To estimate the adjusted leverage trend, use:

**Net Debt / EBITDA**

Approximate **Net Debt** as:

- Borrowings = Long-term borrowings + Current borrowings
- Net Debt = Borrowings − Cash and cash equivalents

Approximate **EBITDA** as:

- Profit/loss from operating activities + Depreciation, amortization and provisions

### 2021 / opening 2022 leverage

Borrowings at 2022-01-01:

- Long-term borrowings: €30.458bn
- Current borrowings: €10.590bn
- Total borrowings: €41.048bn
- Cash and cash equivalents: €13.890bn

Net Debt:

- €41.048bn − €13.890bn = **€27.158bn**

EBITDA for 2021:

- Operating profit: €6.722bn
- Depreciation, amortization and provisions: €4.840bn
- EBITDA = €6.722bn + €4.840bn = **€11.562bn**

Net Debt / EBITDA:

- €27.158bn / €11.562bn = **2.35x**

### 2022 / closing 2023 leverage

Borrowings at 2023-01-01:

- Long-term borrowings: €28.083bn
- Current borrowings: €12.508bn
- Total borrowings: €40.591bn
- Cash and cash equivalents: €15.570bn

Net Debt:

- €40.591bn − €15.570bn = **€25.021bn**

EBITDA for 2022:

- Operating profit: €1.127bn
- Depreciation, amortization and provisions: €5.187bn
- EBITDA = €1.127bn + €5.187bn = **€6.314bn**

Net Debt / EBITDA:

- €25.021bn / €6.314bn = **3.96x**

### Trend

The leverage ratio increased from about **2.35x** to **3.96x**, a deterioration of approximately **1.61x** year on year. Since the increase is greater than **0.3x**, the adjusted leverage trend is **Deteriorating**.

<answer>Deteriorating</answer>