But if you look at the past two years, the market environment has been even tougher than what we expected. So things are different from what we expected which means we have to bring forward our cost reduction programs. And we are working on our cost reduction of $1.2 billion for the overall firm we have announced this cost reduction. And for wholesale, the cost reduction will be $1 billion. This is what we announced as our cost reduction expectation.As of March end, the progress is 80%, 80, so roughly US$800 million of costs has already been reduced. So we are very sensitively monitoring costs or expenses. But on the other hand, the impact on revenues from the cost reduction is limited. And as shown on the right, we are delayering the organization of our wholesale division, and the media has been taking up this issue quite a lot. But our wholesale CEO, Jasjit Bhattal and also our Ex-Head of Global Markets, Tarun Jotwani, the two gentlemen have left our firm. And we have a set of new position Wholesale Chairman and CEO, who covers investment banking, fixed income and equities and they have direct communication with each division. We have changed our organization. And what we’re doing is, we are trying to avoid the double layers or triple layers in our organization. This is not acceptable. And we also have to be very nimble in our communication. The environment does not allow us to have these multi-layers in our organization. And as part of the cost reduction, we are currently delayering within investment banking, and also fixed income and equities. We are doing the same as we did for the overall Wholesale division. And let me summarize, where we stand at the moment. 2011 and earlier, we had a dominant position in Japan. However, the needs among customers for overseas transaction was increasing and we were not able to respond to these new needs.
Therefore, we felt it was inevitable that we go global. And for that purpose, we acquired Lehman Brothers businesses in Europe and Asia and integrated it with our business, and we overcame the shortages that we had in our business. But, what happened in FY March 2012 is headwind that hits the overall investment banking business or industry, which was very severe. So we are responding swiftly to these changes in the market, as I mentioned earlier.And we are focused on client-centered business, and we are progressing in expanding our client base. And while the overall market shrinks, we are expanding our revenue share in the shrinking market. And as of today and going forward, as Asia’s global investment bank, we want to further make clear our position as Asia’s global investment bank. And while there are regional champions in Europe and the U.S., we feel there could be some regional champions from Asia and as one of these Asian regional champions, we want to become a global financial services institution based in Asia. In Japan, we have a very strong business base. But globally, we are not able to offer everything to all clients. So we have to be more selective in our strategy. We have to sharpen our wholesale strategy. And right now, we are focused on our strength in Asia, as well as being relevant to our client. We do not want to be just like any other player who can do or try to do everything. We want to be more selective and choose which areas we can offer value to our clients and we want to deepen that strength. And thirdly, as for the clients that we chose to deepen our relations with, we want to deliver everything that Nomura can offer to these clients. I will explain in more detail later, but our solution business, this is going to be the foundation of our solution business and fourthly, innovation and intellectual capital will be important. For the domestic business, we have the retail business, and the asset management businesses which generate stable revenues. So, we want to improve our profitability for the overall firm and fulfill our responsibility to our stakeholders. Read the rest of this transcript for free on seekingalpha.com