Let’s work through this step by step. **1. Net Debt Calculation** We need to calculate net debt for 2022 and for 2023 (though "2023" here refers to the year ended 2023-01-01, meaning the 2022 fiscal year, and 2022-01-01 is the 2021 fiscal year). Net Debt = (Noncurrent borrowings + Current borrowings) − Cash and cash equivalents. **For the 2022 fiscal year (ending 2023-01-01):** - Noncurrent borrowings: - Noncurrent portion of other noncurrent borrowings = 10,776,000,000 - Noncurrent lease liabilities = 120,000,000 - Sum = 10,896,000,000 - Current borrowings: - Current borrowings and current portion of noncurrent borrowings = 877,000,000 - Current lease liabilities = 64,000,000 - Sum = 941,000,000 - Cash and cash equivalents (2023-01-01) = 5,130,000,000 Net Debt (2022) = 10,896,000,000 + 941,000,000 − 5,130,000,000 = 6,707,000,000 **For the 2021 fiscal year (ending 2022-01-01):** - Noncurrent borrowings: - Noncurrent portion of other noncurrent borrowings = 9,513,000,000 - Noncurrent lease liabilities = 115,000,000 - Sum = 9,628,000,000 - Current borrowings: - Current borrowings and current portion of noncurrent borrowings = 1,096,000,000 - Current lease liabilities = 58,000,000 - Sum = 1,154,000,000 - Cash and cash equivalents (2022-01-01) = 5,536,000,000 Net Debt (2021) = 9,628,000,000 + 1,154,000,000 − 5,536,000,000 = 5,246,000,000 **2. EBITDA Estimation** We approximate EBITDA as: Profit from operations before impairment and disposals + Amortisation expense (since depreciation & amortisation is the add-back; here amortisation is given but depreciation is embedded in operating expense breakdown — we can use the given "Amortisation expense" and "Profit from operations before impairment and disposals"). For 2022: 429,000,000 + 299,000,000 = 728,000,000 For 2021: 340,000,000 + 270,000,000 = 610,000,000 **3. Ratios** 2022: Net Debt / EBITDA = 6,707 / 728 ≈ 9.21x 2021: Net Debt / EBITDA = 5,246 / 610 ≈ 8.60x **4. Trend** Year-on-year change = 9.21 − 8.60 = +0.61x, which is greater than 0.3x, so that is deteriorating. Deteriorating