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

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

Europe ( in Euro) /08(% ) Acclamation30,00020, % Anabaa27,00030, % Authorized28,50025, % Azamour25,00015, % Barathea25,00015, % Cape Cross50,00035, % Dalakhani40,00050, % Dansili85,70074, % Dubawi40,00017, % Dylan Thomas50,00035, % Excellent Art25,00017, % Holy Roman Emperor 35,00025, % Hurricane Run30,00020, % Invincible Spirit75,00050, % Lawman25,00020, % Manduro40,00022, % Oasis Dream34, % Oratorio25,00017, % Peintre Celebre25,00020, % Pivotal97,10074, % Rock Of Gibraltar35,00027, % Selkirk40,00028, % Teofilo40,00025, % Average40,33030, % *convert Sterling Pounds into Euro North America (in $US) /08(%) A P Indy300,000250, % Awesome Again150,000125, % Bernardini100,00075, % Distorted Humor300,000150, % Dynaformer150, % El Prado75, % Elusive Quality75, % Empire Maker100,00075, % Forestry100,00040, % Ghostzapper150,000125, % Giant's Causeway125, % Gone West85, % Johannesburg65,00035, % Kingmambo250, % Mineshaft75,00030, % More Then Ready60,00045, % Mr Greeley125,00075, % Pulpit80, % Rahy60,00050, % Smart Strike150,000125, % Street Cry100,000150, % Street Sense75,00060, % Unbridled's Song150,000112, % Average126,087102, % Europe 75.4% North America 81.5%

World Total Betting Turnover (2009) Billion Euros 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%

World Economic Outlook 2010 (IMF)

World Wagering First Half of 2010 France (PMU) % Hong Kong (*Jan-Jul) % Italy (AAMS) % Japan (JRA) % Korea % Singapore % Sweden (ATG) %

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

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

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%)

Deep Impact Number of Attendance 2005 Apr Satsuki Sho (GI) (+ 6.2%) May Japan Derby(GI) (+14.8%) Oct Kikuka Sho (GI) (+82.0%) Dec Arima Kinen (GI) (+29.6%) 2006 Apr Emperor’s Cup (GI) (+ 6.2%) Jun Takarazuka Kinen(GI) (+21.9%) Nov Japan Cup (GI) (+25.7%) Dec Arima Kinen (GI) (-27.8%)

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

Racing For Change (BHA)

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

How to social-network

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)

Twitter I followed

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

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