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

New definition of Crisis Crisis (by Oxford Dictionary) A time of intense difficulty or danger Ki Ki crisis or danger opportunity

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

109,000 Foals Decline by 7.1%

Top 10 Thoroughbred Breeding Countries United States 31,750 *27, % Australia 16,112 17, % Argentine 8,471 8, % Ireland 10,671 7, % Japan 7,453 7, % France 5,524 5, % Great Britain 5,652 4, % New Zealand 4,469 3, % South Africa 3,664 3, % Brazil 2,922 2, % *United States 2010 is estimated figure

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

2.86 Billion Euro % -1.6%

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

88 billion Increase by 5% Decrease by 1.4%

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

Bottoming Out In 2010 ?

World Wagering First Half of 2011 France (PMU) % Hong Kong (Yearly) % Italy % Japan (JRA) % Korea % Singapore % United States %

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

Racing Data Input On-Line

8 Years Gap ?

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

1 st 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

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

Hit a Plateau In 2004

Generation X 62,502,000

Generation XGeneration Y 73,552,000 Population Bonus

Generation YGeneration X 78,694,000

8 Years Gap Population Bonus

Generation YGeneration X 77,829,000 70,826,000 by ,052,000 by 2030

Financial Crisis in 2008 Crisis of the Century POPULATION Crisis of our History B ONUS

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

Customer Service Dept Super Idol Horse Mobile Phone and others

What we have to do? To know yourself Population Bonus Low Penetration & Disposable Income Population Onus High Penetration & Disposable Income 12 34

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

New definition of Crisis Crisis (by Oxford Dictionary) A time of intense difficulty or danger Ki Ki crisis or danger opportunity

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