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

2. Contents Review of Current Economic Trends How the industry is coping with severe business environment How to utilize new communication methods

4. Europe ( in Euro)20082009 09/08(% ) Acclamation30,00020,00066.7% Anabaa27,00030,000111.1% Authorized28,50025,00087.7% Azamour25,00015,00060.0% Barathea25,00015,00060.0% Cape Cross50,00035,00070.0% Dalakhani40,00050,000125.0% Dansili85,70074,30086.7% Dubawi40,00017,10042.8% Dylan Thomas50,00035,00070.0% Excellent Art25,00017,50070.0% Holy Roman Emperor 35,00025,00071.4% Hurricane Run30,00020,00066.7% Invincible Spirit75,00050,00066.7% Lawman25,00020,00080.0% Manduro40,00022,90057.3% Oasis Dream34,300 100.0% Oratorio25,00017,50070.0% Peintre Celebre25,00020,00080.0% Pivotal97,10074,30076.5% Rock Of Gibraltar35,00027,50078.6% Selkirk40,00028,60071.5% Teofilo40,00025,00062.5% Average40,33030,39175.4% *convert Sterling Pounds into Euro North America (in $US) 2008200909/08(%) A P Indy300,000250,00083.3% Awesome Again150,000125,00083.3% Bernardini100,00075,00075.0% Distorted Humor300,000150,00050.0% Dynaformer150,000 100.0% El Prado75,000 100.0% Elusive Quality75,000 100.0% Empire Maker100,00075,00075.0% Forestry100,00040,00040.0% Ghostzapper150,000125,00083.3% Giant's Causeway125,000 100.0% Gone West85,000 100.0% Johannesburg65,00035,00053.8% Kingmambo250,000 100.0% Mineshaft75,00030,00040.0% More Then Ready60,00045,00075.0% Mr Greeley125,00075,00060.0% Pulpit80,000 100.0% Rahy60,00050,00083.3% Smart Strike150,000125,00083.3% Street Cry100,000150,000150.0% Street Sense75,00060,00080.0% Unbridled's Song150,000112,50075.0% Average126,087102,71781.5% Europe 75.4% North America 81.5%

6. World Total Betting Turnover (2009) 2008 85.2 Billion Euros 2009 84.2 Billion Euros (1.2% decline) Japan 5.5% US 9.8% France 0.4% Australia 12.8% Hong Kong 9.8% Korea 9.2% Ireland 15.8%

7. World Economic Outlook 2010 (IMF)

9. World Wagering First Half of 2010 France (PMU) + 0.6 % Hong Kong (*Jan-Jul) +14.1 % Italy (AAMS)- 13.3 % Japan (JRA) - 5.0 % Korea + 6.7 % Singapore - 7.0 % Sweden (ATG) + 3.1 %

10. Coping with Economic Downturn Cutting Cost & Increase Income Recipe for Disaster Dwelling on the past success & Doing Nothing

11. Rebate Scheme (Hong Kong Jockey Club) Losing bet exceed HK$10.000 Rebate: 10% of losing bet Target: core customers Pareto Principle (80-20 rules)

12. Lower Take-Out Rate (PMU) Take-out rate of Win & Place bet (April 2007) 18.5% 15% Monthly total betting increase Jun 18.9% Jul 22.1% Aug 10.7% Sep 15.5% Oct 11.9% Nov 11.2% (Nov: Win & Place +29.2%)

13. Deep Impact Number of Attendance 2005 Apr Satsuki Sho (GI) 85.146 (+ 6.2%) May Japan Derby(GI) 140.143 (+14.8%) Oct Kikuka Sho (GI) 136.701 (+82.0%) Dec Arima Kinen (GI) 162.409 (+29.6%) 2006 Apr Emperor’s Cup (GI) 93.944 (+ 6.2%) Jun Takarazuka Kinen(GI) 80.382 (+21.9%) Nov Japan Cup (GI) 120.182 (+25.7%) Dec Arima Kinen (GI) 117.251 (-27.8%)

14. Coping with Economic Downturn Cutting Cost & Increase Income Innovation (think out of the Box) Taking necessary risks & Back to Basics

15. Racing For Change (BHA)

16. How to target the new customers on internet (by Mr. John Della Volpe)

17. How to social-network

18. Essence of Social Network ‘Social networks can never be a cure-it-all. Social media networks, Apple iPhone and other trends are useful when we have the right products to sell’ (Singapore Turf Club)

20. Twitter I followed

21. 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

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