Aki AKITANI Deputy Secretary General

1. Review of Current Economic Trends in Breeding & Racing Aki AKITANI Deputy Secretary General

2. New definition of‘Crisis’ Crisis (by Oxford Dictionary) ‘A time of intense difficulty or danger’ 危　　機 Ki Ki 危　　　crisis or danger 機　 　opportunity

3. Contents • Analysis of Racing Data 2010 & First Half 2011 • Future Turnover Indicators

4. 109,000 Foals Decline by 7.1%

5. Top 10 Thoroughbred Breeding Countries 2009 2010 • United States 31,750 → *27,800 -12.4% • Australia 16,112 → 17,191 + 6.7% • Argentine 8,471 → 8,437 - 0.4% • Ireland 10,671 → 7,588 -28.9% • Japan 7,453 → 7,105 - 4.7% • France 5,524 → 5,470 - 1.0% • Great Britain 5,652 → 4,665 -17.4% • New Zealand 4,469 → 3,778 -15.5% • South Africa 3,664 → 3,245 -11.4% • Brazil 2,922 → 2,922 - 2.7% *United States 2010 is estimated figure

6. 154,000 Flat 8,000 Jump Decline by 3%

7. 2.86 Billion Euro + 10.6% -1.6%

8. Value Depreciation of Euro in 2010 Argentine P 0.96 Australian$ 0.82 Brazil R 0.88 GB￡ 0.97 HK$ 0.93 India R 0.89 Japanese\ 0.82 Malaysia R 0.83 NZ$ 0.87 Singapore$ 0.85 Sweden K 0.87 Swiss F 0.84 Turkey L 0.96 US$ 0.93

9. €88 billion Increase by 5% Decrease by 1.4%

10. European Countries Severely Suffered Double-Digits Decline Cyprus: -10.8% Germany: -15.0% Great Britain: -15.6% Greece: -25.6% Hungary: -18.5% Italy: -12.7% Japan 6.1% decline

11. Bottoming Out In 2010 ?

12. World WageringFirst Half of 2011 France (PMU) + 3.4 % Hong Kong (Yearly) + 6.5 % Italy - 17.8 % Japan (JRA) - 10.4 % Korea + 0.4 % Singapore - 10.2 % United States - 7.7 %

13. World Wagering/Gaming Outlook 2011 ‘Overall we expect global horserace betting to be about on a par with 2010 -we were expecting it to be ahead by 1.5% before the earthquake.’Simon Holliday H2 Gambling Capital

14. Racing Data Input On-Line

15. 8 Years Gap ?

16. Turnover……….? The number of Customers X Per Capita spending on Racing Disposable Income Penetration

17. 1st Session ‘Racing Authorities/Pari Mutuel Operators Still running the same race?’ Racing Authorities and Pari Mutuel Operators Need promoting racing together Racing Authorities needs to provide ‘Racing Stories’

18. Turnover……….? The number of Customers X Per Capita spending on Racing Between 20 & 65 years old ‘Consuming Age’ Disposable Income Penetration

19. Hit a Plateau In 2004

20. Generation X 62,502,000

21. Generation Y Generation X 73,552,000 Population Bonus

22. Generation Y Generation X 78,694,000

23. 8 Years Gap Population Bonus

24. Generation Y Generation X 77,829,000 70,826,000 by 2015 63,052,000 by 2030

25. Financial Crisis in 2008 ‘Crisis of the Century’ POPULATION B O N U S ‘Crisis of our History’

26. China One Child Policy In 2000 Census 125 million between 10 & 14 69 million between 0 & 4 45% less children in ten years Longer term effect will be phenomenal

27. Mobile Phone and others Super Idol Horse Customer Service Dept

28. To know yourself What we have to do? Population Bonus Population Onus Low Penetration & Disposable Income 1 2 High Penetration & Disposable Income 3 4

29. For Those Who are In Section Four What you can do ? Beyond Conventional Market Geographically, Gender-wise, Generation-Wise Efficiency ‘Less is More’ Diversification Secure Other Sources of Income

30. New definition of‘Crisis’ Crisis (by Oxford Dictionary) ‘A time of intense difficulty or danger’ 危　　機 Ki Ki 危　　　crisis or danger 機　 　opportunity

31. Review of Current Economic Trends in Breeding & Racing Aki AKITANI Deputy Secretary General