Managing Risk and Opportunity through Uncertainty

FX Risk Management Objectives Reduce risk to both cash flows and earnings: Types of Exposures Hedged Hedging Approach Net monetary FX-denominated assets and liabilities: Opportunistic hedging: Reduce risk to transactional cash flows only: Forecasted FX-denominated exposures: Rolling hedging: 34% 21% 8% AMERICAS APAC LATAM 30% 20% 8% AMERICAS APAC LATAM 26% 21% 15% EMEA APAC LATAM 36% 16% 1% AMERICAS APAC LATAM 37% 18% 2% AMERICAS APAC LATAM 29% 16% 6% AMERICAS APAC LATAM 37% EMEA 42% EMEA 48% EMEA 43% EMEA EMEA 49% 38% AMERICAS 11 Survey results show significant regional variations in FX risk management practices, perhaps driven by differences in regulatory environments and traditional market practices. REGIONAL VARIATIONS IN FX RISK MANAGEMENT 10 11