To estimate the adjusted leverage trend, use:

**Net Debt / EBITDA**

### 1. Estimate EBITDA

A practical EBITDA proxy from the provided income statement is:

**EBITDA = Profit from operating activities + Amortisation expense**

#### 2022 period ending 2023-01-01
- Profit from operating activities: EUR 423m
- Amortisation expense: EUR 299m

EBITDA 2022 = 423 + 299 = **EUR 722m**

#### 2021 period ending 2022-01-01
- Profit from operating activities: EUR 1,479m
- Amortisation expense: EUR 270m

EBITDA 2021 = 1,479 + 270 = **EUR 1,749m**

### 2. Estimate Net Debt

Use total borrowings and lease liabilities less cash and cash equivalents.

#### At 2023-01-01
Debt:
- Noncurrent borrowings: EUR 10,776m
- Current borrowings: EUR 877m
- Noncurrent lease liabilities: EUR 120m
- Current lease liabilities: EUR 64m

Total debt = 10,776 + 877 + 120 + 64 = **EUR 11,837m**

Cash and cash equivalents = **EUR 5,130m**

Net debt 2023 = 11,837 - 5,130 = **EUR 6,707m**

#### At 2022-01-01
Debt:
- Noncurrent borrowings: EUR 9,513m
- Current borrowings: EUR 1,096m
- Noncurrent lease liabilities: EUR 115m
- Current lease liabilities: EUR 58m

Total debt = 9,513 + 1,096 + 115 + 58 = **EUR 10,782m**

Cash and cash equivalents = **EUR 5,536m**

Net debt 2022 = 10,782 - 5,536 = **EUR 5,246m**

### 3. Calculate Net Debt / EBITDA

#### 2023 ratio
6,707 / 722 = **9.3x**

#### 2022 ratio
5,246 / 1,749 = **3.0x**

### 4. Trend

Change in leverage = 9.3x - 3.0x = **+6.3x**

Because the ratio increased by more than **0.3x**, the leverage trend is **deteriorating**.

<answer>Deteriorating</answer>