I need to estimate the FFO / Net debt ratio for 2022. Let me work through this step by step. First, let me understand what FFO (Funds From Operations) and Net debt mean: - FFO is typically calculated as: Net Income + Depreciation/Amortization + Deferred Taxes + Other non-cash items - Net Debt = Total Financial Debt - Cash and Cash Equivalents For 2022 (the period 2022-01-01 to 2023-01-01, which represents the year 2022): **Step 1: Calculate FFO** From the data, I can use the cash flow approach or the income statement approach. Let me use the standard FFO calculation: FFO = Profit Loss + Depreciation Amortisation And Impairment Loss + Income Tax Expense + Finance Costs - Finance Income + Other adjustments Actually, a more standard approach for FFO in credit analysis: FFO = Profit Loss from Operating Activities + Depreciation/Amortization - Taxes + Interest expense Or more commonly for utilities/real estate: FFO = Net Income + Depreciation + Amortization + Deferred Taxes + Other non-cash items Let me use a practical approach. From the cash flow statement, I can derive FFO from operating cash flows: From the data: - "Cash Flows From Used In Operations" 2022-01-01 - 2023-01-01: 548,169,000 EUR But this is after working capital changes. FFO is typically before working capital changes. Let me calculate FFO as: FFO = Profit Loss + Depreciation Amortisation And Impairment Loss + Income Tax Expense + Finance Costs - Finance Income + Effect Of Valuation Using Equity Method - Dividends Received + Other non-cash items Actually, let me use a cleaner approach. FFO (Funds From Operations) for credit rating purposes is often: FFO = Net Income + Depreciation + Amortization + Deferred Income Taxes + Other non-cash items From the data for 2022 (2022-01-01 to 2023-01-01): - Profit Loss: 436,126,000 EUR - Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss: 479,186,000 EUR - Income Tax Expense Continuing Operations: 152,369,000 EUR - Finance Costs: 61,367,000 EUR - Finance Income: -4,043,000 EUR (so subtract) - Effect Of Valuation Using The Equity Method: 662,000 EUR (this is income, so subtract) - Revenue From Dividends: -48,000 EUR (subtract) - Other Income Expense From Equity Investments: -2,722,000 EUR (this is income, so subtract) Let me try: FFO = Operating Profit + D&A + Interest - Taxes paid adjustment Or more standard: FFO = Cash from Operations + Interest Paid - Interest Received + Working Capital Changes - Dividends Received Actually, let me use the most common definition for corporate FFO: FFO = Net Income + Non-cash charges (D&A, impairment, deferred taxes) + Interest Expense From cash flow adjustments: - Adjustments For Depreciation And Amortisation Expense: 478,290,000 EUR - Adjustments For Impairment Loss Reversal: 895,000 EUR - Profit Loss: 436,126,000 EUR Also from cash flow statement, we can back out: FFO ≈ Cash Flows From Used In Operations - Working Capital Changes + Interest Paid - Interest Received + Taxes Paid From cash flow data: - Cash Flows From Used In Operations: 548,169,000 EUR - Increase Decrease In Working Capital: -336,750,000 EUR (negative means working capital used cash) So Cash from Operations before WC changes = 548,169,000 - 336,750,000 = 884,919,000? No wait, let me check signs. Actually, "Increase Decrease In Working Capital" of -336,750,000 means working capital decreased (source of cash). So: Operating Cash Flow before WC changes = Operating Cash Flow - WC change = 548,169,000 - (-336,750,000) = 884,919,000? Hmm, let me check: If WC decreased (negative change), that's a source of cash, so to get pre-WC cash flow, we subtract the benefit: 548,169,000 - (-336,750,000) = 884,919,000. That seems high. Let me verify with another approach. FFO is often calculated as: FFO = EBIT + D&A - Cash Taxes Or: FFO = EBITDA - Cash Taxes From income statement: - Profit Loss From Operating Activities (EBIT): 641,338,000 EUR - Depreciation Amortisation And Impairment: 479,186,000 EUR - EBITDA = 641,338,000 + 479,186,000 = 1,120,524,000 EUR Cash Taxes = Income Taxes Paid = 152,372,000 EUR FFO = 1,120,524,000 - 152,372,000 = 968,152,000? Wait, let me check if EBIT is pre or post D&A. "Profit Loss From Operating Activities" is typically EBIT, which is before interest and taxes but after D&A. So: EBITDA = EBIT + D&A = 641,338,000 + 479,186,000 = 1,120,524,000 But FFO typically = Net Income + D&A + Deferred Taxes + Interest + other non-cash = 436,126,000 + 479,186,000 + 0 + 61,367,000 + adjustments Actually standard FFO for credit analysis (Moody's/S&P style): FFO = Net Income + Depreciation + Amortization + Deferred Income Taxes + Other non-cash items Let me use: FFO = Cash Flows From Used In Operations + Finance Costs Paid - Finance Income Received - Dividends Received (classified as operating) + Income Taxes Paid - Working Capital changes... this gets messy. Let me try a cleaner approach from the cash flow reconciliation: Starting from Profit Loss: 436,126,000 + Depreciation/Amortization: 478,290,000 + Impairment: 895,000 - Effect of equity method: -662,000 - Other income from equity investments: -2,722,000 - Dividend income: -48,000 + Share based payments: 7,958,000 + Gains on disposal: -25,357,000 (negative because it's a gain) + Finance income: -5,092,000 + Finance costs: 61,413,000 + Income tax expense: 152,369,000 + Employee benefits adjustment: -17,574,000 + Inventories: 4,751,000 + Trade receivables: -65,399,000 + Trade payables: -400,375,000 + Provisions: 38,584,000 + Other assets/liabilities: 759,189,000 + Dividends received (operating): 1,372,000 + Finance income received: 4,043,000 + Finance costs paid: -53,720,000? No wait, the adjustments show positive for costs paid? Let me re-read: "Finance Costs Paid Classified As Operating Activities" is 53,720,000. In cash flow, this is outflow, so negative for cash generation. Actually, looking at "Adjustments For Finance Costs": 61,413,000 - this is adding back finance costs in the indirect method. Let me calculate FFO as: Cash from Operations before working capital changes and before interest/dividends. From operating cash flow: 548,169,000 + Finance Costs Paid: 53,720,000 (to get pre-interest) + Finance Income Received: -4,043,000 (remove this benefit) + Dividends Received (operating): -1,372,000 (remove) - Working Capital benefit: 336,750,000 (since WC change was -336,750,000, meaning it added cash) Wait, "Increase Decrease In Working Capital" = -336,750,000. If this is negative, working capital decreased, providing cash. So to get FFO (before WC changes), I need to subtract this benefit. FFO = 548,169,000 + 53,720,000 - 4,043,000 - 1,372,000 - (-336,750,000)? No that's wrong. Let me think again. Cash from Operations = FFO - Interest Paid + Interest Received - Dividends Received + WC changes + other items. Standard FFO = Net Income + D&A + Deferred Taxes + Other non-cash charges = 436,126,000 + 478,290,000 + 0 + 895,000 + 7,958,000 - 25,357,000? Hmm, the "other non-cash" items are tricky. Let me use: FFO = Net Income + Adjustments For Depreciation And Amortisation + Adjustments For Impairment + Adjustments For Sharebased Payments + Adjustments For Losses Gains On Disposal + Adjustments For Effect Of Valuation Using Equity Method + Adjustments For Other Income From Equity Investments + Adjustments For Dividend Income + Adjustments For Finance Income + Adjustments For Finance Costs + Adjustments For Income Tax Expense = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 + (-25,357,000) + (-662,000) + (-2,722,000) + (-48,000) + (-5,092,000) + 61,413,000 + 152,369,000 Wait, I need to be careful with signs. The "Adjustments" in cash flow are added to net income. Let me check: - Adjustments For Losses Gains On Disposal Of Noncurrent Assets: -25,357,000 (negative means gain, so subtracted) - Adjustments For Effect Of Valuation Using Equity Method: -662,000 (negative means income, so subtracted) - Adjustments For Other Income From Equity Investments: -2,722,000 (negative means income, so subtracted) So FFO-like calculation (before working capital, interest, taxes): = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 - 48,000 - 5,092,000 + 61,413,000 + 152,369,000 = 436,126,000 + 478,290,000 = 914,416,000 + 895,000 = 915,311,000 + 7,958,000 = 923,269,000 - 25,357,000 = 897,912,000 - 662,000 = 897,250,000 - 2,722,000 = 894,528,000 - 48,000 = 894,480,000 - 5,092,000 = 889,388,000 + 61,413,000 = 950,801,000 + 152,369,000 = 1,103,170,000 But this includes taxes and interest. FFO typically includes interest paid (not added back). Actually, standard FFO = Cash from Operations + Interest Paid - Interest Received + Dividends Received - Working capital changes... Let me use a simpler and more standard approach. For corporate issuers, FFO is often approximated as: FFO = Operating Cash Flow + Interest Paid - Interest Received + Dividends Received (if in operating) - Working capital changes Or from EBITDA: FFO = EBITDA - Cash Taxes EBITDA = Profit Loss From Operating Activities + Depreciation Amortisation = 641,338,000 + 479,186,000 = 1,120,524,000 Cash Taxes = Income Taxes Paid = 152,372,000 FFO = 1,120,524,000 - 152,372,000 = 968,152,000 But this doesn't include interest. Hmm, EBITDA is before interest, so FFO from this would be before interest too. Actually, looking at credit metrics, FFO is typically: FFO = Funds from Operations = Net Income + D&A + Deferred Taxes + Other non-cash items Let me use the cash flow statement approach more carefully. The reconciliation shows: Cash Flows From Used In Operations = 548,169,000 This includes: - Interest Paid (financing activities? or operating?) - Taxes Paid: 152,372,000 - Working Capital changes: -336,750,000 - Dividends Received: 1,372,000 - Finance Income Received: 4,043,000 - Finance Costs Paid: 53,720,000 Wait, "Finance Costs Paid Classified As Operating Activities" = 53,720,000. This means interest is paid in operating activities (common under IFRS). So: Cash from Operations = FFO basis - Interest Paid + Interest Received - Dividends Received + Taxes Paid + WC changes Actually let me reconstruct: Starting from Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Other adjustments (equity method, etc.): various = Operating profit before WC changes: let's call this "FFO before interest and taxes" ≈ 1,103,170,000 (from above) Then: - Interest Paid: -53,720,000 (in operating) + Interest Received: +4,043,000 (in operating) + Dividends Received: +1,372,000 (in operating) - Taxes Paid: -152,372,000 + WC changes: +336,750,000 (since WC decreased) = Cash from Operations: 1,103,170,000 - 53,720,000 + 4,043,000 + 1,372,000 - 152,372,000 + 336,750,000 = 1,239,243,000? That doesn't match 548,169,000. I must have the WC sign wrong or other items. Let me recalculate: "Increase Decrease In Working Capital" = -336,750,000. If working capital decreased, this is a source of cash (positive for cash flow). But in the indirect method, a decrease in working capital is added. So the adjustment is +336,750,000? No wait, the line item itself is -336,750,000, which might mean it's already the net effect. Actually, looking at the detailed WC components: - Inventories: 4,751,000 (decrease, source of cash) - Trade receivables: -65,399,000 (increase, use of cash) - Trade payables: -400,375,000 (decrease, use of cash) - Provisions: 38,584,000 (decrease in liability? or expense?) - Other assets/liabilities: 759,189,000 Sum: 4,751,000 - 65,399,000 - 400,375,000 + 38,584,000 + 759,189,000 = 336,750,000? Let me check: 4,751 - 65,399 = -60,648; -60,648 - 400,375 = -461,023; -461,023 + 38,584 = -422,439; -422,439 + 759,189 = 336,750. Yes! So "Increase Decrease In Working Capital" as a summary is 336,750,000 (positive, meaning source of cash). But the line says -336,750,000. Hmm, maybe it's labeled as "Increase Decrease" where positive means increase (use of cash). Let me check: if the components sum to +336,750,000 as a source, but the label says -336,750,000, then perhaps the sign convention is that negative means decrease in working capital (source of cash). Actually, looking more carefully: "Increase Decrease In Working Capital" 2022-01-01 - 2023-01-01: -336750000 EUR If working capital increased, that's a use of cash (negative for cash flow). If working capital decreased, that's a source (positive). Given the components: inventories decreased (4,751,000 positive for cash), receivables increased (-65,399,000 negative for cash), payables decreased (-400,375,000 negative for cash), other assets/liabilities increased... The net is 336,750,000 positive for cash flow (source). But the reported figure is -336,750,000. This suggests the sign convention might be reversed, or it's reported as "Increase" = positive. Let me just accept: WC change contributed +336,750,000 to cash flow (or the figure -336,750,000 means decrease). Going back: Cash Flow from Operations = 548,169,000 To get FFO, I add back interest paid and subtract interest received (since FFO is before interest), and add back taxes paid (since FFO is before taxes), and subtract WC changes (to get pre-WC): FFO = 548,169,000 + 53,720,000 - 4,043,000 - 1,372,000 + 152,372,000 - 336,750,000? Wait, if WC change was a source of 336,750,000, then to get pre-WC I subtract that benefit: = 548,169,000 + 53,720,000 - 4,043,000 - 1,372,000 + 152,372,000 - 336,750,000 = 412,096,000? That seems low. Hmm, let me try another approach. FFO is often just approximated as: FFO = Net Income + D&A = 436,126,000 + 479,186,000 = 915,312,000 Or with deferred taxes and other non-cash: = 915,312,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 - 48,000 ≈ 895,376,000 Let me use a common simplification: FFO ≈ Operating Cash Flow + Interest Expense - Interest Income + Tax Expense (not paid) adjustment Actually, for practical purposes, let me use: FFO = Cash Flows From Used In Operations + Interest Paid - Interest Received + Dividends Received (operating) - WC benefit + Tax accrual adjustment Or simply: FFO = EBIT + D&A - Cash Taxes + Interest... no. Let me look up standard FFO calculation: FFO = Net income + depreciation + amortization + deferred taxes + other non-cash items I'll use: FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 + (deferred taxes: 0) + other non-cash adjustments for equity method and investments Actually, the cleanest from cash flow perspective: FFO before WC and interest = Cash from Operations - WC changes + Interest Paid - Interest Received + Dividends Received = 548,169,000 - 336,750,000 + 53,720,000 - 4,043,000 + 1,372,000? No, dividends received is positive in cash flow. Let me try: FFO = Cash from Operations + Interest Paid - Interest Received - Dividends Received - WC changes... I think I'm overcomplicating this. Let me use a standard approximation: **FFO = Net Income + Depreciation + Amortization + Deferred Taxes** = 436,126,000 + 478,290,000 + 895,000 + 0 = 915,311,000 But this misses some items. Let me add share-based payments (non-cash): = 915,311,000 + 7,958,000 = 923,269,000 And subtract gains/add losses: - Gains on disposal: -25,357,000 (subtract the gain) - Equity method income: -662,000 - Other investment income: -2,722,000 = 923,269,000 - 25,357,000 - 662,000 - 2,722,000 = 894,528,000 This is close to my earlier 1,103,170,000 minus taxes and interest. Actually, let me verify: 894,528,000 + 61,413,000 (interest) + 152,369,000 (taxes) = 1,108,310,000. Close to 1,103,170,000, difference due to rounding or items I missed. Let me use FFO = 894,528,000 approximately, or more precisely around 900,000,000 to 950,000,000. Actually, for credit ratios, FFO is often calculated as: FFO = Cash Flow from Operations + Interest Paid - Interest Received + Dividends from investments = 548,169,000 + 53,720,000 - 4,043,000 + 1,372,000 = 599,218,000? No this seems low. Wait, I need to check if interest is already in operating cash flow. "Finance Costs Paid Classified As Operating Activities" = 53,720,000. This means interest paid reduces operating cash flow. So to get FFO (which is before interest), I add back interest paid. But then FFO should also be before taxes. "Income Taxes Paid" = 152,372,000. So add back taxes paid to get pre-tax. And WC changes: if 336,750,000 is the benefit from WC decrease, subtract to get pre-WC. So: FFO = 548,169,000 + 53,720,000 + 152,372,000 - 336,750,000 - 4,043,000 - 1,372,000? Hmm, interest received and dividends received are typically included in FFO for some definitions but not others. Let me use a simpler approach. Moody's defines FFO as: FFO = Net Income + D&A + Deferred Taxes + Other non-cash items - Extraordinary items - Gain on sale = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 - 48,000 = 894,480,000 approximately I'll round to **FFO ≈ 895,000,000 EUR** or about **900 million EUR**. Actually, let me recalculate more carefully: 436,126,000 + 478,290,000 = 914,416,000 + 895,000 = 915,311,000 + 7,958,000 = 923,269,000 - 25,357,000 = 897,912,000 - 662,000 = 897,250,000 - 2,722,000 = 894,528,000 - 48,000 = 894,480,000 So FFO ≈ 894,480,000 EUR **Step 2: Calculate Net Debt** Net Debt = Total Financial Debt - Cash and Cash Equivalents Financial Debt includes: - Short Term Financial Liabilities: 142,437,000 EUR (2023-01-01, end of 2022) - Long Term Financial Liabilities: 6,402,913,000 EUR (2023-01-01) - Other Current Financial Liabilities: 290,000 EUR - Other Noncurrent Financial Liabilities: 34,000 EUR Wait, I need to check 2022 year-end, which is 2023-01-01 in the data (Italian fiscal year ends Dec 31, so 2023-01-01 is the start of 2023 = end of 2022). Total Financial Debt at end of 2022: - "Short Term Financial Liabilities Excluding Other Current Financial Liabilities" 2023-01-01: 142,437,000 EUR - "Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities" 2023-01-01: 6,402,913,000 EUR - "Other Current Financial Liabilities" 2023-01-01: 290,000 EUR - "Other Noncurrent Financial Liabilities" 2023-01-01: 34,000 EUR Total Debt = 142,437,000 + 6,402,913,000 + 290,000 + 34,000 = 6,545,674,000 EUR Cash and Cash Equivalents at end of 2022: - "Cash And Cash Equivalents" 2023-01-01: 451,946,000 EUR Net Debt = 6,545,674,000 - 451,946,000 = 6,093,728,000 EUR Wait, I should also check if there are other financial liabilities. Let me check "Current Financial Assets" etc. Actually, I need to be more careful. The standard net debt calculation includes: - All interest-bearing debt - Less: Cash and cash equivalents - Less: Current financial assets (if liquid) From the data: - "Current Financial Assets Excluding Other Current Financial Assets" 2023-01-01: 5,770,000 EUR - "Other Current Financial Assets" 2023-01-01: 17,455,000 EUR These might be liquid investments that reduce net debt. Also check "Noncurrent Financial Assets" 2023-01-01: 22,945,000 EUR - these might include some debt-like items. For standard Net Debt: Gross Debt = Short term borrowings + Long term borrowings + Current portion of long term debt + Other financial liabilities From the balance sheet items: - Short Term Financial Liabilities: 142,437,000 - Long Term Financial Liabilities: 6,402,913,000 - Other Current Financial Liabilities: 290,000 - Other Noncurrent Financial Liabilities: 34,000 Total Gross Debt = 6,545,674,000 EUR Less Cash and Cash Equivalents: 451,946,000 Less Current Financial Assets (liquid): 5,770,000 + 17,455,000 = 23,225,000? Actually, "Current Financial Assets Excluding Other Current Financial Assets" might be things like short-term investments. And "Other Current Financial Assets" might include derivatives or other items. For conservative net debt, I'll use: Net Debt = Gross Debt - Cash and Cash Equivalents = 6,545,674,000 - 451,946,000 = 6,093,728,000 EUR Or with more liquid assets subtracted: Net Debt = 6,545,674,000 - 451,946,000 - 5,770,000 - 17,455,000 = 6,070,503,000 EUR Let me use the simpler definition: Net Debt = Total Debt - Cash = 6,093,728,000 EUR Actually, I should verify by checking if there's a "Net Debt" or "Net Financial Debt" figure implied. Let me also check beginning of year to understand the structure. At 2022-01-01 (beginning of 2022 = end of 2021): - Short Term Financial Liabilities: 591,188,000 - Long Term Financial Liabilities: 5,785,707,000 - Other Current Financial Liabilities: 290,000 - Other Noncurrent Financial Liabilities: 6,283,000 Total Debt = 6,383,468,000 - Cash: 1,391,763,000 Net Debt = 4,991,705,000 For 2022 year-end (2023-01-01): Total Debt = 142,437,000 + 6,402,913,000 + 290,000 + 34,000 = 6,545,674,000 - Cash: 451,946,000 Net Debt = 6,093,728,000 **Step 3: Calculate FFO / Net Debt ratio** FFO ≈ 894,480,000 EUR Net Debt ≈ 6,093,728,000 EUR FFO / Net Debt = 894,480,000 / 6,093,728,000 = 0.1468 or about 14.7% Wait, this seems low. Let me recheck FFO. Actually, I think my FFO might be missing some items. Let me recalculate FFO more carefully using the standard approach. FFO = Net Income + D&A + Deferred Taxes + Other non-cash items - Gain on sale + Other adjustments From cash flow statement, the reconciliation to operating cash flow gives us "Cash generated from operations before working capital changes" which is close to FFO. Let me calculate: Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 - Gain on disposal: -25,357,000 - Equity method income: -662,000 - Other investment income: -2,722,000 - Dividend income: -48,000 + Finance costs (non-cash or accrued?): 61,413,000 - 53,720,000 = 7,693,000? (accrual vs cash) + Finance income (non-cash or accrued?): -5,092,000 + 4,043,000 = -1,049,000? + Income tax expense (accrual): 152,369,000 - 152,372,000 = -3,000? ≈ 0 Hmm, the difference between finance costs expense and paid is 61,367,000 - 53,720,000 = 7,647,000 (accrual) Finance income: 4,043,000 - 4,043,000 = 0 (matches) Dividend income: 48,000 - 1,372,000 = -1,324,000? No, "Dividends Received Classified As Operating Activities" is 1,372,000, but "Revenue From Dividends" is 48,000. These are different! One is P&L, one is cash flow. Actually, "Adjustments For Dividend Income" is 48,000, meaning 48,000 was subtracted in the income statement but received in cash? Or it's an adjustment to remove dividend income. Let me re-read: "Adjustments For Dividend Income" 2022-01-01 - 2023-01-01: 48000 EUR. This is added back in cash flow (since it was income but not operating cash, or to reclassify). And "Dividends Received Classified As Operating Activities" is 1,372,000. This is actual cash received. So dividends of 48,000 in P&L were adjusted, but 1,372,000 was received in cash (maybe from different classification or different investments). This is getting complex. Let me use a simpler FFO definition that matches common credit analysis practice. For European utilities, FFO is often approximated as: FFO = Operating Cash Flow + Interest Paid - Interest Received + Dividends Received (if in operating) - Working Capital changes... Actually, let me try: FFO = EBITDA - Cash Taxes EBITDA = 641,338,000 (EBIT) + 479,186,000 (D&A) = 1,120,524,000? Wait, is "Profit Loss From Operating Activities" EBIT or EBITDA? It's "Profit Loss From Operating Activities" which typically means EBIT (Earnings Before Interest and Taxes). So yes, add D&A to get EBITDA. But wait, the line "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" is 479,186,000. This is already in the income statement as an expense. So "Profit Loss From Operating Activities" of 641,338,000 is after D&A. Thus: EBITDA = 641,338,000 + 479,186,000 = 1,120,524,000 Cash Taxes = 152,372,000 (paid) FFO = 1,120,524,000 - 152,372,000 = 968,152,000 But this is before interest. FFO typically includes interest expense (i.e., it's before interest). Actually no - FFO is Funds From Operations, which is after interest expense in some definitions. Let me check: if FFO = EBITDA - Cash Taxes, then interest is not deducted, meaning FFO is before interest. But "Funds From Operations" suggests it's what's available to fund operations, which would be after interest. Actually, in real estate (NAREIT), FFO = Net Income + D&A - Gains on sales. This is after interest. For corporate credit, Moody's FFO = Net Income + D&A + Deferred Taxes + Other non-cash items. This is after interest. So my FFO of 894,480,000 (after interest) seems reasonable. Let me verify by another approach: FFO = Cash from Operations + Interest Paid - Interest Received + Dividends Received - WC benefit = 548,169,000 + 53,720,000 - 4,043,000 + 1,372,000 - 336,750,000? No, if WC decreased (source of cash), the benefit is already in 548,169,000. To remove it: subtract 336,750,000. = 548,169,000 + 53,720,000 - 4,043,000 + 1,372,000 - 336,750,000 = 262,268,000? That can't be right. Hmm, I think the issue is whether 336,750,000 is already in the 548,169,000 or not. It is - the 548,169,000 includes all working capital effects. So FFO before WC changes = 548,169,000 - 336,750,000 = 211,419,000? That seems way too low. Wait, let me check the sign. "Increase Decrease In Working Capital" = -336,750,000. If this is negative, and it's a line item in cash flow, then: - If working capital increased (use of cash), the adjustment is negative - If working capital decreased (source of cash), the adjustment is positive But the value is -336,750,000, which is negative. This suggests working capital increased (use of cash)? But my component calculation showed 336,750,000 source. Let me recheck components: - Inventories: 4,751,000 (decrease, source) - Trade receivables: -65,399,000 (increase, use) - Trade payables: -400,375,000 (decrease, use) - Provisions: 38,584,000 (decrease? or source?) - Other assets/liabilities: 759,189,000 Hmm, "Adjustments For Provisions" = 38,584,000. If provisions decreased, that's a use of cash (negative). But it's positive in the adjustment list, so maybe it's added back (expense not paid). Actually, provisions are liabilities. If provisions increase, it's an expense not paid (positive for cash flow). If provisions decrease, it's a use of cash (negative for cash flow, or positive if it's a reversal). The "Adjustments For Provisions" is 38,584,000 positive. This suggests provision expense or increase in provisions. And "Other assets/liabilities" = 759,189,000 positive. Sum: 4,751,000 - 65,399,000 - 400,375,000 + 38,584,000 + 759,189,000 = 336,750,000 So the total is +336,750,000 (positive, source of cash). But the line item says -336,750,000. This suggests the line item "Increase Decrease In Working Capital" uses a different sign convention: negative means decrease in working capital (source of cash), or the line is labeled as "Increase" where positive means increase. Actually, re-reading: "Increase Decrease In Working Capital" with value -336,750,000. If we interpret this as "the increase/decrease is -336,750,000", meaning working capital decreased by 336,750,000. In the cash flow statement, a decrease in working capital is added (positive for cash flow). So the cash flow effect is +336,750,000. But the reported "Increase Decrease" line is -336,750,000, which might be the change amount, not the cash flow effect. Anyway, in "Cash Flows From Used In Operations" = 548,169,000, this already includes the working capital benefit. So to get pre-WC operating cash flow: 548,169,000 - 336,750,000 = 211,419,000? No, if WC benefit was +336,750,000, then pre-WC = 548,169,000 - 336,750,000 = 211,419,000. That seems very low. Wait, let me check if 548,169,000 is reasonable. Net income is 436,126,000. Add D&A 478,290,000 = 914,416,000. Add other adjustments. Then subtract WC uses and interest and taxes. Actually, let me verify: Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based: 7,958,000 - Gain on disposal: -25,357,000 - Equity method: -662,000 - Other investment income: -2,722,000 - Dividend income: -48,000 - Finance income: -5,092,000 + Finance costs: 61,413,000 + Income tax: 152,369,000 + Employee benefits: -17,574,000 + Inventories: 4,751,000 + Trade receivables: -65,399,000 + Trade payables: -400,375,000 + Provisions: 38,584,000 + Other assets/liabilities: 759,189,000 + Dividends received: 1,372,000 + Finance income received: 4,043,000 + Finance costs paid: -53,720,000? Wait, this is paid, so negative + Income taxes paid: -152,372,000? Paid, so negative Let me sum the adjustments to net income: 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 - 48,000 - 5,092,000 + 61,413,000 + 152,369,000 - 17,574,000 + 4,751,000 - 65,399,000 - 400,375,000 + 38,584,000 + 759,189,000 + 1,372,000 + 4,043,000 - 53,720,000 - 152,372,000 = 478,290,000 + 895,000 = 479,185,000 + 7,958,000 = 487,143,000 - 25,357,000 = 461,786,000 - 662,000 = 461,124,000 - 2,722,000 = 458,402,000 - 48,000 = 458,354,000 - 5,092,000 = 453,262,000 + 61,413,000 = 514,675,000 + 152,369,000 = 667,044,000 - 17,574,000 = 649,470,000 + 4,751,000 = 654,221,000 - 65,399,000 = 588,822,000 - 400,375,000 = 188,447,000 + 38,584,000 = 227,031,000 + 759,189,000 = 986,220,000 + 1,372,000 = 987,592,000 + 4,043,000 = 991,635,000 - 53,720,000 = 937,915,000 - 152,372,000 = 785,543,000 So Cash from Operations = 436,126,000 + 785,543,000 = 1,221,669,000? That doesn't match 548,169,000. I'm off by a lot. Let me check signs on the paid items. "Finance Costs Paid Classified As Operating Activities" = 53,720,000. In the indirect method, this is NOT an adjustment to net income. It's a separate line in direct method or a disclosure. Actually, looking at the adjustments list, "Adjustments For Finance Costs" is 61,413,000 (the expense). The paid amount is different. Similarly, "Income Taxes Paid" is 152,372,000, while "Adjustments For Income Tax Expense" is 152,369,000. And "Finance Income Received" = 4,043,000 matches "Adjustments For Finance Income" = 5,092,000? No, 4,043,000 vs 5,092,000. Hmm, "Finance Income" in P&L is 4,043,000 (2022-01-01 - 2023-01-01), but "Adjustments For Finance Income" is 5,092,000. These differ by 1,049,000. I think the issue is that "Adjustments For..." items are used in the reconciliation, but some items like interest paid are not adjustments to net income - they're uses of cash that are already reflected in the accrual accounts, or they're separate line items. Actually, looking more carefully at the structure: The "Adjustments For..." items sum to the reconciliation from net income to operating cash flow before working capital changes. Let me try a different approach. I'll use the direct definition of FFO from credit rating agencies. Moody's FFO = Net Income + Depreciation + Amortization + Deferred Taxes + Other non-cash charges - Extraordinary items - Gain on sale of assets = 436,126,000 + 478,290,000 + 895,000 + 0 + 7,958,000 - 0 - 25,357,000 - 2,722,000 - 48,000 = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 2,722,000 - 48,000 = 895,142,000 Let me also subtract equity method income (since it's not cash from operations): - 662,000 = 894,480,000 And add back other items that are non-cash... Actually, for "Other Income Expense From Equity Investments" of 2,722,000, if this is a gain, we subtract it. The adjustment is -2,722,000, meaning it was income that needs to be removed. So FFO ≈ 894,480,000 EUR I'll use **FFO = 895,000,000 EUR** approximately. Net Debt = 6,093,728,000 EUR (or about 6,094 million) FFO / Net Debt = 895,000,000 / 6,093,728,000 = 0.1469 or 14.69% Hmm, but this seems low for a utility. Let me double check by looking at the ratio differently. Actually, I want to verify my net debt calculation. Let me check if there are other debt-like items. Looking at "Trade And Other Current Payables" = 1,197,117,000. This includes trade payables, not debt. But wait - is there any bank debt or bonds in the current liabilities? "Short Term Financial Liabilities Excluding Other Current Financial Liabilities" = 142,437,000. This is likely bank debt or bonds due within a year. And "Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities" = 6,402,913,000. This is long-term debt. Total = 6,545,350,000 + other financial liabilities 290,000 + 34,000 = 6,545,674,000. Less Cash: 451,946,000 Net Debt = 6,093,728,000 Actually, I should also check if "Current Financial Assets" should be deducted. These are assets, not liabilities, so yes, they reduce net debt if they're liquid. "Current Financial Assets Excluding Other Current Financial Assets" = 5,770,000 "Other Current Financial Assets" = 17,455,000 If these are liquid (like short-term investments), then: Net Debt = 6,545,674,000 - 451,946,000 - 5,770,000 - 17,455,000 = 6,070,503,000 But "Other Current Financial Assets" might include derivatives or restricted cash. Let me be conservative and only subtract cash. Actually, for "Net Debt" in credit analysis, we typically subtract: - Cash and cash equivalents - Short-term liquid investments (marketable securities) "Current Financial Assets Excluding Other Current Financial Assets" of 5,770,000 might be marketable securities. And "Other Current Financial Assets" of 17,455,000 - need to check if liquid. With "Related Parties Member" = 0, this might be derivatives or other items. Let me use Net Debt = 6,093,728,000 (conservative, only cash subtracted) or 6,070,503,000 (with liquid investments). FFO/Net Debt with conservative net debt: 895,000,000 / 6,093,728,000 = 14.69% Or about 15%. But wait - I want to recheck my FFO. Maybe I should include more items. Looking at the cash flow again, "Cash Flows From Used In Operations" is 548,169,000. This is after interest paid of 53,720,000 and after taxes paid of 152,372,000 and after working capital benefit of 336,750,000. To get to a pre-interest, pre-tax, pre-WC figure: = 548,169,000 + 53,720,000 + 152,372,000 - 336,750,000 + 4,043,000 - 1,372,000? Hmm, dividends received and finance income received are typically not in FFO (or are they?). Actually, for FFO, we want: - After tax (since taxes are a real cost) - After interest? Or before? Different definitions exist. Let me use FFO as: Cash from Operations + Interest Paid - Interest Received + Dividends Received - WC benefit = 548,169,000 + 53,720,000 - 4,043,000 + 1,372,000 - 336,750,000? No, if WC benefit was included, subtract it. = 548,169,000 + 53,720,000 - 4,043,000 + 1,372,000 - 336,750,000... wait, I need to know if 336,750,000 was a benefit or cost. From the components, WC changes provided 336,750,000 cash (source). So it's a benefit. To remove: subtract 336,750,000. But 548,169,000 already includes this benefit. So: Pre-WC cash flow = 548,169,000 - 336,750,000 = 211,419,000? That can't be right because net income + D&A alone is 914,416,000. I think I have the sign wrong. Let me recheck: "Increase Decrease In Working Capital" = -336,750,000. If this is the line item in cash flow statement, and it's negative, then: - Either working capital increased by 336,750,000 (use of cash, negative for cash flow) - Or working capital decreased by 336,750,000 (source of cash, positive for cash flow) Given the label "Increase Decrease", a negative value suggests "decrease" of 336,750,000, which is a source of cash. But in the cash flow statement, this would be shown as +336,750,000 (positive effect on cash). However, the reported "Cash Flows From Used In Operations" is 548,169,000. If this includes +336,750,000 from WC, then pre-WC = 548,169,000 - 336,750,000 = 211,419,000. But this implies the operating business generated only 211 million before WC, which with D&A of 478 million means the business had negative operating profit before WC. That contradicts EBIT of 641 million. Unless... "Cash Flows From Used In Operations" is defined differently. Let me check if it includes interest and taxes. "Cash Flows From Used In Operations" typically means "Net cash from operating activities" which is after interest and taxes. So: Net cash from operations = 548,169,000 This includes: - Interest paid: -53,720,000 (outflow) - Interest received: +4,043,000 (inflow) - Dividends received: +1,372,000 (inflow) - Taxes paid: -152,372,000 (outflow) - Working capital benefit: +336,750,000 (inflow) So pre-interest, pre-tax, pre-WC cash flow = 548,169,000 + 53,720,000 - 4,043,000 - 1,372,000 + 152,372,000 - 336,750,000 = 412,096,000 Still seems low. Let me check: 412 million vs EBIT 641 million + D&A 479 million = 1,120 million. Big difference. Hmm, maybe "Cash Flows From Used In Operations" is after some other items, or my sign on WC is wrong. If WC was a USE of cash (not source), then: Pre-WC = 548,169,000 + 53,720,000 - 4,043,000 - 1,372,000 + 152,372,000 + 336,750,000 = 1,085,596,000 That matches better with EBITDA - cash taxes ≈ 1,120,000,000 - 152,000,000 = 968,000,000. Close but not exact. Actually, 1,085,596,000 - 968,000,000 = 117,596,000 difference. This could be due to other items. Let me try: if WC change was -336,750,000 meaning a use of cash (increase in working capital), then: Pre-WC, pre-interest, pre-tax = 548,169,000 + 53,720,000 + 152,372,000 + 336,750,000 - 4,043,000 - 1,372,000 = 1,085,596,000 This is closer to my FFO calculation. But is it correct that WC increased (use of cash)? Looking at components: - Inventories: 4,751,000 (positive adjustment = decrease in inventories = source of cash) - Trade receivables: -65,399,000 (negative adjustment = increase in receivables = use of cash) - Trade payables: -400,375,000 (negative adjustment = decrease in payables = use of cash) - Provisions: 38,584,000 (positive = increase in provisions or expense) - Other assets/liabilities: 759,189,000 (positive = source of cash or decrease in assets) Sum: 4,751,000 - 65,399,000 - 400,375,000 + 38,584,000 + 759,189,000 = 336,750,000 Wait, I calculated this as positive 336,750,000 before. Let me recheck: 4,751,000 - 65,399,000 = -60,648,000 -60,648,000 - 400,375,000 = -461,023,000 -461,023,000 + 38,584,000 = -422,439,000 -422,439,000 + 759,189,000 = 336,750,000 Yes, positive 336,750,000. This means the adjustments sum to +336,750,000, which is a SOURCE of cash (positive for cash flow). But "Increase Decrease In Working Capital" is reported as -336,750,000. This suggests the sign convention is opposite: the reported value is negative when it's a source. Or... the line item represents "Increase" as positive, so -336,750,000 means a decrease of 336,750,000. In either case, the cash flow effect is +336,750,000 (source). So my calculation: Pre-WC, pre-interest, pre-tax = 548,169,000 + 53,720,000 + 152,372,000 - 336,750,000 - 4,043,000 - 1,372,000 = 412,096,000 is correct if we remove the WC benefit. But this seems too low. Let me verify by checking if 548,169,000 includes or excludes some items. Actually, I think I need to re-examine. The indirect method reconciliation: Net Income: 436,126,000 + Adjustments (D&A, etc.): various + WC adjustments: 336,750,000 (if source) - Interest paid: not an adjustment, it's a cash flow - Taxes paid: not an adjustment, it's a cash flow Wait, in the indirect method, interest paid and taxes paid are NOT adjustments to net income if they're already expensed. Net income is after interest expense and tax expense. The cash flow statement shows the difference between accrual and cash. So: Net Income: 436,126,000 (after interest, after tax) + D&A: 478,290,000 + Other non-cash: various + WC changes: 336,750,000 (source) - Interest paid vs interest expense: 53,720,000 - 61,413,000 = -7,693,000 (more paid than expensed? or less?) - Taxes paid vs tax expense: 152,372,000 - 152,369,000 = 3,000 (more paid) + Dividends received: 1,372,000 (not in net income? or in net income as 48,000?) This is getting messy with the different items. Let me try a completely different approach. I'll use the definition from S&P/Moody's for FFO: FFO = Funds from Operations = Net Income before extraordinary items + Depreciation + Amortization + Deferred Income Taxes + Other non-cash items From the data: - Net Income: 436,126,000 + Depreciation and Amortization: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 - Gain on disposal: -25,357,000 (subtract the gain) - Equity method income: -662,000 (subtract, not cash) - Other investment income: -2,722,000 (subtract, not operating) - Dividend income: -48,000 (subtract, not operating) FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 - 48,000 = 894,480,000 I'll stick with **FFO = 894,480,000 EUR** For Net Debt, let me use: - Short term financial liabilities: 142,437,000 - Long term financial liabilities: 6,402,913,000 - Other current financial liabilities: 290,000 - Other noncurrent financial liabilities: 34,000 Total debt: 6,545,674,000 Less: Cash and cash equivalents: 451,946,000 Less: Current financial assets (liquid): 5,770,000 Net Debt = 6,545,674,000 - 451,946,000 - 5,770,000 = 6,087,958,000 Or if we include other current financial assets: Net Debt = 6,545,674,000 - 451,946,000 - 5,770,000 - 17,455,000 = 6,070,503,000 I'll use **Net Debt = 6,093,728,000 EUR** (only cash subtracted, conservative) or about 6,071 million with liquid assets. FFO / Net Debt = 894,480,000 / 6,093,728,000 = 0.1468 or 14.68% Or with more liquid net debt: 894,480,000 / 6,070,503,000 = 0.1474 or 14.74% Let me round to **14.7%** or about **0.147**. Actually, I want to double-check by computing this slightly differently. Some analysts use: FFO = Operating Cash Flow + Interest Paid - Interest Received + Dividends from investments - Working capital changes If I use: Operating Cash Flow = 548,169,000 + Interest Paid (in operating): 53,720,000 - Interest Received (in operating): -4,043,000? No, add back the subtraction + Dividends received: already in 548,169,000? Actually, if dividends received are IN operating cash flow, then FFO includes them. If they're classified as investing, exclude. "Dividends Received Classified As Operating Activities" = 1,372,000. So they're in operating cash flow. FFO = Operating Cash Flow + Interest Paid - Interest Received - Dividends Received + ... I think the cleanest is to use FFO = 895 million and Net Debt = 6,094 million. Ratio = 895 / 6,094 = 0.1469 Let me express as a percentage: 14.69%, or as a ratio: 0.147. Actually, looking at this again, I realize I may want to check if "FFO / Net Debt" is expressed as a percentage or as a multiple. Typically it's a ratio (e.g., 0.15 or 15%). Let me also verify my FFO one more time by using the EBITDA approach: EBITDA = 1,120,524,000 - Cash Taxes = 152,372,000 - Cash Interest = 53,720,000 - 4,043,000 = 49,677,000? Or plus dividends? FFO = EBITDA - Cash Taxes - Cash Interest + Dividends Received = 1,120,524,000 - 152,372,000 - 53,720,000 + 4,043,000 + 1,372,000? Hmm, interest received and dividends received might be included or not. = 1,120,524,000 - 152,372,000 - 53,720,000 + 4,043,000 + 1,372,000 = 919,847,000 Close to my 894,480,000. Difference is about 25 million, which could be due to other non-cash items or gains/losses. Given the uncertainty, let me use FFO ≈ 900,000,000 as a round number, or be more precise at 895,000,000. Actually, let me try one more calculation using the exact cash flow reconciliation to verify FFO. From the adjustments to net income for operating cash flow: Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based: 7,958,000 - Gain on disposal: -25,357,000 - Equity method: -662,000 - Other investment income: -2,722,000 - Dividend income: -48,000 - Finance income: -5,092,000 + Finance costs: 61,413,000 + Income tax expense: 152,369,000 - Employee benefits: -17,574,000 + Inventories: 4,751,000 - Receivables: -65,399,000 - Payables: -400,375,000 + Provisions: 38,584,000 + Other assets/liabilities: 759,189,000 = subtotal before interest/tax/dividends paid/received Let me calculate this subtotal (which is FFO-like plus some items): 436,126,000 + 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 - 48,000 - 5,092,000 + 61,413,000 + 152,369,000 - 17,574,000 + 4,751,000 - 65,399,000 - 400,375,000 + 38,584,000 + 759,189,000 = 436,126,000 + 478,290,000 = 914,416,000 + 895,000 = 915,311,000 + 7,958,000 = 923,269,000 - 25,357,000 = 897,912,000 - 662,000 = 897,250,000 - 2,722,000 = 894,528,000 - 48,000 = 894,480,000 - 5,092,000 = 889,388,000 + 61,413,000 = 950,801,000 + 152,369,000 = 1,103,170,000 - 17,574,000 = 1,085,596,000 + 4,751,000 = 1,090,347,000 - 65,399,000 = 1,024,948,000 - 400,375,000 = 624,573,000 + 38,584,000 = 663,157,000 + 759,189,000 = 1,422,346,000 Then add: + Dividends received: 1,372,000 = 1,423,718,000 + Finance income received: 4,043,000 = 1,427,761,000 - Finance costs paid: -53,720,000 = 1,374,041,000? No wait, finance costs paid is an outflow. Hmm, I think I'm confusing the adjustments with the cash flows. Let me restart. The indirect method: Net Income + Non-cash adjustments + WC adjustments = Cash from Operations before interest and taxes? No, net income is after interest and tax. Actually, net income is AFTER interest and tax. So: Net Income + Non-cash items (D&A, etc.) + WC changes +/- Interest paid vs expensed +/- Taxes paid vs expensed +/- Dividends received (if in P&L or not) = Cash from Operations So my calculation of 1,422,346,000 is after adding non-cash and WC, but before interest/tax cash adjustments. Then: 1,422,346,000 + Dividends received (cash, not in P&L or different): 1,372,000 - 48,000 = 1,324,000? Or just 1,372,000 if 48,000 was already removed. + Finance income received: 4,043,000 - 5,092,000 = -1,049,000? Or just the cash amount. - Finance costs paid: 53,720,000 - Taxes paid: 152,372,000 = 548,169,000? Let me check. 1,422,346,000 + 1,372,000 + 4,043,000 - 53,720,000 - 152,372,000 = 1,221,669,000. Not 548,169,000. I'm off by 673,500,000. Hmm, this is close to the WC benefit I calculated earlier. Wait - I think the issue is that my WC calculation of 1,422,346,000 already includes WC changes, but I calculated WC changes as part of the adjustments. Let me re-examine. Actually, looking at my calculation: - 17,574,000 (employee benefits) + 4,751,000 (inventories) - 65,399,000 (receivables) - 400,375,000 (payables) + 38,584,000 (provisions) + 759,189,000 (other) These ARE working capital changes! So 1,422,346,000 is AFTER WC changes and non-cash adjustments, but still after interest and tax expense (accrual). Then to get to cash: - Interest paid (53,720,000) vs interest expensed (61,413,000): difference is -7,693,000 more paid - Taxes paid (152,372,000) vs expensed (152,369,000): difference is 3,000 more paid - Dividends received in cash (1,372,000) vs in P&L (48,000): difference is 1,324,000 more received - Finance income received (4,043,000) vs in P&L (4,043,000 or 5,092,000): need to check So: 1,422,346,000 - 53,720,000 + 61,413,000 - 152,372,000 + 152,369,000 + 1,372,000 - 48,000 + 4,043,000 - 5,092,000... This is getting too complex with the exact matching. Let me just accept that FFO ≈ 895,000,000 and Net Debt ≈ 6,094,000,000. Ratio = 895 / 6,094 = 0.1469 or 14.7% I'll round to **0.147** or **14.7%**. Actually, let me also check if I should use beginning or average debt. For 2022 year-end ratio, we typically use end-of-period debt. Net Debt at end 2022 = 6,093,728,000 FFO for 2022 = 895,000,000 FFO/Net Debt = 0.1469 Let me also try with gross debt to see sensitivity: 895 / 6,545 = 0.1368 or 13.7% Or with more liquid net debt: 895 / 6,071 = 0.1474 or 14.7% The answer is around 14.7% or 0.147. I'll provide **0.147** as the ratio, or about **14.7%**. Actually, rethinking - in many European utilities, FFO/Net Debt is expressed as a percentage. Let me provide 0.147 (as a decimal ratio). Wait, I want to do one more sanity check. The company has: - Revenue: 2,312,476,000 - Operating profit: 641,338,000 - Net income: 436,126,000 - Total assets: 11,030,557,000 - Equity: 2,390,570,000 Debt/Equity = 6,545 / 2,391 = 2.74x, reasonable for a utility. Net Debt/EBITDA = 6,094 / 1,121 = 5.4x, reasonable for a utility. FFO/Net Debt = 14.7%, which means it takes about 6.8 years to pay off debt with FFO, reasonable for a regulated utility. I think my calculation is in the right ballpark. Final answer: **0.147** or **14.7%**. I'll use 0.147 as the decimal ratio. Actually, let me see if I can get a more precise number. Using exact values: FFO = 894,480,000 Net Debt = 6,093,728,000 Ratio = 0.14678... Or with liquid assets: Net Debt = 6,070,503,000 Ratio = 0.14735... I'll use **0.147** as a rounded figure, or more precisely **0.1473**. Hmm, but looking at this again, I wonder if I should express it as a percentage (14.7) or decimal (0.147). The question says "FFO / Net debt ratio" which is typically expressed as a decimal or percentage. I'll provide 0.147. 0.147