To estimate the FFO / Net Debt ratio based on S&P Global Ratings methodology, we first need to calculate the components: Funds From Operations (FFO), Total Debt, Cash & Cash Equivalents, and Net Debt. **1. Calculate Funds From Operations (FFO)** According to S&P methodology, FFO is typically calculated as: FFO = Profit Loss From Continuing Operations + Depreciation, Amortization, and Provisions + Non-Cash Items (Impairments, Restructuring, etc.) - Taxes Paid - Finance Costs (Interest Paid) *Note: S&P often adds back all non-cash expenses from operating profit down to net income.* From the data for 2022 (period 2022-01-01 to 2023-01-01): - Profit Loss From Continuing Operations: -1,793,000,000 EUR - Depreciation Amortization And Provisions: 5,187,000,000 EUR - Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss: 2,774,000,000 EUR - Expense Of Restructuring Activities: 230,000,000 EUR - Other Non Recurring Items: -1,328,000,000 EUR - Finance Costs: 3,700,000,000 EUR (We will deduct the cash portion, Interest Paid) - Income Taxes Paid Refund Classified As Operating Activities: 1,504,000,000 EUR (This is the actual cash tax outflow to deduct) - Interest Paid Classified As Financing Activities: 822,000,000 EUR Let's sum the non-cash operating items to add back to the continuing loss: Non-cash add-backs = Depreciation (5,187M) + Impairments (2,774M) + Restructuring (230M) + Other Non-Recurring (-1,328M) = 6,863,000,000 EUR. Now, we calculate FFO: FFO = Profit Loss From Continuing Operations + Non-cash add-backs - Cash Taxes - Cash Interest FFO = -1,793M + 6,863M - 1,504M - 822M = 2,744,000,000 EUR. *(Note: Adjustments for changes in fair value of derivatives and other non-cash items are typically left in FFO under S&P standards unless explicitly separated as "FFO after working capital adjustments". Thus, FFO stands at 2,744M).* **2. Calculate Net Debt** Under S&P methodology, Net Debt = Total Debt - Cash & Cash Equivalents. First, determine Total Financial Debt (Short-term + Long-term borrowings): - Longterm Borrowings (2023-01-01): 28,083,000,000 EUR - Current Borrowings And Current Portion Of Noncurrent Borrowings (2023-01-01): 12,508,000,000 EUR Total Debt = 28,083M + 12,508M = 40,591,000,000 EUR. Next, determine Cash & Cash Equivalents: - Cash And Cash Equivalents (2023-01-01): 15,570,000,000 EUR. Calculate Net Debt: Net Debt = Total Debt - Cash = 40,591M - 15,570M = 25,021,000,000 EUR. **3. Calculate FFO / Net Debt Ratio** Ratio = FFO / Net Debt Ratio = 2,744,000,000 / 25,021,000,000 = 0.10966... Rounding to three decimal places (standard for ratios): 0.110, or 11.0%. 0.110