1.4 EXCHANGE RATES

As indicated above, Ferrovial conducts business outside the eurozone through various subsidiaries. The exchange rates used to translate their financial statements for their inclusion in the consolidated Group’s consolidated financial statements are as follows:

Items in the balance sheets (closing exchange rates at 31 December 2017 and at 31 December 2016 for the comparative figures):

Items in the statements of profit or loss and statements of cash flows (cumulative average rates at 31 December 2017 and at 31 December 2016 for the comparative figures):

The main changes in the closing exchange rates vis-à-vis the euro were the depreciation of the pound sterling and the Chilean peso, as well as that of the US dollar, the Canadian dollar and the Australian dollar. By contrast, the Polish zloty appreciated against the euro. The impact in this connection recognised in equity attributable to the Parent was EUR -318 million (see Note 5.1.1, Changes in equity).

Note 5.4 provides an explanation of foreign currency risk management. It also contains an analysis of the impact that Brexit has had or might have in the future vis-à-vis the different financial risks affecting Ferrovial. This perspective is supplemented by a global analysis of Brexit in the Risks section of the directors’ report.

In addition, a detail is provided of the exchange rate effect in those notes in which this effect is material.