Hi. Today HP announced second quarter results, and once again, we delivered on what we said we would do.

Our publicly-stated guidance for non-GAAP diluted earnings per share was 88 to 91 cents. And we delivered 98 cents, beating our outlook by 7 cents a share on revenues of $30.7 billion. I thank all of you for your hard w ork and dedication. This is a journey. Were rebuilding credibility one quarter at time, and to do that, we need to consistently deliver on what we say. You are at the heart of our results. Without your efforts, HP cannot thrive. But HPs performance is still not where it needs to be. Our business is still declini ng. Year-over-year, non-GAAP EPS was down 21 percent and revenues were down 3 pe rcent. We have a lot of work ahead of us to get HP back on track and that begins with executing against the strategy weve talked about in recent months. Our foundation is infrastructure, PCs and printing, servers, storage and network ing. This is a differentiating strength for HP and one we can be proud of. HP Software extends and strengthens that foundation, solving customer challenges like managing, securing and automating the information flow across the data cen ter. Services makes it all work together for the customer, ensuring their technology is meeting their needs. And finally, we combine our infrastructure, software and services into comprehen sive solutions that deliver enormous customer value. Moving forward were aligning our powerful collection of assets to capture leaders hip in three strategic areas: Cloud, security, and information optimization. But to do this we must invest and we cannot afford to wait. As we discussed in Q1, our costs are expanding while our revenues decline, and t his has been happening for too long. The strategic realignment we announced last quarter was a good first step in addressing this problem by beginning the proce ss of removing complexity, simplifying our operations, and reducing costs. And t oday were taking the next step in this journey with the announcement of a multi-y ear restructuring that will touch every part of HP and create a more streamlined company. Were taking a pre-tax charge of approximately $1.7 billion to be included in our FY12 GAAP results, as well as a further multi-year pre-tax charge of $1.8 billio n. By the end of 2014, we expect to reduce the workforce by 27,000 positions thr ough a combination of layoffs and early retirement. And we expect to generate ru n-rate cost savings of approximately $3 to 3.5 billion. These are difficult acti ons. Workforce reductions arent easy and we dont take them lightly. They adversely impact peoples lives and are tough on the company, our culture and you. Were tryi ng our best to mitigate the impact as much as we can. Weve limited hiring to try and reduce the number of people affected. For those positions we have open, were giving top consideration to internal candidates. Were offering an upgraded early retirement package in the US, and expanding our career transition and planning s ervices to better support employees. I know HP has been through a lot in recent years and this is another dose of cha nge. But in this case, its absolutely essential for the long-term health of our c ompany. Let me share a little perspective. At the end of 2009, we reported a workforce of about 304,000. At the end of 2010 , we had almost 325,000 employees and at the end 2011, that number had ballooned

to nearly 350,000. Over that same period, we saw year-over-year revenue growth of 10 percent in 2010, of 1 percent in 2011 and so far in 2012, revenues have bee n declining. Were struggling under our own weight. And weve got to restore a healthy balance in order to return HP to its position as a growing thriving innovating industry leade r. Thats what this is all about. And the workforce reduction is only one piece of a comprehensive effort. We see a lot of opportunity to remove complexity, strea mline and reduce costs in a number of areas across HP. I know that many of you remember the cost reduction of years past, like data cen ter consolidation and centralizing functions such as HR, Legal, Finance and IT. What were doing now is different. Were going after the big cost buckets and fundam ental business process reengineering. This includes optimizing the supply chain, reducing the number of SKUs and platforms, continuing to hone our real estate s trategy, simplifying our go-to-market, improving business processes, and impleme nting consistent pricing and promotions to drive end-user demand profitably. Its harder work with greater potential payoff. Another difference from years past is what we plan to do with the savings. The m ajority of savings this time around will be invested in the business. Well be inv esting to drive leadership in the three strategic pillars cloud, security and in formation optimization. And in each of our businesses, well make investments to s tay ahead of customer expectations and market trends. In our PC and Printing businesses, well be focused on design, engineering, qualit y, and generating demand and desire with our customers. In ESSN, well invest to drive R&D and innovation in our core businesses of server s, storage and networking. Together they create a converged infrastructure that is the foundation for top customer initiatives such as cloud, big data analytics and social media. In Software, well be investing to speed development across Security, Information and Management Infrastructure for both on-premise IT and in the cloud with a key focus on software-as-a-service offerings. This will include the extension of Ve rtica and Autonomy across our entire portfolio. And in Services, well improve processes and build-out capabilities in cloud, secu rity and information. Well also be strengthening our industry practices, as well as our service quality and innovation. Additionally, well invest in our people in better training, better career develop ment and better tools and support. In times of change, its easy to lose focus, waiting to see what happens next. We cant let that happen. This a great organization, full of incredible people who ar e resilient, committed and who care about our customers and our company. Im askin g all of you to please keep driving forward. Close every deal. Leave nothing on the table. We need that now more than ever. Im confident in the decisions weve made and the direction were going. Together, we will define the future of HP and of our industry. Well be holding our next all employee broadcast on June 18th and I look forward t o speaking with you then and answering your questions. Thank you.