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

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

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

Top 10 Thoroughbred Breeding Countries United States *27,800 →*24, % Australia17,191 → 15, % Argentine 8,437 → 8, % Ireland 7,588 → 7, % Japan 7,105 → 7, % France 5,470 → 4, % Great Britain 4,665 → 4, % New Zealand 4,334 → 4, % South Africa 3,245 → 3, % Brazil 2,844 → 2, % *United States figures: estimated

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

2.96 Billion Euro + 2.6% +0.4%

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

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)

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

Bottomed Out but be vigilant

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

Geographical FRONTIER

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

Homeless Money (40-50 Trillion US $)

Occupy Wall Street

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

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

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

Do the Right Thing