The Year in Review

in 61 MINUTES

Andy Clark

Joop Loomans

Mike Pownall

The Economy in Decline?

How Does it Affect theEquine Industry

Technology & Social Media

Asset?Liability?

Or Both?

New Grads JobsDebt

Too Little and Too Much

Challenging Times

2008200920102011…The Future

The Economy

U.S. Public Debt• 1980 Debt 33% of GDP $909 billion

• 1990 Debt 55.9% of GDP $ 3.2 trillion

• 2001 Debt 55.9% of GDP $ 5.7 trillion

• 2009 Debt 90% of GDP $14.3 trillion

2010 Debt = 100% of GDP

USAPolitics & The Economy

Equine Vets Under Attack

Internet & OTC Sales

NCVEI 2010

Vet Practice Sales - 2010 vs. 2009o > 50 % are flat or upo 50% are down

Fee Increases for 2010o No change = 18.1%o Lowered = 1.4%o Raised = 80.5%

Equine Industry Trendso Increase A/R

• Customers• Vendors / Suppliers

o Labor Reductions• Support Staff• Veterinarians

o Price slashingo Decrease Hospital Volume /

Revenueo Decrease in discretional spending

Improve Operational Efficiencies

Future growth

Quarters compared to same Quarter last year. Dutch Practices n= 90

Index Equine Revenue, 2008 = 100. Dutch Practices n= 90

Pfizer Business Consultant, James White, said: "Practices are right to remain cautiously

optimistic about 2011 if we accept it's going to be a challenging year. By implementing the correct strategies now there are still opportunities for growth. Client loyalty is the buzzword and should remain a key component of any practice strategy being implemented in the coming months."

Wider competition & deregulation

• The level of competition within the veterinary market continues to increase - RCVS

• 2008 Private Practices = 4000• 2010 Private Practices = >3,000 • The number of corporately owned practices is

steadily on the increaseo opened up by the deregulation of ownership of

veterinary practices. o WalMart Effect

Recession Affecting Animals

Mergers & Acquisitions

•Service/Support•R&D•Sponsorship •Product Offerings

•Innovation

Student Debt-the Reality

Debt

Starting salaries

AVMA

106%

56%

North America

USA Student Debt - the Reality

• Ave debt for UK students?• Ave debt for EU Students?• Ave debt for Canadian Students = $52,000

• Ave debt - US veterinary college

• $131,00 for males• $134,00 for females

Comparisons - Professionals

BLS 5/08

Private Clinical Practice %  Mean 1st Year $ 

Mixed animal 8.3(9.) 62,327(58,522)

Small animal exclusive 28.2(3)

71,462(64,744)

Equine 2(3.3) 38,468(41,636)

USA Veterinarian Starting Salaries 2010 vs (2008)

$48,778 male$34,250 female

Equine Vet Practice

AAEP Job Bank – Aug 19, 2011

742 Resumes15 Jobs49 resumes for each job

• 32% vs 23 % of med students in yr 1• Multi species• Euthanasia

Social Networking

• 50% of Western Europe internet users use Social Media

• > 60% of East Europeans• Facebook, You Tube & Twitter are

largest networks• YouTube uploads 35 hours of video each

MINUTE!• Twitter delivers 350 billion tweets/day.

Human Medicine

• 15% of US hospitals using social media

• Australian & New Zealand Medical Associations have created social media policies

Social Networking

• 750 million users worldwide• 48% in North America (13%)• 26% in Europe (29% increase)• Mobile users are twice as active. (<1/3)

• Schleswig-Holstein State• State institutions must remove like

button

• 25 million users in 4 weeks• Tech crowd• Interest is leveling

Collaboration

• FourSquare

• Yelp

• Go To Webinar

• Google Docs 

www.foursquare.com

www.gowalla.com• Location based• “Check ins”• Win rewards

Everyone is Talking About You!

Groupon

Mobile ComputingDroid/iPhone/Blackberry

• Droid has 48% market share

• Apple largest selling phone maker

oBlackberry falls to #4

o >200,000 iPhone Apps

o 13 billion business in 2013 www.techcrunch.com

Mobile ComputingDroid/iPhone/Blackberry

• Droid has 48% market share

• Apple largest selling phone maker

oBlackberry falls to #4

o >200,000 iPhone Apps

o 38 billion business in 2015

Mobile Payments

iPad

• >350,000 sold in first week

• 14 million this year alone

• Practice Software• Facetime

Ranking of the top 6 sport-

organizations in

The Netherlands

  1990 2001 Members in 2001

2007 Members in 2007

2009 Members in 2009

(x 1.000) (x 1.000) (x 1.000)

Soccer 1 1 1,038 1 1,130 1 1,179

Tennis 2 2 702 2 691 2 725

Golf 19 5 169 3 291 3 335

Gymnastics 3 3 288 4 280 4 269

Hockey 8 8 147 5 197 5 223

Equestrian 18 6 151 6 196 6 209

Number of starts in Olympic

DisciplinesAantal starts per Olympische discipline

2009 2010Maand Dressuur Springen Eventing Totaal Dressuur Springen Eventing Totaal

Januari 154 1606 1760 142 2029 2171

Februari 22 713 17 752 32 1111 11 1154

Maart 50 1081 35 1166 45 1206 28 1279

April 109 1620 38 1767 121 1636 96 1853

Mei 334 1601 82 2017 143 2029 80 2252

Juni 74 1563 51 1688 109 1586 47 1742

Juli 194 2380 63 2637 134 2314 114 2562

Augustus 70 1653 99 1822 114 1515 90 1719

September 64 1231 109 1404 36 1325 114 1475

Oktober 75 1303 32 1410 55 1548 28 1631

November 13 1560 1573 13 1194 1 1208

December 27 1477   1504 22 1944   1966

Totaal1186 17788 526 19500 966 19437 609 21012

KWPN - Royal Dutch Sport Horse

• Biggest warmblood studbook in the world• Very successful in breeding and sports• Goal is to breed top sport horses• Very strict selection process

North American

Racing Update

Situational Analysis• Declining Foal Crop: Down 13%

2005: 38,361 - 2012: 24,700• Major Auction Sales: Down 32%• Handle: Down 37%• Purses: Down 6%• Attendance: Down 30%• Declining Fan Base 4%/yr

Core of American Racing is Strong

• Kentucky Derby Attendance up 8% (2000-2011)

• Breeders Cup Racing up 6% (2006-2010)• Grade I and Grade II Handle is up 23%

(2001-2010)

Main Issues of Racing

• Competition from other forms of gambling• Dilution of the racing product• The fan base of racing is decreasing 4%

per year• Animal welfare is a growing concern for

the U.S. Public.

2010 Horse Numbers

US TB live foals

• Down 14.2% in 2010

• 1972 #s in 2011

Canada STB stallions standing

o 43% decrease since 2007

Canada STB Mares bred

o 29% decrease since 2007

Sales In North America

• Keeneland Sales o 2008 ave $90,984, med $37,000o 2009 ave $60,734, med $22,000o 2010 ave $64, 811, med $25,000

oAve 6.7%, med 13.6%

Successes 2010

• 1st place WBFSH-ranking Jumping• 1st place WBFSH-ranking Dressage• Jazz 1st on WBFSH Stallion Ranking

KWPN/Royal Dutch Sport Horse

x(1000) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Total sales 1,224 730 867 792 950 1,492 1,512 1,145 1,065 967Average Price 49 32 38 33 33 57 42 37 34 29Highest Price 360 90 145 150 220 430 190 220 90 150

Select Sales 3 year old stallions

KWPN/Royal Dutch Sport Horse

Making the Royal Dutch Sport Horse

well known in growing markets

Equine Veterinary Business Education

Amsterdam - August 2010

Amsterdam - August 2010

Thank You

www.slideshare.net/mpownall

www.equinevetbusiness.com

www.dvmmba.com