Step 1 — Relevant industry

HERA S.p.A. is a multi-utility group, with activities in regulated utility services such as gas, electricity, water, and waste/environmental services. The closest applicable methodology provided is Regulated Utilities. Therefore, I apply the regulated utilities framework, while using the available reported financial statement data to estimate S&P-adjusted FFO-to-debt.

Step 2 — Estimate Adjusted EBITDA

Reported operating profit / EBIT for 2022:

- Profit from operating activities = EUR 533.8 million

Add back depreciation, amortisation, impairment and provisions. The income statement line “Amortisation Depreciation And Provisions” is:

- Amortisation, depreciation and provisions = EUR 667.1 million

So reconstructed EBITDA-like measure:

\[
EBITDA = 533.8 + 667.1 = 1{,}200.9 \text{ million}
\]

This is consistent with the cash flow statement’s “Cash flows from operations before changes in working capital” of EUR 1,202.0 million, before working-capital changes.

Lease adjustment:

Since IFRS 16 lease liabilities are already recognized as debt, and depreciation related to right-of-use assets is already included in D&A, no additional lease capitalization adjustment is required from the provided data.

No clear nonrecurring gains/losses, pension normalizations, or proportional JV EBITDA data are provided, so no further adjustments are made.

\[
Adjusted\ EBITDA \approx 1{,}200.9 \text{ million}
\]

Step 3 — Estimate FFO

Baseline formula:

\[
FFO = Adjusted\ EBITDA - cash\ interest - cash\ taxes
\]

From the cash flow statement:

- Finance costs paid classified as operating activities = EUR 128.0 million
- Income taxes paid classified as operating activities = EUR 165.9 million

Thus:

\[
FFO = 1{,}200.9 - 128.0 - 165.9 = 907.0 \text{ million}
\]

\[
FFO \approx 907.0 \text{ million}
\]

Step 4 — Estimate Adjusted Debt

Reported financial debt at year-end 2022 / Jan. 1, 2023:

- Noncurrent financial liabilities = EUR 5,689.9 million
- Current financial liabilities = EUR 650.1 million
- Noncurrent lease liabilities = EUR 55.1 million
- Current lease liabilities = EUR 21.3 million

Total debt including leases:

\[
Reported\ debt = 5{,}689.9 + 650.1 + 55.1 + 21.3 = 6{,}416.4 \text{ million}
\]

Pension deficit / employee benefit liabilities:

- Noncurrent provisions for employee benefits = EUR 92.0 million

Other long-term provisions are not clearly debt-like from the data, so they are not included.

Gross adjusted debt before cash:

\[
Gross\ adjusted\ debt = 6{,}416.4 + 92.0 = 6{,}508.4 \text{ million}
\]

Eligible cash:

- Cash and cash equivalents = EUR 1,942.4 million

Using the baseline instruction to subtract eligible cash:

\[
Adjusted\ Debt = 6{,}508.4 - 1{,}942.4 = 4{,}566.0 \text{ million}
\]

Step 5 — Calculate FFO / Adjusted Debt

\[
FFO / Adjusted\ Debt = 907.0 / 4{,}566.0 = 0.19864
\]

Rounded to four decimals:

<answer>0.1986</answer>