I'll work through this step-by-step for ENI S.P.A.

## Step 1: Identify the Relevant Industry

ENI S.P.A. is a major integrated oil and gas company. The relevant industry methodology is **Oil and Gas Exploration and Production** (integrated). ENI has upstream (E&P), midstream, and downstream operations, plus gas & power trading.

## Step 2: Estimate Adjusted Debt

**Reported Debt (as of Dec 31, 2022 = 2023-01-01 balance sheet):**
- Short-term borrowings: €4,446M
- Current portion of long-term borrowings: €3,097M
- Long-term borrowings: €19,374M
- **Total reported debt: €26,917M**

**Lease Liabilities:**
- Current lease liabilities: €884M
- Non-current lease liabilities: €4,067M
- **Total lease liabilities: €4,951M**

**Pension Deficit:**
- Non-current provisions for employee benefits: €786M
- S&P typically treats underfunded pension obligations as debt-like. I'll use the full €786M as a proxy for the pension deficit.

**Hybrid Debt (Perpetual Subordinated Bonds):**
From the equity movements, we can see ENI has issued perpetual subordinated bonds classified as equity. Looking at "Other Reserves," which includes hybrid instruments:
- In FY2020, €3,000M was issued
- In FY2021, €2,000M was issued (net)
- S&P typically treats hybrid instruments with 50% equity / 50% debt credit for investment-grade issuers.
- Total hybrid instruments ≈ €5,000M (approximate from equity statement flows)
- Debt portion (50%): €2,500M

**Eligible Cash:**
- Cash and cash equivalents: €10,155M
- S&P typically allows netting of surplus cash. For large integrated oil companies, S&P may not net all cash. However, a common approach is to deduct a portion. I'll assume S&P nets most of the readily available cash but keeps some operating cash (roughly €1B operating minimum).
- Eligible cash: ~€10,155M - €1,000M = €9,155M

**Adjusted Debt Calculation:**
Adjusted_Debt = 26,917 + 4,951 + 786 + 2,500 - 9,155
Adjusted_Debt = **€25,999M**

## Step 3: Estimate Adjusted EBITDA

**Reconstructing EBITDA from the income statement (FY2022 = 2022-01-01 to 2023-01-01):**

Operating Profit (EBIT): €17,510M
+ Depreciation & Amortization: €7,205M
+ Impairment losses: €1,140M
+ Write-offs: €599M

**Reported EBITDA (before adjustments):** 17,510 + 7,205 = €24,715M

For S&P Adjusted EBITDA:
- Include impairments/write-offs in add-back only if non-recurring. S&P typically includes D&A but treats large impairments as non-recurring. However, for the baseline EBITDA, we use operating profit + D&A.
- **EBITDA = €24,715M**

**Lease adjustments:**
- S&P adds back the lease depreciation component (included in D&A already) and interest. The lease interest is part of finance costs. Lease payments from cash flow: €994M. S&P reclassifies operating lease rent as depreciation + interest. Since leases are already capitalized under IFRS 16, the D&A and interest are already in the figures. No further adjustment needed as IFRS 16 already capitalizes leases.

**Pension adjustments:**
- S&P adjusts for pension service cost vs. cash contributions. The difference is typically small. I'll assume minimal net impact.

**Hybrid coupon add-back:**
- Coupon on perpetual bonds (€138M) was charged to equity, so it's not in EBITDA. S&P treats 50% as interest (debt-like), no EBITDA adjustment needed since it wasn't deducted.

**Adjusted_EBITDA ≈ €24,715M**

## Step 4: Calculate the Ratio

Adjusted_Debt / Adjusted_EBITDA = 25,999 / 24,715 = **1.05**

<answer>1.05</answer>