financial hedges comprise derivative instruments as well as foreign currency borrowing/loans
and operational hedges refer to the geographical diversification of production, sourcing and
sales. Unfortunately, the classification in the financial statements analysed in section 4.2.2 is
different, with derivative hedges on one side and "natural" hedges (comprising foreign
currency loans as well as operational hedges) on the other. As financial statements usually do
not provide a breakdown of natural hedges into non-derivative financial and operational ones,
this paper has to operate with the two classifications in sections 4.2.1 and 4.2.2, respectively.