To estimate the FFO / Net debt ratio for 2022, I will follow these steps:
1. **Calculate Funds From Operations (FFO):**
FFO is typically calculated as Profit (or Loss) from operating activities + Depreciation and Amortisation Expense + Other non-cash items or impairments.
From the data:
* Profit Loss From Operating Activities (2022-01-01 - 2023-01-01): 961,554,000 EUR
* Depreciation And Amortisation Expense (2022-01-01 - 2023-01-01): 544,992,000 EUR
* Imputacion De Subvenciones De Inmovilizado No Financiero YOtras: 15,780,000 EUR (This is a gain that reduces reported expenses, but it is not a cash inflow from operations in the sense of being added back, rather it's a non-cash item affecting profit. However, typical FFO calculation adds back D&A and adjusts for impairment/gains. I'll look at the cash flow statement for reference.)
* The cash flow statement gives "Adjustments For Reconcile Profit Loss" which includes D&A and other non-cash items. FFO is often approximated by Cash flows from operating activities before changes in working capital.
* Let's derive FFO from Operating Activities cash flow components:
Cash Flows From Used In Operating Activities = 1,566,829,000 EUR
This includes Increase Decrease In Working Capital: 574,568,000 EUR
So, FFO (Cash generated from operations before working capital changes) = Operating Cash Flow - Increase Decrease In Working Capital? No, Operating Cash Flow = Profit + Adjustments + Change in Working Capital + Other cash flow items (interest/tax).
Let's use the standard proxy: Net Income + Depreciation & Amortisation - Gains on sale of assets + Deferred taxes + Other non-cash items.
Actually, a simpler calculation from the provided adjustments:
Profit Loss From Operating Activities = 961,554,000
Adjustments for D&A = 544,992,000
Adjustments for provisions = 35,046,000
Imputacion De Subvenciones De Inmovilizado No Financiero YOtras = -15,780,000 (this is added back because it's a non-cash income? Wait, "Imputacion" means allocation of grants, it is subtracted from the operating profit, so to get FFO we add it back? Actually, grants reduce depreciation or other expenses, so they are a non-cash credit. No, in the P&L, "Imputacion De Subvenciones" is income. But in the adjustments to reconcile profit to cash flow, "Ajustes Por Imputacion De Subvenciones De Capital YOtros" is -24,996,000 EUR. This is confusing.)
Let's use a standard definition: FFO = EBITDA - Net Interest Expense - Current Tax Expense.
EBITDA = Profit Loss From Operating Activities + Depreciation And Amortisation Expense + Deterioro YResultado Por Enajenaciones Del Inmovilizado + Imputacion De Subvenciones De Inmovilizado No Financiero YOtras? No, EBITDA = Operating Profit + D&A + Impairment.
Actually, EBITDA = 961,554,000 + 544,992,000 + 488,000? Wait, "Deterioro YResultado Por Enajenaciones Del Inmovilizado" is an expense/income line. The value is 488,000 EUR for 2022, which means a gain? If it is a gain, it is subtracted from operating profit. Wait, it says "Profit Loss From Operating Activities" is *after* D&A, Deterioro, and other items. So:
EBITDA = 961,554,000 + 544,992,000 + 488,000 - 15,780,000? No, the format is:
Revenue
+ Other Work...
+ Participacion en beneficios...
- Aprovisionamientos
+ Misc Other Operating Income
- Employee Benefits
- Misc Other Operating Expenses
- Depreciation and Amortisation
+ Imputacion de subvenciones
+ Deterioro y resultado
= Profit Loss From Operating Activities
So EBITDA = Profit + D&A - Imputacion - Deterioro + Aprovisionamientos? No, standard EBITDA = Operating Profit + D&A + Depreciation included in grants? Let's just do:
EBITDA = 961,554,000 + 544,992,000 + 488,000 - 15,780,000? (Deterioro is positive, meaning gain; Imputacion is positive, meaning income, so to go from operating profit to EBITDA we subtract the gain and subtract the grant income). Wait, no. Operating profit = Revenue - Opex - D&A + Imputacion + Deterioro.
So EBITDA = Operating Profit + D&A - Imputacion - Deterioro.
EBITDA = 961,554,000 + 544,992,000 - 15,780,000 - 488,000 = 1,490,278,000 EUR.
Let's verify from Cash flow:
Adjustments for D&A = 544,992,000
Other adjustments = 47,579,000
Undistributed profits of equity method inv = 50,405,000
Resultados enajenacion = -708,000
Finance Income = -23,161,000
Finance Costs = 116,468,000
Provisions = 35,046,000
Imputacion subvenciones = -24,996,000
Other operating income/expense = 4,665,000
Total Adjustments = 592,571,000
So Cash Flow from Operations before tax/interest/working capital = 961,554,000 + 592,571,000 = 1,554,125,000 EUR.
But FFO is usually after interest and tax.
FFO = EBITDA - Finance Costs - Income Tax Expense + Other adjustments?
Let's use: FFO = Profit Loss Before Tax + D&A + Adjustments - Taxes paid?
Actually, typical formula: FFO = Net Income + D&A + Amortization of grants + Other non-cash items - Gains on sale.
Net Income = 681,187,000 EUR.
Add D&A = 544,992,000 EUR.
Add Deferred Tax Expense? Income Tax Expense = 188,330,000; Current Tax = ? We need to use the cash flow items.
Let's look at the operating cash flow breakdown:
Profit before tax = 869,517,000
Adjustments = 592,571,000
Change in working capital = 574,568,000
Other cash flows from operations:
Interest paid = -123,524,000
Dividends received = 7,578,000
Interest received = 15,680,000
Taxes paid = -363,996,000
Other = -5,565,000
So FFO can be derived as (Profit before tax + Adjustments) - Interest paid + Interest received - Taxes paid.
FFO = (869,517,000 + 592,571,000) - 123,524,000 + 15,680,000 - 363,996,000
FFO = 1,462,088,000 - 471,840,000 = 990,248,000 EUR.
Or more simply: FFO = Cash Flow from Operations - Change in WC - Other items (Dividends? No, FFO is Cash Flow from Ops before WC changes).
FFO = 1,566,829,000 (total Op CF) - 574,568,000 (WC change) - 7,578,000 (dividends received?) No, dividends received are part of FFO.
Actually, standard FFO = Net Income + D&A + Deferred Taxes + Other non-cash items - Gains.
Let's use the cash flow statement:
FFO = Net Cash provided by operating activities + Taxes paid + Interest paid - Change in working capital... this is messy.
Let's stick to: FFO = EBITDA - Net Interest - Current Tax.
EBITDA = 1,490,278,000 (calculated above)
Finance Income = 23,161,000
Finance Costs = 116,468,000
Net Interest = 116,468,000 - 23,161,000 = 93,307,000
Total Income Tax = 188,330,000
Deferred Tax = We don't have direct deferred tax breakdown, but we have Deferred Tax Assets and Liabilities changes.
Deferred Tax Assets change = 69,217,000 - 70,567,000 = -1,350,000
Deferred Tax Liabilities change = 417,650,000 - 397,811,000 = 19,839,000
Deferred Tax Expense (income) = 19,839,000 - (-1,350,000) = 21,189,000 EUR.
Current Tax = Total Tax - Deferred Tax = 188,330,000 - 21,189,000 = 167,141,000 EUR.
FFO = 1,490,278,000 - 93,307,000 - 167,141,000 = 1,229,830,000 EUR.
Let's check with the actual taxes paid: -363,996,000. That's much larger, possibly includes prior year settlements. Using taxes paid from cash flow might be more standard for FFO, but FFO is defined based on accrual current taxes. I will use the balance sheet derived current tax provision: 167,141,000 EUR.
So FFO = 1,229,830,000 EUR.
2. **Calculate Net Debt:**
Net Debt = Total Financial Liabilities (Current + Non-current) - Cash and Cash Equivalents - Other Current Financial Assets (which are highly liquid).
Noncurrent Financial Liabilities: 5,543,755,000 EUR
Current Financial Liabilities: 1,705,277,000 EUR
Total Financial Liabilities = 7,249,032,000 EUR.
Cash and Cash Equivalents: 794,824,000 EUR.
Other Current Financial Assets:
Current Financial Assets At Amortised Cost: 752,505,000 EUR.
Total Cash and Near Cash = 794,824,000 + 752,505,000 = 1,547,329,000 EUR.
Net Debt = 7,249,032,000 - 1,547,329,000 = 5,701,703,000 EUR.
3. **Calculate FFO / Net Debt ratio:**
Ratio = 1,229,830,000 / 5,701,703,000 = 0.2157...
Wait, let me refine the FFO calculation. FFO is often defined as Net Income + D&A + Other non-cash items.
Net Income = 681,187,000 EUR.
D&A = 544,992,000 EUR.
Deferred Tax = 21,189,000 EUR.
Other non-cash items:
Undistributed profits of equity method = -50,405,000 (added back? Wait, profit includes Participacion en beneficios = 50,405,000 income. Cash flow adjustment for this is -50,405,000 to reverse it. For FFO we should add it back? No, FFO excludes non-cash income, so we subtract the 50,405,000 from Net Income? No, we started with Net Income).
Let's do: FFO = Net Income + D&A + Deferred Tax - Gains on sales - Undistributed equity income + Others.
Net Income: 681,187
+ D&A: 544,992
+ Deferred Tax: 21,189
- Gains on sales (Resultado enajenacion): -708 (meaning +708)
- Undistributed equity income: -50,405
- Imputacion subvenciones: -15,780
+ Provisions: 35,046
FFO = 681,187 + 544,992 + 21,189 + 708 - 50,405 - 15,780 + 35,046 = 1,216,937,000 EUR.
Let's calculate Net Debt more carefully. Sometimes pensions and other long-term provisions are not included, but standard Net Debt is usually just Financial liabilities minus cash.
Total Financial Liabilities = Noncurrent Financial Liabilities (5,543,755,000) + Current Financial Liabilities (1,705,277,000) = 7,249,032,000 EUR.
Minus Cash and Equivalents (794,824,000) = 6,454,208,000 EUR.
If we also deduct Other Current Financial Assets (752,505,000), Net Debt = 5,701,703,000 EUR.
Ratio = 1,216,937,000 / 5,701,703,000 = 0.2134.
Let me recheck "Other Current Financial Assets". These are "Current Financial Assets At Amortised Cost", which are likely short-term investments / deposits, so they can be netted against debt.
Ratio = 1,216,937 / 5,701,703 = 0.2134
Alternatively, looking at the Cash Flow statement:
Net Cash from Operations = 1,566,829,000
Less: Change in WC = 574,568,000
FFO = 992,261,000 EUR.
Using this number:
Ratio = 992,261 / 5,701,703 = 0.1740.
Wait, "Other current financial assets" might not be considered cash equivalents for all debt calculations. Sometimes only Cash & equivalents are used.
If only Cash & Equivalents = 794,824,000,
Net Debt = 7,249,032,000 - 794,824,000 = 6,454,208,000.
Ratio = 1,216,937,000 / 6,454,208,000 = 0.1885.
Let's use the standard definition: FFO = Cash flow from operations before changes in working capital.
FFO = 1,566,829 - 574,568 = 992,261,000.
Net Debt = Current + Non-current Financial Liabilities - Cash and Equivalents.
Net Debt = 1,705,277,000 + 5,543,755,000 - 794,824,000 = 6,454,208,000.
Ratio = 992,261 / 6,454,208 = 0.1537.
I will check the standard IFRS/ESMA definition.
FFO = Net Cash from Operating Activities - Working Capital change = 992,261,000.
Net Debt = Cash and Cash Equivalents - Financial Liabilities (Current + Non-current).
Wait, Net Debt = Financial Liabilities - Cash.
7,249,032,000 - 794,824,000 = 6,454,208,000.
FFO / Net Debt = 992,261 / 6,454,208 = 15.37%.
Let's verify the cash flow from operations again.
Profit before tax = 869,517
Adjustments = 592,571
Sum = 1,462,088
Interest Paid = -123,524
Interest Received = 15,680
Dividends Received = 7,578 (sometimes included in FFO, sometimes not. FFO usually includes dividends from associates).
Taxes Paid = -363,996
Other = -5,565
FFO = 1,462,088 + (-123,524 + 15,680 + 7,578 - 363,996 - 5,565) ?
No, FFO is before working capital changes and usually before interest and taxes? Or after interest and taxes but before WC changes.
Standard definition for European utilities: FFO = Cash Flow from Operations after tax and interest but before WC changes.
Cash Flow from Operations = FFO + Change in WC.
So FFO = 1,566,829 - 574,568 = 992,261,000 EUR.
Net Debt: Usually interest-bearing debt less cash.
Total Borrowings (Non-current + Current):
Non-current: 5,491,124,000 (Longterm borrowings) + 22,016,000 (Derivative liabilities?) + 52,631,000 (Other fin liabilities) = 5,565,771,000? Wait, non-current financial liabilities total is 5,543,755,000, which includes borrowings, other, and derivatives.
Total Financial Liabilities = 5,543,755,000 + 1,705,277,000 = 7,249,032,000.
Cash = 794,824,000.
Net Debt = 6,454,208,000.
Ratio = 992,261,000 / 6,454,208,000 = 0.1537.
If we include Other Current Financial Assets as cash equivalents (since they are at amortised cost, likely very liquid), Net Debt = 6,454,208 - 752,505 = 5,701,703,000.
Ratio = 992,261 / 5,701,703 = 0.1740.
I will provide the ratio as a percentage or decimal. Usually, it's expressed as a percentage or just the decimal. I'll give the decimal.
Ratio = 15.37% or 0.15.
Let's use the broader definition: FFO / Net Debt = 992,261 / 6,454,208 = 0.1537.
Final answer: 0.15Based on the provided data for REDEIA CORPORACION SA for the year 2022:
* **Funds From Operations (FFO)** is calculated using the cash flow statement: Net Cash from Operating Activities (€1,566,829,000) minus the Increase/Decrease in Working Capital (€574,568,000), which equals €992,261,000.
* **Net Debt** is calculated as Total Financial Liabilities (Non-current €5,543,755,000 + Current €1,705,277,000 = €7,249,032,000) minus Cash and Cash Equivalents (€794,824,000), resulting in a Net Debt of €6,454,208,000.
* The **FFO / Net Debt ratio** is therefore €992,261,000 / €6,454,208,000 ≈ 0.1537.
0.15