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We announced a cost cutting of $400 million when we reported these Q1 results. Today, we have decided to cut a total of $1.2 billion including this $400 million that we have already announced. Simply put, we are trying to adjust our expense or cost base from one suitable for the 2009 revenue environment, down to a level suitable for the 2011 revenue environment.And by bringing down the breakeven point, we are trying to enhance our business execution capabilities. And in order to optimize the regional allocation of our management resources, we will reallocate some of the resources that we allocated to EMEA into the Americas and Asia. And for EMEA, under a new expense structure, we will build the foundation for growth. We will become a leaner company, and once we have optimized the regional allocation of our management resources, we will actively meet the needs of our clients. The importance of our global network as well as clients being the center of our business, will remain unchanged and these will continue to be the long-term commitment of Nomura. Now, I will ask Ms. Nakagawa our CFO to go over the Q2 highlights. Junko Nakagawa This is Junko Nakagawa, CFO. I'll use the presentation to go over the Q2 results of the year ending March 2012. The current quarter was a challenging one with the market deterioration – market condition deterioration and also turmoil in the financial markets based on the eurozone debt crisis. Q2 net revenues for Nomura Holdings was 301.6 billion yen, which was down 9% Q-on-Q, but it was up 9% year-on-year due to Nomura Land and Building becoming a subsidiary. For the Retail and Asset Management divisions, these two divisions remained resilient with continues inflow of funds despite the tough market conditions. However, the Wholesale division suffered a decline in revenues of 44% Q-on-Q, due to sluggish trading and market volatility impact.
As a result, the pre-tax loss for the overall firm was 44.6 billion yen and net loss was 46.1 billion yen. The pre-tax loss and the net loss for the first half were 10.3 billion yen and 28.3 billion yen respectively. Please turn to page 4.As our COO explained earlier, we have decided to cut costs by $1.2 billion, including the $400 million that we announced when we reported our Q1 results. This additional $800 million will be a firm-wide cost cutting, but mainly in the Wholesale division. In order to optimize the regional allocation of our management resources, we will shift some of our resources from EMEA to the Americas and Asia. Europe or EMEA, will build the foundation for our growth under a new expense structure, and by revising or revisiting the cost structure and making the global network more efficient, we will bring down the break-even point and aim to improve our profitability. Page five please. Here we show the summary of the Q2 and the first half results for March ’12. Net revenues for each segment and also the pre-tax P&L, please turn to page six, and for the results of each segment, please turn to page seven onwards. I will start with the Retail division. Pages seven and eight please. For the Retail division with the deterioration of market environments globally, the total sales declined Q-on-Q, and net revenue was 84 billion yen, which was down 11% Q-on-Q. Pre-tax income was 10.7 billion yen, which was down 51% Q-on-Q. Within Retail the sales of shares and bonds trended robustly, and by diversifying the asset class and currency, we were able to provide products, which meet our clients needs on a very broad basis. And we achieved a net increase in client assets of 1.1trillion yen. The tough market conditions, which I mentioned earlier, are expected to continue for a while, but we will continue to focus on consulting sales and meet our clients’ need. Read the rest of this transcript for free on seekingalpha.com