# S&P Adjusted Debt-to-EBITDA Calculation for BOUYGUES

## Step 1: Identify the Relevant Industry

Based on the facts provided, BOUYGUES is a French diversified construction and services company operating across:
- Construction and civil works
- Real estate
- Telecom (Bouygues Telecom)
- Media (TF1)

This is a **diversified industrials/conglomerates company**, not fitting neatly into the specialized industry methodologies (utilities, oil & gas, power, or transportation). Therefore, I will apply the **general corporate baseline methodology**.

## Step 2: Estimate Adjusted_Debt

### Starting from the Balance Sheet (as of 2022-01-01):

**Reported Debt Components:**
- Long-term borrowings: EUR 5,805 million
- Current borrowings and current portion of noncurrent borrowings: EUR 1,324 million
- Current overdrafts and short-term borrowings from banks: EUR 351 million

**Total Reported Gross Debt** = 5,805 + 1,324 + 351 = **EUR 7,480 million**

**Lease Liabilities (Operating leases treated as debt):**
- Noncurrent lease liabilities: EUR 1,473 million
- Current lease liabilities: EUR 362 million

**Total Lease Liabilities** = 1,473 + 362 = **EUR 1,835 million**

**Cash and Cash Equivalents (eligible deduction):**
- Cash and cash equivalents: EUR 6,501 million

**Other Adjustments:**
- No significant pension deficits, guarantees, or hybrid debt disclosed
- Hedging instruments are minimal (EUR 9 million liabilities)

### Adjusted_Debt Calculation:

```
Adjusted_Debt = Reported_Gross_Debt + Leases - Eligible_Cash
Adjusted_Debt = 7,480 + 1,835 - 6,501
Adjusted_Debt = EUR 2,814 million
```

## Step 3: Estimate Adjusted_EBITDA

### Starting from the Income Statement (year ended 2022-01-01 to 2023-01-01):

**Operating Income (EBIT):**
- Profit/Loss from Operating Activities: EUR 1,872 million

**Add: Depreciation & Amortization:**
- Depreciation and Amortisation Expense: EUR 2,228 million
- Depreciation of Right-of-Use Assets: EUR 446 million

**Total D&A** = 2,228 + 446 = **EUR 2,674 million**

**Reported EBITDA** = Operating Income + D&A
```
Reported EBITDA = 1,872 + 2,674 = EUR 4,546 million
```

**Adjustments for Non-Recurring Items:**

From the income statement:
- Other operating income (non-recurring): EUR 93 million
- Other operating expense (non-recurring): EUR 183 million
- Impairment loss/reversal: EUR 172 million (appears to be net charge in operating expenses)

**Non-Recurring Net Expense** = 183 - 93 = EUR 90 million (add back to normalize)

**Adjustments for Lease Normalizations:**
Following S&P methodology for corporate entities with significant lease obligations, an adjustment is typically made, but for simplicity and given the lease treatment in debt, we use the reported EBITDA which includes the operating benefit of leases.

### Adjusted_EBITDA Calculation:

```
Adjusted_EBITDA = Reported_EBITDA + Non-Recurring_Adjustments
Adjusted_EBITDA = 4,546 + 90
Adjusted_EBITDA = EUR 4,636 million
```

## Step 4: Calculate the Adjusted Debt-to-EBITDA Ratio

```
Adjusted_Debt_to_EBITDA = Adjusted_Debt / Adjusted_EBITDA
Adjusted_Debt_to_EBITDA = 2,814 / 4,636
Adjusted_Debt_to_EBITDA = 0.607
```

Rounded to two decimal places: **0.61x**

<answer>0.61</answer>