTactics9/11/2012 Across Health Digital Barometer 2012 12

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Current adoption of digital• The gap with other industries remains.• Digital initiatives geared towards HCPs are generally considered more competitive than those targeted towards Patients. This is the opposite of what we see for the EMEA region.• Less than 1 out of 3 respondents is satisfied with current digital activities.• Most commonly used digital tools are classic eMarketing initiatives, specifically the product/disease/company website triangle. “The great thing in the world is not so much• Emerging channels like social media and where we stand, as in particularly mobile marketing are rising rapidly – what direction we are Also HCP self-service portals seem to be moving.” popular in Spain. eRep and eMSL remain small. Oliver W. Holmes9/11/2012 Across Health Digital Barometer 2012 13

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60% rate their company to be behind other leading industries when itcomes to optimizing the use of internet How would you rank your company versus other leading industries in optimally leveraging the internet? 31% 29% 23% 13% 2% 2% No opinion Far behind Behind Average Ahead Far ahead 60%Digital vs other industries9/11/2012 Across Health Digital Barometer 2012 14

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This is comparable to the EMEA results How would you rank your company versus other leading industries in optimally leveraging the internet? 31% 30% 31% 28% 29% 23% 9% 15% 13% 7% 3% 2% 2% 1% EMEA Spain No opinion Far behind Behind Average Ahead Far aheadDigital vs other industriesNote: EMEA: Europe, Middle East & Africa9/11/2012 Across Health Digital Barometer 2012 15

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Digital Strategy in the New Normal“ Once we cross over into the times where digital is the New Normal, the way we interact with our customers will change completely. The worst mistake you could make is to take your existing analog interaction patterns with customers and transfer them to the web. Don’t transfer, but re-think. It’s all about intelligence. It’s all about the contact, it’s all about “you”. As the master of marketing, Philip Kotler, once said: “Marketing takes a day to learn. Unfortunately it takes a lifetime to master.” You’ve got a couple of years, max.” Peter Hinssen Chairman, Across Technology Author of the best-selling “The New Normal” 9/11/2012 Across Health Digital Barometer 2012 16

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1 out of 3 rank their company ahead of competition in using digitalmarketing towards HCPs How would you rank your company versus your competitors in using digital marketing initiatives targeted at healthcare professionals?HCPs 31% 35% 23% 23% 12% 8% 4% No opinion Far behind Behind Average Ahead Far ahead9/11/2012 Across Health Digital Barometer 2012 17

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In terms of consumer / patient-driven digital marketing initiatives, only17% ranks their company as being ahead of competition How would you rank your company versus your competitors in using digital marketing initiatives targeted at consumers/patients?Patients 17% 40% 27% 13% 10% 6% 4% No opinion Far behind Behind Average Ahead Far ahead9/11/2012 Across Health Digital Barometer 2012 18

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The level of digital competitiveness regarding HCP activities is higher in Spainthan at EMEA level How would you rank your company versus your competitors in using digital marketing initiatives targeted at HCPs OR consumers/patients? (% ahead + % far ahead) 52% 40% 35% 28% 20% 19% 17% 9% 0% EMEA Spain HCP PatientsNote: EMEA: Europe, Middle East & Africa9/11/2012 Across Health Digital Barometer 2012 19

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The iPad (r)evolution“ For long, we all have been using legacy CRM systems and some of us have even tried out tablet computers in day-to-day calls. It almost started to seem normal practice to work with the slow and heavy tools we had. But then the iPad (and cloud computing) took us all by surprise. Still today, almost weekly companies are approaching us with the same question: “We just bought iPads... how do we go beyond the rapidly waning novelty factor – and PDF detail aids?” And this is only the start... Indeed, the iPad holds a lot of promise for integrated cross-channel approaches. But the tool itself is already being commoditized... If done well, interactive detailing can quickly become the main gateway for reps and their customers to access the company’s whole multichannel service offering. In that scenario, the iPad can completely change the way we have been doing business for decades in just a few years... If not, it will be just another technology-led hype... and the track record of pharma is not really strong in this area! Pat Thistlethwaithe Managing Director, USA 9/11/2012 Across Health Digital Barometer 2012 20

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Only 29% of respondents are satisfied with their current digital activities On a scale from 0 to 5, how satisfied are you with your current digital activities? 35% 29% 23% 21% 13% 6% 2% 0 1 2 3 4 5 Extremely Extremely Dissatisfied Satisfied Average score 2,89/11/2012 Across Health Digital Barometer 2012 21

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Although still low, digital satisfaction levels are higher in Spain (29%)than for EMEA (17%) On a scale from 0 to 5, how satisfied are you with your current digital activities? AVG. Score 2% 2,6 EMEA 1 13% 28% 41% 15% Spain 2 13% 21% 35% 23% 6% 2,8 0% 20% 40% 60% 80% 100% Extremely 0 1 2 3 4 5 Extremely Dissatisfied SatisfiedNote: EMEA: Europe, Middle East & Africa9/11/2012 Across Health Digital Barometer 2012 22

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Top eTactics used in: Spain Company website 90% 4% 4% 2HCP self-service portal 73% 13% 8% 6% Disease website 73% 6% 17% 4% Product website 69% 12% 17% 2 Online MedEd 69% 6% 17% 8% eMail marketing 65% 10% 21% 1 Web Banners 56% 10% 33% 2 Social media 46% 27% 27% SEO 42% 15% 40% 2 Mobile marketing 40% 37% 23% Tablet eDetailing 37% 27% 31% 6% SEA 37% 19% 40% 3 Web conference 27% 27% 38% 8% Virtual eDetailing 17% 15% 58% 3 eRep 12% 10% 69% 10% eMSL 10% 17% 63% 10% Often / Standard practice Pilot planned or ongoing Never Do not know / NA 9/11/2012 Across Health Digital Barometer 2012 23

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Overview of biggest differences observed in tactics adoption between Spain and EMEA80% 73% 73% 69% 63%60% 48% 46% 42% 42% 40% 40%40% 37% 27% 24%20% 13%0% Social media HCP self- Online MedEd Mobile Disease Tablet Web service portal marketing website eDetailing conference EMEA Spain * Percentages indicate tactics that are “Often / Standard” practice. Note: EMEA: Europe, Middle East & Africa 9/11/2012 Across Health Digital Barometer 2012 24

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eRep and eMSL require thoughtful management“ The traditional business model in pharma is waning. The role of the sales force is being redefined and their tools modernized, as iPad detailing and remote live customer interactions, a.k.a. eRep and eMSL, are being introduced. As opposed to the amount of attention iPad detailing currently gets, the more disruptive and potentially more impactful remote approaches are still only used by a limited group of early adopters. Indeed, introducing remote detailing requires more courage, investment and change management. Our experience teaches us that it is truly about changing the business model step by step – any other approach will quickly fail and die, leaving behind a wound in the organization that is hard to heal. Patrick Vidal Managing Director, France 9/11/2012 Across Health Digital Barometer 2012 25

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Finally, in the mobile space, “beyond the pill” still seems a far cry fromreality… CME apps are most commonly developed; the promisingmonitoring tools seem to be the hardest MOBILE: What apps / tactics do you develop or have developed? CME 35% Product info / updates 31% Diagnostic tool 29% Treatment guidelines 29% Dosage calculator 25% Medical news / article updates 23% Mobile website 17% Adherence / compliance tracker 15% Symptom tracker 10% Remote monitoring of patients 10% Others 4% None 21%9/11/2012 Across Health Digital Barometer 2012 26

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Key challenges • Key bottlenecks • Digital understanding9/11/2012 Across Health Digital Barometer 2012 27

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Key challenges• ROI, Regulatory or legal issues and lack of internal knowledge are the main challenges for Spain.• Lack of a clear digital strategy is seen as an overall issue• Lack of budget could become a hurdle to really reach the turning point for digital in Spain• Over 1/3 of respondents feel they have insufficient knowledge of online opportunities for their business activities. “When youre finished changing, youre finished.” Benjamin Franklin9/11/2012 Across Health Digital Barometer 2012 28

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The 3 primary bottlenecks for digital in Spain are ROI questions, regulatory issuesand lack of internal knowledge in this area. Also a lack of clear digital strategymakes it to the top Spain ROI questions 23% 10% 15% Regulatory or legal issues 17% 17% 10% Not enough internal knowledge in this area 17% 19% 6% No clear eBusiness strategy 13% 23% 19% No budget 6% 13% 2 No senior management support 6% 6% 2 Healthcare compliance concerns 6% 4% 2 Customers are not ready 6% 8% No headcount to support this 2 2 10% No expert agencies with pharma background available 2 2 4%Pharmacovigilance issues (adverse event reporting etc) 4% Others 22 N/A 2 12% Most important Second most important Third most important9/11/2012 Across Health Digital Barometer 2012 29

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Over 1/3 of the Spanish respondents reports being inconfident about theirknowledge of digital opportunities for pharma Do you feel that you have sufficient knowledge of all opportunities offered by the internet for your business activities? 63% 38% 25% 21% 13% 2% Totally Insufficient Between Sufficient More than insufficient sufficient sufficient / and expert insufficient Internal knowledge9/11/2012 Across Health Digital Barometer 2012 30

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Setting up the multichannel organization“ When organizing your company for integrate cross-channel and customer centric approaches, a lot of small and big steps need to be taken, and sometimes retaken. Zero-based definition of the channel mix, upgrading the CRM platform for true 360° CLM, introducing new sales tools, training & change management, synchronizing sales-marketing-service-medical teams, investing in customer analytics, building the required digital infrastructure, defining new policies and processes, ... It requires considerable vision, experienced people and a willingness to keep moving forward. The production agencies of the past – who recently acquired digital capabilities – are no appropriate partners to take along in this transformation. We believe in multichannel, and we’ve been there. Have a look at our website and give us a call! Patric Jarchow Managing Director, Germany 9/11/2012 Across Health Digital Barometer 2012 31

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The future of digitalin life sciences • Top priorities for digital • Digital marketing, sales & medical budgets9/11/2012 Across Health Digital Barometer 2012 32

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FUTURE OF DIGITALThe future of digitalin life sciences• Cross-channel marketing mix optimization is the top priority for most. Strategy development and impact measurement/dashboarding immediately follow.• Currently, digital initiatives capture only a small percentage of the total marketing budget. For medical and sales this is even lower.• 3 out of 4 believe the digital budget will increase – but only moderately (and still too slowly to really change something). Meanwhile, the majority “My interest is in the believes that the overall marketing budget will future because I am either remain the same or decrease. going to spend the rest of my life there.” Charles F. Kettering9/11/2012 Across Health Digital Barometer 2012 33

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FUTURE OF DIGITALOverall, cross-channel marketing optimization and digital strategydevelopment are seen to be the most important digital priorities What are priorities in your organization regarding DIGITAL? Cross-channel marketing mix 17% optimization Strategy development 17% Impact measurement / reporting / 16% dashboarding Full-scale execution of tactics 16% Training 13% Assessing landscape trends 10% Best practice sharing 9,5%9/11/2012 Across Health Digital Barometer 2012 34

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FUTURE OF DIGITAL Digital priorities setting for Spain seems to be in line with the EMEA results EMEA SpainCross-channel marketing mix optimization 22% 17% Strategy development 18% 17% Impact measurement / reporting / 16% 15% dashboarding Full-scale execution of tactics 13% 16% Training 13% 13% Best practice sharing 11% 9.5% Assessing landscape trends 7% 10% Note: EMEA: Europe, Middle East & Africa - NA: North America - CH: China 9/11/2012 Across Health Digital Barometer 2012 35

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Rethink the marketing mix“ When reading the Digital Barometer results, it strikes and delights me that this year’s top priority regarding digital is the redefinition of the cross-channel marketing mix. It is truly essential to rethink the cross-channel mix, as it is only when you visualize your optimal mix from the eye of your customers, calculate budgets and resources accordingly, and redesign your customer-facing activities, that you will be able to lead the required change, generate true business impact... and create a virtuous circle of success. Even if the large cross-channel breakthrough may not come before 2013-2015, visualize it today and plan for the near future. It will be a helpful map in your exciting journey in the “New Normal”...and any procrastination is to be avoided – your competitors have the same priority! Charles MacKinnon Managing Director, UK 9/11/2012 Across Health Digital Barometer 2012 36

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FUTURE OF DIGITALLess than 10% of overall marketing budget is spent on digital initiatives If you oversee a product budget (marketing), which percentage of it is allocated to digital initiatives THIS YEAR? Average 9,1% less than 5% 60% 5% to 10% 11% to 15% 16% to 20% 17% 13% 21% to 25% 7% 3% 0% more than 25% Digital marketing9/11/2012 Across Health Digital Barometer 2012 37

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FUTURE OF DIGITALCompared with EMEA, Spain has some catching up to do when it comesdown to allocating marketing budget to digital initiatives If you oversee a product budget (marketing), which percentage of it is allocated to digital initiatives THIS YEAR? 60% Average Average 14,8% 9,1% 36% 22% 17% 17% 13% 9% 9% 7% 7% 3% 0% EMEA Spain less than 5% 5% to 10% 11% to 15% 16% to 20% 21% to 25% more than 25% Digital marketing9/11/2012 Across Health Digital Barometer 2012 38

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FUTURE OF DIGITALMedical budgets do not prioritize digital initiatives. Digital is howeverslowly taking off If you oversee a product budget (medical), which percentage of it is allocated to digital initiatives THIS YEAR? 50% less than 5% 44% 5% to 10% Average 4,8% 11% to 15% 6% 16% or Above 0% Digital medical9/11/2012 Across Health Digital Barometer 2012 39

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FUTURE OF DIGITALSimilarly, digital sales budgets are also quite low, but on the rise If you oversee a product budget (sales), which percentage of it is allocated to digital initiatives THIS YEAR? 62% less than 5% Average 4,6% 33% 5% to 10% 11% to 16% 5% 0% 17% and Above Digital sales9/11/2012 Across Health Digital Barometer 2012 40

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FUTURE OF DIGITALOnly 4% reported that the general marketing budget will increase, while70% of respondents foresee an increase of their digital budget How do you think your overall marketing budget and digital budget will evolve? 58% Overall 52% Digital 33% 27% 12% 4% 6% 4% 2% 2% 2% Decrease Decrease Stay the Increase by Increase by Increase by Will more >25% <25% same <20% 21% to 50% >50% than double9/11/2012 Across Health Digital Barometer 2012 41

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Life sciences spending on digital“ In terms of digital budget in life sciences, we’ve come a long way. Still, a 14,1% digital marketing budget is nothing more than a “good start”, even despite the double-digit yearly growth from a low base...14.1% is not at all reflecting the true potential of the new channels and customer expectations! The companies that are really changing the game tend to be the ones that are forced to. Only if resources need to be reallocated to other products or traditional approaches do not cut it anymore, bold moves towards a multichannel approach are made. My question is: why do we wait for circumstances to get critical to review the way we spend our marketing-sales budgets? Why don’t we embrace the New Normal and really rethink the way we do business from the customer’s perspective? Eva Velasco Managing Director, Spain 9/11/2012 Across Health Digital Barometer 2012 42

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Final thoughts9/11/2012 Across Health Digital Barometer 2012 43

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So will 2013 go on record as the first year in the New Normal?“ Some Barometer trends could certainly tempt me into answering with a strong “YES”. Indeed, there are several positive signs for a higher level of cross-channel maturity: the importance of internal knowledge/resources is on the rise, budgets are increasing and cross-channel marketing and robust execution are seen as key priorities. On the other hand, the limited overall spend on digital, the incessant focus on ROI, the strong focus on ipad detailing (which is already becoming a commodity and not solving some bigger issues), the product-centric approach to mobile and the limited overall knowledge, despite many well-intended training efforts and pilot projects, lead me to say: probably not until 2014... Nevertheless, many enlightened teams and greenfield companies will continue to lead the way and change the game...good luck on your journey towards the New Normal! Beverly Smet VP Europe South Across Health 9/11/2012 Across Health Digital Barometer 2012 44

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About Across HealthCOMPANY • 60+ strong consultancy • Focus on innovative customer-centric approaches (e-powering traditional channels– “fusion”) • From insight to innovation strategy, integrated execution & impact measurement • Unique offering in the industry • 35+% CAGR since the start (2007)CUSTOMERS Extensive experience at • Pharmaceuticals regional/global level • Devices & Diagnostics • Hospitals AND • Patient & Professional Associations local execution powerINTERNATIONAL EXPANSION ONGOING • Head offices in Belgium (Ghent) • Offices in Spain, France, UK, Switzerland, Netherlands, Nordics, Germany, New Europe, China, Australia and US8/5/12 Across Health Digital Barometer 2012 45

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How do we play? 04 Impact 01 Insight We summarize key trends, best practices and benchmarks - also from related and other industries - and compare them to your current We measure the impact of the new situation. strategy using dashboards, KPIs, … and create best-practice The 4 Is documents/tools. Integrated execution 03 We handle the project from A to Z as 02 Innovation We come up with a 2-3 year innovative, balanced and integrated roadmap and strategy for the well as supporting in related activities program that builds on the strenghts of such as change management, process your existing channels. & organizational development, design, training of sales reps, etc.9/11/2012 Across Health Digital Barometer 2012 46

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We advocate a balanced approach Experiment Enhance • Mobile strategy & Execute • Dashboards tactics • (on-site) programme • Customer experience • Social strategy & management of large- tactics • Online marketing scale projects: cross- • PHR/EHR strategy • Personalization channel projects, • Innovation pilots teledetailing, self- • Search engine service portal, … optimization • Social media optimization • …11-9-2012 Across Health - Introduction 47

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Some of our key references9/11/2012 Across Health Digital Barometer 2012 48

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Our international footprint9/11/2012 Across Health Digital Barometer 2012 49

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Contact DetailsDISCLAIMER: These results have been compiled by Jeroen Corthout & Fadi BaddurCurrent presentation is confidential. All For any question, mail to Eva.Velasco@a-cross.comproposed concepts and ideas Make sure also to check out our fields of expertise onpresented here are intellectual propertyof Across Health, and are to be used incollaboration with Across Health. www.a-cross.com/health