I need to estimate FFO / Net Debt ratio using S&P methodology for ENEL at the end of 2022 (i.e., as of January 1, 2023 balance sheet date).

## Step 1: Calculate Net Debt (S&P methodology)

S&P Net Debt typically includes:
- Short-term borrowings
- Current portion of long-term borrowings
- Long-term borrowings
- 50% of hybrid bonds (S&P typically gives 50% equity / 50% debt treatment to hybrid bonds)
- Minus cash and cash equivalents
- Plus operating lease adjustments (not available here, so I'll skip)

**Gross Debt:**
- Long-term borrowings: 68,191M
- Short-term borrowings: 18,392M
- Current portion of long-term borrowings: 2,835M
- Total reported debt: 89,418M

**Hybrid bond adjustment:**
The hybrid bonds are reported in equity at 5,567M. Under S&P methodology, typically 50% of hybrid bonds are treated as debt. So we add 50% × 5,567M = 2,784M to debt (and remove from equity).

Adjusted Gross Debt = 89,418 + 2,784 = 92,202M

**Cash:** 11,041M

**Net Debt** = 92,202 - 11,041 = **81,161M**

## Step 2: Calculate FFO (S&P methodology)

S&P FFO = Net Income + Depreciation & Amortization + Impairment losses + Deferred taxes + Other non-cash items - Gains on asset sales + Interest expense - Interest income + Hybrid bond coupon adjustments - Dividends from unconsolidated subs

Let me use the cash flow statement approach. S&P FFO is approximately:

**Starting from operating cash flows and adjusting:**

Cash flows from operating activities (continuing): 8,674M
Cash flows from operating activities (discontinued): -391M
Total operating cash flows: 8,283M

S&P FFO = Operating Cash Flow + Working Capital Changes (add back)

From the data:
- Increase/decrease in working capital: 3,961M (this was already included in operating cash flow)

Wait, let me reconsider. The cash flow statement shows:
- Cash flows from operating activities: 8,674M (continuing)

S&P FFO ≈ Cash from Operations - Working Capital Changes

Working capital change = 3,961M (this appears to be a use/source embedded in CFO)

Looking more carefully at the adjustments, the working capital items listed sum up:
- Inventories: -2,166
- Trade receivables: -2,783
- Trade payables: 1,333
- Contract assets: 15
- Contract liabilities: 254
- Other assets/liabilities: 614
- Provisions accruals: 803
- Provisions utilization: -1,521
Total working capital & provisions: -3,451M (approximately, but stated as 3,961M)

Actually, I think working capital changes need to be added back. Let me use a simpler approach:

**S&P FFO ≈ EBITDA - Net Interest - Taxes (cash) - Hybrid coupon (50%)**

EBITDA = Operating profit + D&A = 11,193 + 7,447 = 18,640M

But we need to include discontinued operations impact. Let me focus on continuing operations first.

Net interest (cash paid): Finance costs paid 5,016 - Finance income received 2,622 = 2,394M

Cash taxes: 1,934M

Hybrid coupon (treat 50% as interest expense): 123M × 50% = 62M (the other 50% is already treated as equity distribution)

FFO ≈ 18,640 - 2,394 - 1,934 - 62 + other non-cash items adjustments

Including net results from commodity contracts: +2,365M
Including losses on disposal: -355M (gain, so subtract)

Actually, let me simplify:

FFO from continuing operations ≈ CFO + WC changes = 8,674 + some WC adjustment

Looking at it more directly:
CFO = 8,674M (continuing) + (-391M) discontinued = 8,283M
Add back working capital changes: The increase in WC consumed cash. Working capital change was stated as 3,961M.

FFO ≈ 8,283 + 3,961 = 12,244M... but this seems high.

Let me just use: FFO = CFO (total) + WC changes = 8,283 + working capital ≈ 12,244M

**FFO/Net Debt = 12,244 / 81,161 ≈ 0.151 or ~15.1%**

<answer>0.15</answer>