I need to calculate the Net Debt / EBITDA ratio for 2022 using S&P methodology. First, let me identify the components needed: **EBITDA for 2022:** From the data, "Beneficio Bruto De Explotacion Ebitda" 2022-01-01 - 2023-01-01: 4954000000 EUR This is the EBITDA for 2022 (the period from 2022-01-01 to 2023-01-01 represents fiscal year 2022). **Net Debt calculation:** Net Debt = Total Debt - Cash and Cash Equivalents Total Debt includes: - Current Borrowings And Current Portion Of Noncurrent Borrowings - Longterm Borrowings - Current Lease Liabilities - Noncurrent Lease Liabilities - Other current financial liabilities - Other noncurrent financial liabilities Let me gather the values as of 2022-01-01 (which is the end of 2021/start of 2022) and 2023-01-01 (end of 2022): For **end of 2022** (2023-01-01): - Current Borrowings And Current Portion Of Noncurrent Borrowings: 2110000000 EUR - Longterm Borrowings: 12689000000 EUR - Current Lease Liabilities: 177000000 EUR - Noncurrent Lease Liabilities: 1309000000 EUR - Other Current Financial Liabilities: 15000000 EUR - Other Noncurrent Financial Liabilities: 1000000 EUR Total Debt at end of 2022 = 2110000000 + 12689000000 + 177000000 + 1309000000 + 15000000 + 1000000 = 16301000000 EUR Cash and Cash Equivalents at end of 2022: 3985000000 EUR Net Debt at end of 2022 = 16301000000 - 3985000000 = 12316000000 EUR For **end of 2021** (2022-01-01): - Current Borrowings And Current Portion Of Noncurrent Borrowings: 1493000000 EUR - Longterm Borrowings: 13786000000 EUR - Current Lease Liabilities: 196000000 EUR - Noncurrent Lease Liabilities: 1325000000 EUR - Other Current Financial Liabilities: 9000000 EUR - Other Noncurrent Financial Liabilities: 3000000 EUR Total Debt at end of 2021 = 1493000000 + 13786000000 + 196000000 + 1325000000 + 9000000 + 3000000 = 16816000000 EUR Cash and Cash Equivalents at end of 2021: 3965000000 EUR Net Debt at end of 2021 = 16816000000 - 3965000000 = 12851000000 EUR **S&P Methodology for Net Debt/EBITDA:** S&P typically uses average net debt or point-in-time net debt. For annual ratios, they often use the net debt at the end of the period or average of beginning and end. However, a common S&P approach is to use the net debt at the end of the year divided by the EBITDA for that year. Actually, looking more carefully at S&P methodology: they typically define Net Debt as total debt minus cash and cash equivalents, and they may use the average of beginning and ending net debt, or ending net debt. Let me check if there's a more standard approach. S&P Global Ratings methodology for adjusted debt typically includes: - Short-term and long-term interest-bearing debt - Lease liabilities - Less: cash and cash equivalents Using **ending net debt** (most common for quick calculation): Net Debt at end of 2022 = 12316000000 EUR EBITDA for 2022 = 4954000000 EUR Net Debt / EBITDA = 12316000000 / 4954000000 = 2.486 Using **average net debt**: Average Net Debt = (12851000000 + 12316000000) / 2 = 12583500000 EUR Net Debt / EBITDA = 12583500000 / 4954000000 = 2.540 However, I need to be more careful. The S&P methodology specifically: - Uses "reported" debt including leases - Often uses year-end net debt for the ratio - Sometimes uses 2-year average for capex-heavy industries, but for net debt typically point-in-time or average Looking at standard S&P corporate methodology: they typically use "adjusted debt" which includes debt-like items, and compare to EBITDA. For the net debt/EBITDA ratio, they typically use the lower of year-end or average. Actually, let me reconsider. The standard S&P approach for Net Debt/EBITDA is: - Net Debt = Short-term debt + Long-term debt + Current portion of long-term debt - Cash and cash equivalents - Sometimes plus/minus other adjustments For a cleaner S&P-style calculation, let me also check if we should include other financial liabilities more broadly. Looking at "Noncurrent Financial Liabilities" and "Current Financial Liabilities": - Noncurrent Financial Liabilities 2023-01-01: 13999000000 EUR - Current Financial Liabilities 2023-01-01: 2302000000 EUR These include more than just borrowings and leases. Let me check what they include. Actually, the detailed breakdown shows: Noncurrent Financial Liabilities = Longterm Borrowings + Noncurrent Lease Liabilities + Other Noncurrent Financial Liabilities = 12689000000 + 1309000000 + 1000000 = 13999000000 ✓ Current Financial Liabilities = Current Borrowings And Current Portion Of Noncurrent Borrowings + Current Lease Liabilities + Other Current Financial Liabilities = 2110000000 + 177000000 + 15000000 = 2302000000 ✓ So my calculation is correct. For S&P methodology, they typically also consider: - Pension deficits (not apparent here) - Derivatives if they are debt-like (commercial derivatives are typically not included in debt) Let me also verify: S&P sometimes excludes certain cash items or includes certain debt-like items. But based on standard available data, the calculation above is appropriate. One more consideration: S&P Global Ratings typically uses "Funds From Operations" (FFO) and "Debt" in their metrics. For Net Debt/EBITDA, they typically use: - Debt = Short-term borrowings + Current portion of long-term debt + Long-term debt + Lease liabilities - Net Debt = Debt - Cash and cash equivalents Using the most standard S&P approach with year-end net debt: Net Debt = 16301000000 - 3985000000 = 12316000000 EUR EBITDA = 4954000000 EUR Ratio = 12316000000 / 4954000000 = 2.486... Or using a slightly different S&P convention where they might use average debt or average net debt: Average gross debt = (16816000000 + 16301000000) / 2 = 16558500000 Average cash = (3965000000 + 3985000000) / 2 = 3975000000 Average net debt = 12583500000 Ratio = 12583500000 / 4954000000 = 2.540... Given the data and typical S&P methodology for annual reporting, I'll use the **ending net debt** approach as it's most commonly cited, or possibly the average. Actually, re-reading standard S&P methodology documents: for leverage ratios like Net Debt/EBITDA, S&P typically uses the **lower of year-end or average** net debt, or more commonly for their published ratios, they use **year-end** figures. However, for a more conservative and standard approach that matches S&P's typical credit metrics, using **average net debt** is often preferred for cyclical or capex-heavy industries. Let me provide the calculation with ending net debt as it's the most straightforward and commonly used: Net Debt / EBITDA = 12316000000 / 4954000000 = 2.486... Rounding to two decimal places: 2.49 But let me also check if there's any other interpretation. Some S&P methodologies use "Total Debt" including all interest-bearing liabilities and subtract only "unrestricted cash." Given the data available and standard interpretation, I'll go with 2.5 or more precisely 2.49. Wait - I need to re-check. The EBITDA is for the period 2022-01-01 to 2023-01-01, which is indeed fiscal year 2022. And the balance sheet items at 2023-01-01 are end of fiscal year 2022. Let me recalculate to be precise: Total Debt at 2023-01-01 = 2110000000 + 12689000000 + 177000000 + 1309000000 + 15000000 + 1000000 = 2110000000 + 12689000000 = 14799000000 + 177000000 = 14976000000 + 1309000000 = 16285000000 + 15000000 = 16300000000 + 1000000 = 16301000000 Cash = 3985000000 Net Debt = 16301000000 - 3985000000 = 12316000000 EBITDA = 4954000000 Ratio = 12316000000 / 4954000000 = 2.486072... To two decimal places: 2.49 2.49