I need to calculate the FFO / Net debt ratio for 2022 based on S&P methodology. First, let me understand S&P's FFO (Funds From Operations) methodology: - FFO = Net Profit + Depreciation & Amortization + Deferred Income Taxes + Other non-cash items For S&P specifically, FFO is typically calculated as: - Operating Profit + Depreciation & Amortization - Cash Taxes (or alternatively: Net Income + D&A + Deferred Taxes + Interest Expense) Actually, let me use the more standard S&P approach for corporate entities: FFO = Profit/Loss + Depreciation & Amortization + Interest Expense - Interest Income + Other non-cash adjustments Or more commonly for utilities/infrastructure (Italgas is a gas utility): FFO = Operating Profit + D&A - Cash Taxes + Interest Expense Let me look at what's available in the data and use the most appropriate S&P methodology. From the data for 2022 (period 2022-01-01 to 2023-01-01): **Net Profit**: 436,126,000 EUR (Profit Loss) **Depreciation & Amortization**: 478,290,000 EUR (Adjustments For Depreciation And Amortisation Expense) **Impairment**: 895,000 EUR (positive adjustment, so add back) **Finance Costs**: 61,367,000 EUR (Finance Costs) **Finance Income**: 4,043,000 EUR (Finance Income) **Income Tax Expense**: 152,369,000 EUR For S&P FFO, the standard formula is: FFO = Net Income + D&A + Deferred Income Taxes + Other non-cash items - Gains on asset sales + Interest Expense Or more precisely for S&P Global Ratings methodology: FFO = Funds from operations = Net income + Depreciation & amortization + Deferred income taxes + Other non-cash items Let me calculate using the cash flow statement approach which is closer to S&P methodology: From operating cash flow adjustments: - Adjustments For Depreciation And Amortisation Expense: 478,290,000 - Adjustments For Impairment: 895,000 - Adjustments For Effect Of Valuation Using Equity Method: -662,000 (deduct, it's income) - Other Income From Equity Investments: -2,722,000 (deduct) - Adjustments For Sharebased Payments: 7,958,000 (add back, non-cash) - Adjustments For Losses Gains On Disposal Of Noncurrent Assets: -25,357,000 (deduct gain) - Adjustments For Dividend Income: -48,000 (deduct) - Adjustments For Finance Income: -5,092,000 (deduct) - Adjustments For Finance Costs: 61,413,000 (add back) - Adjustments For Income Tax Expense: 152,369,000 (add back) Starting from Operating Profit: 641,338,000 EUR Add D&A: + 478,290,000 Add Impairment: + 895,000 Less Equity method income: - 662,000 Less Other income from equity investments: - 2,722,000 Add Share-based payments: + 7,958,000 Less Gain on disposal: - 25,357,000 Less Dividend income: - 48,000 Less Finance income: - 5,092,000 Add Finance costs: + 61,413,000 Add Income tax expense: + 152,369,000 This gives us a proxy for EBITDA-like figure, but we need FFO. Standard S&P FFO = Net Income + D&A + Deferred Taxes + Other non-cash items From the data: Net Income: 436,126,000 D&A: 478,290,000 Impairment: 895,000 Share-based payments: 7,958,000 Less: Gain on disposal: -25,357,000 Effect of equity method (deduct as it's not cash): -662,000 Other income from equity investments: -2,722,000 FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 FFO = 894,528,000 Wait, let me reconsider. S&P FFO typically includes interest expense add-back or uses operating profit before interest. Let me use the more comprehensive approach: Actually, looking more carefully at S&P methodology for infrastructure/utilities companies: FFO = Operating Profit + D&A - Cash Taxes + Interest Expense Or: FFO = Net Income + D&A + Interest Expense + Deferred Taxes + Other non-cash items Let me use: FFO = Net Income + D&A + Interest Expense (Finance Costs) + Other non-cash adjustments Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 + Finance Costs: 61,367,000 - Gain on disposal: -25,357,000 - Dividend income: -48,000 - Other equity income: -2,722,000 - Finance Income: -4,043,000 FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 + 61,367,000 - 25,357,000 - 48,000 - 2,722,000 - 4,043,000 FFO = 952,466,000 Hmm, but I need to be more careful. Let me also consider the cash flow from operations approach. Cash Flows From Used In Operations: 548,169,000 But this includes working capital changes. S&P FFO excludes working capital changes. From cash flow statement: Cash Flows From Used In Operations: 548,169,000 Add back: Increase Decrease In Working Capital: 336,750,000 (since it was negative, meaning cash outflow) So before working capital: 548,169,000 + 336,750,000 = 884,919,000 But this includes interest paid and taxes paid. Let me check: Finance Costs Paid: 53,720,000 Income Taxes Paid: 152,372,000 Dividends Received: -1,372,000 Finance Income Received: -4,043,000 So FFO = 884,919,000 + 53,720,000 + 152,372,000 - 1,372,000 - 4,043,000 = 1,085,596,000 Wait, that's too high. Let me recalculate. Actually, standard S&P FFO for corporate issuers is: FFO = Net income + Depreciation & amortization + Deferred income taxes + Other non-cash items Where "Other non-cash items" includes things like stock-based compensation, gains/losses on asset sales, etc. Let me use a cleaner approach. For utility companies, S&P often uses: FFO = EBIT + D&A - Cash Interest - Cash Taxes Or from the income statement: Operating Profit: 641,338,000 + D&A (already in operating expenses, so add back): 479,186,000 (from Depreciation Amortisation And Impairment line) Wait, the line says "Depreciation Amortisation And Impairment Loss Reversal Of Impairment Loss Recognised In Profit Or Loss" = 479,186,000 But this includes impairment. Let me check: Adjustments For Depreciation And Amortisation Expense = 478,290,000 and Adjustments For Impairment = 895,000, total 479,185,000 ≈ 479,186,000 So EBITDA = Operating Profit + D&A = 641,338,000 + 479,186,000 = 1,120,524,000 For S&P FFO: FFO = Operating Profit + D&A - Cash Taxes Cash Taxes = Income Tax Expense - Change in Deferred Taxes Deferred Tax Assets: 0 both years Deferred Tax Liabilities: 50,791,000 to 91,633,000, so increase of 40,842,000 So deferred tax expense = 40,842,000 Current tax expense = 152,369,000 - 40,842,000 = 111,527,000? No wait, total tax expense is 152,369,000. Actually, looking at balance sheet: Current Tax Assets Current: 21,625,000 to 8,703,000 Current Tax Assets Noncurrent: 22,936,000 to 54,862,000 Hmm, this is getting complicated. Let me use a simpler S&P FFO definition: FFO = Net Income + D&A + Interest Expense + Deferred Tax Expense + Other non-cash items Net Income: 436,126,000 D&A: 478,290,000 Interest Expense (Finance Costs): 61,367,000 Deferred Tax: 40,842,000 (increase in deferred tax liabilities) Share-based payments: 7,958,000 Gain on disposal: -25,357,000 Equity method income: -662,000 Other equity income: -2,722,000 FFO = 436,126,000 + 478,290,000 + 61,367,000 + 40,842,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 FFO = 995,842,000 Actually, I realize I need to check if Finance Costs includes interest expense or is broader. Let me also check the related party amount - it's 0 for 2022-2023, so Finance Costs = 61,367,000 is the total. Now for Net Debt: Net Debt = Short Term Financial Debt + Long Term Financial Debt + Other Current Financial Liabilities + Other Noncurrent Financial Liabilities - Cash and Cash Equivalents - Current Financial Assets (excluding other) From balance sheet 2023-01-01 (end of 2022): Short Term Financial Liabilities Excluding Other Current Financial Liabilities: 142,437,000 Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities: 6,402,913,000 Other Current Financial Liabilities: 290,000 Other Noncurrent Financial Liabilities: 34,000 Cash And Cash Equivalents: 451,946,000 Current Financial Assets Excluding Other Current Financial Assets: 5,770,000 Net Debt = 142,437,000 + 6,402,913,000 + 290,000 + 34,000 - 451,946,000 - 5,770,000 Net Debt = 6,087,958,000 Wait, I should also check if there are other debt-like items. Let me also consider: - Other Current Financial Assets: 17,455,000 (this might include derivatives or other items, but typically not subtracted for net debt unless specified) - Noncurrent Financial Assets: 22,945,000 Actually, standard net debt definition: Net Debt = Total Debt - Cash and Cash Equivalents - Liquid Investments Total Debt = Current Borrowings + Non-current Borrowings + Other financial liabilities that are debt-like From the data: Short Term Financial Liabilities Excluding Other Current Financial Liabilities: 142,437,000 Other Current Financial Liabilities: 290,000 Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities: 6,402,913,000 Other Noncurrent Financial Liabilities: 34,000 Total Debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 Cash and Cash Equivalents: 451,946,000 Current Financial Assets Excluding Other Current Financial Assets: 5,770,000 (these are likely liquid investments) Net Debt = 6,545,674,000 - 451,946,000 - 5,770,000 = 6,087,958,000 But wait - I need to check if "Current Financial Assets Excluding Other Current Financial Assets" should be included. The name suggests these are financial assets other than "Other Current Financial Assets". Let me check what this includes - it's 5,770,000 with 2,246,000 related parties. These might be trade receivables or similar, not necessarily liquid investments. Actually, looking more carefully, this is "Current Financial Assets Excluding Other Current Financial Assets" which is a bit confusing. It might mean current financial assets other than the "Other Current Financial Assets" category. These could include things like short-term investments, derivatives, etc. For conservative net debt calculation, I'll subtract only cash and clearly liquid items: Net Debt = 6,545,674,000 - 451,946,000 = 6,093,728,000 Or if we include the 5,770,000: Net Debt = 6,087,958,000 Let me also check if there are lease liabilities included in the debt figures. The "Cash Outflow For Leases" suggests leases exist. In modern accounting (IFRS 16), lease liabilities are typically included in financial liabilities. Actually, let me recalculate FFO more carefully using the standard S&P approach for corporate and infrastructure entities: S&P Global Ratings defines FFO as: FFO = Funds from operations = Net income before extraordinary items + Depreciation & amortization + Deferred income taxes + Other non-cash items For 2022: Net Income: 436,126,000 Depreciation & Amortization: 478,290,000 Impairment (non-cash): 895,000 Share-based payments (non-cash): 7,958,000 Deferred tax increase: 40,842,000 (91,633,000 - 50,791,000) Less: Gain on disposal: -25,357,000 Less: Equity method income (non-cash portion): -662,000 Less: Other income from equity investments: -2,722,000 FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 + 40,842,000 - 25,357,000 - 662,000 - 2,722,000 FFO = 935,370,000 Wait, I need to reconsider the deferred tax. The increase in deferred tax liability of 40,842,000 is already included in the income tax expense of 152,369,000. So if I'm adding back deferred tax, I need to be careful. Actually, in S&P methodology, "Deferred income taxes" refers to the deferred tax expense (the non-cash portion), which equals the change in deferred tax liabilities/assets. So yes, adding back 40,842,000 is correct because it's a non-cash charge included in the 152,369,000 total tax expense. But wait - I need to check if the 152,369,000 is the total tax expense or current tax. Looking at the P&L: "Income Tax Expense Continuing Operations" = 152,369,000. This should be the total tax expense. Let me verify: Profit Before Tax = 588,495,000, Profit = 436,126,000, so tax = 152,369,000. Yes. Now, is there any deferred tax asset movement? Deferred Tax Assets = 0 both years. So the entire tax expense is either current tax or deferred tax liability movement. Current Tax Assets Current: 21,625,000 → 8,703,000 (decrease of 12,922,000, meaning cash tax was higher than current tax expense) Current Tax Assets Noncurrent: 22,936,000 → 54,862,000 (increase of 31,926,000, meaning current tax expense was higher than cash tax) Net current tax asset increase = 31,926,000 - 12,922,000 = 19,004,000 This suggests current tax expense was about 19,004,000 more than cash tax paid. But wait, we also have the actual cash taxes paid from cash flow: 152,372,000. If total tax expense is 152,369,000 and cash tax paid is 152,372,000, they're essentially equal. This suggests the deferred tax expense equals the change in deferred tax liabilities: 40,842,000, and current tax expense = 152,369,000 - 40,842,000 = 111,527,000. But cash tax paid is 152,372,000, which is higher. Hmm, this doesn't reconcile perfectly. Let me just use the standard S&P formula without trying to split current and deferred. Actually, looking at this again, the "Adjustments For Income Tax Expense" in the cash flow statement is 152,369,000, which is added back to get to operating cash flow before working capital. This means the starting point (net income) already has tax deducted, and we add back the entire tax expense. For FFO, S&P adds back deferred taxes (the non-cash portion) but not current taxes. However, if we start from operating profit or use the cash flow approach, it's different. Let me use the most standard S&P approach: FFO = Net Income + D&A + Deferred Income Taxes + Other non-cash items Where "Other non-cash items" includes stock compensation, gains/losses on asset sales, etc. Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 + Deferred tax expense (change in deferred tax liability): 40,842,000 - Gain on disposal of non-current assets: 25,357,000 (this is a gain, so we subtract it from FFO as it's non-operating/non-recurring) - Equity method income: 662,000 (non-cash, but it's income so we subtract) - Other income from equity investments: 2,722,000 (subtract) FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 + 40,842,000 - 25,357,000 - 662,000 - 2,722,000 FFO = 935,370,000 Hmm, but I need to check if I should add or subtract the deferred tax. If deferred tax liability increases, that means we recognized more tax expense than we paid, so it's a non-cash charge. We should add it back to get to FFO. Yes, +40,842,000 is correct. But wait - I need to double check. The total tax expense is 152,369,000. If deferred tax is 40,842,000, then current tax is 111,527,000. But cash tax paid is 152,372,000. This doesn't match. Actually, looking at balance sheet changes more carefully: Current Tax Assets Current: 21,625,000 → 8,703,000 = -12,922,000 (reduction, so cash benefit) Current Tax Assets Noncurrent: 22,936,000 → 54,862,000 = +31,926,000 (increase, so cash used) Current Tax Liabilities Current: 3,430,000 → 16,105,000 = +12,675,000 (increase, so cash benefit) Net: -12,922,000 + 31,926,000 - 12,675,000 = 6,329,000 (roughly, signs might be off) This is getting too complicated. Let me use a simpler approach that aligns with S&P's published methodology. For European utilities/infrastructure, S&P typically calculates FFO as: FFO = Operating cash flows before working capital changes - Cash interest paid - Cash taxes paid + Interest income received Or equivalently: FFO = EBITDA - Cash taxes + Interest received - Cash interest paid From cash flow statement: Cash Flows From Used In Operations: 548,169,000 Add back: Increase Decrease In Working Capital: 336,750,000 (negative in cash flow means outflow, so add back) = Operating cash flow before working capital: 884,919,000 But this includes: - Finance Income Received: 4,043,000 - Finance Costs Paid: 53,720,000 - Income Taxes Paid: 152,372,000 - Dividends Received: 1,372,000 So FFO = 884,919,000 - 4,043,000 + 53,720,000 + 152,372,000 - 1,372,000? No, that's wrong. Actually, operating cash flow before working capital already includes these items. Let me think again. Cash Flows From Used In Operations = 548,169,000 This includes: + Finance Income Received: 4,043,000 - Finance Costs Paid: 53,720,000 - Income Taxes Paid: 152,372,000 + Dividends Received: 1,372,000 And working capital changes of -336,750,000 (negative means cash outflow) So before working capital and before these financing/tax items: Start from 548,169,000 Add back working capital outflow: +336,750,000 = 884,919,000 Add back finance costs paid: +53,720,000 = 938,639,000 Add back income taxes paid: +152,372,000 = 1,091,011,000 Subtract finance income received: -4,043,000 = 1,086,968,000 Subtract dividends received: -1,372,000 = 1,085,596,000 This 1,085,596,000 is essentially: Net Income + D&A + other non-cash items (before interest and taxes) For S&P FFO, we want: FFO = Net Income + D&A + Deferred Taxes + Other non-cash items Or equivalently: FFO = Operating Profit + D&A - Cash Taxes Let me verify: Operating Profit = 641,338,000 D&A = 479,186,000 (total depreciation, amortization and impairment) EBITDA = 1,120,524,000 Cash Taxes = Income Taxes Paid = 152,372,000 (approximate, though there may be timing differences) FFO = 641,338,000 + 479,186,000 - 152,372,000 = 968,152,000 But this doesn't include interest. S&P FFO typically includes interest expense or is before interest. Actually, let me check S&P's exact definition. For corporate issuers, S&P defines: "FFO: Funds from operations. Net income from continuing operations plus depreciation, amortization, deferred income taxes, and other non-cash items." For utilities and infrastructure, S&P sometimes uses "FFO interest coverage" and "FFO to debt" where: FFO = Funds from operations = Net income + D&A + Deferred taxes + Other non-cash items And for the debt component, it's "total debt" or "net debt." Let me recalculate using the exact S&P formula: Net Income: 436,126,000 + Depreciation & Amortization: 478,290,000 + Impairment: 895,000 + Deferred tax expense (change in deferred tax liability): 40,842,000 + Share-based payments: 7,958,000 - Gain on disposal of fixed assets: 25,357,000 - Equity method income (non-cash): 662,000 - Other income from equity investments: 2,722,000 FFO = 436,126,000 + 478,290,000 + 895,000 + 40,842,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 FFO = 935,370,000 Wait, I need to check if the 25,357,000 is a gain or loss. "Adjustments For Losses Gains On Disposal Of Noncurrent Assets" = -25,357,000. Negative means it's a gain (we subtract a gain to get to cash flow). So yes, gain of 25,357,000. Similarly, "Other Income From Equity Investmentsi" = -2,722,000 means income of 2,722,000 that we subtract. And "Adjustments For Effect Of Valuation Using The Equity Method" = -662,000 means equity method income of 662,000. So FFO = 935,370,000 But I need to reconsider whether to include interest. In some S&P methodologies, FFO for interest coverage includes interest expense (added back), but for FFO/debt, it's typically the same FFO. Actually, looking more carefully at S&P's methodology document: For corporate issuers: "FFO: Net income plus depreciation, amortization, deferred income taxes, and other non-cash items." This is before interest and after tax. So my calculation of 935,370,000 seems reasonable. However, I want to cross-check using another approach. From the cash flow statement: Cash Flows From Used In Operations = 548,169,000 Add back: Working capital outflow = 336,750,000 Add back: Finance costs paid = 53,720,000 Add back: Income taxes paid = 152,372,000 Subtract: Finance income received = -4,043,000 Subtract: Dividends received = -1,372,000 = 885,596,000 (this is Net Income + D&A + other non-cash, before interest and tax) But wait, this 885,596,000 differs from my 935,370,000. Let me check why. 885,596,000 vs 935,370,000. Difference is about 49,774,000. Hmm, let me recalculate the cash flow approach: 548,169,000 + 336,750,000 + 53,720,000 + 152,372,000 - 4,043,000 - 1,372,000 = 1,085,596,000 Wait, I made an arithmetic error. Let me redo: 548,169,000 + 336,750,000 = 884,919,000 884,919,000 + 53,720,000 = 938,639,000 938,639,000 + 152,372,000 = 1,091,011,000 1,091,011,000 - 4,043,000 = 1,086,968,000 1,086,968,000 - 1,372,000 = 1,085,596,000 So 1,085,596,000 is the "cash flow before working capital, interest, and taxes" or roughly EBITDA + other non-cash items. But this should equal: Operating Profit + D&A + other non-cash adjustments = 641,338,000 + 479,186,000 + other items = 1,120,524,000 + other items Wait, that's already higher than 1,085,596,000. The difference is 34,928,000. Let me check what's in the adjustments: From cash flow statement, the adjustments total: 444,387,000 + 864,000 - 2,011,000 - 391,000 + 3,375,000 + 3,553,000 + 50,000 + 3,630,000 + 65,281,000 + 141,884,000 - 9,581,000 + 3,518,000 - 73,560,000 + 2,115,000 + 43,507,000 - 49,935,000 = 578,206,000 For 2022: 478,290,000 + 895,000 - 662,000 - 2,722,000 + 7,958,000 - 25,357,000 + 48,000 + 5,092,000 + 61,413,000 + 152,369,000 - 17,574,000 + 4,751,000 - 65,399,000 - 400,375,000 + 38,584,000 + 759,189,000 = 596,500,000 Net Income + Adjustments = 436,126,000 + 596,500,000 = 1,032,626,000 But Cash Flow From Operations before working capital should equal this. Let me check: 548,169,000 + 336,750,000 = 884,919,000 These don't match! 1,032,626,000 vs 884,919,000. Difference is 147,707,000. I think I'm confusing myself with the signs. Let me look at "Increase Decrease In Working Capital" more carefully. "Increase Decrease In Working Capital" 2022-01-01 - 2023-01-01: -336,750,000 EUR Negative means decrease in cash due to working capital (outflow). So to get cash flow before working capital, we add 336,750,000 to 548,169,000 = 884,919,000. But Net Income + Adjustments = 436,126,000 + 596,500,000 = 1,032,626,000 These should be equal if my adjustment total is correct. Let me recheck the adjustments sum. Actually, I think I need to be more careful. The adjustments include "Adjustments For Finance Costs" = 61,413,000 and "Adjustments For Income Tax Expense" = 152,369,000. These are added back in the indirect method. But in my "cash flow before working capital, interest, and taxes", I should not add these back if I want FFO. Let me recalculate what I need: For S&P FFO, starting from Net Income: Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 + Deferred tax: 40,842,000 - Gain on disposal: 25,357,000 - Equity method income: 662,000 - Other equity income: 2,722,000 FFO = 935,370,000 Now let me verify by another approach. From the comprehensive income and equity changes, I can check if this makes sense. Actually, I realize I should look at what S&P specifically does for European utilities. They often use a modified FFO that includes dividends from investments and excludes certain items. Let me also check if I need to include the "Effect Of Valuation Using The Equity Method" and "Other Income From Equity Investments" in FFO. For S&P, equity method income is typically excluded from FFO because it's non-cash (though dividends received are included). The "Revenue From Dividends" = 48,000 is small. Actually, looking at the cash flow statement, "Dividends Received Classified As Operating Activities" = 1,372,000. This is cash received and would be included in FFO. So adjusted FFO = 935,370,000 + 1,372,000 - 48,000 (replace accrued dividends with cash dividends)? No, the 48,000 is revenue from dividends in the P&L, and 1,372,000 is cash received. These are different. Actually, in my FFO calculation, I started from Net Income which includes the 48,000 dividend income and 662,000 equity method income. But I subtracted the 662,000 equity method income (non-cash) and the 2,722,000 other equity income. I didn't subtract the 48,000 dividend income because it's actual cash received. But wait, the 1,372,000 cash dividends received is different from the 48,000 revenue from dividends. This suggests there were dividends from prior periods or different investments. For S&P FFO, we typically use accrual-based net income adjusted for non-cash items, not cash-based. So the 48,000 dividend revenue is fine to keep (it's cash), and the 662,000 equity method income is non-cash so we subtract it. Let me recalculate more carefully: Net Income includes: - Effect Of Valuation Using Equity Method: 662,000 (non-cash, subtract from FFO) - Revenue From Dividends: 48,000 (cash, keep in FFO) - Other Income Expense From Equity Investments: 2,722,000 (likely non-cash or realized gain/loss, subtract to be conservative) - Share Of Profit Loss Of Associates And Joint Ventures: 3,432,000 (this is equity method, already included in the 662,000? Or separate?) Wait, let me check: "Effect Of Valuation Using The Equity Method" = 662,000 and "Share Of Profit Loss Of Associates And Joint Ventures Accounted For Using Equity Method" = 3,432,000. These seem different. The 662,000 might be a specific valuation adjustment, while 3,432,000 is the share of profit. Looking at the P&L structure: Profit Loss From Operating Activities: 641,338,000 Finance Income Cost: -56,275,000 (net) Effect Of Valuation Using The Equity Method: 662,000 Revenue From Dividends: 48,000 Other Income Expense From Equity Investments: 2,722,000 Share Of Profit Loss Of Associates And Joint Ventures: 3,432,000 Profit Loss Before Tax: 588,495,000 Let me verify: 641,338,000 - 56,275,000 + 662,000 + 48,000 + 2,722,000 + 3,432,000 = 591,927,000. This doesn't equal 588,495,000. Difference is 3,432,000. Hmm, maybe the "Share Of Profit Loss" is already included in "Effect Of Valuation"? Or the signs are different. Let me check: 641,338,000 - 56,275,000 + 662,000 + 48,000 + 2,722,000 - 3,432,000 = 585,063,000. Still not right. Actually, looking at 2021: 583,231,000 - 60,379,000 + 2,011,000 + 50,000 + 391,000 + 2,452,000 = 527,756,000 vs 525,304,000. Close but not exact. I think there might be some other items or the signs might be different than I expect. Let me not get bogged down in this and use the standard S&P formula with the items I can clearly identify. For FFO, I'll use: Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 + Deferred tax expense: 40,842,000 - Gain on disposal: 25,357,000 FFO = 436,126,000 + 478,290,000 + 895,000 + 7,958,000 + 40,842,000 - 25,357,000 = 938,754,000 I won't subtract the equity method items because they're part of normal operations for a holding company structure, and S&P sometimes includes them. Actually, no - S&P specifically excludes equity method income from FFO because it's non-cash. Let me check S&P's exact wording: "FFO: Net income plus depreciation, amortization, deferred income taxes, and other non-cash items." Equity method income is non-cash, so it should be excluded. But if I exclude it, I need to know the exact amount in net income. The "Share Of Profit Loss" = 3,432,000 and "Effect Of Valuation" = 662,000 and "Other Income" = 2,722,000. Total = 6,816,000. But these might not all be in net income or might overlap. Let me just use the cash flow adjustment approach which is cleaner. From cash flow adjustments that are non-cash and included in operating cash flow: + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 - Gain on disposal: -25,357,000 (negative adjustment means gain) - Equity method: -662,000 - Other equity income: -2,722,000 Total non-cash adjustments to add back to net income: 458,402,000 FFO = 436,126,000 + 458,402,000 = 894,528,000 But this excludes deferred tax. The cash flow statement doesn't show a separate deferred tax adjustment because current and deferred tax are combined in "Adjustments For Income Tax Expense" = 152,369,000. Actually, in the indirect method, the entire income tax expense is added back, and then "Income Taxes Paid" is shown as a separate cash outflow. So the 152,369,000 includes both current and deferred tax. For FFO, S&P adds back deferred tax (non-cash) but not current tax. However, since we can't easily separate them and the cash flow statement adds back the total, let me use a different approach. Standard S&P FFO for interest coverage and debt ratios: FFO = Net income + D&A + Deferred taxes + Other non-cash items If I can't separate deferred taxes, I can estimate from balance sheet: Deferred Tax Liabilities increased by 40,842,000 (from 50,791,000 to 91,633,000) Deferred Tax Assets = 0 both years So deferred tax expense ≈ 40,842,000 Current tax expense = 152,369,000 - 40,842,000 = 111,527,000 FFO = 436,126,000 + 478,290,000 + 40,842,000 + 895,000 + 7,958,000 - 25,357,000 - 662,000 - 2,722,000 FFO = 935,370,000 Now for Net Debt. Let me recalculate carefully: As of 2023-01-01 (end of 2022): Short Term Financial Liabilities Excluding Other Current Financial Liabilities: 142,437,000 Related Parties: 118,000 Total short-term financial debt: 142,437,000 Other Current Financial Liabilities: 290,000 Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities: 6,402,913,000 Related Parties: -2,048,000 (negative? this is odd) Total long-term financial debt: 6,402,913,000 Other Noncurrent Financial Liabilities: 34,000 Total Debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 Cash And Cash Equivalents: 451,946,000 Current Financial Assets Excluding Other Current Financial Assets: 5,770,000 (with 2,246,000 related parties) Should I subtract the current financial assets? These are likely short-term investments or derivatives, not necessarily cash equivalents. For conservative net debt, I'll subtract only cash. But wait, let me check what "Current Financial Assets Excluding Other Current Financial Assets" means. Looking at 2022: 5,120,000 with no related party breakdown. In 2023: 5,770,000 with 2,246,000 related parties. These are relatively small amounts. For standard net debt calculation, we typically subtract cash and cash equivalents only. Sometimes we also subtract liquid investments. Let me check if there are other liquid assets: Other Current Financial Assets: 17,455,000 (2023), 0 (2022) Noncurrent Financial Assets: 22,945,000 (2023), 7,855,000 (2022) The "Other Current Financial Assets" of 17,455,000 might include derivatives or other items. Not clearly liquid. I'll use Net Debt = Total Debt - Cash and Cash Equivalents = 6,545,674,000 - 451,946,000 = 6,093,728,000 Or if we include current financial assets: 6,093,728,000 - 5,770,000 = 6,087,958,000 The difference is small (5.8 million vs 6.1 billion), so I'll use 6,093,728,000 for conservative net debt. Actually, let me reconsider whether "Current Financial Assets Excluding Other Current Financial Assets" should be subtracted. The name suggests these are current financial assets other than "Other Current Financial Assets". They might include things like: - Short-term deposits - Derivatives - Trade receivables (financial portion) If they're truly liquid (like short-term deposits), they should be subtracted. But if they're derivatives or receivables, they shouldn't. Given the small amount and uncertainty, I'll use Net Debt = 6,093,728,000 (only cash subtracted). Now, FFO / Net Debt ratio: FFO = 935,370,000 Net Debt = 6,093,728,000 Ratio = 935,370,000 / 6,093,728,000 = 0.1535 or 15.35% But wait, I need to double-check my FFO calculation. Let me reconsider whether I should use a different FFO figure. Looking at S&P's methodology more carefully for infrastructure companies, they sometimes report "FFO to debt" where debt is total debt, not net debt. But the question asks for "FFO / Net debt ratio", so net debt is correct. Also, S&P sometimes adjusts FFO for dividends from equity investments and other items. Let me check if I should include the dividends received. In the cash flow statement, "Dividends Received Classified As Operating Activities" = 1,372,000. These are cash dividends and would be included in FFO. In my FFO calculation, I started from Net Income which includes "Revenue From Dividends" = 48,000. This is much less than the 1,372,000 cash received, suggesting dividends from unconsolidated investments or prior period accruals. For S&P FFO, cash dividends received from equity investments are typically included in FFO (unlike the equity method income which is excluded). So if I want to be more accurate, I should adjust: Net Income includes 48,000 dividend revenue But cash dividends received = 1,372,000 Difference = 1,324,000 However, this gets complicated with accrual vs cash. Let me stick with the standard S&P formula using accrual-based net income. Actually, I realize I should check if my FFO is in the right ballpark by comparing to EBITDA. EBITDA = Operating Profit + D&A = 641,338,000 + 479,186,000 = 1,120,524,000 FFO should be less than EBITDA because FFO includes interest expense and taxes (or rather, FFO = Net Income + D&A + deferred taxes + other, while EBITDA = EBIT + D&A = Net Income + Interest + Taxes + D&A). FFO = 935,370,000 EBITDA = 1,120,524,000 Difference = 185,154,000, which is roughly Interest (61,367,000) + Taxes (152,369,000) - Deferred tax (40,842,000) - Other adjustments = 172,894,000. Close enough given other items. Actually: Interest 61,367,000 + Current tax 111,527,000 = 172,894,000. Yes, this matches well. So FFO = EBITDA - Interest - Current Taxes = 1,120,524,000 - 61,367,000 - 111,527,000 = 947,630,000 This is close to my 935,370,000. The difference is due to other non-cash items (gain on disposal, equity method, etc.). Let me use FFO = 935,370,000 as my best estimate. Now, let me also consider an alternative FFO calculation that S&P sometimes uses for European utilities: FFO = Operating cash flow before working capital changes - Cash interest paid - Cash taxes paid + Dividends received From earlier: Operating cash flow before working capital = 884,919,000 But this already includes finance income received, finance costs paid, taxes paid, and dividends received. Let me recalculate from scratch: Cash Flow From Operations = 548,169,000 Add back working capital outflow: 336,750,000 = 884,919,000 (this is Net Income + all non-cash adjustments) Now to get to S&P FFO: Add back finance costs paid: 53,720,000 (these are cash, not non-cash, so I shouldn't add them back to get FFO) Subtract finance income received: -4,043,000 (cash, not non-cash) Add back income taxes paid: 152,372,000 (cash taxes, S&P FFO excludes these? No wait) Actually, I'm confusing myself. Let me think more clearly. The indirect method cash flow statement: Net Income + Non-cash adjustments (D&A, impairment, share-based, etc.) +/- Changes in working capital = Cash Flow From Operations So 884,919,000 = Net Income + Non-cash adjustments (before working capital changes) This 884,919,000 is NOT FFO. It's closer to "cash flow before working capital and before cash interest/taxes" but actually it includes the non-cash interest and tax adjustments. From the adjustments list: - Adjustments For Finance Costs: 61,413,000 (non-cash or accrued interest) - Adjustments For Finance Income: -5,092,000 (non-cash or accrued interest income) - Adjustments For Income Tax Expense: 152,369,000 (total tax expense, non-cash in the sense that it's added back) But then the cash flow statement shows actual cash paid: - Finance Costs Paid: 53,720,000 - Finance Income Received: 4,043,000 - Income Taxes Paid: 152,372,000 So the difference between accrued and cash interest is 61,413,000 - 53,720,000 = 7,693,000 (more accrued than cash) And for taxes: 152,369,000 accrued vs 152,372,000 cash = -3,000 (essentially equal) This means the 884,919,000 includes: - Net Income - D&A, impairment, share-based (truly non-cash) - Non-cash portion of interest: 7,693,000 - Essentially zero non-cash tax (deferred tax) So 884,919,000 = Net Income + 596,500,000 (total adjustments before working capital) = 436,126,000 + 596,500,000 - adjustments for interest and tax that are not truly non-cash? Actually, let me just verify: 884,919,000 - 436,126,000 = 448,793,000. This should equal the non-cash adjustments excluding the interest and tax add-backs. Total adjustments: 596,500,000 Less: Finance costs adjustment 61,413,000 Less: Finance income adjustment -5,092,000 (so +5,092,000 to subtract) Less: Income tax adjustment 152,369,000 Non-cash operating adjustments = 596,500,000 - 61,413,000 + 5,092,000 - 152,369,000 = 387,810,000 And 436,126,000 + 387,810,000 = 823,936,000. This doesn't equal 884,919,000. I'm making this too complicated. Let me just use the standard S&P formula with the clearly identified items. Final FFO calculation: Net Income: 436,126,000 + Depreciation & Amortization: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 + Deferred tax expense: 40,842,000 - Gain on disposal of non-current assets: 25,357,000 FFO = 938,754,000 I'll exclude the equity method and other equity investment items because they're non-cash and not part of core operations, but I realize this is a judgment call. Let me include them to be conservative (lower FFO): FFO = 938,754,000 - 662,000 - 2,722,000 = 935,370,000 Actually, I want to check if the 25,357,000 gain is truly non-recurring and should be excluded. S&P typically excludes gains on asset sales from FFO. Yes, exclude it. Final FFO = 935,370,000 Net Debt = 6,093,728,000 FFO / Net Debt = 935,370,000 / 6,093,728,000 = 0.1535 Or as a percentage: 15.35% But wait, I should check if I need to include the related party amounts in debt. The related party amount for long-term financial liabilities is negative (-2,048,000), which is odd. This might mean receivables from related parties rather than payables. Let me check the exact wording: "Long Term Financial Liabilities Excluding Other Non Current Financial Liabilities" "Related Parties Member" 2023-01-01: -2048000 EUR Negative liability means it's an asset (receivable). So total long-term debt is 6,402,913,000 including the related party portion, or 6,402,913,000 - (-2,048,000) = 6,404,961,000 if we think of it as gross vs net. Actually, the main figure 6,402,913,000 likely already includes the related party amount. The related party member shows -2,048,000, which might mean the related party portion is negative (i.e., net receivable from related parties within the long-term financial liabilities category). This is confusing. Let me just use the main figure: 6,402,913,000. Total Debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 = 6,545,674,000 Net Debt = 6,545,674,000 - 451,946,000 = 6,093,728,000 FFO / Net Debt = 935,370,000 / 6,093,728,000 = 0.1535 Let me also try with total debt instead of net debt to see the difference, though the question asks for net debt: 935,370,000 / 6,545,674,000 = 0.1429 And with cash + current financial assets subtracted: 935,370,000 / 6,087,958,000 = 0.1536 The difference is minimal. Actually, I want to double-check my FFO one more time. Let me see if there's a more standard way. For European utilities, S&P Global Ratings typically reports FFO as: FFO = Operating cash flows before working capital changes - Dividends received + Interest received - Interest paid + Current tax paid Wait, no. Let me think again. Actually, looking at S&P's published methodology for "FFO to debt": For corporate and infrastructure entities: "FFO: Net income plus depreciation, amortization, deferred income taxes, and other non-cash items." This is the standard definition. I'll stick with my calculation. But let me also consider if I should add back the entire finance costs (interest expense) to get to a pre-interest FFO measure. Some S&P measures use "FFO interest coverage" where FFO includes interest expense. But for "FFO to debt", it's typically the same FFO definition (after interest). Actually, I need to check this more carefully. S&P's "FFO to debt" ratio uses FFO in the numerator and debt in the denominator. The FFO is after interest expense (i.e., from net income). This is correct. However, for "Debt to EBITDA" or similar, EBITDA is before interest. So FFO/Debt being 15% means it takes about 6.5 years of FFO to pay off the debt. Let me verify my calculation is reasonable by comparing to similar companies. For a gas utility, 15% FFO/Net Debt is reasonable. Actually, I want to do one more check. Let me calculate FFO using the cash flow from operations approach and compare: From Cash Flow Statement 2022: Cash Flows From Used In Operations: 548,169,000 Add back working capital outflow: 336,750,000 = 884,919,000 (operating cash before working capital) Now, S&P FFO excludes working capital changes but also makes other adjustments. The 884,919,000 includes: - Cash interest paid: -53,720,000 (outflow, so this reduced CFO) - Cash taxes paid: -152,372,000 (outflow) - Cash interest received: +4,043,000 (inflow) - Dividends received: +1,372,000 (inflow) To get to a pre-interest, pre-tax figure: 884,919,000 + 53,720,000 + 152,372,000 - 4,043,000 - 1,372,000 = 1,085,596,000 This is roughly: EBITDA + other non-cash items = 1,120,524,000 + other items. The difference is about 35 million, which could be due to other non-cash items or my calculation errors. From this 1,085,596,000, to get S&P FFO: Subtract cash interest paid: -53,720,000 Add cash interest received: +4,043,000 Subtract cash taxes paid: -152,372,000 Add dividends received: +1,372,000? (these are typically included in FFO) FFO = 1,085,596,000 - 53,720,000 + 4,043,000 - 152,372,000 + 1,372,000 = 884,919,000 Wait, that's just the operating cash flow before working capital. This isn't right. Let me think differently. S&P FFO is typically: FFO = Net Income + D&A + Deferred Taxes + Other non-cash items This is an accrual-based measure, not cash-based. The 884,919,000 from cash flow approach includes accrual-to-cash adjustments for interest and taxes, which we don't want in FFO. So my original FFO = 935,370,000 is correct as an accrual-based measure. Let me do a final verification: Net Income: 436,126,000 + D&A: 478,290,000 + Impairment: 895,000 + Share-based payments: 7,958,000 + Deferred tax: 40,842,000 - Gain on disposal: 25,357,000 = 935,370,000 Yes, this looks correct. Net Debt: 6,093,728,000 FFO / Net Debt = 935,370,000 / 6,093,728,000 = 0.1535 As a decimal: 0.1535 Or as a percentage: 15.35% The question asks for the ratio, so I'll provide it as a decimal or percentage. Looking at typical S&P presentations, they often show this as a percentage (e.g., "15.3%") or as a multiple (e.g., "0.15x"). Actually, "FFO / Net debt ratio" is typically expressed as a percentage in S&P methodology, or sometimes as a raw ratio. Let me provide it as a decimal that can be interpreted as a percentage or multiple. 0.1535 = 15.35% I'll round to a reasonable number of significant figures. The inputs are in millions, so: FFO ≈ 935 million Net Debt ≈ 6,094 million Ratio = 935 / 6,094 = 0.1534 Let me provide 0.153 or 15.3% or similar. Actually, looking at the precision of inputs, I should provide 2-3 significant figures. 935,370,000 / 6,093,728,000 = 0.1535 I'll provide 0.154 or 15.4% if rounding, or keep more precision. Actually, let me recalculate with exact numbers: 935,370,000 / 6,093,728,000 = 0.153498... So approximately 0.153 or 15.3%. But wait, I want to check one more thing. Should I include the "Other Current Financial Assets" of 17,455,000 in the cash subtraction for net debt? These are "Other Current Financial Assets" which might include derivatives, deposits, or other liquid items. If they're truly liquid, they should be subtracted. Looking at 2022: Other Current Financial Assets = 0. In 2023: 17,455,000 with 0 related parties. This increase might be due to new derivative positions or deposits. For conservative net debt, I'll not subtract these unless clearly identified as cash equivalents. Similarly, "Noncurrent Financial Assets" = 22,945,000. These are non-current, so likely not liquid. And "Other Noncurrent Financial Assets" = 35,442,000. Also non-current. I'll stick with Net Debt = 6,093,728,000. One final check: should I include "Current Financial Assets Excluding Other Current Financial Assets" = 5,770,000 in cash subtraction? These are "Current Financial Assets Excluding Other Current Financial Assets". The name is confusing, but they are current and financial. If they're things like short-term deposits or marketable securities, they should be subtracted. Given the small amount and lack of clarity, I'll subtract them for a slightly more aggressive net debt figure: Net Debt = 6,545,674,000 - 451,946,000 - 5,770,000 = 6,087,958,000 FFO / Net Debt = 935,370,000 / 6,087,958,000 = 0.1536 The difference is negligible (0.1535 vs 0.1536). I'll use 6,093,728,000 as my net debt figure (only cash subtracted). Final answer: 0.153 or 15.3%. Actually, I want to express this as a ratio, not a percentage. In financial analysis, "FFO/Net debt" is often expressed as a percentage (e.g., "15.3%") or as a multiple (e.g., "0.15x"). Looking at S&P's typical presentation, they often show "FFO to debt" as a percentage. For example, "FFO to debt: 15%". But the question asks for "FFO / Net debt ratio", which could be interpreted as either. I'll provide it as a decimal ratio (0.153) which can also be read as 15.3%. Let me do one more sanity check. If FFO is about 935 million and Net Debt is about 6.1 billion, the ratio is about 15%. This means FFO covers about 15% of net debt annually, or it would take about 6.5 years of FFO to pay off net debt. This is reasonable for a utility company with stable cash flows. Actually, I realize I should double-check whether S&P uses total debt or net debt for this ratio. The question specifically asks for "FFO / Net debt ratio", so net debt is correct. But S&P's published "FFO to debt" ratio sometimes uses total debt, not net debt. The question is clear: net debt. Final calculation: FFO = 935,370,000 EUR Net Debt = 6,093,728,000 EUR Ratio = 0.1535 I'll round to three decimal places: 0.154 Or should I provide more precision? Let me check: 935,370,000 / 6,093,728,000 = 0.153498... Rounded to 3 significant figures: 0.153 Or as percentage: 15.3% I'll provide 0.153 as the decimal ratio. Wait, I want to reconsider one item. Should I include dividends received in FFO? In my calculation, I started from Net Income which includes "Revenue From Dividends" of 48,000. This is a small amount. The cash flow shows "Dividends Received Classified As Operating Activities" of 1,372,000, which is larger. For S&P FFO, do we use accrual or cash dividends? The standard formula uses net income (accrual), so the 48,000 is already included. The 1,372,000 cash received includes dividends from investments that may not be in the P&L (e.g., from unconsolidated subsidiaries or associates). Actually, looking at the equity section, "Dividends Paid" to third parties = 14,244,000. And "Dividends Recognised As Distributions To Owners Of Parent" = 238,882,000. These are dividends paid by Italgas, not received. For dividends received, the P&L shows 48,000 and cash flow shows 1,372,000. The difference might be from equity-accounted investments or other sources. I think my FFO calculation is fine. The 48,000 is included in net income, and I don't need to adjust for the cash difference because FFO is an accrual-based measure. One more thing: should I add back the "Finance Costs" of 61,367,000 to get a pre-interest FFO? No, S&P FFO is based on net income, which is after interest. So interest is not added back. However, some variations of FFO (like "Funds From Operations before Interest" or "FFO Interest Coverage") do add back interest. But for "FFO / Net Debt", it's standard FFO (after interest). Final answer: 0.153 Let me express this more precisely. I'll use 0.153 or 15.3%. Given the inputs have 6-9 significant digits, I'll provide 3-4 significant digits in the output. 935,370,000 / 6,093,728,000 = 0.153498... I'll provide 0.1535 or 15.35%. Let me go with 0.153 as a clean ratio, or 0.154 if rounding to 3 significant figures. Actually, 0.1535 rounds to 0.154 if rounding to 3 decimal places. But 0.153 is fine if truncating or rounding to 2 decimal places. I'll provide 0.153 as my final answer, or more precisely 0.1535. Hmm, let me reconsider the FFO calculation one more time. I want to make sure about the deferred tax. Deferred Tax Liabilities: 50,791,000 (2022) → 91,633,000 (2023) Increase: 40,842,000 This increase is a non-cash charge that reduced net income. So adding it back to net income is correct for FFO. But wait - is the 50,791,000 at 2022-01-01 or 2023-01-01? Let me check: "Deferred Tax Liabilities" 2022-01-01: 50791000 EUR "Deferred Tax Liabilities" 2023-01-01: 91633000 EUR Yes, increase of 40,842,000. And Deferred Tax Assets are 0 at both dates. So total net deferred tax liability increased by 40,842,000. This is correctly added back. Final FFO = 935,370,000 Final Net Debt = 6,093,728,000 Ratio = 0.1535 I'll provide the answer as 0.154 (rounded to three decimal places) or 0.1535 (four decimal places). Given typical financial reporting, I'll use 0.15 or 15%. But that's too rough. Let me check if the answer should be in percentage or decimal form. The question says "FFO / Net debt ratio" which is typically expressed as a percentage (e.g., "15.3%") or as a decimal (e.g., "0.153"). I'll provide it as a decimal: 0.153 Actually, re-reading the question format: "give your final answer on a single line between XML tags with no markdown fences, no units, and no prose". So just the number, no % sign. I'll provide 0.153 or 0.154. Let me be more precise: 935370000 / 6093728000 = 0.153498... Rounding to 3 significant figures: 0.153 Or to 3 decimal places: 0.153 I'll use 0.153. Wait, I want to do one more verification of my net debt. Let me check if there are any other debt-like items I missed. Current Liabilities total: 1,386,021,000 Includes: - Short Term Financial Liabilities: 142,437,000 - Trade And Other Current Payables: 1,197,117,000 - Current Tax Liabilities: 16,105,000 - Other Current Financial Liabilities: 290,000 - Other Current Nonfinancial Liabilities: 30,072,000 Noncurrent Liabilities total: 7,253,966,000 Includes: - Long Term Financial Liabilities: 6,402,913,000 - Other Longterm Provisions: 144,277,000 - Employee Benefits: 69,917,000 - Deferred Tax: 91,633,000 - Other Noncurrent Financial Liabilities: 34,000 - Other Noncurrent Nonfinancial Liabilities: 545,192,000 Total Debt = Short Term Financial + Long Term Financial + Other Current Financial + Other Noncurrent Financial = 142,437,000 + 6,402,913,000 + 290,000 + 34,000 = 6,545,674,000 This seems correct. Trade payables, tax liabilities, provisions, and employee benefits are operating liabilities, not debt. Net Debt = 6,545,674,000 - 451,946,000 = 6,093,728,000 Yes, this is correct. One more check: should I subtract "Current Financial Assets Excluding Other Current Financial Assets" = 5,770,000? If these are liquid financial assets (like short-term deposits or marketable securities), yes. The name suggests they are current financial assets, excluding the "Other Current Financial Assets" category. They might include: - Short-term investments - Derivative assets - Deposits - Receivables from related parties (2,246,000 is related party) Given that 2,246,000 is related party, these might be receivables rather than liquid investments. I'll be conservative and not subtract them. Final answer: 0.153 Actually, let me also try calculating with an alternative FFO to see the range: Alternative FFO = Operating Profit + D&A - Cash Taxes = 641,338,000 + 479,186,000 - 152,372,000 (approximate cash taxes) = 968,152,000 This is higher because it doesn't subtract interest and uses a different tax figure. Or: FFO = EBITDA - Interest - Cash Taxes = 1,120,524,000 - 61,367,000 - 152,372,000 = 906,785,000 This is closer to my 935,370,000. The difference (28,585,000) is due to non-cash items like share-based payments, gain on disposal, etc. I'll stick with 935,370,000 as it's more aligned with S&P methodology. Final ratio: 935,370,000 / 6,093,728,000 = 0.1535 0.153