I need to estimate the Net Debt / EBITDA ratio for 2022 using S&P methodology. Let me work through this step by step. ## Understanding S&P Methodology for Net Debt / EBITDA Under S&P methodology: - **Net Debt** = Short-term borrowings + Current portion of long-term borrowings + Long-term borrowings - Cash and cash equivalents - Current financial assets (liquid investments) - **EBITDA** = Profit from operating activities + Depreciation and amortization + Interest received - Interest paid (or more commonly: Operating profit + D&A, with adjustments) Actually, for S&P methodology, EBITDA is typically calculated as: - EBIT (Operating Profit) + Depreciation & Amortization + Interest received (if classified as operating) - Interest paid (if classified as operating) Or more standard: EBITDA = Operating Profit + D&A Let me use the more standard approach for EBITDA from the cash flow perspective or income statement. ## Calculating Net Debt (as of 2022-01-01, which is end of 2021, or 2023-01-01 which is end of 2022) For 2022 year-end (2023-01-01): - Short-term borrowings: 444,100,000 EUR - Current portion of long-term borrowings: 1,909,300,000 EUR - Long-term borrowings: 8,416,700,000 EUR - Total Debt = 444,100,000 + 1,909,300,000 + 8,416,700,000 = 10,770,100,000 EUR Less liquid assets: - Cash and cash equivalents: 2,155,100,000 EUR - Current financial assets: 255,300,000 EUR Net Debt (2022 year-end) = 10,770,100,000 - 2,155,100,000 - 255,300,000 = 8,359,700,000 EUR For 2021 year-end (2022-01-01): - Short-term borrowings: 1,947,000,000 EUR - Current portion of long-term borrowings: 1,640,000,000 EUR - Long-term borrowings: 8,835,000,000 EUR - Total Debt = 1,947,000,000 + 1,640,000,000 + 8,835,000,000 = 12,422,000,000 EUR Less liquid assets: - Cash and cash equivalents: 1,566,800,000 EUR - Current financial assets: 980,600,000 EUR Net Debt (2021 year-end) = 12,422,000,000 - 1,566,800,000 - 980,600,000 = 9,874,600,000 EUR Average Net Debt for 2022 = (8,359,700,000 + 9,874,600,000) / 2 = 9,117,150,000 EUR Or S&P typically uses year-end net debt. Let me use year-end 2022 (2023-01-01): 8,359,700,000 EUR ## Calculating EBITDA for 2022 From the income statement/cash flow: - Profit Loss From Operating Activities (2022): 1,333,500,000 EUR - Depreciation Amortisation And Impairment Loss: 725,700,000 EUR Standard EBITDA = Operating Profit + D&A = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR However, S&P methodology typically adjusts EBITDA. Let me check if there are other adjustments. From cash flow statement: - Adjustments For Depreciation And Amortisation: 736,100,000 EUR (slightly different from P&L figure of 725,700,000) Let me verify: The cash flow shows 736,100,000 for depreciation and amortization. This might include impairment or other items. Actually, looking more carefully at S&P methodology, they typically use: - EBITDA = Operating profit before depreciation and amortization Or from cash flow: Cash flows from operations before changes in working capital + interest paid - interest received (if interest received is not in operating profit) Let me try another approach using cash flow data: - Cash Flows From Used In Operations Before Changes In Working Capital: 2,072,700,000 EUR This is essentially: Operating profit + D&A + other non-cash items - interest paid + interest received (depending on classification) Actually, let me recalculate more carefully. In many European companies, operating profit includes interest received and excludes interest paid. Looking at the cash flow: - Interest Received Classified As Operating Activities: 64,200,000 EUR - Interest Paid Classified As Operating Activities: 154,800,000 EUR If operating profit includes interest received but not interest paid: EBITDA = Operating Profit + D&A + Interest Paid - Interest Received (to get to true operating) Actually, let me check: "Profit Loss From Operating Activities" in IFRS typically means EBIT. So EBIT = 1,333,500,000 EUR EBITDA = EBIT + D&A = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR But wait - S&P may adjust for capitalized interest. From cash flow: - Interest Costs Capitalised: 24,800,000 EUR This capitalized interest would be in investing activities but should be added back for debt service capacity. Also, S&P typically makes adjustments for operating leases, pensions, etc. But we don't have that data. Let me also consider: S&P uses "adjusted EBITDA" which often includes dividends from associates, etc. But we have a loss from associates. Another S&P approach: EBITDA from cash flow = Cash from operations before working capital changes + interest paid + income taxes paid - interest received From cash flow: - Cash Flows From Used In Operations Before Changes In Working Capital: 2,072,700,000 - Interest Paid: 154,800,000 - Income Taxes Paid: 380,100,000 - Interest Received: 64,200,000 This doesn't quite work because the 2,072,700,000 already includes some of these. Actually, let me verify: Cash from operations before working capital changes typically = Operating profit + D&A + other non-cash items ± other adjustments. Looking at the cash flow reconciliation: - Profit Loss From Operating Activities: 1,333,500,000 - Adjustments For Depreciation And Amortisation: 736,100,000 - Accruals To Provisions: 51,700,000 - Adjustments For Gain Loss On Disposals: -6,900,000 - Adjustments For Finance Income Cost: 101,500,000 - Adjustments For Income Tax Expenses: 356,700,000 - Cash Flows From Other Non Cash Movements: -24,100,000 Sum: 1,333,500,000 + 736,100,000 + 51,700,000 - 6,900,000 + 101,500,000 + 356,700,000 - 24,100,000 = 2,548,500,000 Hmm, that doesn't match 2,072,700,000. Let me re-read... Actually "Adjustments For Finance Income Cost" of 101,500,000 - this is likely adding back net finance costs. But "Finance Income Cost" in P&L is 22,700,000 (positive means net income). Wait, let me re-read: "Finance Income Cost" 2022: 22,700,000 EUR. This is positive, meaning net finance income. But in cash flow, "Adjustments For Finance Income Cost" is 101,500,000 - positive, meaning subtracting finance income or adding finance cost? Actually in cash flow from operations, we need to remove finance items. If there's net finance income of 22,700,000, we subtract it. But the adjustment is 101,500,000... Let me look at this differently. The cash flow statement shows: - Cash Flows From Used In Operations Before Changes In Working Capital: 2,072,700,000 This should equal: Operating profit + adjustments to reconcile to cash. Let me try: 1,333,500,000 (operating profit) + 736,100,000 (D&A) + 51,700,000 (provisions) - 6,900,000 (gains on disposal) - 22,700,000 (finance income) + 121,800,000 (finance costs) + 355,400,000 (income tax) - 24,100,000 (other) + 101,500,000 (other finance?)... This is getting messy. Let me just use the standard definition. Standard EBITDA = EBIT + D&A = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR Or using cash flow D&A: 1,333,500,000 + 736,100,000 = 2,069,600,000 EUR S&P sometimes uses "funds from operations" (FFO) which is closer to cash flow from operations before working capital. Actually, for S&P methodology specifically, they define EBITDA as: - Operating profit + depreciation & amortization + interest received - interest paid (with some variations) Or more commonly for European utilities: EBIT + D&A Let me check if operating profit includes or excludes associates. The "Share Of Profit Loss Of Associates" is -1,000,000, which is likely below operating profit line (in finance costs or separate line). Actually in IFRS, "Profit Loss From Operating Activities" typically includes operating activities only, and associates are shown separately. So EBIT = 1,333,500,000. For S&P Global Ratings methodology specifically for utilities: - EBITDA = Operating income + depreciation and amortization + other non-cash charges Let me use: EBITDA = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR But I need to check if S&P makes adjustments. One common adjustment is to treat capitalized personnel costs. The company capitalizes personnel costs: - Capitalised Personnel Expenses: -116,100,000 (negative means capitalized, not expensed) If these capitalized costs were expensed, operating profit would be lower. But for EBITDA, we want to add back D&A, which includes amortization of these capitalized costs. Actually, looking more carefully at the expense by nature: - Employee Benefits Expense Gross: 464,200,000 - Capitalised: -116,100,000 - Net expense: 348,100,000 The capitalized portion goes to PPE and is depreciated. So D&A includes depreciation of these capitalized costs. For S&P, they sometimes adjust EBITDA to add back capitalized interest: - Interest Costs Capitalised: 24,800,000 This is already in investing activities. S&P might add this to EBITDA since it represents a cash cost that builds asset base. Also, S&P may adjust for operating leases. But we don't have that data. Let me try a more comprehensive S&P EBITDA: - Base: 2,059,200,000 - Add capitalized interest: 24,800,000 (this is a financing cost but capitalized, so S&P may treat as EBITDA adjustment or as interest) - Add back operating lease expense if any: unknown Actually, S&P typically defines EBITDA as: EBITDA = Operating profit + depreciation and amortization + interest received + dividends received - interest paid (with operating activities classification) Or: EBITDA = Revenues - operating costs (cash basis) + D&A Let me try yet another approach using the cash flow: Cash from operations before working capital: 2,072,700,000 + Interest paid: 154,800,000 - Interest received: 64,200,000 + Income taxes paid: 380,100,000 = 2,543,400,000 This would be closer to "cash EBITDA" or funds from operations. Actually, I think I'm overcomplicating this. Let me use the standard academic/S&P definition: EBITDA = Operating Profit + D&A = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR Or if we use the cash flow D&A figure: 1,333,500,000 + 736,100,000 = 2,069,600,000 EUR The difference is 10,400,000 which might be impairment or other items. The line says "Depreciation Amortisation And Impairment Loss" in P&L is 725,700,000, while cash flow says "Adjustments For Depreciation And Amortisation Expense And Impairment Loss" is 736,100,000. Actually wait - let me re-read: "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 725,700,000. This includes reversals. The cash flow adjustment is 736,100,000. The difference of 10,400,000 might be due to different scope or timing. For S&P, I'll use the P&L figure as it's more standard for EBITDA calculation. ## Final Calculation Net Debt at year-end 2022 (2023-01-01): = Short-term borrowings + Current portion of long-term borrowings + Long-term borrowings - Cash and cash equivalents - Current financial assets = 444,100,000 + 1,909,300,000 + 8,416,700,000 - 2,155,100,000 - 255,300,000 = 10,770,100,000 - 2,410,400,000 = 8,359,700,000 EUR EBITDA for 2022: = Operating Profit + D&A = 1,333,500,000 + 725,700,000 = 2,059,200,000 EUR Net Debt / EBITDA = 8,359,700,000 / 2,059,200,000 = 4.06x Let me also try with average net debt: Average net debt = (8,359,700,000 + 9,874,600,000) / 2 = 9,117,150,000 Net Debt / EBITDA = 9,117,150,000 / 2,059,200,000 = 4.43x S&P typically uses year-end net debt, so: 4.06x But wait - I should double-check my net debt calculation. S&P sometimes excludes certain current financial assets if they're not truly liquid. Looking at "Current Financial Assets" - this could include trade receivables or other items. Let me check what's in current financial assets. Actually, "Current Financial Assets" at 255,300,000 (2022 year-end) and 980,600,000 (2021 year-end) - these are likely short-term investments, derivatives, etc. And "Current Trade Receivables" are shown separately at 2,358,300,000. So my calculation seems correct - current financial assets are liquid financial investments, not trade receivables. However, I should check if there are other cash-like items. "Cash And Cash Equivalents Of Which Due From Related Parties" is 100,000 - negligible. Also, should I include "Noncurrent Financial Assets" that are liquid? Probably not, as they're noncurrent. Let me reconsider: S&P Net Debt typically includes: - Short-term debt - Current portion of long-term debt - Long-term debt - Less: Cash and cash equivalents - Less: Short-term liquid investments (current financial assets if readily marketable) So my calculation seems correct. One more check: Should I use "Equity Instruments Perpetual Hybrid Bonds" as debt or equity? S&P typically treats hybrid bonds partly as equity. The 989,000,000 EUR hybrid bonds are classified as equity in the financial statements. S&P methodology for hybrid bonds: typically 50% equity treatment or based on specific terms. Without knowing terms, if it's classified as equity by the company, S&P might still treat it as debt-like if it has mandatory coupons. Actually, looking at the equity section: "Capital Instruments Bonds Hybrid Perpetual" = 989,000,000. And there's "Coupon Payable To Holders Of Hybrid Bonds" of -21,100,000. S&P typically treats perpetual hybrids with 50% equity content if they meet certain criteria, or 0% if they're more debt-like. Given the coupon is treated like a dividend (reducing retained earnings), this suggests equity treatment. For conservative S&P calculation, let me assume 100% equity treatment as per financial statements, so exclude from debt. But actually, S&P Global Ratings might treat this differently from the accounting treatment. If S&P treats it as 50% debt, then add 494,500,000 to debt. However, without specific S&P rating documentation, I'll follow the accounting classification. Final calculation with year-end net debt: Net Debt = 8,359,700,000 EBITDA = 2,059,200,000 Ratio = 4.059... Let me round to 4.06 or about 4.1. Actually, let me recalculate more precisely: 8,359,700,000 / 2,059,200,000 = 4.05978... Or if I use the more detailed EBITDA including capitalized interest (S&P sometimes adds this): EBITDA = 2,059,200,000 + 24,800,000 = 2,084,000,000 Ratio = 8,359,700,000 / 2,084,000,000 = 4.01 Or if S&P treats hybrid bonds as 50% debt: Net Debt = 8,359,700,000 + 494,500,000 = 8,854,200,000 Ratio = 8,854,200,000 / 2,059,200,000 = 4.30 Given the uncertainty, let me stick with the most standard definition: - Net Debt: 8,359,700,000 - EBITDA: 2,059,200,000 - Ratio: 4.06 Actually, I want to double-check one thing. The "Finance Income Cost" is 22,700,000 positive. Is this in operating profit? "Profit Loss From Operating Activities" is 1,333,500,000. In IFRS, this is typically before finance costs and associates. So: Operating profit = 1,333,500,000 Finance income/cost = 22,700,000 (net income) Associates = -1,000,000 Profit before tax = 1,333,500,000 + 22,700,000 - 1,000,000 = 1,355,200,000 But stated "Profit Loss Before Tax" is 1,233,400,000. This doesn't match! Let me recheck: 1,333,500,000 + 22,700,000 - 1,000,000 = 1,355,200,000 ≠ 1,233,400,000 Hmm, there's a discrepancy of 121,800,000. Let me look again... Actually, "Finance Income Cost" of 22,700,000 - is this net finance income or net finance cost? The name suggests it could be either. Looking at "Finance Costs" = 121,800,000. This is clearly a cost. So if Finance Income Cost = 22,700,000 is positive, it might mean net finance income of 22,700,000, which would be Finance Income minus Finance Costs. But Finance Costs alone is 121,800,000. So Finance Income would be 121,800,000 + 22,700,000 = 144,500,000? That doesn't seem right either. Let me re-read: "Finance Income Cost" - this might be the net figure, where positive means income. Actually, looking more carefully: "Finance Income Cost" 2022: 22,700,000 and 2021: 16,600,000. And "Finance Costs" 2022: 121,800,000. I think "Finance Income Cost" is the net line item (income minus costs), and "Finance Costs" is the gross figure. So: Finance Income = Finance Costs + Finance Income Cost (if cost is income) = 121,800,000 + 22,700,000 = 144,500,000? That seems high. Or: Finance Income Cost = Finance Income - Finance Costs = 22,700,000 So Finance Income = 22,700,000 + 121,800,000 = 144,500,000? No wait, if it's net income, then Finance Income - Finance Costs = 22,700,000. Actually, let me check the PBT calculation: Profit Loss From Operating Activities: 1,333,500,000 + Finance Income Cost: 22,700,000 + Share Of Profit Loss Of Associates: -1,000,000 = 1,355,200,000 But PBT is 1,233,400,000. Difference is 121,800,000. Wait! Maybe "Finance Income Cost" of 22,700,000 is actually net finance COST (i.e., negative income), and the sign is just labeling. Or perhaps I need to read it as "Finance Income (Cost)" meaning the net is income of 22,700,000. But the math doesn't work. Let me try: Operating profit 1,333,500,000 - Finance Costs 121,800,000 + something = 1,233,400,000. 1,333,500,000 - 121,800,000 = 1,211,700,000. Then add associates -1,000,000 = 1,210,700,000. Still not 1,233,400,000. Difference: 1,233,400,000 - 1,210,700,000 = 22,700,000. Ah! So Finance Income must be 22,700,000. So: Operating profit 1,333,500,000 + Finance Income 22,700,000 - Finance Costs 121,800,000 - Associates 1,000,000 = 1,233,400,000. ✓ So "Finance Income Cost" 22,700,000 is actually Finance Income (positive), and "Finance Costs" 121,800,000 is the expense. The naming is confusing. So EBIT = Operating Profit = 1,333,500,000 (this includes no finance items, excludes associates) EBITDA = 1,333,500,000 + 725,700,000 = 2,059,200,000. ✓ Now, for S&P EBITDA, they might adjust for capitalized interest. The 24,800,000 capitalized interest is part of investing cash flow but represents a financing cost. S&P sometimes adds this back to EBITDA or treats it as interest. Actually, looking at S&P methodology more carefully: Capitalized interest is typically counted as interest expense for interest coverage ratios, but for EBITDA, it's already excluded from operating profit. S&P defines EBITDA as: EBIT + depreciation and amortization + other non-cash charges + other adjustments. Capitalized interest doesn't affect EBITDA directly since it's not in operating profit. However, some S&P adjustments: - If capitalized personnel costs are significant, S&P might adjust - Operating leases (not in data) - Pension adjustments (not in data) Given limited data, I'll use standard EBITDA. One more consideration: Should I use average or year-end net debt? S&P typically uses year-end or average depending on context. For credit ratios, year-end is common. Actually, for trailing twelve months, they might use average debt if there were significant changes. Given the debt decreased significantly during 2022 (from 9,874,600,000 to 8,359,700,000), average might be more representative. Average net debt = (9,874,600,000 + 8,359,700,000) / 2 = 9,117,150,000 But S&P Global Ratings typically uses "adjusted debt" and "adjusted EBITDA" with specific methodologies. Let me also check if there's any "debt-like" items in other liabilities: - "Other Longterm Provisions" = 140,800,000 - these are not debt - "Noncurrent Financial Liabilities" = 247,200,000 - this could be debt-like Actually, I missed "Noncurrent Financial Liabilities"! Let me recheck. In my debt calculation, I only included borrowings. But "Noncurrent Financial Liabilities" of 247,200,000 (2022 year-end) and 83,700,000 (2021 year-end) could include derivative liabilities, financial lease liabilities, or other debt-like items. Similarly, "Current Financial Liabilities" = 44,900,000 (2022) and 45,800,000 (2021). S&P typically includes all debt-like financial liabilities. Let me recalculate: Total Debt 2022 year-end: - Short-term borrowings: 444,100,000 - Current portion of long-term borrowings: 1,909,300,000 - Long-term borrowings: 8,416,700,000 - Noncurrent financial liabilities (debt-like): 247,200,000 - Current financial liabilities (debt-like): 44,900,000 But wait - "Noncurrent Financial Liabilities" might include derivatives, not all of which are debt. And "Current Financial Liabilities" similarly. Actually, looking at the balance sheet structure, these are likely derivative liabilities or other financial instruments. S&P would include negative fair value of derivatives as debt. For conservative estimate, let me include them: Total Debt = 444,100,000 + 1,909,300,000 + 8,416,700,000 + 247,200,000 + 44,900,000 = 11,062,200,000 Less liquid assets: - Cash and cash equivalents: 2,155,100,000 - Current financial assets: 255,300,000 Net Debt = 11,062,200,000 - 2,410,400,000 = 8,651,800,000 But this might double-count or misclassify. Let me think... Actually, "Noncurrent Financial Assets" = 494,400,000 and "Current Financial Assets" = 255,300,000. These are assets. The liabilities are "Noncurrent Financial Liabilities" = 247,200,000 and "Current Financial Liabilities" = 44,900,000. If these are derivatives, the net position might matter. But for gross debt, S&P uses gross debt figures. Hmm, but "borrowings" already includes all interest-bearing debt. "Financial liabilities" might be non-interest bearing or derivative. Given the complexity and without more detail, I'll stick to the standard definition using borrowings only. Actually, let me verify my borrowings figure against total liabilities: Total Liabilities 2022: - Noncurrent Liabilities: 9,824,500,000 - Current Liabilities: 6,799,700,000 - Liabilities in disposal groups: 9,600,000 - Total: 16,633,800,000 Equity: 6,169,100,000 Total Liabilities + Equity: 22,802,900,000 = Assets ✓ Within Noncurrent Liabilities: - Longterm Borrowings: 8,416,700,000 - Noncurrent Provisions For Employee Benefits: 48,400,000 - Other Longterm Provisions: 140,800,000 - Noncurrent Financial Liabilities: 247,200,000 - Other Noncurrent Liabilities: 971,400,000 - Total: 9,824,500,000 ✓ Within Current Liabilities: - Shortterm Borrowings: 444,100,000 - Current Portion Of Longterm Borrowings: 1,909,300,000 - Trade And Other Payables To Trade Suppliers: 3,687,700,000 - Trade And Other Current Payables To Related Parties: 60,900,000 - Current Tax Liabilities: 43,800,000 - Current Financial Liabilities: 44,900,000 - Other Current Liabilities: 669,900,000 - Total: 6,799,700,000? Let me add: 444.1 + 1,909.3 + 3,687.7 + 60.9 + 43.8 + 44.9 + 669.9 = 6,860.6. Hmm, doesn't match 6,799.7. Wait, let me recheck: 444,100,000 + 1,909,300,000 = 2,353,400,000 + 3,687,700,000 = 6,041,100,000 + 60,900,000 = 6,102,000,000 + 43,800,000 = 6,145,800,000 + 44,900,000 = 6,190,700,000 + 669,900,000 = 6,860,600,000 But stated "Current Liabilities" is 6,799,700,000. Difference of 60,900,000... which equals "Trade And Other Current Payables To Related Parties". Maybe this is included in "Trade And Other Payables To Trade Suppliers"? Actually, looking at the line items, "Trade And Other Payables To Trade Suppliers" might already exclude related party payables, or the 60,900,000 is part of the 3,687,700,000. Hmm, the data structure is unclear. Let me just use the "Current Liabilities" total and not worry about the components. For debt, I'll use: - Short-term borrowings: 444,100,000 - Current portion of long-term borrowings: 1,909,300,000 - Long-term borrowings: 8,416,700,000 These are clearly defined as borrowings. The "financial liabilities" might be derivatives or other items. Net Debt = 10,770,100,000 - 2,155,100,000 - 255,300,000 = 8,359,700,000 EBITDA = 2,059,200,000 Ratio = 4.06 Let me also calculate with 2021 year-end net debt for comparison: Net Debt 2021 = 12,422,000,000 - 1,566,800,000 - 980,600,000 = 9,874,600,000 If using average: (8,359,700,000 + 9,874,600,000) / 2 = 9,117,150,000 Ratio = 9,117,150,000 / 2,059,200,000 = 4.43 Given that S&P typically uses year-end figures for balance sheet items in their published ratios, I'll use 4.06. But some S&P calculations use average debt for ratios. Actually, looking at S&P methodology documents, they often use "average" or "latest" depending on the ratio. For Net Debt/EBITDA, they typically use year-end net debt or most recent quarter. I'll provide the year-end calculation: 4.06, rounded to 4.1 or more precisely 4.06. Let me do one more verification of EBITDA. S&P sometimes uses "adjusted EBITDA" which adds back certain items. For utilities with significant capex, they might look at "funds from operations" instead. FFO = Cash from operations before working capital changes = 2,072,700,000 + Interest paid = 154,800,000 - Interest received = 64,200,000 = 2,163,300,000 (this is closer to EBITDA + working capital impact) Actually no, FFO in S&P terms is typically: Net income + D&A + deferred taxes + other non-cash items - gains on asset sales + interest expense. Let me try: 857,000,000 (net income) + 725,700,000 (D&A) + ... this gets complicated. I'll stick with standard EBITDA = 2,059,200,000. Final answer: 8,359,700,000 / 2,059,200,000 = 4.05978... ≈ 4.06 Rounding to one decimal: 4.1 Or two decimals: 4.06 Given the precision of inputs, I'll use 4.06 or about 4.1. Actually, let me see if I can get a more precise S&P-style calculation. S&P Global Ratings typically reports these ratios with one decimal place in their credit reports. So: 4.1 But let me also check if EBITDA should include the capitalized interest adjustment that S&P sometimes makes. If we add capitalized interest back to EBITDA (since it's a financing cost but supports operations): Adjusted EBITDA = 2,059,200,000 + 24,800,000 = 2,084,000,000 Ratio = 8,359,700,000 / 2,084,000,000 = 4.01 Or if we treat capitalized interest as part of interest expense (not EBITDA): EBITDA = 2,059,200,000 Interest expense (total) = 121,800,000 + 24,800,000 = 146,600,000 This doesn't change EBITDA. I'll go with 4.06, or rounded 4.1. But for more precision in the answer format, let me use 4.06. Actually, rethinking: The user asks for "2022". The data has dates 2022-01-01 - 2023-01-01 for income statement items (which is calendar year 2022), and 2023-01-01 for balance sheet (year-end 2022). So my calculation is correct for "2022" results. One final check: Should I use opening or closing net debt? For a calendar year 2022 ratio, typically: - If using TTM EBITDA: use latest available net debt (year-end 2022) - Or average if significant changes Given debt decreased significantly during 2022, some analysts use average. But S&P credit ratings typically use the latest figures or adjusted figures. I'll use year-end: 4.06 Let me also verify with opening net debt just in case: 9,874,600,000 / 2,059,200,000 = 4.80 Average: 4.43 I think 4.1 (rounded from 4.06) or 4.4 (from average) are both reasonable. Given S&P's conservative approach, they might use the higher figure. But standard practice is latest or average. I'll provide the year-end figure as it's most commonly used: 4.06, which rounds to 4.1. Actually, for exactness, let me not round: 4.06. But the data is in millions effectively, so maybe 4.1 is appropriate. Hmm, looking at this again - the inputs are precise to the euro. So 4.05978... is the exact ratio. For the answer format, I'll provide 4.06 or 4.1. Let me check S&P typical reporting - they often use one decimal place. But the instruction says "estimate" and "no units", so a number is fine. I'll provide 4.06 for more precision, or calculate more carefully. Wait - I want to double-check my net debt. Is "Current Financial Assets" truly a deduction? Current Financial Assets = 255,300,000. This could include: - Short-term investments - Derivatives receivable - Loans receivable If these are not readily liquid (e.g., derivatives for hedging, not cash-like), S&P might not deduct them. Looking at 2021: Current Financial Assets = 980,600,000. This decreased to 255,300,000 in 2022. This suggests some were sold or matured. If these are trading securities or short-term deposits, they're cash-like. If they're derivative assets, they might not be. For conservative S&P net debt, they typically deduct only "cash and cash equivalents" and "short-term liquid investments" or "readily marketable securities". Given the large decrease, these might have been temporary investments. I'll include them as they're likely liquid. But let me also check "Noncurrent Financial Assets" = 494,400,000 in 2022, up from 287,700,000. These are noncurrent so not deducted. Final calculation unchanged: 8,359,700,000 / 2,059,200,000 = 4.06 I'll provide 4.06 as my best estimate, or perhaps 4.1 if rounding to one decimal. Actually, let me see if there's any other interpretation. Some S&P analysts use "gross debt" not "net debt" in certain contexts. But the question asks for Net Debt/EBITDA. Also, S&P sometimes excludes cash not available for debt repayment (restricted cash). We don't have that data. Given all uncertainties, my best estimate is 4.1 (rounded) or 4.06 (more precise). I'll go with 4.06 for the answer, or calculate as 4.05978... ≈ 4.06. Actually, let me recheck: 8,359,700,000 / 2,059,200,000 8,359,700,000 / 2,059,200,000 = ? 2,059,200,000 × 4 = 8,236,800,000 Remainder: 122,900,000 122,900,000 / 2,059,200,000 = 0.05968... So 4.05968... ≈ 4.06 Yes, 4.06 is correct. 4.06