1. Aki AKITANI Deputy Secretary General Review of Current Economic Trends in Breeding & Racing & A new world after Market Capitalism

2. Contents Analysis of Racing Date 2011 & First Half 2012 Post Market Capitalism

3. 103,000 Foals Decline by 5.1% 13%+ Decline in 3 years

4. Top 10 Thoroughbred Breeding Countries 2010 2011 United States *27,800 →*24,900 -10.4% Australia17,191 → 15,893 - 7.6% Argentine 8,437 → 8,761 + 3.8% Ireland 7,588 → 7,550 - 0.5% Japan 7,105 → 7,064 - 0.6% France 5,470 → 4,984 - 8.9% Great Britain 4,665 → 4,635 - 0.6% New Zealand 4,334 → 4,161 - 0.4% South Africa 3,245 → 3,510 + 8.2% Brazil 2,844 → 2,826 - 6.3% *United States figures: estimated

5. 153,700 Flat 8,600 Jump Decrease by less than 1%

6. 2.96 Billion Euro + 2.6% +0.4%

7. €89.8 billion Increase by 1.9% (Nominal) Decreased by 1.2% (Actual)

8. Euro Crisis affected European Countries Double-Digits Decline in Betting Turnover Cyprus -17.9% Czech -13.2% Greece -36.2% Ireland -12.0% Italy -20.8% Slovakia -16.3% Japan 5.7% decline (Catastrophe +economic slump)

9. World Wagering First Half of 2012 France (PMU) + 1.7% Hong Kong (Yearly) + 7.1% Italy - 32.1% Japan (JRA) + 8.1% Korea - 3.0% New Zealand + 3.9% Sweden - 4.7% Turkey + 9.5% United States + 2.0%

10. Bottomed Out but be vigilant

14. Market Capitalism Self Propagate (Self-Reproduction) by exploiting resources 'FRONTIERS' Geographical Environmental

15. Geographical FRONTIER

17. Market Capitalism Self Propagate (Self-Reproduction) by exploiting resources 'FRONTIERS' Geographical Environmental Financial

18. Homeless Money (40-50 Trillion US $)

20. Occupy Wall Street

21. Unemployment Rate (April/2012) 27 EU Countries: 10.3% Under 25 Year Old: 22.4% Spain: 51.5% Greece: 52.7% (Source: ILO)

22. Generation YGeneration X 77,829,000 70,826,000 by 2015 63,052,000 by 2030

23. Quality vs Quantity Race Quality Controle Medication Number of races Turnover vs Profit Expansion vs Maintain

24. Do the Right Thing