Hera’s 2022 profile suggests a meaningful but not maximal case for hybrid bond use.

Key considerations:

- **Leverage and capital structure pressure:** Total liabilities rose materially to about €13.47bn, while equity was €3.64bn. Financial debt also increased, especially non-current financial liabilities, which rose from €3.72bn to €5.69bn. Hybrid bonds could help support credit metrics because S&P may give partial equity credit.

- **Cash flow weakness in 2022:** Operating cash flow fell sharply to only €35.7m from €1.05bn in 2021, mainly due to a large working-capital absorption. Free cash flow was strongly negative after investments. This makes balance-sheet support more valuable.

- **Stable but lower profitability:** Profit before tax was broadly stable, but net profit and operating profit declined. The company remains profitable, but the deterioration argues for some additional financial flexibility.

- **Interest-rate environment:** Rates and credit spreads increased substantially in 2022. Hybrid bonds became more expensive, so issuing up to the full S&P cap would be costly and could pressure cash interest coverage.

- **Utility-sector suitability:** As a regulated/essential-services utility with stable long-term assets, Hera is a plausible hybrid issuer. Hybrids can be useful to fund capex and acquisitions while preserving ratings.

- **Not a distressed case:** Equity remains sizable, liquidity is strong with cash of €1.94bn, and the business is profitable. Therefore, there is no need to maximize hybrid usage all the way to the S&P cap.

Overall, Hera should use hybrids to a **moderate-to-high** extent relative to the S&P cap: enough to strengthen adjusted capital and protect ratings amid higher leverage and weak cash flow, but not fully max out given the higher 2022 cost of hybrid capital.

<answer>75%</answer>