Step 1 — Relevant industry ITALGAS S.P.A. is a gas distribution utility. The relevant methodology is therefore Regulated Utilities. The provided methodology does not require a special replacement of debt/EBITDA for this case, except noting possible utility-specific adjustments where applicable. Based on the data provided, I will apply the baseline S&P-style adjusted debt and adjusted EBITDA formulas using available reported items. Step 2 — Estimate Adjusted Debt Reported financial debt at 2022 year-end, using 2023-01-01 balance sheet values: - Short-term financial liabilities excluding other current financial liabilities: EUR 142,437,000 - Other current financial liabilities: EUR 290,000 - Long-term financial liabilities excluding other non-current financial liabilities: EUR 6,402,913,000 - Other noncurrent financial liabilities: EUR 34,000 Reported debt = 142,437,000 + 290,000 + 6,402,913,000 + 34,000 Reported debt = EUR 6,545,674,000 Pension deficit / employee benefit liability: - Noncurrent provisions for employee benefits: EUR 69,917,000 Assumed pension adjustment = EUR 69,917,000 Leases: no separate lease liability balance is provided. Lease cash outflow is disclosed, but without lease liability details. To avoid double counting, no incremental lease debt adjustment is added. Guarantees, hybrid debt portion, and other debt-like items: not provided, so assumed zero. Eligible cash: - Cash and cash equivalents: EUR 451,946,000 - Current financial assets excluding other current financial assets: EUR 5,770,000 - Other current financial assets: EUR 17,455,000 Eligible cash = 451,946,000 + 5,770,000 + 17,455,000 Eligible cash = EUR 475,171,000 Adjusted_Debt = reported debt + pension deficit - eligible cash Adjusted_Debt = 6,545,674,000 + 69,917,000 - 475,171,000 Adjusted_Debt = EUR 6,140,420,000 Step 3 — Estimate Adjusted EBITDA Reconstruct EBITDA from operating profit plus depreciation, amortization, and impairment: - Profit from operating activities: EUR 641,338,000 - Depreciation, amortisation and impairment: EUR 479,186,000 EBITDA = 641,338,000 + 479,186,000 EBITDA = EUR 1,120,524,000 Possible adjustments: - Leases: lease expense adjustment is not separately identified in income statement; no adjustment made. - Nonrecurring gains/losses: cash flow notes indicate “Adjustments for losses/gains on disposal of noncurrent assets” of EUR -25,357,000, implying a gain on disposal. Under S&P-style EBITDA, nonrecurring gains are typically removed. Adjusted_EBITDA = EBITDA - nonrecurring gains Adjusted_EBITDA = 1,120,524,000 - 25,357,000 Adjusted_EBITDA = EUR 1,095,167,000 Step 4 — Calculate Adjusted Debt / Adjusted EBITDA Adjusted_Debt / Adjusted_EBITDA = 6,140,420,000 / 1,095,167,000 Adjusted_Debt / Adjusted_EBITDA = 5.6077 Rounded to two decimals: 5.61 5.61